SLTX Records $767.1M in Texas Surplus Lines Premiums for August

SLTX recorded $767.1M in Texas surplus lines premium during the month of August, totaling $6.18B year-to-date. This results in a 6.9% (or $49M) increase and a 14.9% increase in YTD premiums compared to the same period in 2020, making it the highest recorded August for SLTX and the 7th largest premium in SLTX’s 33-year history.

Several lines of business demonstrated significant increases when compared to August 2020. The most notable growth was Property Multi-Peril / Package (residential, commercial, and historical codes) coverage, which rose $21.7M (or 113.9%). Additionally, Commercial General Liability and Allied Lines (residential, commercial, and historical codes) coverages recorded growth, up $20.9M (or 25.4%) and $11.2M (or 181.1%) respectively.

August 2021also showed a 3.5% decrease in the overall number of transactions filed (90,984) over the same period in 2020, resulting in a 0.7% decrease in transactions filed YTD. This same period also reflected a 7.7% decrease in policies filed (58,878), resulting in a 3.2% decrease YTD.

As with prior months, 56.8% of premium reported this month is attributed to renewal policies, which accounted for 37.1% of the items reported. Additionally, 38.7% of premium (and 27.6% of the items) reported is related to new business, and the remaining 4.5% of the premium (and 35.3% of the 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 into the fall, including results of the changes to the diligent effort requirements (TX87 SB1367). SLTX will continue monitoring the Texas surplus lines market and share additional data as it is recorded, or analysis is completed.