Calif. Hard Market Remains Strong
NU Online News Service, July 15, 11:05 a.m. EDT?The Surplus Line Association of California reported a 72 percent increase in premium written totals for the first six months of 2003 compared to 2002.
For the first six months of this year, the 550 broker member Surplus Line Association reported $2.4 billion in premium totaling 179,737 insurance polices.
This compares with $1.4 billion in premium totaling 151,516 policies written over the same six month period in 2002.
"The Surplus Line Association has been very busy the past six months processing record levels of California surplus line premium data due to an obvious continuation of the hard market," said Ted Pierce, the association's executive director in a statement.
Of 26 categories of all lines written, more than 32 percent was in general liability with more than $763 million in premium. The second largest line was commercial DIC (Difference In Condition)?stand-alone earthquake at more than 11 percent and $267 million in premium. The third largest line was all risk at less than 10 percent and $216 million in premium.
Lexington Insurance Company took in slightly less than 11 percent of the premium, totaling less than $257 million, in the first six months of 2003, followed by American International Specialty Lines Insurance Co. at more than five percent and $129.8 million in premium.
Mr. Pierce told National Underwriter that the association felt the hard market would continue at least through the end of the year in California. Only property insurance appeared to be having any leveling off in the state, he added, but that was not a line that would affect the surplus lines market in the state.
For all of last year, the San Francisco-based association said that premiums showed an increase of 104.5 percent over 2001 premium totals. The association said the $3.6 billion written in 2002 premium was attributable to the impact of the hard market.
The association said it processed a total of 331,835 insurance policies for all of 2002 compared to only 201,211 in 2001.
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