US EXCESS & SURPLUS LINES PREMIUMS JUMP AFTER TWO POOR UNDERWRITING YEARS

Direct written premiums in the US excess & surplus lines market grew 11% in 2018 and grew 15% during the first half of 2019 in response to the poor underwriting results posted in 2017 and 2018, according to Fitch Ratings. The 2018 premium growth marked the largest annual increase since 2012, while the 2019 increase nearly doubled growth seen in the overall property/casualty market, Fitch said. “Underwhelming underwriting results have accelerated premium rate increases, particularly in the commercial property and auto segments,” said Fitch senior director of insurance Doug Pawlowski. Fitch anticipates further E&S rate hardening and continued efforts by leading carriers to improve profitability through changes in policy limits and risk appetite.