The property & casualty insurance industry saw profitability averages around 7% for the period spanning 2014-2019, according to AdvisorSmith Solutions, Inc., which noted in the final year of review the industry saw approximately $687.5 billion in direct written premiums. However, the profitability on a per-line basis swings pretty wildly, from a low of 1% of net worth to a high of slightly more than 30%. While not figured into this ranking, the P&C industry saw overall profitability grow in 2020, according to AM Best. Additionally, commercial rates were up around 7% during the first quarter. Similarly, profitability can be affected by where the premiums are written, AdvisorSmith reported. States with small populations and small insurance markets were among the most profitable as both factors combine to limit the number of competitors willing to offer products in those markets, resulting in higher pricing and profitability. On average, Vermont offered insurers the highest returns at 17.7%, followed by Hawaii, Alaska, North Dakota and New Hampshire. With an average of just 0.2%, Colorado was the least profitable state, with Montana, Nevada, Georgia and Texas following. AdvisorSmith explained that smaller states that were less profitable tended to see higher loss ratios. AdvisorSmith determined profitability based on the relative net worth of each company. The above slideshow highlights the 10 most profitable P&C insurance lines. Related: |

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