Texas surplus lines premium up 14.9% in 2021 to record $9.1bn in E&S market boom

The Surplus Lines Stamping Office of Texas (SLTX) recorded a record-breaking $9.10bn of premium last year, up 14.9 percent compared to 2020, with the nearly $830mn in premium during December the fifth largest monthly total in the office’s 33-year history.

The full-year figure of $9.10bn was up from $7.92bn in 2020. The 14.9 percent increase in premium in 2021 compared to 2020’s premiums representing a 13.8 percent increase over 2019’s figure of $6.96bn.

The data demonstrates the surge of business into the E&S market through the wholesale channel with momentum expected to remain strong through 2022.

According to company data provided on the SLTX website, Lloyd’s underwriters wrote the largest amount of premium in 2021 with $1.78bn.

It was followed by AIG’s National Fire & Marine with $300.7mn, Markel’s Evanston Insurance with $273.2mn, Nationwide’s Scottsdale Insurance with $271.0mn and Chubb’s $235.4mn.

However, these figures relate to individual companies and do not reflect group-wide figures. For example, AIG’s Lexington was the sixth biggest writer with $231.4mn.

Highest ever December premium figure

The December 2021 premium figure was up 15.3 percent, or $110mn, compared to the same month of 2020 and was the highest recorded December in SLTX history.

Some 52.8 percent of the December 2021 premium reported was attributed to renewal policies, which accounted for 34.5 percent of items reported.

Additionally, 42.1 percent of premium and 28.2 percent of items reported was related to new business, and 5.1 percent of premium and 37.3 percent of items was a result of non-policy transactions such as endorsements, cancellations, audits and installments.

Various lines of business experienced growth over December 2020. Fire/allied Lines coverage (residential, commercial, and historical codes) had the largest dollar amount increase, rising $25.5mn or 13.9 percent. In addition, commercial auto liability was up $24.3mn, or 93.4 percent.

Fire/allied and commercial auto liability accounted for 45 percent of total premium increases in December.

SLTX said Texas surplus lines premiums “will continue to trend with existing hard-market conditions throughout the year”.