Texas sees record surplus lines premium in 2020

There was further evidence of the burgeoning E&S market as the Surplus Lines Stamping Office of Texas (SLTX) reported record premium volume of $7.92bn in 2020, up 14 percent on the previous year.

Even though the pandemic struck in March, the SLTX saw an increase in premium through the end of the year coupled with a 3.1 percent decrease in filings, highlighting the hardening of the market.

The office said there was growth across the state’s surplus lines market in 2020 when compared with the prior year.

Notably, contingency premium volume increased by 115 percent year on year. Fire and allied lines, the largest coverage code in Texas, saw premium jump by 24 percent in 2020 when compared with the previous year. Flood premium increased by 19 percent compared with 2019.

As the SLTX noted though, the growth of the fire and allied lines and flood coverages is not markedly out of line with the 14 percent overall market growth.

The $7.92bn of surplus lines premium generated in Texas last year represented an increase of 14 percent compared with the $6.95bn of surplus lines premium recorded in 2019, according to figures from the SLTX.

The 2020 total also represents total 10-year growth of 139 percent when compared with the premium total of $3.31bn posted in 2010.

According to the SLTX, recorded premium was at its highest during the spring and summer months. May saw the highest level of premium generated at $773mn, with February seeing the lowest at $503mn.