Florida’s personal property insurance market recorded an underwriting profit in 2024, ending a streak of eight consecutive years of related losses. The market also experienced a notable increase in pre-tax operating income, according to a new report from AM Best.
The Best’s Market Segment Report, titled “Florida’s Property Insurance Market Showing Stabilization Following Volatility and Sharp Premium Increases,” notes that the state is beginning to see a softening property/casualty environment. This development is supported by increased competition, new market entrants, stabilizing premium levels, and improved profitability. These trends follow an extended period of market hardening, marked by significant premium increases, reduced capacity, and rapid growth of Citizens Property Insurance Corporation, Florida’s state-run insurer of last resort. Legislative reforms enacted in 2022 have been a key factor in this recovery, aiming to enhance the legal environment and address litigation issues that have adversely affected insurer performance.
“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 at AM Best. “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.”
Legislative activity continued in 2024, including the passage of a law permitting excess and surplus (E&S) lines carriers with an AM Best rating of A- (Excellent) or higher to insure seasonal homes without homestead exemptions. For 2025, additional legislation has been passed to improve access to E&S lines coverage for both agents and consumers.
AM Best’s Florida personal property composite comprises 45 Florida-focused insurers that primarily underwrite personal property within the state. This group does not include companies affiliated with large national carriers or Citizens Property Insurance Corporation. Insurers that have merged or become financially impaired in recent years are included in the composite to maintain accurate historical data.
Active Florida property insurers — excluding Citizens and insolvent companies — reported a combined ratio of 93.1 in 2024, with an underwriting gain of $206.7 million. This contrasts with a $174.4 million underwriting loss in 2023. Pre-tax operating income rose to $492.3 million, compared with a result just above breakeven the previous year. However, these insurers continue to show high direct exposure relative to their premiums, with a direct premiums written-to-surplus ratio of 3.2x, versus 1.7x for the U.S. personal property composite. Reinsurance dependency also remains elevated, with active insurers in Florida reporting ceded reinsurance leverage of 519.4% in 2024, compared to 62.2% for the national composite. These higher ratios reflect the state’s exposure to catastrophic weather events, heavy reinsurance use, and the greater direct risk assumed by Florida-based specialists.
“Looking ahead to midyear renewals, the balance of power appears to be shifting toward primary carriers,” said Chris Draghi, director at AM Best. “Given that loss activity has been more moderate in recent years and profitability has stabilized, Florida composite companies are now in a better position to manage risk accumulation and potentially negotiate more favorable terms with reinsurers.”
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