In the first of a 3-part article series on the topic of “Insights for an Evolving Market”, the Financial Services Industry Group's Insurance sector looks at the excess and surplus market in the U.S. 

The P&C insurance market has been showing solid premium growth, with almost a 10%¹ growth rate in 2023 and through the first half of 2024. Personal lines, constituting around half of the total P&C market, are expected to continue to drive P&C market growth with the ongoing momentum coming from personal auto and property lines.

Meanwhile, challenges around underwriting profitability in personal lines in 2023 are not expected to disappear. Personal lines loss ratios were 68% in the first half of 2024 - 14 percentage points higher than the loss ratio  ofcommercial lines².

In this landscape, the excess and surplus (E&S) market seems promising with its double-digit growth rates, improving underwriting results and further penetration potential into personal lines.

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¹ Premium growth remained elevated at around 10% in 1H24, also driven by personal lines, but competition is building as more carriers reach rate adequacy.: US Property & Casualty outlook: strong winds, smoother sailing | Swiss Re

² While net premiums written grew 10.0%, policyholders’ surplus grew at a lesser rate of 6.2%: 2023-annual-property-andcasualty-insurance-industries-analysis-report.pdf