Direct Answer
33 SEC filers are classified under the Standard Industrial Classification code that describes the homeowners insurance industry, and their latest annual reports show $694.8 billion of combined revenue and a median operating margin of 13.6%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Homeowners insurers cover houses against fire, storm and theft and liability, and earn premiums minus claims. Catastrophe exposure, rising rebuilding costs and reinsurance prices make results volatile. The first numbers to compare across companies here are combined ratio, premium growth and rate change and catastrophe losses.
Key Industry Metrics
- Combined ratio: Claims plus expenses as a share of premiums. Weather events can push it up sharply, so look at multi-year averages.
- Premium growth and rate change: Increase in premiums collected and the average price change on renewals. Rate increases are needed to match rebuilding costs and storm risk.
- Catastrophe losses: Losses from hurricanes, wildfires, hail and other disasters. They drive volatility, so compare results with and without them.
- Reinsurance cost: Price of insurance bought by the insurer to cap its own losses. Rising costs squeeze margins unless passed on to policyholders.
- Policies in force: Number of active contracts. Regulatory limits and nonrenewals in risky areas can shrink it even when prices rise.
Primary Macro Drivers
- Catastrophe frequency and weather: Storms, wildfires and floods drive claims, so event frequency and severity move catastrophe losses and the combined ratio.
- Construction and repair costs: Prices of lumber, labor and materials set what rebuilding costs, so higher costs raise claim size and require higher insured values.
- Rate approvals: Premium increases must often be approved, so approval speed and size decide if prices keep up with claims, shown in rate change.
- Reinsurance renewals: Reinsurers reset prices each year, which changes the carrier's cost of protecting against large events, shown in reinsurance cost.
Major Risks
- Catastrophe losses: A bad storm season can wipe out underwriting profit and capital for a concentrated carrier. Watch catastrophe losses and exposure by region.
- Regulatory rate caps: Limits on rate increases leave prices below costs in high-risk areas. Watch rate change, filings and the combined ratio.
- Reinsurance cost and availability: If reinsurance gets pricier or limited, the carrier must keep more risk or cut coverage. Watch reinsurance cost, renewal terms and policies in force.
- Climate risk: Changes in weather patterns and exposed development raise loss expectations over time. Watch catastrophe losses and models used for pricing.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Homeowners Insurance Filers in the SEC Record
33 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6331. Their latest fiscal years end in 2025, and together they reported $694.8 billion of revenue. Median revenue growth over the prior year was 6.3%. Median operating margin was 13.6% and median net margin 12.9%. Median total liabilities were 75% of total assets, and 30 of 33 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Berkshire Hathaway Inc | $371.4 billion | 0.0% | n/a | 18.0% | FY 2025 |
| Allstate Corp | $67.7 billion | 5.6% | n/a | 15.0% | FY 2025 |
| Travelers Companies, Inc. | $48.8 billion | 5.2% | n/a | 12.9% | FY 2025 |
| Hartford Insurance Group, Inc. | $28.4 billion | 6.9% | n/a | 13.5% | FY 2025 |
| American International Group, Inc. | $26.8 billion | -1.7% | n/a | 11.6% | FY 2025 |
| Arch Capital Group Ltd. | $19.9 billion | 14.3% | n/a | 22.1% | FY 2025 |
| Loews Corp | $18.5 billion | 5.4% | n/a | 9.0% | FY 2025 |
| Everest Group, Ltd. | $17.5 billion | 1.2% | n/a | 9.1% | FY 2025 |
The 8 largest of 33 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Homeowners Insurance guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Homeowners Insurance industry?
Key performance indicators for the Homeowners Insurance industry include: Combined ratio, Premium growth and rate change, Catastrophe losses, Reinsurance cost, Policies in force. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Homeowners Insurance industry?
The Homeowners Insurance industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Homeowners Insurance industry?
The primary risks for Homeowners Insurance companies include: Catastrophe losses, Regulatory rate caps, Reinsurance cost and availability, Climate risk. Investors should assess each company's exposure to these factors and its track record of navigating them.