Florida insurance and reinsurance market news

Among the property insurance related topics up for debate in the Florida legislative session are measures that could trigger another growth surge for insurer of last resort Citizens Property Insurance Corporation, moves that would likely see it needing to grow its reinsurance and risk transfer.

Florida insurance carriers purchased 11% more in reinsurance over the course of 2023 than a year earlier and while market conditions were certainly hard, it was not as challenging as had been forecast for the domestic Floridian insurance market.

American Coastal, the remaining carrier in the United Insurance Holdings group, has claimed a risk adjusted price decrease of 9.24% in renewing its all other perils reinsurance arrangement for 2024.

HCI Group, the Florida-focused insurance holding company, has announced its in-force premiums have reached a new milestone of $1 billion, thanks to the addition of $30 million of premiums assumed by its digital insurtech company TypTap after a takeout from Florida Citizens.

The enactment of legislative reforms targeted at the insurance market in Florida has opened the runway for tens of billions in fresh capital to flow into the state from investors, John Seo, Co-Founder & Managing Director at Fermat Capital Management said at an event last week.

Building codes in Florida are seen as a significant factor in reducing the potential insurance industry loss from hurricanes, with improvements in recent years seeing modelled loss estimates drop, reinsurance broker Lockton Re said this morning.

Insurance carriers in the state of Florida have become more creative with how they approach their reinsurance program needs, finding solutions and using alternatives to ensure protection, but challenges persist, rating agency KBRA said in a new report. We think this could lead to some interesting renewal activity in 2024, given the efficiency of ILS […]

Florida-focused insurance holding entity HCI Group is aiming to raise close to $90 million through a public offering of its equity, with the target being to put the money raised to work to fund the continued assumption of policies from the state’s insurer of last resort, Florida Citizens.

Florida’s property insurer of last resort, Citizens Property Insurance Corporation, could increase its purchase of reinsurance and catastrophe bond backed risk transfer in 2024, with its new layer structure following the merging of its accounts suggesting as much as $5.5 billion could be purchased next year.

HCI Group subsidiary Homeowners Choice Property & Casualty Insurance Company, has completed a successful takeout of approximately 53,750 policies from Citizens Property Insurance Corporation, Florida’s state-backed insurance company, with the insurer of last resort now showing signs that thanks to depopulation its exposure is starting to reduce.