Room to grow: Moody's sees solid growth, competition in E&S sector

With AIG subsidiaries and Lloyd’s syndicates dominating the market, the U.S. excess and surplus (E&S) sector is experiencing strong, competitive growth and profitability due to rate increases and an improving economy.

In a new Moody’s “Excess and Surplus Sector Profile,” analysts found that although AIG, Lloyd’s and 25 other top insurers controlled three-quarters of the market, E&S was a robust insurance market segment with room for growth as players can set their own rates for the unique risks they cover. This puts E&S companies in a solid position to weather changes in the property-casualty insurance cycle with strong balance sheets, in spite of challenges from cat losses and low interest rates.