SLTX begins 2021 with new record-breaking surplus lines premium volume

The Surplus Lines Stamping Office of Texas (SLTX) tracked $613.58mn of premium in January, as the organisation reported another record-breaking month in yet another indication of the burgeoning E&S marketplace.

The $613.6mn of premium represented an increase of 13.6 percent year on year, and was the highest volume ever recorded in the month of January.

Oil and gas coverages, which include property, liability and package exposures, saw “notable growth” of 30.7 percent compared with January 2020, the SLTX said.

Commercial auto liability premium volume jumped up by 40.8 percent compared with the prior year period. Cyber liability premium volume increased by an even greater extent of 42.9 percent.

In the excess and umbrella segment, surplus lines premium increased by 34.8 percent year on year to $132.7mn in January.

Those six coverages collectively saw their premium volume increase by 35.7 percent year on year in January 2021 to $182.6mn.

“Roughly 65 percent of total premium increases from January 2021 over January 2020 can be attributed to these six coverages,” the SLTX said.

As in previous months, January 2021 saw a reduction in the number of transactions filed, with the 74,911 recorded in the first month of this year down 11.1 percent compared with the same period in 2020.

Last month, this publication reported that the SLTX had reported record premium volume of $7.92bn in 2020, up 14 percent on the previous year.

Even though the pandemic struck in March, the SLTX saw an increase in premium through the end of 2020 coupled with a 3.1 percent decrease in filings, trends that highlight the extent to which the market is hardening.