After eight years of losses, Florida’s personal property insurance market reported an underwriting profit and a considerable jump in operating income in 2024, the AM Best rating and analytics firm said in a report this week.
The firm examined 45 insurers that have written most of the personal property insurance in the state, including some that went insolvent in recent years but excluding large national carriers. Of those 45, the active Florida insurers, excluding the state-created Citizens Property Insurance Corp., reported a combined ratio of 93.1 for 2024, improved from almost 100 for the prior year. Underwriting gains rose to $207 million in 2024, compared to a loss of $174 million the year before, AM Best noted.
“Florida’s legislative reforms acted as a material tailwind for longstanding participants but also improved the environment to attract new entrants, effectively increasing capacity,” said Josie Novak, senior financial analyst for the firm. “Additionally, the retreat of certain carriers—whether through reduced market participation or the suspension of new business—has created space for new companies to establish a foothold, further reshaping the competitive landscape.”
Direct premiums written have risen steadily for the active Florida insurers, from about $5 billion in 2020 to more than $11 billion in 2024.
“While the market is showing signs of promise and stability, hurricane-related risks remain the most notable concern,” the AM Best report noted.
The report echoes a 2024 analysis from S&P Global Market Intelligence, that showed underwriting losses for Florida’s top 50 property insurers were improving after several years of significant losses, after the legislative reforms were enacted.
The AM Best analysis noted that active Florida companies, in aggregate, have a far higher reinsurance dependency than the US personal property composite average (519.4% vs 62.2%). “The elevated leverage reflects Florida’s unique exposure to catastrophic weather events and its heightened reliance on reinsurance as a risk transfer tool,” the report said. The full report can be accessed through the AM Best site.
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