AM Best-rated US captive insurance companies outperformed the commercial market and generated an estimated $8.2 billion in savings for their organisations over the past five years, according to a new market report. The captive market continues to exhibit sustained growth through new formations and expansion into new coverage lines, even as more affordable capacity emerges in the traditional commercial segment. AM Best views captives as increasingly regarded as long-term strategic risk-financing mechanisms. Single-parent captives provide customised coverage that fits specific company needs, making them about finding long-term solutions rather than just price considerations, said Sharon Marks, director at AM Best. Net premium written for AM Best-rated captives increased 7% at year-end 2025, with a five-year increase of 65.5%. AM Best rates over 220 captive companies globally.

AM Best has launched a new subscription for its Best's Capital Adequacy Ratio (BCAR) Model product, offering access to a capital model specifically for life insurers in the United States. The new Best's Capital Adequacy Ratio Model – Life, US joins the company's existing P/C model for US property and casualty insurers, as well as a global version for international markets. The models are available through AM Best's recently launched online platform. The BCAR Model products allow users to evaluate an insurer's capitalisation and risk profile using methodology consistent with AM Best analysts' approach. The tool helps customers assess risk-adjusted capitalisation levels under changing conditions and captures the combined impact of financial risks associated with adverse market conditions.

The US property/casualty insurance industry achieved its strongest performance in a decade during 2025, driven by improved underwriting and pricing, according to an AM Best report. The sector generated $84 billion in underwriting gains over 2024-2025, reversing $51 billion in losses from 2021-2023. Personal lines underwriting profit nearly quadrupled to over $45 billion in 2025, whilst commercial lines profit more than doubled to over $19 billion. Private passenger auto insurers saw particularly notable improvements, with combined ratios falling well below 100 in 2024-2025 after exceeding that threshold for three consecutive years. The turnaround was aided by significant rate momentum and the adoption of technology and data analytics for underwriting, claims handling and ratemaking. However, casualty lines including commercial auto liability remain pressured by adverse development and elevated claims severity.