Best’s Market Segment Report: AM Best Revises Outlook on U.S. Excess & Surplus Lines Insurance Market to Stable

AM Best has revised its market segment outlook on the U.S. excess & surplus (E&S) lines industry to stable from negative due to its ongoing ability to successfully navigate the COVID-19 pandemic.

The Best’s Market Segment Report, “Market Segment Outlook: U.S. Excess & Surplus Lines,” notes that despite the ongoing widespread impact of COVID-19 on the U.S. economy, and uncertainty as to how long the pandemic will last, the E&S segment’s continued profitability and premium growth signal persistent opportunities for surplus lines carriers to successfully operate.

Surplus lines carriers are not immune to the worldwide declines in economic activity, and in April, AM Best revised its outlook on the segment to negative owing to the economic disruptions caused by the COVID-19 outbreak. Since then, surplus lines carriers have generated consistent underwriting cash flow, experienced stability in claims activity and successfully managed the challenges of the investment market conditions. These factors have moderated concerns about the cohesion of the surplus lines market. Additionally, market participant growth provides an encouraging sign for the segment. Newcomers, along with a recommitment from existing participants, portray a healthy interest in the specialty commercial market. Consequently, capacity will remain stable and could even expand in the short term.

Potential headwinds that the surplus lines market may face include the impact of social inflation on casualty claim trends and the potential for a sudden increase in market capacity to disrupt the current favorable market conditions.

Throughout 2020 and into 2021, market indicators have validated the viability of surplus lines organizations. AM Best believes the surplus lines segment will continue to record stable results during the forthcoming year.

To access the full copy of this market segment report, please visit

To view current Best’s Market Segment Outlooks, please visit

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Robert Raber
Associate Director
+1 908 439 2200, ext. 5547

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