Florida’s insurers entered mid-year renewals from a position of strength, securing an additional $5-$7 billion of reinsurance coverage as ample supply was more than adequate to meet increased demand, according to Aon’s recent Reinsurance Market Dynamics report.
In addition to a stronger balance sheet, Florida insurers began the mid-year renewals with improved underwriting results, marked by the recent legal reforms to address litigation and underwriting actions taken by insurers.
According to the report, a number of Florida-based insurers tracked by Aon generated underwriting profits of approximately $1.85 billion at year-end 2025, up 248% on the previous year, leading many to maintain strong retention levels.
An improved loss forecast for the Florida market was supported by the lack of US hurricane landfalls during 2025 and predictions of a below-average 2026 season. These factors helped draw in additional capital and led to positive renewal results for the majority of insurers, Aon noted.
As the market in the US state stabilises, Florida insurers purchased an additional $5 billion to $7 billion in reinsurance coverage during the mid-year renewals, driven by further depopulation of Florida’s state-backed Citizens Property Insurance Corporation.
By the end of 2025, Citizens, the state-backed insurer of last resort, saw its total policy count decreased by 76% from the historic peak in October 2023, transferring risk back into the private market.
Increased demand in Florida also reflected underlying portfolio growth and the launch of new insurers (20 insurers have entered the Florida market since legislative reforms in 2022), as well as catastrophe model changes and some additional purchasing of catastrophe limit, said Aon.
On the supply side, reinsurance capacity for Florida’s catastrophe-exposed market proved more than adequate to absorb this heightened demand.
Aon finds that global reinsurers have recognised the underlying strength of the Florida market and current rating levels. This expanded appetite, bolstered by new participants entering the catastrophe bond market, has driven robust reinsurer participation and sparked noticeable price reductions, particularly for well-established insurance brands. Moreover, terms and conditions improved, with reinsurers more willing to offer flexible reinsurance structures and aggregate solutions.
Chris Dittman, Florida Strategy Leader, Reinsurance, Aon, commented: “Today, the balance sheets of Florida’s insurers are the healthiest in over a decade. But looking ahead, distribution and talent will be paramount.
“New insurers will need to meet investor expectations amid the challenges of a limited talent pool and a significantly depopulated Citizens.”
