May 2022 Filings Exceed $1B for the Second Month in a Row
SLTX continues to see record premium in May with $1.19B reported and a year-to-date total of $4.41B. This represents a 34.3% increase over May 2021, and 21.3% increase year-to-date. May is the largest month reported in SLTX’s 33-year history, exceeding last month’s record of $1.01B by more than $171 million!
60.1% of the premium reported (36.5% of items) is attributed to renewal policies, 36.8% (31.1% of items) to new business and 3.1% (32.4% of items) is a result of non-policy transactions such as endorsements, cancellations, audits, installments, etc. Most non-policy transactions are Premium Endorsements (21,190 items or 68.0% of the 32.4%) and Cancellations (7,240 items or 23.2% of the 32.4%).
More than three-quarters of the lines of coverage experienced growth over May 2021. The largest increase Fire / Allied Lines (residential, commercial, and historical codes) coverage rose $55.2M (or 15.9%), Excess / Umbrella, Commercial General Liability, and Property Multi-Peril (residential, commercial, and historical codes) coverages recorded growth, up $45.8M (31.5%), $42.1M (41.1%), and $23.8M (76.6%) respectively. 55% of total premium increases can be attributed to these coverages.
May reflected an increase in overall transactions, with 96,150 items, up 5.9% over May 2021, and a 5.8% increase in policies filed (64,997), with average premium per item ($12,360) up 26.8%. Record-keeping transactions (name, number, or insurer change endorsements; reversals; etc.) and cancellations were down 54% and 3% respectively.
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 the Texas surplus lines market and share additional data and analysis as it is recorded or completed.