The US excess and surplus (E&S) lines market continues to outpace the broader property and casualty industry in revenue and profitability, according to a new study recently released by ALIRT Insurance Research.
The firm’s annual Surplus Lines Market Update, which examines six-month results for 2025, found that the sector has sustained outsized revenue growth and rising profit margins over the past three and a half years.
“The performance trends of ALIRT’s 50-Company E&S Composite reflect those of the overall surplus lines market, showing outsized revenue growth relative to the broader US property & casualty industry as well as surging profitability margins,” the report said.
None of the 50 insurers in the ALIRT E&S Composite fell below the firm’s historically normal scoring range of 39 to 61, the study showed. Seventeen insurers exceeded that range. Historical performance scores for each insurer were included in the report’s appendix.
ALIRT noted that the E&S sector remains closely tied to the broader property and casualty industry, with most surplus lines carriers operating within larger insurance organizations. These companies often participate in intercompany pools or affiliate reinsurance arrangements, sometimes with full reinsurance backing.
The report also highlighted a wave of new specialty insurers launched since 2018, particularly over the past five years. Many of these entrants, established by experienced management teams and supported by capital raises, secured A- ratings from A.M. Best.
“While still a relatively small portion of the overall E&S market, ALIRT has witnessed an influx of new specialty carrier launches since 2018 (and especially over the past five years),” the report stated. “How these carriers will perform once E&S market pricing/opportunities ease is an important consideration and one that ALIRT will be closely monitoring.”
ALIRT’s analysis is based on data from A.M. Best and US Surplus Lines Service and Stamping Offices.
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