Reinsurance News

Floridian insurers see underwriting improve in Q2 2022: Gallagher Re

23rd September 2022 - Author: Kane Wells

According to reinsurance broker Gallagher Re’s Q2 Florida Market Watch Report, the combined ratio of the industry improved by 13.1% year-over-year to 109%.

At the same time, loss & LAE reserve ratios at an industry level fell by 7.3% to 73.1% in Q2, as the expense ratio declined from 41.7% in Q2 2021 to 35.9% in Q2 2022.

However, the report also notes that total composite net loss & LAE reserves increased by $61.8 million from the year-end of 2021.

All in all, Gallagher Re reports that personal property writers in Florida in Q2 2022 produced an underwriting loss of $307 million for the period, which is an improvement on both the $652 million loss reported in Q2 2021, and the $1.6 billion underwriting loss recorded for the full-year 2021.

According to the reinsurance broker’s report, Demotech-rated companies saw a 39.2% underwriting loss improvement year-over-year, while the Florida specialists saw a 27.1% year-over-year improvement in underwriting loss.

Tremor - The modern way to place reinsurance

The report goes on to highlight that the Florida specialists were the only subgroup contained within this report to post reserve decreases (-$66.7m) while other subgroups have seen reserve increases.

For the second quarter of 2022, Florida personal lines direct written premium increased 12.9% to $10.6bn compared to $9.4bn in the second quarter of 2021, finds Gallagher Re.

Further, Florida market policyholders surplus (PHS) has slightly improved year to date at +2%, says the report, as the total composite PHS increased by $237.3 million.

Print Friendly, PDF & Email

Recent Reinsurance News