Fitch Ratings says the US excess and surplus insurance market kept its winning streak alive in 2024, chalking up 11% growth in direct written premiums. That trailed the 15% jump of 2023 but still beat the broader property and casualty market, which managed 8%.
It’s the fourteenth straight year of expansion for E&S carriers, and the seventh in a row with double-digit gains.
The sector’s footprint has nearly doubled since 2017. Back then, E&S accounted for about 5% of total P&C premiums. By 2023 and 2024, the figure settled at 9%. Fitch sees room to climb toward 12% in the coming years, though not much higher unless there’s a structural shift in property pricing or liability trends.
Growth in 2024 was broad-based, spanning liability, property, commercial auto, and medical professional liability.
Profitability held strong
E&S carriers reported a combined ratio of 88% last year, versus 95% across the P&C industry. That compares with 86% in 2023 and remains well ahead of the five-year E&S average of 97%.
Property lines delivered standout performance with a 67% combined ratio, while casualty landed at 103%.
This marked the third consecutive year the segment outperformed the industry on underwriting margins.
Fitch tied the momentum to several factors: admitted carriers backing away from difficult risks, casualty loss inflation, demand for custom coverage, and migration of business out of standard property markets in catastrophe-prone regions.
High-net-worth homeowners shift into E&S channels
At the same time, the rise of MGAs and fronting arrangements is stoking competition and pressing down on rates, even as they broaden distribution.
In total, statutory premiums hit nearly $117bn in 2024 when Lloyd’s is included, up 10% from 2023.
Fitch cautioned that underwriting margins will likely narrow in 2025, but profitability should remain superior to the overall P&C market unless catastrophe losses spike.
Strength in casualty pricing may offset softer property rates, though liability risks still face pressure from social inflation and reserve volatility.
The agency’s takeaway: E&S has matured into a permanent fixture of the US insurance landscape.
Its ability to design products for emerging and complex risks ensures it stays relevant as a complement to the admitted market, not just a temporary alternative.
