Texas Surplus Lines Premiums Hit $702.3M in October

SLTX recorded $702.3M in Texas surplus lines premium during October, totaling $7.59B year-to-date, a 14.7% increase in YTD premiums compared to the same period in 2020. This results in an 11.6% ($73M) increase over October 2020, making it the highest recorded October and the 14th largest premium in SLTX’s 33-year history.

Several lines of business demonstrated significant increases when compared to October 2020. The most notable growth, Excess / Umbrella, rose $17.9M (14.6%). Additionally, Commercial General Liability and Contingency Liability (new and historical codes) coverages recorded growth, up $14.1M (15.8%) and $10.6M (233.6%) respectively.

October 2021 also showed a 4.5% decrease in overall transactions filed (82,258) over the same period in 2020, resulting in a YTD decrease of 0.3%. This same period reflected an 8.3% decrease in policies filed (53,408), a 3.0% decrease YTD.

56.0% of premium reported this month is attributed to renewal policies, accounting for 37.6% of items reported.  38.8% (and 27.3% of items) reported is related to new business, and 5.2% (and 35.1% of items) is a result of non-policy transactions such as endorsements, cancellations, audits, installments, etc.

Texas surplus lines premiums will continue to trend with the existing hard-market conditions throughout the year, including results of changes to diligent effort requirements (TX87 SB1367). SLTX will continue monitoring the Texas surplus lines market and share additional data and analysis as it is recorded or completed.