In their latest report on the U.S. auto insurance market, analysts from S&P Global Market Intelligence predict the strongest overall U.S. property/casualty insurance u
nderwriting results in 18 years for 2025, driven by favorable private passenger auto outcomes.
Still, while their 2025 projected combined ratio across all lines is now 96.2, three points better tha
n a midyear projection of 99.2 estimated for the year in August, “success is anticipated to be temporary due to various market dynamics and challenges,” S&P GMI said in a December media statement.
The media statement announced the publication of the firm’s 2025 U.S. Auto Insurance Market Report, which stresses the significant weight that auto insurance has on overall P/C insurance industry results.
Together, S&P GMI estimates that private and commercial auto insurance will account for 41.1% of total U.S. P/C direct premiums written in 2025 when final res
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ults are tallied—slipping down slightly from a five-year high of 41.2% achieved in 2024, reflecting the impact of competition emerging in the private auto market.
S&P GMI projects a 94.5 2025 combined ratio for auto insurance (personal and commercial toge
ther), driving the all-lines P/C combined ratio down to 96.2, compared to 96.5 in 2024. This marks the first sub-97 results in successive years since 2006-2007, according to the media statement.