$747.99M in Texas Surplus Lines Premiums Reported in April

SLTX recorded $747.99M in premium, the 5th highest premium in SLTX history, and a 0.8% increase over April 2020. Cumulatively, this represents a total of $2.75B year-to-date, a 14.2% increase when compared to the same period in 2020.

Several lines of business demonstrated notable increases over April 2020, with the largest increase being attributed to Property Package (residential, commercial, and historical codes), which rose almost $27M (or 131.8%). Due to SLTX’s recategorization of coverage codes in the beginning of the year, some of this increase is likely attributed to the decrease in Homeowners coverage. The second-highest premium increase is associated with Allied Lines coverage (residential, commercial, and historical codes), which gained $13M (or 135.4%). Please note that these calculations are for a single-month period and do not necessarily indicate a market trend.

For the second consecutive month, the overall number of transactions filed (93,949) increased (3.4%) over the same period in 2020. These increases can be seen in the number of policies filed as well, with a 0.6% increase in policies filed (62,618) in April 2021 over April 2020. Year-to-date, 223,204 policies have been filed, which culminates in a 5.3% decrease in the number of policies filed YTD and ultimately resulted in a 2.7% decrease in the overall transactions filed YTD.

Continuing with the YTD trend, the majority of the premium reported in April can be attributed to renewal policies (61%). Secondarily, 34% of premium reported is related to new business, and the remaining 5% is a result of non-policy transactions such as endorsements, cancellations, audits, installments, etc.

SLTX expects Texas surplus lines premiums to continue to trend with the existing hard-market conditions during the upcoming summer renewal cycle. SLTX will continue to monitor the Texas surplus lines market, as well as the national market, and share additional data as it is recorded.