Surplus Lines' future looks strong despite a flat year.

In 2005, direct premium volume for the surplus lines market remained relatively flat, after growing significantly during the prior three calendar years, according to the A.M. Best Special Report "Surplus Lines Market 2006." The surplus lines market is made up of property/casualty insurers that provide insurance unavailable to consumers in the standard market due to the unique characteristics and needs of the consumers. Despite rising loss costs, modest investment yields and decreasing rates on most lines of business, A.M. Best expects surplus lines industry results to remain strong.