Directors & officers insurance written premiums rose slightly in 2018 after four previous years of stable numbers, A.M. Best said in a new market segment report.

The line produced nearly $6.6 billion in direct premiums written in 2018 compared to $6.5 billion in 2017 and $6.4 billion annually from 2014-2016. Before that, the line grew robustly from 2011-2013, according to the report.

A.M. Best said that a number of factors may have helped improve the numbers, including a drop in the number of securities class action lawsuits and changes to underwriting strategies. A.M. Best cited data from the Council of Insurance Agents & Brokers noting that on average, its members raised D&O rates in each 2018 quarter.

D&O isn’t out of the woods just yet, however. A.M. Best noted, for example, that loss ratios are still well above the historical average of 54.1 over the last eight years, despite improvements.

Out of the $6.6 billion in D&O premiums from 2018, $5.6 billion paid for claims made policies. Another $50 million covered occurrence, and $824 million were unallocated by industry, A.M. Best said.

American International Group was the top U.S. D&O liability underwriter in 2018, booking $868 million in direct written premium, down 7.7 percent from the previous year. Chubb INA Group, AXA U.S. Group, Tokio Marine US PC Group and CNA Insurance Companies ranked 2-5, respectively, A.M. Best said.

Source: A.M. Best