Howden’s alleged raid on Marsh last week has eaten up plenty of column inches (or pixels) already, as the London-based intermediary pursues ambitious plans to build a sizeable U.S. retail platform ahead of a planned IPO.

The dramatic swelling in size of the E&S market is well documented, driven by the surge in submissions into the wholesale channel which has broken records year after year.

This week several hundred market executives will converge on New York City for our back-to-back E&S Insurer and Program Manager conferences and awards.

January's devastating California wildfires led at the time to some discussion about a potential moderating influence on E&S property rate softening.

As the industry continues to count the cost of the tragic and devastating LA wildfires, demand for E&S products in California is expected to further increase after years of retrenchment by admitted carriers.

The growing volume of $10mn+ homes, fine art collections and other valuable assets destroyed by wildfires raging in and around Los Angeles means the profile and distribution of a rapidly escalating industry loss is likely to be atypical compared to other recent catastrophic events.

Analysts at rating agencies and investment banks as well as other industry sources suggest the Los Angeles wildfires will rank among the most destructive in California’s history – and will possibly be the largest ever insured loss from the peril, with JP Morgan doubling its estimate to $20bn.

It was no surprise that US casualty was one of the dominant themes of the recent Q3 earnings season.

Late last month we highlighted some of the themes that were expected to drive discussions as another record attendance descended on San Diego for the WSIA Annual Marketplace 2024.

Nothing lasts forever. The good times always end. Or so conventional wisdom goes.

Five years ago, the wider US commercial P&C insurance market was in the throes of a broad firming that led to a lengthy hard environment, as carriers exercised limits shortening and an aggressive push for higher rates almost in lockstep across multiple lines.

Much of the market commentary so far in 2024 has been around shifting conditions and whether they may herald a slowdown of the significant growth seen in recent years in the E&S sector.

Property casualty leaders remain bullish about the E&S space but have noted shifting dynamics as property rate increases slow while submissions remain strong for casualty.

John Doyle’s comment on Marsh McLennan’s earnings call last week that the firm is not looking to build a third-party wholesale business at its recently launched Victor Access arm is likely to have been viewed positively by large wholesalers fearful of the broking giant’s ambitions.

Late last August, just before the WSIA Annual Marketplace, this publication highlighted the importance of "guarding the goose that laid the golden egg”, as we put it.

Anecdotal evidence of a meaningful acceleration in E&S property pricing increases through the last couple of months of 2022 has been proven out in the latest REDY Index data from broker CRC Group, with the firm warning adjustments to terms and conditions and pricing should accelerate through 2023.

Last summer, ahead of the WSIA Annual Marketplace, this publication raised concerns about the threat of regulatory risk for the fast-growing E&S market as its expanding role in the wider P&C industry raises its profile with lawmakers.

Buyers are facing higher rates and restrictive terms in the professional lines excess and surplus lines (E&S) market, AmWINS has reported, with the exception being the extremely competitive cyber segment.

The latest monthly REDY indexes from US wholesale giant CRC Group reveal September rate increases averaging 48.7 percent in cyber, 16.2 percent in excess/umbrella, and 12.9 percent in private D&O, with all three accelerating from August.

The cyber, coastal property and commercial property insurance markets are likely to remain hard in the next six to 18 months, according to the latest P&C Market Overview by Burns & Wilcox.

Brown & Brown has established Arrowhead Intermediaries to house wholesaler Bridge Specialty Group, Arrowhead Programs and Arrowhead Specialty, a newly formed division led by former One80 Intermediaries president Matthew Power.

Ryan Specialty paid $28.2 million in cash and $0.6 million in contingent consideration for its May acquisition of Ireland-based 360 Underwriting and approximately $70.0 million in cash plus $20.0 million in LLC common units for its July acquisition of certain assets of Portage, Michigan-based JM Wilson Corporation, the wholesale insurance broker disclosed.

South Korean insurer DB Insurance in a regulatory filing said it is considering an acquisition of Fortegra as part of its expansion strategy in the U.S.

Arcadian Risk Capital is in exclusive talks for Lee Equity Partners to buy out all or part of current backer SiriusPoint’s stake, MGA sources told The Insurer.

Korea’s DB Insurance has confirmed reports in the country that it is in negotiations to buy Fortegra but said no decision has been made on price or whether to proceed with an acquisition, despite due diligence having been completed.

Ryan Specialty has signed a definitive agreement to acquire the business of JM Wilson Corporation, a Michigan-based MGA and surplus lines broker.

Monarch E&S Insurance Services has acquired MGA and wholesale broker Market Finders, with the addition of the Albuquerque, New Mexico-based firm expanding its reach across the Southwest.

Specialty distribution platforms including MGAs and MGUs are continuing to place a strong emphasis on incubation to drive organic growth as they face an M&A environment where valuations are “through the roof” because of robust demand and a lack of supply, according to MarshBerry’s George Bucur.

Liberty Company Insurance Brokers has struck a deal to acquire Hahn Insurance Agency, based in Little Falls, New Jersey.

Bridge Specialty Group, the wholesale broking division of Brown & Brown, has acquired the assets of Mississippi-based full-service wholesale insurance brokerage Tim Parkman, Inc (TPI).

Ryan Specialty has disclosed that it paid around $30.5 million of cash consideration for USQRisk Holdings, while founder Pat Ryan stated that the company's M&A pipeline remains “very robust”.

Ryan Specialty has completed the acquisition of certain assets of alternative risk transfer-focused MGA USQRisk Holdings.

CRC Group has confirmed its acquisition of Long Island-based ARC Excess & Surplus, which has more than $1 billion in annual premiums and will join CRC while continuing to operate under its current leadership team.

Victor Insurance is acquiring professional liability wholesaler ProWriters, boosting the build-out of the nascent Victor Access platform as parent Marsh seeks to expand its footprint in wholesale broking.

Ryan Specialty has signed a definitive agreement to acquire certain assets of USQRisk Holdings, an alternative risk and facilities underwriter, with the acquisition expected to close in the second quarter of 2025.

U.S. insurance broker Liberty Company has acquired wholesale broker DB Jones Associates, integrating it into managing general agency Aura Risk Management, a member of the Liberty Company Network of Insurance Brokers.

Hadron has agreed to acquire the Guarantee Company of North America USA (GCNA) from Intact Financial Corporation’s subsidiary Atlantic Specialty Insurance Company.

Wholesale platform Novatae Risk Group has acquired the assets of Atlanta-based specialty wholesaler Ajax Specialty Insurance, effective March 1, 2025.

Ambac Financial Group has satisfied all required pre-closing conditions for the sale of its legacy financial guarantee business to funds managed by Oaktree Capital Management and has extended the deal timeline by three months pending final regulatory approval.

Amwins has acquired New Jersey-based independent general agency Nelligan, which specialises in group ancillary benefits.

LIO’s E&S operation is set to build additional functions into its proprietary digital quote, bind and issuance platform to create a “one-stop shop” throughout the policy life cycle.

Beazley CEO Adrian Cox has told The Insurer that he expects the company to produce “healthy” margins this year despite increased competition and wildfire losses, while also stating that the industry needs to price quickly for the impact of the U.S. tariffs.

CRC Group CEO Dave Obenauer said the “pure-play” wholesaler will be able to compete more effectively now it has become independent, including the ability to incentivise employees by making them shareholders.

The Hartford has said it remains on track to hit $300mn in E&S binding premium this year, with John Russo, small commercial CUO at its Navigators unit, telling this publication that the stickiness of the business and surging submissions mean there should be a “several year runway” for growth.

Allied World’s decision to maintain a dual distribution model rather than launching a dedicated wholesale unit has not been an impediment to growth, with the carrier’s E&S book expanding significantly in recent years to account for more than half of its US premium.

To remain relevant in a shifting distribution landscape and capitalise on the flow of business to the E&S space, wholesalers will need to deliver additional value by offering advice, expertise and proprietary product, according to Risk Placement Services (RPS) CEO Kevin Doyle.

Everest’s rebranded Evolution US wholesale business is building its talent base both in underwriting and in operations and technology, bringing in more digitisation and identifying and capitalising on E&S market opportunities, according to the unit’s leadership team.

Craig Smiddy has highlighted Old Republic’s 21 percent E&S premium growth in Q3, with the carrier also on track for its tenth consecutive year of favourable loss reserve development despite the quarter’s lower commercial auto and workers’ comp releases and a $25mn financial indemnity charge.

US casualty has arguably been the hottest topic in the sector over the last year amid growing concerns over deteriorating loss trends.

Novatae Risk Group, the wholesale operations of World Insurance Associates, has acquired the assets of Denali Specialty Group, a St Louis, Missouri-based full-service intermediary founded in 2019.

Brown & Riding’s “market-leading” growth rate has seen it more than double in size over the last four years with premium placed set to pass $2.6bn in 2024, as the firm capitalises on its position as an independent, internally owned wholesaler, according to CEO Jeff Rodriguez.

Aon is continuing to look at options that would allow it to directly access the E&S market, including the creation of an in-house placement operation, according to the firm’s president Eric Andersen.

Wholesaler XS Brokers has been riding the wave of the E&S market’s expansion, with the Quincy, Massachusetts-based intermediary continuing to add talent and moving into new lines as it looks to broaden its reach.

The increasingly complex and dynamic risk landscape means the shift of business to the E&S market is a structural rather than cyclical development, with the best access point to the sector through brokers with expert and sophisticated wholesale capabilities, according to Ironshore president Matt Dolan.

Wright Flood’s newest private flood program FocusFlood continues to gain traction with the Lloyd’s capacity-backed surplus lines product now being offered in 19 states, while the MGA has made a pair of senior appointments as it readies for the next stage of its development.

The founding leaders of Emerald Bay Risk Solutions have said the AM Best A- rated start-up will differentiate itself through alignment of interest – including taking a 20 percent share on most of its programs – and its collaborative approach to MGAs and reinsurers, as it eyes an opportunity it says is not being addressed by current fronting players in the sector.

In this second instalment of a two-part interview with OIP president and CEO Martina Seferovic, the executive talks about the unique needs of the E&S sector and how modernisation efforts need to be carefully shaped to meet them.

Successful insurers will be those that focus on specialisation and can help mitigate losses for insureds in an evolving risk environment that includes pervasive threats such as legal system abuse, according to Nationwide’s Russ Johnston.

The president of Distinguished Programs’ new executive lines business Ryan Becker has highlighted the importance of launching the offering with an exclusive wholesale-only distribution strategy as it prepares to begin accepting submissions in the new year, writing on the A++ paper of an RSUI subsidiary.

Most E&S carriers recognise they cannot keep pushing rate on property deals at a time when captive formations are potentially at their highest level ever, as buyers seek alternative solutions, according to Wes Robinson of Risk Placement Services (RPS).