Florida’s Property Insurance Market Stabilizes After Years of Losses
Florida’s personal property insurance market has reported its first underwriting profit in eight years, according to a new report from AM Best. The Best’s Market Segment Report states that a softening property/casualty landscape is emerging in the state, driven by increased competition, new market participants, stabilizing premiums, and improving profitability.
Key Findings of the Report
- The Florida personal property composite, made up of 45 specialist insurers, reported a combined ratio of 93.1 for 2024 with an underwriting gain of $206.7 million, compared to a $174.4 million loss in 2023.
- Pre-tax operating income reached $492.3 million, up from a result just above breakeven in the previous year.
- Legislative reforms introduced in 2022 have played a crucial role in the market’s rebound by improving the legal environment and addressing litigation challenges.
Challenges Persist Despite Improvement
Despite the positive trends, the report notes that many insurers still hold considerable direct exposure relative to their premiums. The direct premiums written-to-surplus ratio for active Florida property insurers was 3.2x in 2024, compared to the U.S. personal property composite average of 1.7x. Dependence on reinsurance also remains high, with ceded reinsurance leverage at 519.4% in 2024.
Future Outlook
The report suggests that the balance of power may be shifting toward primary carriers in midyear renewals. With more moderate loss activity and stabilized profitability, Florida composite companies are better positioned to manage risk accumulation and potentially negotiate more favorable terms with reinsurers.
For more information on this report, please visit AM Best’s website.
