The US directors and officers (D&O) insurance market’s 2021 results were the best the segment has experienced since 2014, according to A.M. Best.

The rating agency noted that US D&O insurers experienced significant growth in both top-line premiums and profitability in 2021.

A new Best’s Special Report, “D&O Insurance: Positive 2021 Results, but the Segment Still Faces Formidable Challenges,” said that consistent aggregate price increases by D&O insurers that reportedly exceeded 10 percent per quarter produced direct premium growth of 35 percent to $14.6 billion.

“Excess capacity has been a primary contributor of the disparity between rates and the pricing of risk exposures, even as the loss ratio crept upward,” Christopher Graham, senior industry analyst, industry research and analytics at A.M. Best, said in a statement. “With results worsening because of factors such as social inflation, litigation funding, environmental, social, and governance concerns, and cyber-related claims, insurers have pushed aggressively for elevated premiums upon renewal, as well as higher self-insured retentions and more-restrictive terms and conditions.”