Texas Surplus Lines Premiums Rise to $947.48M, an All-Time High

Texas set another record in June for the amount of surplus lines premium recorded by the Surplus Lines Stamping Office of Texas (SLTX).

The $947.48 million in premium reported in June brings the year-to-date total to $4.58 billion, SLTX said. June 2021 figures increased 24.5%, or $186 million in premiums, over June 2020. Year-to-date premiums increased by 16.2% increase when compared to the same period in 2020.

June 2021 is now the largest single-month ever reported in SLTX’s 33-year history, exceeding the most recent record — May 2021 — by nearly $63 million.

Various lines of business experienced notable growth over June 2020, with the largest increase being fire/allied Lines coverage (residential, commercial, and historical codes), which rose by almost $92 million, or 30.2%. Additionally, excess/umbrella and commercial general liability (including new codes that were historically combined) coverages also recorded growth, up $29 million (or 22.3%) and $19.2 million (or 19.8%), respectively. Roughly 75% of total premium increases can be attributed to these three coverages.

June 2021 reflected a 2.3% increase in the overall number of transactions filed (95,183) over the same period in 2020, resulting in a total difference of 111 fewer transactions filed YTD. This same period also reflected a 0.4% decrease in policies filed (64,654), resulting in a 2.9% decrease in policies filed YTD.

Renewal policies contributed to 62.9% of premium reported in June is attributed to renewal policies, however, they accounted for only 36.6% of the items reported. Nearly 37% of premium (and 29% of the items) reported is related to new business, and the remaining 0.5% of the premium (and 32% of the items) is a result of non-policy transactions such as endorsements, cancellations, audits, installments, etc.

Source: SLTX

Topics Trends Texas Excess Surplus Pricing Trends