According to an analysis by S&P Global Market Intelligence, the U.S. excess and surplus market continued to grow in 2022, surging $37.6 billion in premiums during the first six months.
Direct written premiums in the U.S. were up 27.6% (excluding Lloyd’s of London syndicates) over the same period in 2021, said S&P. The U.S. E&S market made up 8.7% of the total property/casualty industry in the first half 2022.
In comparison, the total U.S. P/C market without E&S premiums grew by 8.4% during the same time.
All U.S. underwriters with more than $1 billion in E&S premiums saw an increase in its share of E&S premiums to total direct premiums, with the exception of Markel Corp.
S&P said the analysis was done prior to Berkshire Hathaway’s acquisition of Alleghany. The combined entity’s E&S premiums should account for about 12% of its total through June 30, 2022.
California, Louisiana, Texas, Florida and Hawaii are the states with the largest share of E&S premiums. California recorded about $12.1 billion in E&S premiums in 2021, good for about 12.% of the state’s P/C premiums. S&P said the states homeowners insurance surplus market could grow due to the fact primary insurers have pulled back due to wildfire risk and inadequate rate increases.
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