Citizens

Reinsurer appetite and Citizens depop highlight FL sentiment shift

Halfway through the hurricane season it would be foolhardy to forecast consecutive years of stable reinsurance buying conditions in Florida, but renewed reinsurer appetite at 1 June and a strong Citizens depopulation pipeline are indicative of a healthier outlook for the state’s homeowners market.

Seven FL carriers approved to take out over 220,000 Citizens policies in November

The Florida Office of Insurance Regulation has approved seven companies to assume up to around 220,000 policies from state-run insurer of last resort Citizens Property Insurance Corporation, with the take-out companies including two reciprocals established this year.

Citizens seeks rate average rate increase of 13.5% for 2025

State-backed insurer Citizens has recommended to the Florida Office of Insurance Regulation (FLOIR) a proposed rate change of 13.5 percent on average across its product lines, well below the uncapped indication of 27.8 percent and the 96.8 percent increase it says it would need for HO-3 policies to be “non-competitive”.

Nephila has biggest share of Citizens traditional XOL as Berkshire non-renews

Funds managed by Markel-owned Nephila wrote almost 30 percent of the $1.96bn traditional reinsurance limit secured by Florida’s Citizens at its 1 June renewal, while last year’s biggest participant Berkshire Hathaway was not on the excess-of-loss (XoL) cover.

Citizens cuts planned reinsurance program by ~$2bn as market tightens late in renewal

Florida’s Citizens Property Insurance Corporation bought around $2bn less reinsurance than it had targeted for its 2024 risk transfer program amid a tightening of cat reinsurance buying conditions late in this year’s renewal.

Citizens board approves 14% rate hike as depop forecast increases

Citizens management have said the policy count at Florida’s state-backed insurer could drop below one million by the end of the year, compared to previous forecasts of 1.2 million, as its board approved a proposed personal lines average rate increase of 14 percent.

Florida’s Citizens seeks 14% rate increase for 2025

Florida’s Citizens will seek board approval Wednesday for a statewide average rate increase of 14 percent across personal lines policies, reflecting recent legislative reforms, reinsurance costs and the state-backed insurer’s aim for actuarially sound pricing.

AM Best: Pendulum “slanted towards the reinsurers” in Florida renewals

The “pendulum remains slanted toward the reinsurers” at Florida’s mid-year renewals despite the improved market conditions, AM Best has commented, noting that reinsurance dependency remains high among carriers in the Sunshine State.

Gallagher Re: Floridians’ collective CR down 37 points to 97% in 2023

As Florida’s primary personal propertyinsurers gear up for their mid-year reinsurance renewals, new data compiled by Gallagher Re shows that carriers in the Sunshine State ended 2023 with a collective combined ratio that improved by 37.2 points to 96.7 percent.

Citizens on course to shrink below one million policies this year as depop gathers pace

Citizens president Tim Cerio has told the Florida state-backed carrier’s board that it is set for a “very successful” depopulation in 2024, and is expected to shrink by more than budgeted projections after colleagues yesterday suggested policy count could drop below a million by year end in the absence of a major weather event.

Reinsurance market finds stability after four years of hardening

Florida’s Citizens and its broker Gallagher Re have gone out to the traditional reinsurance market this week with the submission for its newly combined personal lines account, commercial lines account and coastal account placement.

Citizens bullish on global reinsurance and capital markets for record $5.5bn risk transfer

Florida’s Citizens Property Insurance Corporation is approaching with optimism its key 1 June reinsurance renewal that could see it transfer up to $5.5bn of risk, in an environment where it said rates are projected to be in the flat to -5 percent range depending on the cedant.

Cerio states Citizens “will always be able to pay claims” amid Senate committee probe

The CEO of Citizens Property Insurance Corporation has responded to a renewed investigation by Senate budget committee chairman Sheldon Whitehouse by stating the Florida carrier has addressed the concerns raised and “will always be able to pay claims”.

US senator renews Citizens probe after “failure to cooperate”

Senate Budget Committee chairman Sheldon Whitehouse has renewed a probe into Citizens Property Insurance Corporation after the Florida carrier “failed to cooperate” with the committee’s initial investigation.

HCI shares trade up 13% on strong earnings beat and Florida opportunity

HCI Group shares were trading up 13 percent on Friday as investors reacted favourably to a strong Q4 earnings beat, while the Florida-based carrier on an analyst call highlighted progress made on Citizens take-outs, improved underwriting conditions following regulatory reforms and significant growth prospects.

E&S takeouts and insurer limitations post-storm top bill as FL session nears end

Florida’s main legislative session is due to come to an end on Friday after two years of momentous reforms in the homeowners insurance market, with proposals for 2024 meeting with a mixed response from the surplus lines industry.

Citizens ends 2023 with PIF down 13% from September peak

Florida state-run insurer Citizens Property Insurance Corporation ended last year with 1.22 million policies in force, which was up 6.8 percent from the same time the previous year, but down from the 2023 peak at the end of September.

Citizens sets $700mn placeholder for private market reinsurance spend

Citizens has a $700mn placeholder in its 2024 operating budget for private risk transfer and an estimated $498mn of ceded premium for Florida Hurricane Catastrophe Fund (FHCF) coverage, with the state-run insurer’s CEO also describing a recently launched investigation by a US Senate committee as “upsetting”.

Citizens projects $5.5bn private market risk transfer for 2024

Citizens Property Insurance Corporation has projected a $5.5bn traditional reinsurance/capital markets placement for 2024, which at that level would be higher than the placement for 2023, while Florida’s state-run insurer has also highlighted its policy count is falling following reform and depopulation efforts.

US Senate budget committee chair launches investigation into Citizens

US Senator Sheldon Whitehouse has launched an investigation into Citizens Property Insurance Corporation, with his budget committee seeking documents and information about the Florida state-backed insurer’s plans to address increased underwriting losses.

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