According to the recently released A.M. Best report, “2014 Special Report US Surplus Lines – Segment Review,” the surplus lines industry wrote a record-breaking $40.2 billion last year – an increase of 6.7%. Domestic professional surplus lines insurers also generated a 5.4% increase in direct premium written.
Altogether, the industry managed to exceed its previous peak in 2006.
Other positive developments include the eleventh year the industry reported no financially impaired companies, and descriptions of the market position of surplus lines professionals as “profitable,” “stable,” “well-capitalized” and “consistent.”
The report also listed the top 25 companies in the surplus lines industry, ranked by direct premiums written.
A.M. Best attributed the positive developments to good market conditions, underwriting discipline among insurers and an increasing number of new products.
“Surplus lines companies continue to outperform the overall property/casualty industry and recorded a second straight year of underwriting profitability following three years of underwriting losses,” the report said.
As the NAPSLO Annual Convention continues in San Diego, surplus lines insurers and wholesale brokers are celebrating a banner year for growth.