U.S. excess and surplus (E&S) insurers continue to see strong growth, with direct written premiums rising for the seventh year in a row. According to Fitch Ratings, these premiums grew by 11% in 2024. While that’s a bit slower than the 15% jump seen in 2023, it’s still notably higher than the 8% growth reported across the broader property and casualty (P/C) insurance market.
This growth in E&S premiums marks the 14th year straight of expansion and the seventh consecutive year with double-digit gains. Since 2018, the E&S segment has steadily gained ground, now making up 9% of the total P/C insurance market. That share has nearly doubled since 2017 but stayed steady compared to last year.
Premium increases were seen across almost every line of business. Areas like other liability-occurrence, allied and fire, commercial auto, and medical professional liability all experienced double-digit growth. Some lines, such as other liability-claims made and commercial multiperil, saw smaller increases but still grew.
When it comes to underwriting results, E&S insurers also performed better than their broader industry peers. Their combined ratio—a key measure of profitability—stood at 88% in 2024. This is a slight rise from 86% in 2023 but remains much better than the overall P/C market, which had a combined ratio of 95%. It’s also well below the five-year average of 97%.
This marks the third year in a row that the E&S market has outperformed the wider P/C sector in underwriting results. The steady premium growth combined with improved profitability highlights the strength and resilience of the excess and surplus lines as they continue to serve customers with unique or hard-to-place risks.