According to Aon’s recent Reinsurance Market Dynamics report, Florida insurers enter mid-year renewals in a strong position, securing an additional $5-7 billion in reinsurance underwriting as ample supply is sufficient to meet growing demand.
In addition to stronger balance sheets, Florida insurers began mid-year renewals and improved underwriting performance, marked by recent legal reforms to address lawsuits and underwriting actions taken by insurers.
The report shows that multiple Florida insurance companies tracked by Aon will have underwriting profits of approximately $1.85 billion by the end of 2025, a 248% increase from the previous year, resulting in many insurance companies maintaining strong retention levels.
Improvements in loss forecasts for the Florida market are supported by forecasts of no U.S. hurricanes making landfall in 2025 and a below-average hurricane season in 2026. Aon noted that these factors help attract more capital and lead to positive renewal outcomes for most insurers.
Florida’s insurers purchased an additional $5 billion to $7 billion in reinsurance during the mid-year renewal period as state markets stabilized, largely due to further reductions in the size of Florida’s government-backed Citizens Property Insurance Company.
By the end of 2025, the total number of policies at Citizens, the state-backed insurer of last resort, was down 76% from its historical peak in October 2023, shifting risk back to the private market.
Aon said the increased demand in Florida also reflects underlying portfolio growth and the launch of new insurers (20 insurers have entered the Florida market since the 2022 legislative changes), as well as changes in catastrophe models and additional purchases of catastrophe limits.
On the supply side, the reinsurance capacity of Florida’s catastrophic risk market has proven to be sufficient to absorb this increased demand.
Aon found that global reinsurers have recognized the potential strength of the Florida market and current rating levels. This expansion in demand, driven by new players entering the catastrophe bond market, has driven strong participation from reinsurers and triggered significant price declines, particularly for established insurance brands. Additionally, terms and conditions have improved and reinsurers are more willing to offer flexible reinsurance structures and comprehensive solutions.
Chris Dittman, head of Florida strategy at Aon Re, commented: “Today, Florida insurers’ balance sheets are the healthiest they have been in more than a decade. But going forward, distribution and talent will be critical.
“Challenged by a limited talent pool and a significantly smaller citizen population, new insurers will need to meet investor expectations.”
