Farm Bureau Insurers Post Underwriting Profit in 2025
Property and casualty farm bureau insurers saw a return to profitability in 2025 following a five-year period of losses.
Updated on Oct. 21, 2026 in Insurance
Live Poll
Do you trust that insurance companies are managing their financial risks responsibly?
Property and casualty farm bureau insurers achieved $2.9 billion in underwriting income in 2025, marking their first annual profit since 2020. This financial turnaround reflects improved performance across the sector throughout the year.
Why it matters
The return to profitability was driven by rate strengthening and softened reinsurance pricing, alongside a period of less severe weather. Previous years were heavily impacted by weather events that affected these carriers due to their concentrated single-state operations.
Property and casualty bureaus recorded nearly $1 billion in gains during the first half of 2026. Meanwhile, life and annuity capital and surplus grew to $8.5 billion in 2025, up from $5.3 billion in 2015.
The details
The sector's growth was further bolstered by life and annuity providers, which maintained conservative investment portfolios and increased their ordinary life premium share to 78% in 2025, compared to 68% in 2016.
Timeline
In 2015, life and annuity capital and surplus totaled $5.3 billion.
In 2016, ordinary life premiums made up 68% of the business mix.
The year 2020 marked the last full-year underwriting gain prior to 2025.
Property and casualty carriers achieved underwriting profitability in 2025.
Property and casualty bureaus recorded a $1 billion gain during the first half of 2026.
Market Dynamics
This rebound reflects a wider trend in the insurance sector where firms are balancing rate adjustments against the volatility of climate-related risks. The recovery from the 2020 industry underwriting losses highlights how insurers are successfully navigating changing reinsurance costs and regional risk exposures.
The stabilization of underwriting income may influence long-term stability and premium rate adjustments for policyholders across the country. Investors in these segments should note the shift in business mix toward ordinary life products as a signal of strategic capital allocation.
The takeaway
The return to profitability demonstrates the effectiveness of recent rate adjustments and conservative investment strategies within the farm bureau sector. Maintaining this positive trajectory will likely depend on managing geographic risk concentration against future severe weather events.
Further reading
For more on the financial health of the sector, explore the Insurance section.
Live Poll
Do you trust that insurance companies are managing their financial risks responsibly?
