Capital flows & Florida reforms point to lower pricing at June 1 renewals

Given the recent strong results that are driving capital flows, along with Florida reforms that have proven highly effective, analysts from Citizens JMP Securities expect pricing at the June 1 renewals to decrease modestly.

Readers will know that June 1 is particularly significant, as it marks a key opportunity for insurers to reassess their portfolios and adjust pricing strategies in response to evolving market conditions.

Citizens JMP Securities analysts have highlighted that Q1 2025 results in the P&C sector will be influenced by catastrophe losses, particularly from the L.A. wildfires, severe convective storms, winter weather across the U.S., and notable risk events, such as the American Airlines crash and multiple refinery fires.

Ongoing concerns around casualty loss reserves, tariff uncertainties, and potential inflationary pressures are also expected to remain a focal point for investors.

As June 1 approaches, the analysts noted that investors are increasingly focusing on market conditions for the second-largest renewal period of the year, with particular attention on wind-exposed risks.

“Given recent strong results that are driving capital flows as well as Florida reforms that have proven very effective, we expect pricing to be down modestly, despite recent hurricane activity,” the analysts added.

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