Q3 2026 Insurer Scorecard: Who Made Money Underwriting

Third-quarter results from ten property and casualty insurers and reinsurers were published in early November, and put side by side they tell a clearer story than any single report. This PolicyRix Team analysis ranks them by one measure, the combined ratio, adds what each company said about growth and catastrophe losses, and explains what the pattern suggests. All figures come from each company's own third-quarter 2026 results as covered in our earlier stories, and the calculations in this piece are ours. It is an analysis of public information and is not investment or insurance advice.

How to read the scorecard

The combined ratio adds claims and expenses and divides them by premium. Under 100% means the insurer made an underwriting profit, and over 100% means it paid out more than it earned from premiums. We turn each ratio into an underwriting margin by subtracting it from 100, so a combined ratio of 80% becomes a margin of 20 points. This is our own simple conversion for comparison, and it ignores investment income, which is large for insurers.

The ten are not identical businesses. Munich Re and Hannover Re are reinsurers, which insure other insurers. Palomar and Trisura are specialty writers. Mercury General, Safety Insurance, Root and Kemper are mostly car insurers. Intact and Definity are Canadian generalists with large home and auto books. Periods also differ: Hannover Re's figure covers nine months, the others cover the third quarter, and segments differ, so treat the ranking as a guide and not a verdict.

The ranking, best underwriting margin first

Munich Re's property and casualty reinsurance combined ratio was 80%, a margin of 20.0 points, even though it was 62.7% a year earlier. Palomar's was 80.8%, a margin of 19.2 points, and 76.3% on its adjusted basis. Hannover Re's nine-month property and casualty reinsurance ratio was 83.7%, a margin of 16.3 points. Trisura's was 87.5%, a margin of 12.5 points. Mercury General's was 90.2%, a margin of 9.8 points. Intact's group ratio was 94.0%, a margin of 6.0 points. Safety Insurance's was 96.3%, a margin of 3.7 points. Root's net combined ratio was 97.2%, a margin of 2.8 points. Kemper's specialty ratio was 99.2%, a margin of 0.8 points, and 101.7% before reserve releases, which is a negative margin of 1.7 points. Definity's was 100.6%, a negative margin of 0.6 points.

Pattern one: the reinsurers and specialty writers led

The top four are reinsurers and specialty companies. Munich Re's ratio rose sharply from a year earlier because major losses went from EUR 118 million to EUR 646 million, including EUR 300 million from the Colombian El Choco earthquake, yet the margin stayed the widest in the group. Major losses were 14.9% of net insurance revenue, below the 18% the company expected. Hannover Re's large losses of EUR 1,316 million for nine months were well under its budget of EUR 1,786.5 million. Palomar's catastrophe loss ratio was only 1.2%. In this quarter, the companies that carry risk for others, or that choose narrow niches, benefited from a light stretch for large losses, and that can change quickly.

Pattern two: Canadian home insurance took the weather hit

The two Canadian generalists were the weakest on weather. Intact reported about C$660 million of catastrophe losses, and its Canadian personal property combined ratio was 105.0%, with catastrophes adding 33 points. Definity's catastrophe losses were C$190.0 million and added 12.8 points to its group ratio, while its personal property ratio was 112.1% against 83.6% a year earlier, with catastrophes adding 32.6 points. Canadian home insurance in both books lost money on an underwriting basis in the quarter, while Definity's auto and commercial lines ran at about 96% and Intact's group ratio stayed under 100%. For a Canadian homeowner, this is the background to renewal notices that carry higher prices or larger deductibles.

Pattern three: some car insurers improved by shrinking

Four car-focused insurers show a different trade-off. Root's net combined ratio improved from 102.1% to 97.2%, but its gross written premium fell 8%, and the company said it chose to give up some direct-channel growth when expected returns fell below its threshold. Kemper's ratio improved from 104.8% to 99.2%, but specialty earned premium fell from $1,017.3 million to $857.9 million, and personal auto fell from $785.1 million to $599.9 million. Safety Insurance's ratio improved from 98.9% to 96.3%, with net written premiums down 4.2%. Mercury General went the other way, with net premiums earned up 9.6% and a ratio that worsened from 87.0% to 90.2%. The lesson is that a better ratio can come from writing less business, which raises margins now but does not by itself show lasting strength. For drivers, an insurer that is pulling back may offer fewer discounts or tighter acceptance rules.

Pattern four: headline profit and underwriting can disagree

Mercury General reported a net loss of $13.7 million because of realized investment losses of $261.9 million before tax, which the company linked mainly to higher market interest rates. Yet its operating income, which excludes those gains and losses, was $193.3 million, and its combined ratio was still a profit-making 90.2%. Kemper's quarter shows the reverse. It earned $52.4 million, but about $23 million of favorable reserve development, claims set aside in earlier years that turned out to be unneeded, took 2.7 points off its ratio. Headline net income and the underwriting result measure different things, and reading both avoids being misled by either.

What this analysis cannot tell us

One quarter is a snapshot. Catastrophe losses are lumpy, reinsurers report on different calendars, and the segments listed are not identical. We did not weight companies by size, and we did not include investment results, capital levels or guidance, which other measures capture. Readers who need a precise comparison should use the companies' own filings. The ratios here are as reported, and the margin and ranking are our calculations.

What to watch next

Watch fourth-quarter results, which include the heaviest weather and reinsurance renewal season, and rate filings from Canadian home insurers. The ten companies publish their results and presentations on their investor relations websites. This analysis was prepared by the PolicyRix Team from public reporting and is not financial advice.