Last year was a much better year for the once-distressed Florida insurance market, as direct written premium rose, policyholder surplus levels climbed, and the average combined ratio for carriers improved by a stunning 22 percentage points, Gallagher Re reported this week.<\/p>\n
Gallagher\u2019s Florida Market Watch, crunching numbers from the National Association of Insurance Commissioners and from S&P\u2019s Global Market Intelligence, said the overall weighted average combined ratio, a measure of profitability with lower numbers indicating a better premium to loss ratio, decreased from 104% in 2024 to just under 82% for 2025 for most carriers in the Florida market.<\/p>\n
That\u2019s a big turnaround from 2024, when the Florida combined ratio increased from 97%, Gallagher\u2019s recent reports show. By comparison, the U.S. property-casualty industry\u2019s overall average combined ratio improved about 5 percentage points from 2023 to 2024, and about two percentage points last year, recent reports<\/a> show.<\/p>\n In Florida, 46 of the 61 insurers tracked reported underwriting gains in 2025, an improvement from the 39 companies reporting gains in 2024, the Gallagher report said.<\/p>\n Direct premiums written grew by 1.3% for the Florida market last year, to about $33 billion. Florida specialists, excluding major national carriers\u2019 Florida operations, grew by 13.5%, to $22 billion. That growth was driven mostly by Slide Insurance, which has leaned heavily on takeouts of Citizens Property Insurance policies; and by Privilege Underwriters Reciprocal Exchange, or PURE, which has focused on high-value homes in the state.<\/p>\n Takeouts of policies from the state-created Citizens were frequent in 2025: Some 1.3 million policies were approved for takeout by Florida regulators, and almost half of those were actually removed from Citizen\u2019s policy count.<\/p>\n The major nationals\u2019 Florida subsidiaries, including Allstate\u2019s Castle Key companies and State Farm Florida, saw a drop in direct premium written in 2025, the report said. Citizens reported a decrease in premium of almost 44%.<\/p>\n For the overall Florida market, policyholder surplus climbed to $16.4 billion, up by almost 25% from the previous year. The major national firms\u2019 surplus grew by about 11%, while Florida-specialist carriers rose 35%, to $8 billion, Gallagher noted.<\/p>\n The report listed key indicators for dozens of Florida carriers. Those with the largest improvement in combined ratio include:<\/p>\n Tower Hill Insurance Exchange \u2013 160% improvement, from 230 to 70 Some of the largest Florida-domiciled carriers also reported healthy profits in 2025:<\/p>\n Universal P&C \u2013 5% improvement in combined ratio, from 103 to 97 Others\u2019 numbers were not as rosy:<\/p>\n Florida Peninsula \u2013 1% increase in combined ratio, from 66 to 67 The 12-page Gallagher 2025 report can be seen here<\/a>. The 2024 report is here<\/a>.<\/p>\n
\nASI Preferred \u2013 77% improvement, from 106 to 29
\nFirst Floridian Auto and Home \u2013 69% improvement, from 115 to 46.<\/p>\n
\nState Farm Florida \u2013 22% improvement, from 90 to 69
\nSecurity First Insurance \u2013 21% improvement, from 85 to 63
\nSlide Insurance \u2013 11% improvement, from 77 to 66
\nHeritage P&C \u2013 9% improvement, from 93 to 85
\nAmerican Integrity Insurance \u2013 3% improvement, from 78 to 75.5<\/p>\n
\nFrontline Insurance \u2013 18% increase in combined ratio, from 80 to 98<\/p>\n