U.S. E&S Market: Slower Growth in 2023, Berkshire Leads the Pack

In a detailed analysis by S&P Global Market Intelligence, it was revealed that the U.S. excess and surplus (E&S) lines market experienced slower growth in 2023. Despite maintaining double-digit growth for the fifth consecutive year, the market's growth rate decelerated to 14.5%, down from 20.1% in 2022 and a peak of 32.3% in 2021.

The U.S. E&S market's growth rate slowed to 14.5% in 2023, from 20.1% in 2022. This development impacts insurers and reinsurers in the U.S. E&S market, particularly those tracking market trends and performance metrics.The data pertains to the full year of 2023, with the analysis published in 2024.

Understanding these shifts is crucial for insurers to adapt their strategies, optimize their portfolios, and maintain competitiveness in a changing market landscape.

Key Insights:

• Premium Growth: U.S. E&S direct premiums reached $86.5 billion in 2023, with Berkshire Hathaway leading the market with $8.4 billion in premiums, followed by AIG and Fairfax.

• Market Segments: The bulk of premiums were concentrated in casualty (52.5%) and property lines (31.7%), reflecting the significant role of these segments in driving growth.

• Top Performers: Berkshire Hathaway's notable growth in property lines, particularly in fire and allied lines, underscores its strategic focus and market leadership.

• Market Share: E&S market share for liability lines surged to 34.9% in 2023, indicating a significant shift from previous years.