Texas surplus lines premiums set new monthly record of $950mn in June

The Surplus Lines Stamping Office of Texas (SLTX) recorded $947.5mn in premium in June – the largest single-month reported in the office’s 33-year history – bringing the total for the first half of the year to $4.58bn.

The June premium was up 24.5 percent, or $186mn, over the same month in 2020.

The previous largest monthly premium figure had occurred in May 2021, which was $63mn below the June 2021 figure.

SLTX reported that various lines of business experienced notable growth in June 2021 over June 2020. The largest increase came in fire/allied lines coverage (residential, commercial, and historical codes), which rose almost $92mn, or 30.2 percent).

In addition, excess/umbrella was up $29mn, or 22.3 percent, while commercial general liability was up $19.2mn, or 19.8 percent.

SLTX reported that 75 percent of the total premium increases can be attributed to these three coverages.

The 95,183 total transactions in June 2021 was up 2.3 percent over the same period in 2020. There was a 0.4 percent decrease in policies filed to 64,654.

Of the June 2021 premium, 63 percent is attributed to renewal policies, which accounted for only 39 percent of the items reported. Nearly 37 percent of premium and 29 percent of the items reported were related to new business.

The $4.58bn of premium in the first six months was up 16.2 percent over the same period last year.

SLTX said that the observed year-to-date premiums reported are within the range of likely outcomes captured by its 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,” the office stated.