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Direct written premiums saw double-digit growth for the seventh straight year for U.S. excess and surplus (E&S) insurers, according to Fitch Ratings’ latest annual property/casualty market review.

Per a Fitch press release, U.S. E&S direct written premiums grew by 11% in 2024鈥攄own from 15% the prior year but higher than the 8% increase for U.S. P/C insurers overall.

This represented the 14th consecutive year of E&S premium growth and the seventh straight year of exceeding double-digit growth.

Fitch which began in earnest in 2018, places E&S lines at 9% of total P/C insurance. That is nearly double the segment share it held in 2017 but unchanged from last year, the press release said.

Premium growth was positive across all lines, Fitch shared, with other liability-occurrence, allied and fire lines, commercial auto and medical professional liability reporting double-digit increases. Other liability-claims made and commercial multiperil reported low single-digit growth. Prior to 2023, E&S premium growth was consistently strong across all major product lines for several years, the press release said.

E&S underwriting results were reportedly considerably better at an 88% direct combined ratio for 2024, compared to a 95% combined ratio for the total P/C market. While E&S results deteriorated slightly from 86% in 2023, they remain significantly better than the five-year average of 97%, Fitch reported.

This marked the third consecutive year that E&S reported better underwriting results than the broader P/C industry.

Topics USA Excess Surplus