Article

Surety bond writers in the US reported underwriting profits surpassing $2 billion for the third consecutive year in 2024, driven by increased public construction spending from the Infrastructure Investment and Jobs Act. Direct premiums rose nearly 10% in the first nine months of 2025 compared to the previous year.

Although funding from the IIJA is set to decline after September 2026, growth opportunities in sectors like renewables and data centers are emerging. The industry’s direct incurred loss ratio for surety business improved by over four percentage points year-to-date through Q3 2025, with net profit margins exceeding 30% over the past 11 years. Despite this, the surety segment's low premium volume limits its overall impact on the property/casualty industry profit margin.