(Associate Editor Jeffery Beckner contributed to this article.) MONEY GOES where money grows, so it should be no surprise that a lot of capital lately has been attracted to the E&S marketplace. Much of it has been drawn to the property catastrophe market, which was in crisis after Hurricane Katrina produced huge losses in 2005 and reinsurers sharply increased rates in 2006. Then last year's hurricane season turned out to be a non-event, and insurer profitability soared.

But while capacity is up in the E&S marketplace–and not just for property CAT risks–written premiums have grown slowly, if at all. That has set the stage for stiff competition and squeezed profits. To gauge how this dynamic is playing out in the summer of 2007, we recently contacted executives of five longtime E&S insurers. We also got in touch with the president of a company that is new to the market. Their comments follow. Kevin KelleyLexington Insurance Co.At Lexington Insurance Co., the nation's largest E&S insurer, Chairman and CEO Kevin Kelley sees a competitive but manageable market, albeit one that could be subject to volatility from future windstorm activity and geopolitical risk, among other factors.