The U.S. surplus lines insurance market recorded $46.2 billion in premium through the first half of 2025, a 13.2% increase over the same period last year, according to the new midyear report from the nation’s stamping and service offices.
The data, compiled from 15 states, also showed a 12.4% rise in the number of items filed, totaling 3.7 million transactions. The midyear results continue the strong performance from 2024, when the market grew 12.1% to reach $81.6 billion in total premium.
Commercial liability and property lines continue to make up the bulk of the excess and surplus (E&S) market, accounting for a combined 70.6% of all premium written in the first half of the year.
“The resilience demonstrated by New York's E&S market underscores their critical role in addressing complex and emerging coverage needs across the state,” Janet Pane, CEO and executive director of the Excess Line Association of New York, said in a press release. “This performance reflects the sector's ability to adapt to evolving risk landscapes while maintaining underwriting discipline and address the coverage gap for consumers in times of strong market demand.”
Broad-based growth
Fourteen of the 15 reporting states saw premium growth in the first half of the year, with several posting gains of over 30%. Oregon led all states with a 62.8% surge in premium, followed by Pennsylvania (+43.8%) and Utah (+36.9%). The three largest E&S markets — California, Florida and Texas — all reported continued growth.
Idaho was the only state to report a decrease in premium, down 16.4% year-over-year, which the report attributes to declines in liability and commercial property lines.
However, Carrie Negrette, executive director of the Surplus Line Association of Idaho, noted in a statement the decrease should be viewed in a broader context. She said that even with the midyear decline, Idaho’s premium volume is still up 82% since mid-2022.
Key business lines
While non-professional liability and property coverage continue to represent the largest shares of the market, other lines saw faster growth, underscoring the E&S market’s role in providing solutions where the standard market’s appetite has shifted.
Year-over-year premium growth by select business lines:
- Auto Liability: +29.1%
- Residential, Homeowners and Other Personal Property: +24.8%
- Auto Physical Damage: +21.3%
- Liability (Non-Professional): +19.8%
- Property: +5.7%
Edward Dresselhuys, executive director of the Surplus Line Association of Arizona, said in a statement that while the state’s largest lines of general liability and property grew modestly, a 36.6% increase in professional liability premium significantly drove Arizona’s overall 18.6% growth. “Disability/A&H, up 68.7%, and auto physical damage, up 57.0%, grew substantially but still constitute relatively small pieces of the Arizona surplus lines market,” Dresselhuys said.
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