All subgroups in Gallagher Re’s Florida market report see DPW growth in 2023

As per Gallagher Re’s Florida Market Watch Report for 2023, all subgroups of selected insurance companies that derive a majority of their premiums from the state’s personal property market witnessed growth in direct premium written (DPW) in the year compared to 2022.

Gallagher Re has revealed that the ANTS subgroup, consisting of Allstate (Castle Key companies), Nationwide, Travelers (First Floridian), and State Farm, recorded growth in DPW of 19% to $2 billion, driven primarily by State Farm.

Meanwhile, the Florida Specialists grew by 15% to $22.7 billion in 2023 compared to 2022, with growth primarily driven by American Strategic and Privilege Underwriters.

Citizens also reported an increase of 59% in DPW to $5.1 billion in 2023 compared to 2022, supported by an increase in policies in force.

Gallagher Re’s Florida Market Watch Report also revealed that 28 of the 57 companies tracked reported an underwriting gain in 2023 compared to 15 companies in 2022.

“In 2023, Florida Specialists reported a net underwriting loss of $398.3 million and an after-tax net loss of $9.5 million. ANTS reported a net underwriting gain of $0.6 million and an after-tax net income of $24 million,” the firm explained.

For the market overall, net underwriting income stood at $68.8 million while after-tax net income was $760.9 million, the bulk of which was contributed by Citizens (after-tax net income of $746.5 million).

At the same time, the overall weighted-average combined ratio improved significantly to 96.7% in 2023 vs. 133.9% in 2022.

It’s worth noting that in 2023, 646,617 policies were approved for takeout in Florida, and 130,421 were removed from Citizens.

The state’s Office of Insurance Regulations (OIR) has approved 354,134 take-outs spanning through May 21st.

Of this, Slide Insurance Company is taking out 110,000 policies, Florida Peninsula Insurance Company is taking out 47,500 policies, and Southern Oak Insurance Company is taking out 45,000 policies.

Other companies taking out more than 5% of the policies include Security First Insurance Company, American Traditions Insurance Company, Monarch National Insurance Company, and TypTap Insurance Company.

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