-- After-tax return on equity, which measures after-tax profitability from underwriting and investment activity, slipped slightly to a still solid 12.4% from 15.05% at year-end 2006.
-- The impact of the softening market was evident in the 8.7% drop in net premiums written in 2007 for professional surplus lines insurers.
-- Merger and acquisition activity has been high among surplus lines companies and distribution through midyear 2008, and is expected to continue over the near term.
-- For the fourth consecutive year, in 2007, surplus lines recorded no financial impairments, compared with the four impairments for the admitted P/C industry -- The top three surplus lines groups were unchanged from 2006: American International Group, Lloyd's and Zurich Financial Service Group.
-- An interstate compact designed to solve the surplus lines industry's multi-state tax and compliance problems was finalized in 2008, as Congress considered the Non-admitted and Reinsurance Reform Act (NRRA), also supported by the surplus lines industry.
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