US Excess and Surplus Insurers Reported Double-Digit Growth in 2024

US excess and surplus (E&S) insurers saw double-digit growth in direct written premiums for the 7th consecutive year in 2024, according to a review of the E&S market by Fitch Ratings.

US E&S direct written premiums grew 11 percent in 2024, down from 15 percent growth the prior year but higher than the 8 percent increase for US property-casualty insurers overall, Fitch reported. The gains represented the 14th consecutive year of premium growth, in addition to the 7th consecutive year of double-digit growth.

Fitch noted that the US E&S market's current growth spurt began in earnest in 2018 and places E&S lines at 9 percent of all US property-casualty insurance, nearly double the E&S segment's share in 2017.

The E&S market's premium growth was positive across all lines in 2024, with other liability occurrence, allied and fire lines, commercial auto, and medical professional liability reporting double-digit increases, Fitch said. Meanwhile, other liability claims-made and commercial multiperil lines reported low single-digit growth. Prior to 2023, E&S premium growth was consistently strong across all major product lines for several years, the rating agency said.

The US E&S market posted an 88 percent combined ratio in 2024, better than the 95 percent combined ratio for the overall property-casualty market. While the E&S market's results deteriorated slightly from 2023's 86 percent, they remain significantly better than the 5-year average of 97 percent. Last year was the third consecutive year that the US E&S market reported better underwriting results than those of the broader property-casualty industry.