Texas Surplus Lines Hits Premium of $539.6 in February 2022
SLTX recorded $539.6M in Texas surplus lines premium during February, a 5.9% ($30M) increase over February 2021, making it the highest February premium recorded. Historically, February is often the lowest month for premium submissions within each annual reporting period.
Renewal policies make up 51.5% of the premium reported while accounting for 36.8% of items reported. 44.4% of premium (31.5% of items) reported is related to new business, and 4.1% of premium (31.7% 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 (15,019 items or 62.9% of the 31.7%) then Cancellations (6,683 items or 28.0% of the 31.7%).
Most lines of business experienced growth over this same period in 2021. Commercial Auto Liability grew $16.1M (or 86.0%) and Professional Liability (non-medical malpractice, and non-D&O) grew $11.5M (or 87.5%). 92% of total premium increases are attributed to these coverages.
Overall transactions were 75,378 items, a 2% increase over February 2021. This same period reflected a 6.2% increase in policies filed (51,467), with average premium per item ($7,158) up 3.8%.
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.