Florida Citizens Property Insurance Corporation has finalized its 2026 risk transfer program at $2.816 billion. New coverage placed this year came in roughly 30% cheaper than equivalent placements a year ago.
The state-backed insurer secured $691 million of traditional reinsurance at the June 1 renewal, adding to $2.125 billion of catastrophe bond protection already in force. Citizens said costs across the total program are roughly 20% lower than in 2025. The combined program cost is $276.5 million, at a weighted average net rate-on-line of 9.52%.
Citizens structured the placement roughly half from capital markets and half from traditional reinsurance. On new placements only, the net rate-on-line came in at 8.46%, down from 11.95% for equivalent placements in 2025. That is a year-over-year reduction of 29.2%.
Citizens’ outcome sits within a broader market shift. Guy Carpenter reported risk-adjusted property catastrophe pricing fell 15% to 20% across many layers at the June renewal.
Florida domestic underwriters posted a 77% combined ratio in 2025. More than $3.2 billion in new Florida-focused catastrophe bonds were issued in 2026 for 12 sponsors, including three new entrants.
The conditions benefit buyers, but they carry risk for the supply side. Howden Re warned that a further decline of the same magnitude could push large segments of the industry below their cost of capital by 2027.
Citizens called its $1.1 billion Everglades Re II Ltd. (Series 2024-1) catastrophe bonds early in 2026. It then placed $600 million of new cat bonds through Everglades Re II Ltd. (Series 2026-1) in May.
Retaining the 2024 bonds for a third year would have cost $124.8 million. The 2026 replacement cost $46.6 million, delivering net savings of $72.7 million after early redemption costs.
Nearly 76% of the $2.82 billion program comes from catastrophe bonds, though ILS investment managers also participate in the traditional market component. Total capital markets participation is, therefore, likely higher than the cat bond figure alone.
Citizens said both markets entered the renewal with “ample capacity due to increased capital, improved earnings, and renewed confidence in the Florida market.” Market-wide rate reductions in Florida were “in the range of approximately 15% to 20% for layers above the FHCF.” Citizens’ own coverage came in cheaper than that range.
Citizens’ policy count fell to just over 293,000 in June 2026, down from over 779,500 a year earlier. The smaller book reduced coverage needs and program costs.
The scale of that decline reflects how far Florida’s legal environment has shifted. Homeowners insurance lawsuits fell about 30% and Citizens’ own lawsuit count dropped nearly 50% following the 2022 and 2023 statutory changes. A smaller policy book means lower reinsurance demand and a cheaper program.
