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.
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.