Surplus lines premium volume growth accelerates in California and Texas but slows in Florida

By Chris Munro

July 3 - (The Insurer) - Surplus lines premium volume growth in both California and Texas maintained their double-digit growth trajectories during the first half of 2025, while Florida’s expansion slowed significantly to just 2.0%, newly published data shows.

The surplus lines stamping offices of California, Florida and Texas – the three largest states for E&S business in the U.S. – recorded premium volume growth of 14.8%, 10.8% and 13.8% respectively in 2024.

And recently released data from each state’s surplus lines stamping office shows that the pace of growth accelerated in California and Texas in the first six months of 2025.

According to figures from the Surplus Lines Association of California, premium volume in the state hit $11.75 billion in the first half of 2025, an increase of 35.1% when compared with the same period last year.

The biggest growth month was March, when surplus lines premium volume in California increased 54.5% year on year to $1.81 billion.

Data from the Surplus Lines Stamping Office of Texas (SLTX) shows premium volume for the first half of 2025 increased by 16.8% year on year to $9.34 billion.

January was the month with the biggest rise, the SLTX numbers show, with the $1.45 billion it booked an increase of 34.0% when compared with the same period in 2024.

“Texas surplus lines premiums continue to trend with existing hard-market conditions, including results of changes to diligent effort requirements,” SLTX said in a statement.

While California and Texas continued to experience significant surplus lines premium volume growth in 2025’s first half, there has been a major slowdown in the market’s expansion in Florida.

Figures from the Florida Surplus Lines Service Office show that premium volume in the Sunshine State totalled $9.92 billion during the first six months of 2025, an increase of just 2.0% when compared with the same stretch last year.

In three of the six months, surplus lines premium volume actually contracted year on year, with the biggest decline occurring in February when it decreased by 10.2% to $1.14 billion.

Premium volume fell by 1.2% in April to $1.96 billion, and by 5.6% to $1.89 billion in May.

The biggest year on year premium volume increase was in June when it hit $2.09 billion, a rise of 13.2%.