After eight years of losses, Florida’s private property insurance coverage market reported an underwriting revenue and a substantial leap in working revenue in 2024, the AM Greatest score and analytics agency stated in a report this week.
The agency examined 45 insurers which have written many of the private property insurance coverage within the state, together with some that went bancrupt lately however excluding massive nationwide carriers. Of these 45, the energetic Florida insurers, excluding the state-created Residents Property Insurance coverage Corp., reported a mixed ratio of 93.1 for 2024, improved from nearly 100 for the prior yr. Underwriting features rose to $207 million in 2024, in comparison with a lack of $174 million the yr earlier than, AM Greatest famous.
“Florida’s legislative reforms acted as a fabric tailwind for longstanding members but additionally improved the surroundings to draw new entrants, successfully rising capability,” stated Josie Novak, senior monetary analyst for the agency. “Moreover, the retreat of sure carriers—whether or not by way of diminished market participation or the suspension of latest enterprise—has created house for brand spanking new firms to determine a foothold, additional reshaping the aggressive panorama.”
Direct premiums written have risen steadily for the energetic Florida insurers, from about $5 billion in 2020 to greater than $11 billion in 2024.
“Whereas the market is exhibiting indicators of promise and stability, hurricane-related dangers stay probably the most notable concern,” the AM Greatest report famous.
The report echoes a 2024 analysis from S&P World Market Intelligence, that confirmed underwriting losses for Florida’s prime 50 property insurers had been bettering after a number of years of serious losses, after the legislative reforms had been enacted.
The AM Greatest evaluation famous that energetic Florida firms, in combination, have a far larger reinsurance dependency than the US private property composite common (519.4% vs 62.2%). “The elevated leverage displays Florida’s distinctive publicity to catastrophic climate occasions and its heightened reliance on reinsurance as a threat switch device,” the report stated. The complete report will be accessed by way of the AM Best site.
Subjects
Carriers
Profit Loss
Florida
Underwriting
AM Best
Interested by Carriers?
Get automated alerts for this matter.
