Florida insurance and reinsurance market news

Painting a picture of an insurance marketplace recovering after a challenging period, rating agency KBRA notes that reporting suggests Florida property insurance carriers are in a much better place, while the reinsurance market has responded and helped carriers increase their protection in advance of the expected busy hurricane season.

According to the Florida Office of Insurance Regulation (OIR), for the first time in years its Annual Reinsurance Data Call has found that, on average, insurance carriers operating in the state have seen a decrease in the price of their reinsurance.

Heritage Insurance Holdings, Inc. is ready to begin selectively growing its property insurance business back into Florida, as the legislative reforms have taken positive effect and reinsurance markets are now more stable, CEO Ernie Garateix has explained.

Collateralized capital markets backed reinsurance capacity and insurance-linked securities (ILS) fund managers have taken roughly two-thirds of Florida Citizens traditional reinsurance tower at the recent renewals, with Nephila Capital remaining the largest of those markets.

Rating agency KBRA has noted that the Florida property insurance market is now presenting a “favourable market opportunity” to those with the capital, capacity and legacy-free balance-sheets that can take advantage of it.

As the June 1st Florida reinsurance renewals come to their close, rating agency AM Best has said that it believes the pendulum remains “slanted toward reinsurers,” but also notes that some ground has been given, in terms of a less challenging renewals and moderated rate environment.

With pricing moderated slightly at the mid-year reinsurance renewals, analysts at Fitch Ratings note that this shouldn’t be construed as softening, saying that terms and conditions are holding firm and discipline is expected to persist.

Universal Insurance Holdings, Inc. has purchased first-event catastrophe reinsurance coverage of up to $2.4 billion, down from the previous year’s just over $2.8 billion, citing no material changes to reinsurance partners and ILS manager Nephila Capital again named as a significant market for the company.

According to Florida’s insurance market regulator, the first downward trend in property insurance rate filings for years is now being seen, as companies look to provide better prices to their consumers and at least some of the benefits of recent insurance reforms appear to be flowing to policyholders.

Universal Insurance Holdings, the Florida headquartered insurer, has already completed its June reinsurance renewal and its CEO said that the company added more multi-year protection this time, while also adding more reinsurers to its panel.