Key US surplus lines markets grow above 20% in 2023
The US surplus lines market appears to have closed 2023 amid strong growth, with several key markets growing at upwards of 25-30%, albeit with an outlier slowdown for California.
Individual state surplus lines stamping offices have published preliminary figures ahead of a more formal semi-annual nationwide tally for the second half expected in February from the wholesaler association WSIA.
Florida premiums to the E&S market grew nearly 28% for the year to neighbourhood $15.4 billion, albeit decelerating in the second half of the year from a Q2 peak. Fourth quarter premiums at $3.17 billion were nonetheless still up 22.5% year on year.
In Texas, premium rose 25.8% to $14.58 billion for the full-year, data from the Texas surplus lines stamping office showed. That gain included 19% growth for other liability to $6.1 billion and 44% growth for fire to $5.0 billion, by far the two largest lines in E&S in the state. Commercial multi-peril grew 24% to $940 million. Premiums were up 26% in the fourth quarter alone to $3.6 billion.
California ended with a mere 2.8% E&S premium growth for the full year, down from over 28% growth in 2022, but with growth rates up in the second half after a market contraction in H1, data from the California Surplus Lines Association showed. The year ended on a rather meagre note, with premiums up 5.2% year on year in Q4 and third quarter growth have been boosted by a weak prior year base.
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