685.5M in Texas Surplus Lines Premiums Reported in November
SLTX recorded $685.5M in Texas surplus lines premium during November, totaling $8.27B year-to-date, a 14.8% increase in YTD premiums compared to the same period in 2020. This results in an 16.7% ($98M) increase over November 2020, making it the highest recorded November and17th largest premium in SLTX’s 33-year history.
Various lines of business experienced growth over November 2020. The largest increase, Commercial General Liability coverage, rose $27.3M (or 33.7%) while Excess / Umbrella also recorded growth, up $23.8M (or 20.6%). Roughly 52% of total premium increases can be attributed to these coverages.
November 2021 showed a 6.5% increase in overall transactions filed (86,236) over the same period in 2020, resulting in a YTD increase of 0.2%. This same period reflected an 6.2% increase in policies filed (58,411), which results in a 2.2% decrease YTD. November is the 5th month to reflect increases in policy filings and the 6th month for transactions filed.
54.4% of premium reported this month is attributed to renewal policies, accounting for 37.5% of items reported. 38.9% of reported premium (and 30.3% of items) is related to new business, and 6.8% (and 32.2% 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 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.