Surplus lines’ August premium growth slows in Florida, California and Texas
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Surplus lines’ August premium growth slows in Florida, California and Texas

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Surplus lines’ premium growth in Florida, California, and Texas slowed to 14.3% for the month of August, halving from 28.1% in July.

The analysis used stamping office data from all three states, which provide an early indicator for the broader US E&S market.

By state, year-on-year premium growth in California accelerated to 17.2% as of August 23, compared to 10.2% in July 23 and 8.4% in June 23.

On the other hand, Florida posted 8% growth for August, marking a stark decline from 48.8% in July and 39.5% in June. Texas’s surplus line premium growth posted 16.7% growth year-on-year, down from 28.1% in July and 25.1% in June.

In H1 2023, surplus lines premiums hit nearly $36bn from 2.9 million transactions, according to the 2023 mid-year report of the US Surplus Lines Service and Stamping Offices.

Premiums increased 15.9% and transactions were up 2.6% compared with the same period last year.

Executive commentary from earnings calls this year have suggested that the “Golden Age” in E&S and specialty continues, as insurer executives have noted that flows to the E&S market remain strong.

However, some sources told Inside P&C that the industry has also seen the emergence of softness in financial and professional lines over the last 6-12 months, spanning public D&O, non-medical professional liability and cyber.

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