$690.9M in Texas Surplus Lines Premiums Reported in January 2022

Feb 3, 2022 | eNews

SLTX recorded nearly $690.9M in Texas surplus lines premium during January 2022, a 12.6% ($77M) increase over January 2021, making it the highest recorded January for SLTX and the 18th largest premium in its 33-year history.

The majority of premium reported (51.9%) is attributed to renewal policies, which accounted for 37.9% of items reported. Additionally, 41.9% of premium (27.7% of items) reported is related to new business, and 6.2% of premium (34.4% of items) is a result of non-policy transactions such as endorsements, cancellations, audits, installments, etc. Of non-policy transactions, the largest portion is attributed to Premium Endorsements (17,005 items or 66.5% of the 34.4%) then Cancellations (6,078 items or 23.8% of the 34.4%).

Nearly half of the lines of business experienced growth over January 2021. The largest increase, Fire / Allied Lines coverage (residential, commercial, and historical codes), rose $50.0M (or 37.5%). Additionally, Commercial General Liability recorded growth, up $22.5M (or 28.0%). 94% of total premium increases can be attributed to these coverages.

January reflected a decrease in overall transactions, with 88,335 items, down 0.8% over January 2021. This same period compared to 2021 reflected a 3.2% increase in policies filed (48,700), with average premium per item ($9,299) up 13.5%.

Texas surplus lines premiums continue to trend with existing hard-market conditions, including results of changes to diligent effort requirements (TX87 SB1367). SLTX will continue monitoring Texas surplus lines market and share additional data and analysis as it is recorded or completed.