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Excess and surplus market splits, property premiums fall as liability hardens
Through the first half of 2026, total surplus lines premium reached $47.6 billion, up 2.8% year over year, while item filings rose 16.9% to 4.3 million.
The US excess and surplus (E&S) insurance market showed a clear split at midyear 2026, with property pricing moving lower even as trading activity increased, while liability lines continued to harden, according to midyear data released by the Wholesale & Specialty Insurance Association (WSIA). Property premium fell 13.7% from the same period in 2025, while property transaction volume rose 15.2%.
Across 15 stamping office states, total surplus lines premium reached $47.6 billion through the first half of 2026, up 2.8% year over year. Item filings increased 16.9% to 4.3 million. The combination of falling property premium and rising volume, WSIA said, points to rate compression rather than weakening demand, helped by new capital entering the E&S property market after a relatively benign 2025 hurricane season.
IMA Financial Group described the pattern as a two speed market, with property and select professional lines easing while commercial auto, umbrella, and general liability continued to harden. Carrier-level results echoed that divergence, with Kinsale Capital Group reporting its commercial property division premiums down 30.9% in the first half of 2026.
By line, property remained the second-largest share of total premium at 28.5% but contracted 13.7%. Non-professional liability grew 11.2% and accounted for 39.6% of total premium, while professional liability rose 15%, auto liability increased 15.8%, and inland marine climbed 12.3%. The report also highlighted state differences, including Florida, where E&S property premium fell 5.6% as policy volume rose 14.4%, with local surplus lines officials citing double-digit declines in premium alongside double-digit growth in policy counts.