Texas Surplus Lines Premiums Reach an Unprecedented $970.3M in March 2022
SLTX recorded record-breaking $970.3M in premium for March, with a total of $2.20B year-to-date, resulting in a 10.6% increase over March 2021, reflecting chart-topping premiums. Q1 reflected a 10.0% increase when compared to the same period in 2021. March 2022 premium is the largest single month ever reported in SLTX’s 33-year history and exceeded $947.5M record set in June 2021 by nearly $23 million!
Premium reported (57.3%) is attributed to renewal policies, accounting for 37.2% of items reported. Additionally, 38.3% (29.3% of items) reported are related to new business, and 4.4% (33.5% 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 (24,248 items or 70.0% of the 33.5%) then Cancellations (8,348 items or 24.1% of the 33.5%).
Nearly two-thirds of the lines of business experienced growth over March 2021. The largest increase, Fire / Allied Lines (residential, commercial, and historical codes), rose $28.2M (or 10.6%). Additionally, Property Multi-Peril / Package (residential, commercial, and historical codes) and Contingency Liability (new and historical codes) coverages recorded growth, up $20.3M (55.2%) and $17.0M (138.2%) respectively.
March also reflected a record in overall transactions, with 103,462 items, up 4.8% over March 2021. This same period compared to 2021 reflected a 5.9% increase in policies filed (68,754), with average premium per item ($9,378) up 5.5%. Transactionally, increase in item count appears to be reasonably equitable amongst all types: 15% in non-policies, 10% new business, and a 5% renewal business. However, a 58% decrease in record-keeping transactions (name, number, or insurer change endorsements; reversals; etc.) was noted over the same period.
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.