Florida property insurers had more leverage in the June 1 renewals, with stronger underwriting results and higher capital levels helping push reinsurance pricing lower, according to a new report from Guy Carpenter.
The report said risk-adjusted property catastrophe pricing fell by about 15% to 20% across many layers. Reinsurers were also more willing to offer capacity at different attachment points. Quota share markets improved as well, with carriers securing more catastrophe occurrence and aggregate limits, along with better ceding commissions.
The shift followed a stronger year for Florida’s property insurance market. Domestic underwriters posted a 77% combined ratio in 2025, supported by legal reforms passed in December 2022 and a quiet hurricane season. It was the first season in 10 years without a landfalling tropical storm in the state, the report said.
Stronger results also helped rebuild insurers’ balance sheets. Policyholders’ surplus rose by about 45% at year-end 2025, giving many carriers more room to keep risk on their own books while negotiating better reinsurance terms.
“Florida’s property market is on markedly stronger footing. Legal reforms, improved building resilience, and disciplined underwriting have combined to restore capital and confidence. That restoration is visible in the way insurers and reinsurers approached the June renewals; more capacity was available, terms improved, and pricing moved in line with the better loss outlook, which ultimately supported sustainable rate relief for policyholders,” said Randy Fuller, Florida segment leader at Guy Carpenter.
Demand for Florida property catastrophe protection has also grown as policies continue to move out of Citizens Property Insurance Corporation. More than 1.4 million policies have shifted away from Citizens since 2022, increasing the need for coverage in the private market.
Guy Carpenter said its Florida clients secured more than 12% additional reinsurance capacity during the June renewals compared with the previous year. The report also noted more than $3.2 billion in new Florida-focused catastrophe bonds have been issued so far in 2026 for 12 sponsors, including three new sponsors.
Recent storm losses also helped support reinsurer and investor interest. Guy Carpenter said its claims studies show a difference between storms before and after Florida’s 2022 and 2023 civil litigation changes, citing Hurricane Milton in 2024, which resulted in 69% fewer claims and 74% lower claim severity compared with Hurricane Irma in 2017.
While forecasts point to a mild 2026 Atlantic hurricane season, Guy Carpenter said elevated temperatures in the Gulf and Caribbean Sea still leave the US exposed to severe storms and property damage.
