Texas Surplus Lines Premiums Reach all-time high of $947.48M

SLTX recorded another record-breaking month with $947.48M in premium reported in June, with a total of $4.58B year-to-date. This results in a 24.5% (or $186M) increase in premiums over June 2020, and a 16.2% increase in YTD premiums when compared to the same period in 2020. Continuing the YTD trend, 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 almost $92M (or 30.2%). Additionally, Excess / Umbrella and Commercial General Liability (including new codes that were historically combined) coverages also recorded growth, up $29M (or 22.3%) and $19.2M (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.

Continuing with the YTD trend, 62.9% of premium reported this month is attributed to renewal policies, yet they accounted for only 36.6% of the items reported. Additionally, 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.

The observed YTD premiums reported through June are within the range of likely outcomes captured by SLTX’s calculated projected premiums.

While the June data may not necessarily indicate a market trend, SLTX expects Texas surplus lines premiums to continue trending with the existing hard-market conditions during the remainder of the summer renewal cycle. SLTX will continue monitoring the Texas surplus lines market, as well as the national market, and share additional data as it is recorded.