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 c
ombined ratio for carriers improved by a stunning 22 points, Gallagher Re reported this week.
Gallagher’s Florida Market Watch, crunching numbers from the National Association of Insurance Commissioners and from S&P’s Global Market Intellig
ence, said the overall weighted average combined ratio, a measure of profitability with lower numbers i
ndicating a better premium to loss ratio, decreased from 104 in 2024 to just under 82 for 2025 for most carriers in the Florida market.
That’s a big turnaround from 2024, when the Florida combined ratio increased from 97, Gallagher’s recent reports show. By comparison, the U.S. property/cas
ualty industry’s overall average combined ratio improved about 5 points from 2023 to 2024, and about two points last year, recent reports show.
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.
Direct premiums written grew by 1.3% for the Florida market last year, to about $33 billion. Florida specialists, excluding major national carriers’ Florida operati
ons, 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 b
y Privilege Underwriters Reciprocal Exchange, or PURE, which has focused on high-value homes in the state.
Takeouts of policies from the state-created Citizens were frequent in 2025: Some 1.3 million policies we
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re approved for takeout by Florida regulators, and almost half of those were actually removed from Citizen’s policy count.
The major nationals’ Florida subsidiaries, including Allstate’s 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%.
For the overall Florida market, policyholder surplus climbed to $16.4 billion, up by almost 25% fr
om the previous year. The major national firms’ surplus grew by about 11%, while Florida-specialist carriers rose 35%, to $8 billion, Gallagher noted.
The report listed key indicators for dozens of Florida carriers. Those with the largest improvement in combined ratio include:
Tower Hill Insurance Exchange – 160% improvement, from 230 to 70
ASI Preferred – 77% improvement, from 106 to 29
First Floridian Auto and H
ome – 69% improvement, from 115 to 46.
Some of the largest Florida-domiciled carriers also reported healthy profits in 2025:
Universal P&C – 5% improvement in combined ratio, from 103 to 97
State Farm Florida – 22% improvement, from 90 to 69
Security First Insurance –
21% improvement, from 85 to 63
Slide Insurance – 11% improve
ment, from 77 to 66
Heritage P&C – 9% improvement, from 93 to 85
American Integrity Insurance – 3% improvement, from 78 to 75.5
