Premium volume tells you how big a company's book is. Earnings tell you how well it's being run. The relationship between the two - how efficiently each premium dollar is converted into profit - is the central question for any investor trying to distinguish genuine underwriting strength from scale for its own sake. But that comparison only holds when premiums are actually the business. For companies that earn most of their revenue from pharmacy benefits, investment products, or annuities, the net-earnings-to-premium ratio measures something else entirely.
This analysis uses five years of reported figures - 2021 through 2025 - across major US-listed insurers. Companies are first segmented by how premium-driven their revenue structure is, and then compared only within their own group. All figures are as reported in company financial statements. No adjustments have been applied.
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METHODOLOGY Three profitability metrics are tracked throughout this analysis: (1) Net margin on total revenue — net earnings ÷ total revenue, as stored in the source data. (2) Net earnings ÷ premiums earned; and (3) EBIT ÷ premiums earned — both computed from reported figures. Companies are grouped by premiums as % of total revenue in FY2025: High ≥85% (pure writers), Mid 50–85% (mixed), Low <50% (non-premium driven). Net/premium comparisons are shown only for High and Mid groups. |
Chart 1 of 5 · Net Earnings as % of Total Revenue, FY2025
Ranked highest to lowest within each tier. Blue = ≥85% premium share (pure writers). Teal = 50–85% (mixed). Amber = <50% (non-premium driven). Red bars = negative margin.
Source: Company financial statements, FY2025. Net earnings ÷ total revenue.
For this group, net earnings and EBIT can be fairly compared against premiums earned. The variation within the tier is real and substantial. NMI Holdings converted 64.6% of its $602 million in premiums into net earnings in 2025 — a rate maintained consistently since 2021 (51.9%, 61.4%, 63.1%, 63.8%, 64.6%). Humana — where premiums represent 94.7% of revenue — saw its net/premium ratio fall from 3.7% in 2021 to 1.0% in 2025, while premiums grew from $79.8 billion to $122.8 billion and diluted EPS fell from $22.67 to $9.84. Progressive tells the contrasting story: net/premium rose from 7.5 to 13.9% while premiums grew from $44.4 billion to $81.7 billion. EPS rose from $5.66 to $19.23.
Enact Holdings maintained a net/premium ratio above 56% every year since 2021. Cincinnati Financial's ratio swung from 45.8% in 2021 to -6.7% in 2022 — a year when unrealized investment losses pushed net earnings negative — then recovered to 24.0% in 2025, illustrating why a single-year view can mislead. Kinsale Capital's net/premium ratio rose from 26.2% in 2021 to 32.0% in 2025 while premiums nearly tripled — a genuinely rare combination. For Primerica, where premiums are only 54.2% of total revenue, the net/premium ratio of 42.1% in 2025 is influenced by non-premium income and should not be compared directly against pure writers in Tier 1.
For Cigna, premiums represent 14.6 to 23.6% of total revenue across 2021–2025, the remainder being pharmacy benefits management income. Net margin on total revenue — ranging from 1.4 to 3.7% — is the appropriate measure. Jackson Financial's premium share never exceeded 4.7%; its earnings are driven by annuity spread income entirely unrelated to the premium line. Net/premium ratios for this tier are not shown.
Chart 2 of 5 · Tier 1 — ≥85% Premium Share
Selected to represent the clearest contrasts: a consistent leader (NMI Holdings), a growth compounder (Progressive), a cyclical recoverer (Allstate), a dramatic improver (HCI Group), and a declining giant (Humana).
Source: Company financial statements, FY2021–2025. Net earnings ÷ premiums earned.
Chart 3 of 5 · Tier 2 — 50–85% Premium Share
Enact Holdings and Radian Group show mortgage insurance economics. Cincinnati Financial's 2022 dip reflects investment mark-to-market losses, not underwriting. Primerica improves to 42.1%. Elevance Health declines steadily.
Source: Company financial statements, FY2021–2025. Net earnings ÷ premiums earned. Non-premium income materially influences Tier 2 figures.
Chart 4 of 5 · Diluted EPS, 2021–2025
Allstate swings from $4.96 to −$5.14 to $38.06. Progressive compounds from $5.66 to $19.23. Kinsale Capital grows from $6.62 to $21.65. Humana falls from $22.67 to $9.84 as premiums grew 54%. Elevance Health is essentially flat at $24.73 → $25.21 despite 40% premium growth.
Source: Company financial statements, FY2021–2025. Diluted EPS as reported.
Chart 5 of 5 · Full Historical Scorecard
Net/Rev = net earnings ÷ total revenue. Net/Prem = net earnings ÷ premiums earned (computed). Sorted by 2025 Net/Rev within each tier. "—" where not reported or not applicable. Color: blue ≥30%, teal 12–30%, black 0–12%, red negative.
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Company |
2021 |
2022 |
2023 |
2024 |
2025 |
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|
Net/Rev |
Net/Prem |
EPS |
Net/Rev |
Net/Prem |
EPS |
Net/Rev |
Net/Prem |
EPS |
Net/Rev |
Net/Prem |
EPS |
Net/Rev |
Net/Prem |
EPS |
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≥85% PREMIUM SHARE — PURE WRITERS Net/Prem shown — premiums are dominant revenue source. |
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NMI Holdings |
47.5% |
51.9% |
$2.65 |
55.6% |
61.4% |
$3.39 |
55.6% |
63.1% |
$3.84 |
55.3% |
63.8% |
$4.43 |
55.1% |
64.6% |
$4.92 |
|
HCI Group |
0.5% |
0.5% |
$0.21 |
-11.2% |
-11.9% |
$-6.24 |
15.3% |
17.0% |
$7.62 |
15.0% |
16.6% |
$8.89 |
32.5% |
35.6% |
— |
|
Palomar Holdings |
18.5% |
19.6% |
$1.76 |
15.9% |
16.5% |
$2.02 |
21.1% |
22.9% |
$3.13 |
21.2% |
23.0% |
$4.48 |
22.5% |
24.6% |
$7.17 |
|
RLI Corp. |
23.6% |
28.5% |
$3.06 |
34.4% |
51.0% |
$6.37 |
20.2% |
23.5% |
$3.31 |
19.5% |
22.7% |
— |
21.4% |
25.0% |
$4.37 |
|
Allstate |
3.0% |
3.4% |
$4.96 |
-2.7% |
-2.9% |
$-5.14 |
-0.6% |
-0.6% |
$-1.20 |
7.1% |
7.8% |
$16.99 |
15.2% |
16.5% |
$38.06 |
|
The Hartford |
10.9% |
13.1% |
$1.47 |
8.2% |
9.3% |
$5.44 |
10.2% |
11.8% |
$7.97 |
11.7% |
13.7% |
$10.35 |
13.6% |
15.9% |
$13.32 |
|
Progressive |
7.0% |
7.5% |
$5.66 |
1.4% |
1.4% |
$1.18 |
6.2% |
6.6% |
$6.58 |
11.2% |
12.0% |
$14.40 |
12.9% |
13.9% |
$19.23 |
|
10.4% |
11.8% |
$14.49 |
7.6% |
8.4% |
$11.77 |
7.2% |
7.9% |
$12.79 |
10.7% |
11.8% |
$21.47 |
12.8% |
14.2% |
$27.43 |
|
|
W.R. Berkley |
10.8% |
12.6% |
$2.44 |
12.3% |
14.4% |
$3.29 |
11.4% |
13.3% |
$3.37 |
12.8% |
15.2% |
— |
12.2% |
14.3% |
$4.45 |
|
Hanover Insurance |
8.2% |
8.9% |
$11.49 |
2.1% |
2.2% |
$3.21 |
0.6% |
0.6% |
$0.98 |
6.9% |
7.2% |
$11.70 |
10.1% |
10.8% |
$18.16 |
|
Mercury General |
6.2% |
6.6% |
$4.48 |
-14.1% |
-13.0% |
$-9.26 |
2.1% |
2.3% |
$1.74 |
8.5% |
9.2% |
$8.45 |
9.0% |
9.8% |
$9.77 |
|
Kemper |
-2.2% |
-2.4% |
$-1.87 |
-5.3% |
-5.5% |
$-4.72 |
-5.5% |
-6.0% |
$-4.25 |
6.9% |
7.5% |
— |
3.0% |
3.3% |
$2.29 |
|
Humana |
3.5% |
3.7% |
$22.67 |
3.0% |
3.2% |
$22.08 |
2.3% |
2.5% |
$20.00 |
1.0% |
1.1% |
$9.98 |
0.9% |
1.0% |
$9.84 |
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Oscar Health |
-29.8% |
-31.3% |
$-3.20 |
-14.7% |
-15.7% |
$-2.85 |
-4.6% |
-4.8% |
$-1.22 |
0.3% |
0.3% |
— |
-3.8% |
-3.9% |
$-1.69 |
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50–85% PREMIUM SHARE — MIXED REVENUE Net/Prem influenced by non-premium income (investment, fees, services). |
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Enact Holdings |
48.8% |
56.1% |
$3.36 |
64.3% |
75.0% |
$4.31 |
57.7% |
69.5% |
$4.11 |
57.1% |
70.2% |
$4.37 |
54.6% |
68.8% |
$4.52 |
|
Radian Group |
45.2% |
57.9% |
$3.16 |
62.4% |
75.7% |
$4.35 |
48.6% |
65.6% |
$3.77 |
46.8% |
63.5% |
$3.92 |
48.7% |
61.9% |
$4.14 |
|
Kinsale Capital |
23.4% |
26.2% |
$6.62 |
19.0% |
20.0% |
$6.88 |
25.2% |
28.7% |
$13.22 |
26.1% |
30.7% |
$17.78 |
26.9% |
32.0% |
$21.65 |
|
Primerica |
17.5% |
31.6% |
$11.99 |
17.8% |
29.5% |
$12.33 |
21.0% |
34.7% |
$15.94 |
15.2% |
27.2% |
$13.71 |
22.8% |
42.1% |
$22.91 |
|
Globe Life |
20.1% |
25.2% |
$7.22 |
17.1% |
20.8% |
$7.47 |
17.8% |
21.8% |
$10.07 |
18.5% |
23.0% |
$11.94 |
19.4% |
23.7% |
$14.07 |
|
Cincinnati Fin. |
30.8% |
45.8% |
$18.10 |
-7.4% |
-6.7% |
$-3.06 |
18.4% |
23.2% |
$11.66 |
20.2% |
25.8% |
$14.53 |
18.9% |
24.0% |
$15.17 |
|
Markel Group |
18.8% |
37.4% |
$176.51 |
-2.7% |
-4.3% |
$-23.72 |
12.5% |
23.7% |
$146.98 |
15.5% |
30.8% |
$199.32 |
13.1% |
24.6% |
$169.22 |
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Unum |
8.3% |
10.4% |
$4.02 |
11.9% |
14.6% |
$6.50 |
10.4% |
12.8% |
$6.50 |
13.9% |
17.0% |
$9.46 |
5.7% |
6.8% |
$4.27 |
|
10.5% |
16.2% |
$7.70 |
7.5% |
10.5% |
$2.91 |
2.1% |
3.1% |
$1.81 |
6.0% |
9.4% |
$5.94 |
4.2% |
6.4% |
$4.84 |
|
|
Elevance Health |
4.4% |
5.2% |
$24.73 |
3.8% |
4.4% |
$24.81 |
3.5% |
4.2% |
$25.22 |
3.4% |
4.2% |
$25.68 |
2.8% |
3.4% |
$25.21 |
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<50% PREMIUM SHARE — NON-PREMIUM DRIVEN Net/Prem not shown — ratios are not analytically meaningful at this premium concentration. |
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Brighthouse Fin. |
43.4% |
— |
$-2.53 |
56.9% |
— |
$51.30 |
-30.7% |
— |
$-18.77 |
6.6% |
— |
$4.64 |
5.2% |
— |
$5.71 |
|
Cigna |
3.1% |
— |
$15.75 |
3.7% |
— |
$21.30 |
2.6% |
— |
$17.39 |
1.4% |
— |
$12.12 |
2.2% |
— |
$22.18 |
|
Jackson Financial |
62.1% |
— |
$36.17 |
63.6% |
— |
$69.75 |
28.4% |
— |
$10.76 |
29.2% |
— |
— |
-0.3% |
— |
$-0.24 |
Source: Company financial statements, FY2021–2025. Net/Prem omitted for Low tier — ratios not analytically meaningful at low premium concentration.
The historical view does three things the 2025 snapshot cannot. First, it distinguishes cyclical swings from structural performance. Allstate's negative net/premium ratios in 2022 and 2023 were not a sign of a broken business - they were auto insurance loss years followed by a recovery to 16.5% in 2025. Cincinnati Financial's negative 2022 reflected unrealized investment losses, not underwriting failure. Single-year data would misclassify both.
Second, the trend reveals which companies improved efficiency as they scaled, and which did not. Progressive improved its net/premium ratio from 7.5 to 13.9% while nearly doubling its premium base - genuine growth paired with improving economics. Humana grew premiums by 53.9% while its net/premium ratio fell from 3.7 to 1.0% and EPS fell from $22.67 to $9.84.
Third, it confirms that the tier segmentation holds over time. Top converters in the High tier - NMI Holdings, Palomar, Kinsale Capital - maintain their relative positions across multiple years. The rankings reflect differences in business model, line of business, and cost structure that persist through the cycle.
