Texas Surplus Lines Premiums Hit $830M in December 2021

SLTX recorded nearly $830M in Texas surplus lines premium during December 2021, a 15.3% ($110M) increase over December 2020, making it the highest recorded December and 5th largest premium in SLTX’s 33-year history. 2021 totaled a record-breaking $9.10B for the year, a 14.9% increase compared to 2020.  

As typical in prior months, 52.8% of premium reported is attributed to renewal policies, which accounted for 34.5% of items reported. Additionally, 42.1% of premium (28.2% of items) reported is related to new business, and 5.1% of premium (37.3% of items) is a result of non-policy transactions such as endorsements, cancellations, audits, installments, etc. 

 Various lines of business experienced growth over December 2020. The largest increase, Fire / Allied Lines coverage (residential, commercial, and historical codes), rose $25.5M (or 13.9%). Additionally, Commercial Auto Liability recorded growth, up $24.3M (or 93.4%). 45% of total premium increases can be attributed to these coverages. 

 December 2021 showed a 2.4% decrease in overall transactions filed (88,335) over the same period in 2020, a 19 item (flat) decrease. This same period when compared to 2020 reflected a 6.5% decrease in policies filed (55,416), or a 2.5% decrease YTD. December is the 6th month to reflect decreases in policy filings and the 7th month for transactions filed. 

 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 Texas surplus lines market and share additional data and analysis as it is recorded or completed.