Most top E&S insurers see market shares decline in 2021; premiums rise YOY

The top writers of U.S. excess and surplus insurance saw their cumulative share of the market slip in 2021, according to an S&P Global Market Intelligence analysis.

Direct premiums written for the excess and surplus market leaders grew year over year, but 14 of the top 25 market players saw their shares of the market drop. Berkshire Hathaway Inc., American International Group Inc. and Nationwide Mutual Group saw steepest declines in their respective market shares.

Munich Re recorded a year-over-year increase of 37 basis points in market share, the highest increase among the insurers reviewed in this analysis. With a 78.16% increase in direct premiums written, the German insurer rose six spots in the rankings to break into the top 25.

Berkshire retains top spot

Despite seeing a steep decline in its market share, Berkshire remained the largest writer of U.S. E&S business. Berkshire's market share dropped by 76 basis points to 6.72% at the end of 2021, from 7.49% a year ago. The Warren Buffett-owned insurer's direct E&S premiums written rose 18.71% year over year to $4.23 billion from $3.56 billion in 2020.

AIG, the second-largest E&S insurer, saw its market share slip 82 basis points to 6.65% from 7.46% a year ago. The company posted direct E&S premiums written of $4.18 billion, up from $3.55 billion in 2020.

Markel Corp. came in third with a market share of 5.61%. Its premiums climbed to $3.53 billion from $2.79 billion a year earlier.

Fairfax Financial Holdings Limited, the fourth-largest insurer in the rankings, was the only company among top 10 players to log a year-over-year increase in market share. The insurer's share of the E&S market rose to 4.77% from 4.50%. Fairfax Financial jumped two spots in the rankings, thanks to a 40% increase in premiums to $3.0 billion from $2.14 billion a year ago.

E&S industry premiums jump

Industrywide, E&S direct premiums rose 32.2% year over year to $62.87 billion from $47.56 billion in 2020. The direct incurred loss and DCCE ratio improved to 71.3% from 78.1% in 2020.