U.S. E&S Premiums Continue Growth in 2022: S&P

By | November 30, 2022
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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.

Topics USA Trends Excess Surplus Pricing Trends

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