Surplus Lines Premiums Drop 8.2% in 2008

Surplus Lines premiums dropped by 8.2% in 2008 in the 14 states with stamping offices or service offices, according to statistics from the Surplus Lines Stamping Office of Texas.

Overall premiums declined from $23.057 billion to $21,168 billion in the 14 states in 2008 (Minnesota's stamping office was operational Jan. 1, 2009). While most states reported declines in premiums, three states reported increases with Oregon seeing a 20% increase. Pennsylvania reported a 1.6% increase and Utah also saw a small increase of 1.2%.

Montana saw the largest percentage decline in premiums (-21.2%) while six states saw declines of 10 to 20 percent (Arizona -17.5%, Idaho -12.2%, Nevada -18.6%, New York -15.5%, Texas -11.9% and Washington -16.3%).

California (-2.4%), Florida (-7.9%), Illinois (-2.6%), and Mississippi (-9.1%) reported drops in premiums of less than 10%.

The number of items processed by the offices decreased by 3.6%, going from 3,431,844 in 2007 to 3,309,925 in 2008.