Surplus lines premium volume across the 15 stamping office states totaled $90.3 billion through year-end 2025, according to the latest annual report released by WSIA.
The figure represents a 7.8% increase from the $83.8 billion reported through December 2024, while item counts rose 14.1% during the period.
Excess and surplus lines insurers are often called the "safety valve" of the insurance industry, filling the need for coverage by insuring risks that admitted carriers are unwilling or unable to underwrite.
E&S insurance covers businesses with unusual risk profiles, including companies with very high risks, extensive claims histories, or those operating in new or emerging industries.
The full-year results come amid a shifting outlook for the segment. In November 2025, AM Best revised its outlook for the US E&S lines segment from positive to stable, citing moderating premium growth and early signs of rate softening.
According to IMA Financial Group's Q4 2025 market report, E&S carriers will likely continue facing competition for catastrophe-exposed accounts, with rate decreases of roughly 10% becoming common.
The report indicated rate reductions are expected into Q1 and Q2 2026, especially for shared, layered and catastrophe-driven accounts, with leveling off likely by Q3 2026.
While property softens, casualty and liability lines remain under strain. According to Smart Choice Agents, general liability and commercial auto continue to face pressure from social inflation and rising claim severity.
California recorded $22.1 billion in premium, a 5.7% increase from the prior year, with item counts rising 30%.
Benjamin J. McKay, CEO of the California Surplus Line Association, said growth remained uneven. "California's surplus lines market in 2025 continued to reflect selective pressure rather than broad relief," McKay said.
Texas posted a 9.8% increase in total premium. Greg Brandon, executive director of the Surplus Lines Stamping Office of Texas, said commercial property and commercial liability accounted for 75.7% of total premium reported.
Florida's premium grew 1.8%, while item counts increased 11.6%. Mark Shealy, CEO of the Florida Surplus Lines Service Office, said the state has entered a more stable phase of the market cycle.
Several smaller states posted double-digit percentage gains, with Oregon leading at 23.8%, followed by Utah at 21.4%, Pennsylvania at 16.2%, and Arizona at 15.8%.
Liability (non-professional) remained the largest segment, accounting for 38.1% of total premium and growing 11.7% year over year.
According to AM Best, lines finding their way to the E&S segment more frequently include commercial auto, directors' and officers' liability, cyber liability, and risks from the expanding legal cannabis industry.
