ALIRT Insurance Research Highlights Financial Rebound in Florida's Domestic Property Insurance Market

In its recent release, "Florida Domestic Property Insurer Market Update" ALIRT Research discusses the current financial performance of this once troubled property insurance market and its radical improvement since market reforms in 2022 and 2023.

HARTFORD, Conn., Dec. 15, 2025 /PRNewswire/ -- ALIRT Insurance Research today announced the publication of its 2025 Florida Domestic Property Insurer Market Update, revealing a dramatically strengthened homeowners insurance marketplace following transformative legislative reforms enacted in late 2022 and early 2023.

According to ALIRT's analysis, the Florida market has transitioned from a near-collapse in 2022—marked by rampant litigation abuse, soaring loss costs, and a wave of insurer insolvencies—to a revitalized environment that is attracting both new capital and renewed underwriting appetite. Eighteen new or re-launched insurers have entered or announced plans to enter the market since the reforms, signaling an industry-wide return of confidence. Six insurers began writing homeowners coverage in the 2024-2025 period alone.

"The transformation of the Florida property insurance market in just three years is extraordinary," said ALIRT Insurance Research. "The combination of litigation reforms, strengthened underwriting discipline, and stabilizing reinsurance dynamics has reshaped one of the nation's most challenged insurance markets into a more sustainable and investable environment."

The report discusses several key indicators of renewed market health, including:

• The rapid depopulation of Citizens Property Insurance Corporation, the state's property insurer of last resort, over the past two years,
  
  
• A radical improvement in insurer financial quality based on ALIRT Scores, a proprietary measure of operating performance and solvency trends,
  
  
• The advent of new carrier formations over the past two years, including a surging number of reciprocal insurance exchanges dedicated to the market. This reflects, in part, growing interest in catastrophe-exposed property risks by MGAs, private-equity, and third party reinsurance structures.

Focusing on ALIRT's 37-company Florida Domestic Insurer Composite, the report discusses the varying ownership structures and business strategies for these carriers. It then reviews several key indicators of renewed market health, including premium growth, underwriting and operating earnings, and capital generation, as well as the overall relative financial performance of these property specialists, as measured by ALIRT Scores.

A Stabilized but Still Delicate Market

ALIRT concludes that the Florida homeowners insurance market is in its strongest position since the mid-2010s, with broad-based improvements in revenue growth, profitability, surplus levels, and capital inflows. The analytics firm underscores one caveat, however:  i.e., that history has shown this corner of the insurance world to be prone to sharp reversals.  Besides the ever-present risk of large storm losses and vagaries of global reinsurance pricing, regulatory and political pressures—including proposed legislation that re-tinkers with the three-year old market reforms—remain ever-present wild cards shaping the future landscape of the Florida property insurance market.

For more information, please contact David Paul at david.paul@alirtresearch.com

About ALIRT Insurance Research
ALIRT Insurance Research is an independent financial analysis firm specializing in monitoring insurer solvency and performance trends for institutional clients. Based in Hartford, Connecticut, ALIRT provides analytical insights that assist organizations in managing insurance company exposure and maintaining fiduciary oversight.

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SOURCE ALIRT Insurance Research