May was another record breaking month for filings with the Surplus Lines Stamping Office, with just under $1.19 billion in premium reported during the month.
Year-to-date total is $4.41 billion. May reporting was 34.3 percent greater than May 2021, and the year-to-date (end of May) total is a 21.3 percent increase over last year. May is the largest single month reported in SLTX’s 33-year history, exceeding April’s record of $1.01 billion by more than $171 million.
SLTX reported that 60.1 percent of the premium, or 36.5 percent of the items, was attributable to renewal policies; 36.8 percent of premium, or 31.1 percent of the items, was attributable to new business, and the remainder of items the result of transactions such as endorsements, cancellations, audits or installments.
More than three-quarters of the lines of coverage experienced growth over May 2021. The largest increase Fire / Allied Lines (residential, commercial, and historical codes) coverage rose $55.2 million (or 15.9 percent), Excess / Umbrella, Commercial General Liability, and Property Multi-Peril coverages recorded growth, up $45.8 million (31.5 percent), $42.1 million (41.1 percent), and $23.8 million (76.6 percent) respectively. Fifty-five percent of total premium increases can be attributed to these coverages.
May reflected an increase in overall transactions, with 96,150 items, up 5.9 percent over May 2021, and a 5.8 percent increase in policies filed (64,997), with average premium per item ($12,360) up 26.8 percent. Record-keeping transactions (name, number, or insurer change endorsements; reversals; etc.) and cancellations were down.
SLTX said, “Texas surplus lines premiums continue to trend with existing hard-market conditions, including results of changes to diligent effort requirements.” The agency pledged to continue monitoring the Texas surplus lines market and share additional data and analysis as it is recorded or completed.
The agency’s Policy and Premium Report, as of May 31, showed exempt commercial policies, industrial insured policies and multi-state policies all trending down as a percent of total policies sold.
Year-to-date stamping fees collected total $3.39 million and are 0.3 percent below the first five months of 2021.