Insurers achieved a combined ratio of 93.1 in 2024. In 2023, the combined ratio was near 100, and in 2020, it was 132.2. (Credit: Montri Thipsorn/Adobe Stock)
Following eight years of losses, Florida’s personal property insurance market saw an underwriting profit in 2024, according to a new report from AM Best.
Among the 45 insurers the report examined, underwriting gains were $206.7 million in 2024, compared to a loss of $174.4 million in 2023. They recorded a pre-tax profit of $492.3 million.
The insurers also achieved a combined ratio of 93.1 in 2024. In 2023, the combined ratio was near 100, and in 2020, it was 132.2.
The profit comes despite an active hurricane season for the state last year. The Florida Office of Insurance Regulation estimates that the insurance loss from the two storms in Florida alone topped $4.3 billion, with $2.9 billion attributed to Milton and $1.4 billion to Helene.
It also comes without significant new rate increases. According to S&P Global Market Intelligence, the average statewide increase in 2024 was 1%, the lowest in the United States. And in the fourth quarter, the state saw premiums decrease by an average of 0.7%.
The report found the turnaround is due largely to legislative tort reform and lower defense and containment costs, thanks to a decline in new lawsuits. According to the Florida Office of Insurance Regulation, the state saw a 30% year-over-year decrease in new property claim lawsuits in 2024.
Even as some carriers have exited the market, others have entered, the report found, making the state more competitive.
“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,” said Josie Novak, senior financial analyst at AM Best, in a statement.
The report did note that Florida still faces large risks from natural catastrophes. And it found that Florida’s insurers rely on reinsurance at a much higher rate than the U.S. average: 519.4% vs. 62.2%.
AM Best’s findings were based on a composite of 45 regional insurers in the state. It did not include national insurers with Florida affiliates or the state’s Citizens Property Insurance Corp.
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