Despite a 67 percent drop in net income in 2008, excess and surplus lines insurers are still financially strong, according to a rating agency report prepared for the National Association of Professional Surplus Lines Offices Ltd.

As in past years, the A.M. Best Company’s 16th annual E&S report, commissioned by the Derek Hughes/NAPSLO Educational Foundation, found that the market’s “solid” financial performance and solvency rates are at least on par with the admitted market. Indeed, some key indicators show the E&S segment to actually be in better shape than the total property and casualty market.

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