The property insurance market in Florida is showing many signs of life, with another company seeking a large acquisition order from Citizens Property Insurance and two new companies entering the arena.
Tampa-based HCI Group CEO Paresh Patel said in an earnings call last week that the company applied for up to 75,000 policies from Citizens, after posting revenue of $33 million for in the first half of 2023 – a sharp improvement over the first half of last year.
“In previous earnings calls, we said we expected a material, beneficial impact from the new Florida law, and that impact is starting to show in our results,” the chief financial officer of HCI, Mark Harmsworth, said on the call. HCI’s Florida subsidiaries include Homeowners’ Choice Property & Casualty Insurance, with about 88,300 policies in force, and TypTap Insurance, with about 56,000 policies. It is unclear which insurer will accept Citizens’ policies.
The takeouts, if approved by Florida regulators, could bring the number of Citizens takeout policies approved this year to more than 350,000. That’s seen as good news for the market, where Citizens, the state’s remaining insurer, has grown to become the state’s largest property carrier, with more than 1.3 million policies.
And Florida Insurance Commissioner Michael Yaworsky announced Monday that his Office of Insurance Regulation has approved a Texas-based carrier, Mainsail Insurance Co., to do business in Florida. The news follows the approval of Tailrow Insurance, part of HCI Group, which was approved by OIR in April.
Also, a week ago, Recoop Disaster Insurance, underwritten by Professional Solutions Insurance Co., said it plans to offer a type of parametric property coverage in Florida that pays a set amount, up to $25,000, after in a storm.
Recoop executives could not be reached for comment, but the Florida OIR site indicates that Professional Solutions, based in Iowa, has been doing business in Florida since 2019. It is part of NCMIC Insurance Co., which began as an insurer. of malpractice for chiropractors but now offers personal lines and business coverage.
It all points to a strengthening market in the Sunshine State, which has seen four years of rising premiums, carrier pull-backs, and a dozen insurer insolvencies. Yaworsky called the changes “positive signs” and he credited the 2022 and 2023 legislative changes, which ended one-way attorney fees and litigation benefits assignments. to claim.
“The addition of Mainsail Insurance Co. to the Florida market is evidence that recent legislative reforms are having a positive impact on consumers,” he said in a bulletin.
Mainsail is part of Hippo Holdings Inc., which manages Hippo Insurance and Spinnaker Insurance Co. Hippo Holdings is a publicly traded company headquartered in California. Co-founder Assaf Wand was replaced in the CEO spot last year by Richard McCathron, news outlets reported.
Hippo Insurance is not active in Florida, but has expanded its presence to at least 15 states in recent years, the company said. Spinnaker had about 57,000 policies in force in Florida at the end of March, according to the latest quarterly report from the Florida OIR.
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