Contents

38

be subject to Citizens’ oversight, allowing Citizens

to order Condo Owners to purchase additional

reinsurance or suspend new business if its finances

deteriorate.

In August, Manatee’s request to take out

more than 81,000 policies from Florida Citizens

was approved. This included 75,000 residential

multiperil, 2,000 commercial nonresidential

wind-only and 1,000 commercial nonresidential

multiperil.

In 2023, more than 275,000 policies total were

assumed from Citizens, reducing its exposure by

about $113 billion, according to AM Best’s report.

At the end of August, the number of policies still

being handled by Citizens was 1.25 million, which

is comparable to the 1.22 million policies it oversaw

at the end of 2023.

An Improving Florida Homeowners Market

Pure has not been immune to the issues the

Florida homeowners market has faced, but has

outperformed, Logan said, noting that the market

is in a better place in 2024 than it was in 2022.

Logan also commented on an improving reinsurance

market in 2024.

“Florida is heavily dependent upon the

reinsurance market,” Logan said. “We went through

a really rough period in 2023. In 2024, it became

more favorable. We’ll see what happens with Helene

and the market going forward, but there’s more

capital out there to support critical catastrophe areas.

I imagine 2025 will be better than 2024, subject to

what happens with Helene and other storms.”

Orange has seen growth in other ways. It grew its

membership from an initial number of 30 to more

than 20,000, Matz said. That membership reflects

the entire state, as Orange writes business from

Pensacola to Key West, with a good distribution

throughout, Matz said. Orange’s average member

owns a home with a replacement cost between

$450,000 and $500,000.

“On the voluntary business, the flow of business

on commercial and personal lines has met our

expectations in every facet, from the volume to

premium size,” Matz said. “We’re right on target

with our projections, so we’re very pleased with

where our numbers are.”

AM Best Financial Analyst Josie Novak believes

there will be more opportunity in the future,

saying insurers are seeing profitability due to lower

BEST’S REVIEW

•

NOVEMBER 

litigation costs, likely due to recent tort reform as

well as less severe natural catastrophe events over the

last two years.

“In 2024, 12 companies have requested rate

decreases [in Florida] and 24 companies have

requested to keep rates stable in part because

mid-year reinsurance renewals were less severe

than in prior periods in addition to many carriers

aggressively pushing for rate adequacy in prior

filings,” Novak said.

At the same time, other states are starting to feel

the pinch, and the reach of reciprocal insurance

exchanges is expanding, Alirt said. “The geographic

reach of newer [reciprocal insurance exchanges] have

expanded from Gulf states as well, with Laulima

Exchange created to provide hurricane-only policies

in the state of Hawaii, while Victor Insurance

Exchange is active across the U.S.,” according to

Alirt’s report.

Vault Reciprocal Exchange is among those that

have expanded their reach. The insurer, which

targets high-value risks through homeowners,

valuable property coverage, personal excess liability

and personal auto policies, predominantly writes

in catastrophe-prone areas like Florida, Texas and

California.

However, it has put a recent emphasis on areas

that aren’t traditionally prone to catastrophes,

according to a Best’s Credit Report. Collectively, the

group writes in more than 40 states and the District

of Columbia.

Launched in 2023, Victor Insurance Exchange is

an excess and surplus lines carrier that is domiciled

in Delaware with operations in 42 states, according

to a Best’s Credit Report.

It planned to write commercial perils coverage

in hurricane regions, including Florida, on a non-

admitted basis using a special causes of loss. Its

coverage includes wind/hail. The attorney-in-fact

will be owned jointly by the financial sponsor,

Gallatin Point Capital, and the strategic sponsor,

Marsh McLennan Cos. Inc.

There have been fewer natural catastrophe events

in Florida the past two years, but Matz said reciprocals

can always thrive there and in other areas that aren’t

deemed high-risk catastrophe areas. “The same

principles apply in non-catastrophe-exposed areas, but

I think you can compete on equal footing with a stock

company more easily in a catastrophe-exposed area

than in a non-catastrophe-prone area,” he

said.

Reciprocals

40

Best’s Rankings

US Homeowners Multiperil – Top Writers by State, Canada and US Territories – 2024 Edition

Ranked by 2023 direct premiums written.

($ Thousands)

Agency

Direct

14.2

AZ192302662,819,4991.820.670.51.527.172.9State Farm Group 15.4Farmers Ins Group

CA33025513,728,9949.010.261.42.529.670.4State Farm Group 19.9Farmers Ins Group 1

CT272702382,051,0801.310.558.71.053.246.8Travelers Group 9.3Chubb INA Group 7

1

ALR: Adjusted loss ratio is direct losses incurred divided by the difference between direct premium earned and dividends paid

to policyholder.

4

AR323102101,395,2260.913.7133.60.821.079.0State Farm Group 25.6Farm Bureau Mutual Ins Co of Arkansas 14

DE46450188420,8470.310.160.31.335.264.9State Farm Group 25.7U

2

DDCCE: Direct defense and cost containment expense ratio is the former allocated loss adjustment expense (ALAE) ratio.

Writer

SAA Gr

CO8802284,581,6983.020.4115.51.221.278.8State Farm Group 20.8Liberty Mutual Ins Cos 1

3

Insurers that distribute primarily through independent agents.

4

Insurers that distribute primarily through a direct-selling system or an exclusive agency system.

Note: Data for some companies in this report has been received from the NAIC.

Source:

- State/ Line (P/C Lines)-P/C, U.S.; data as of Sept. 9, 2024.

3

Writer

AL24240251$2,601,8431.711.367.40.825.574.5State Farm Group 26.8Alfa Ins Group

AK51500103220,2330.17.467.41.39.390.7State Farm Group 31.7U

oup 20.4

12.6

.1

4.9

5.4

.9

SAA Gr

oup 9.5

DC50510154221,3600.110.661.40.954.545.5Travelers Group 23.8State Farm Group 18

.1

FL11027317,283,00911.319.640.03.880.419.6Citizens Property Ins Corporation 18.6Universal Ins Hldgs Group

8.5

GA6603095,095,6363.310.983.41.029.870.2State Farm Group 24.0Allstate Ins Group 13

.8

HI44440103499,6220.38.4390.96.343.856.2State Farm Group 34.0Tokio Marine US PC Group 13

.0

ID38380184696,9770.517.071.61.023.176.9Liberty Mutual Ins Cos 18.5State Farm Group 14

.8

IL5503065,517,9213.613.096.91.223.876.2State Farm Group 31.8Allstate Ins Group 13

.1

IN211802772,804,1771.811.278.60.935.464.6State Farm Group 22.9Allstate Ins Group

9.3

IA333302231,267,0460.816.3112.91.042.657.4State Farm Group 23.3Nationwide P&C Group

10.6

KS292802241,665,6971.110.458.10.728.072.0State Farm Group 20.4Amer Family Ins Group

15.9

KY282902401,684,6601.112.9131.31.325.674.4State Farm Group 23.0KY Farm Bureau Group

21.9

LA182002263,006,5162.021.946.43.337.162.9State Farm Group 21.9Allstate Ins Group

13.9

ME40400195603,6650.411.464.50.946.153.9Liberty Mutual Ins Cos 11.7State Farm Group 11

.6

MD222102232,795,1701.813.570.81.144.255.8State Farm Group 16.2Travelers Group

12.8

MA141402923,478,9682.313.448.01.375.124.9MAPFRE North America Group 12.2Liberty Mutual Ins Cos 9.0

MI111102303,796,2922.59.990.61.239.560.5State Farm Group 16.6Auto-Owners Ins Group 1

4.6

MN151502293,385,6492.213.8110.40.732.267.8State Farm Group 24.9Amer Family Ins Group

15.4

MS303002081,486,0591.012.388.41.127.772.3State Farm Group 22.6Southern Farm Bureau Casualty Group 15.5

MO171702243,027,5292.010.190.11.122.377.7State Farm Group 24.0Amer Family Ins Group

15.9

MT41410153601,1710.414.056.31.223.976.1State Farm Group 23.2Liberty Mutual Ins Cos 16

.6

NE343401971,225,4080.814.457.00.435.764.4State Farm Group 22.1Farmers Mutual Ins Co of Nebraska

10.3

NV36360225928,9230.610.062.31.526.173.9State Farm Group 17.8Farmers Ins Group 12

.2

NH42430209583,9130.411.752.70.843.156.9Liberty Mutual Ins Cos 13.9State Farm Group 10

.4

NJ121202713,704,8742.48.260.31.538.761.3NJM Ins Group 11.8Allstate Ins Group 1

1.3

NM37370194833,1180.514.763.71.020.979.1State Farm Group 19.5Farmers Ins Group 17

.5

NY4402917,595,3485.011.350.21.654.046.0Allstate Ins Group 15.4State Farm Group 13

.4

NC9902624,271,5352.814.458.00.841.858.2State Farm Group 15.4North Carolina Farm Bureau Ins Group 12.8

ND48480162311,1980.210.157.90.130.569.5State Farm Group 14.2Amer Family Ins Group 12

.5

OH101003194,110,7732.711.786.71.244.755.3State Farm Group 19.8Allstate Ins Group

10.6

OK252502162,400,9011.612.0101.21.619.480.7State Farm Group 28.6Farmers Ins Group

12.7

OR313202121,404,0230.916.151.91.019.880.2State Farm Group 20.7Farmers Ins Group

16.0

PA7703254,669,1843.110.263.41.847.852.2State Farm Group 17.2Erie Ins Group 16

.0

RI39390202611,6630.412.658.51.546.054.0Amica Mutual Group 14.3Allstate Ins Group 12

.3

SC232202632,766,1311.815.251.30.847.352.8State Farm Group 20.2U

SAA Gr

oup 8.8

SD45460188438,9580.317.562.10.437.462.6State Farm Group 19.3Amer Family Ins Group 14

.2

TN161602633,117,0842.012.793.61.129.370.7State Farm Group 22.0TN Farmers Ins Cos

17.9

TX22032016,100,32210.519.571.01.431.668.5State Farm Group 18.9Allstate Ins Group

14.9

UT353502041,032,2860.722.076.61.334.166.0State Farm Group 15.1Farmers Ins Group

11.6

VT49490184271,4610.210.047.61.057.043.0Liberty Mutual Ins Cos 12.9VT Mutual Group 11

.8

VA131302983,584,8362.313.758.30.740.359.7U

SAA Gr

oup 17.4State Farm Group 16.4

WA201902322,814,1771.813.376.21.426.573.5State Farm Group 16.1Liberty Mutual Ins Cos

14.1

WV43420198563,8940.47.062.91.543.656.5State Farm Group 27.0Erie Ins Group 19.

4

WI262602792,091,9201.411.771.20.842.557.6Amer Family Ins Group 22.9State Farm Group

16.2

WY47470160341,9640.215.758.40.518.281.8State Farm Group 22.3Farmers Ins Group 17

.6

Guam 5353001321,0920.04.2192.011.095.24.8Chung Kuo Ins Co, Ltd GUB 44.7Amer Intl Group 22

.5

Puerto Rico52520026129,6720.119.714.31.099.40.6Universal Ins Group of Puerto Rico 47.7MAPFRE North America Group

31.1

U.S. Virgin Is.545400209,5540.0-2.8-11.40.797.03.0Underwriters at Lloyd's, London (VI) 49.4Guardian Ins Group

35.4

Canada575700154580.0999.9505.8-73.293.16.9AmTrust Group 93.1FM Global Group

6.9

Other 555500304,6250.017.057.6-26.5100.00.0Chubb INA Group 61.1Amer Intl Group

38.5

N. Mariana Is.565600064860.0-11.023.50.4100.00.0Century Ins Group 58.0First Net Ins Co

21.0

Grand Total1,078$152,676,327100.014.170.81.740.559.5State Farm Group 17.7Allstate Ins Group

8.9

Leading Writer

%

Market

ShareSecond Leader

%

Market

Share

Market Share

ALR

% Change

1

DDCCE

2

in

Premiums

State

2023

Rank

2022

Rank

No of

Cos

Direct

Premiums

Written

% of

Grand

Total

BEST’S REVIEW

•

NOVEMBER 

Best’s Rankings: Homeowners

DAMAGE BEYOND CONTROL

Heavy rains from

Hurricane Helene caused record flooding and damage in

Asheville, North Carolina, on Sept. 28. Two days earlier,

the Category 4 storm made landfall in Florida’s Big Bend

region with winds up to 140 mph and surges that killed

at least 230 people in several states.

Private Market Takes Cautious

Approach to Flood Insurance Amid

Climate Uncertainty, Panel Says

42

Flood insurance’s role is being reevaluated now that cat and non-cat events

have led to torrential rain and widespread problems, according to a recent

panel discussion at the Wholesale & Specialty Insurance Association Annual

Marketplace in San Diego.

by John Weber

rivate insurers are assessing their appetite

for flood risk due to changing climate

conditions and increased frequency of severe

storms, according to a recent panel discussion at

the Wholesale & Specialty Insurance Association

Annual Marketplace in San Diego.

Panelists included Patrick Mulready, head of

wholesale property for Navigators; John Dickson,

chief executive officer of Aon Edge; David Blades,

associate director, AM Best; and John Lavin,

executive vice president of E&S property, U.S.,

for Sompo.

Following is an edited transcript of the

discussion, which occurred before Hurricane Helene

made landfall in Florida on Sept. 26 and caused

widespread damage and loss of life in the Southeast.

John Weber

is a senior associate editor. He can be reached at

john.weber@ambest.com.

BEST’S REVIEW

•

NOVEMBER 

Realistically, who should be purchasing

flood insurance?

Lavin:

I think everybody could consider buying

flood insurance. I think one of the big things is

Mother Nature doesn’t recognize man-made flood

zones, whether it’s critical or noncritical. I think in

both cat and non-cat events, we can have a lot of

torrential rain that causes a lot of flooding. I also

think changes due to erosion, prior cat storms,

building development changes the terrain and can

also be reasons to buy flood insurance when maybe

you thought you shouldn’t.

Can you explain Risk Rating 2.0 that was

implemented about a year and a half ago.

How’s it been working out?

Dickson:

Risk Rating 2.0 is [the Federal

Emergency Management Agency’s] new approach

to rate flood insurance. Basically in the past, FEMA

P

Flood Insurance

Photo by Melissa Sue Gerrits/Getty Images

44

phenomenal. We’re seeing companies come in with

risk analyzers to help the clients and customers and

the industry better understand risk.

As we see these new players come in with great

new creative ideas, the result is, everybody benefits.

That’s why I think we’re in a very exciting time for

this industry [with] the amount of interest that

we’re seeing come into the marketplace—again,

bringing capital, bringing investments, bringing new

capabilities—[that’s] resulting in a better solution for

all. We think about making better decisions. These

are individual decisions, so we need these individual

capabilities. We need these personal investments to

understand personal risk, to help individuals make

the decision best for them.

Are the models able to keep up with how

the risk is changing?

Dickson:

It’s happening, and I think there’s

still work to be done. We talk about the coverage

gap that persists. I mean, you think about in the

United States last year, about 40% of losses were not

covered by insurance. These economic losses have to

be borne by the community.

This is work that we still have to do to close that

gap. From a coverage perspective, the gap is even

more eye-popping. The models, I think, are helping

that—if they’re helping education, help awareness,

help people think about how to smartly deploy

capital, but the work is far from done.

Mulready:

I think the models are a great guide,

but it takes the underwriting augmentation to really

assess the risk, and there’s a lot of investment in

those products, whether we call it a model, or maybe

some more intelligent risk on its way. It’s incumbent

upon us as carriers, as Navigators is doing, to take

that and adapt it to what the marketplace will hold.

How have the extreme weather events

impacted risk selection?

Mulready:

I think it is sort of in summary

of what the other panelists have mentioned. No

particular area in the country is immune to these

critical events, and it seems like in recent history

they’re happening more and more frequently. It’s

up to us as private carriers to provide solutions, but

educate those buyers of how to mitigate some of the

risk that they have. And also, what is their risk?

Maybe everybody should be considering

purchasing flood insurance, but we’ve got to

BEST’S REVIEW

•

NOVEMBER 

encourage them as to why that goes along with

that. I think Navigators is doing a really nice job in

providing solutions to the market, along with some

of the other carriers. This is a great organization and

conference to come up with some of those solutions.

Are you optimistic about where the

market’s headed?

Mulready:

I’m optimistic. I think one of the

signs that encourages this optimism is the amount

of capital coming into the marketplace that we’ve

seen in recent years after a bit of a slowdown. I

think there’s real appetite for risk and it’s not just

someone coming in looking to make a quick buck.

It’s actually really talented folks that have experience

and are willing to provide solutions to the

marketplace. We don’t get to provide our product

until after a claim. It’s critically important to us to

make sure the policyholder knows what to expect

when that happens.

Dickson:

I think it’s happening. If you look at

the homes, the number of homes that are insured

by the combination of the federal program and

the private program, there’s more homes today

insured than there were yesterday. Is it happening

as fast as we’d like it to? Is it happening as fast as

our communities need it to? I don’t think so, but

it’s happening. So that’s the positive. That’s the

opportunity. I think the trend is a good one. We

need to continue to push forward. There’s a lot of

work to be done, but the outlook is positive.

Blades:

I think I’d agree with that. Making

people more aware of the changing nature of flood

risk, making sure people understand how the flood

peril is changing, understanding that their property

is susceptible to flood risk, where maybe 10, 15, 20

years ago, it wasn’t potentially subjected to a flood

loss. It is critical that they now understand that they,

too, have exposure to flood risk.

I think the resources that are coming into

the marketplace in terms of education and then

the resources that are also coming in ... are very

important from an insurance perspective.

AM Best TV

Scan to watch

Panel: Private Market Takes

Cautious Approach to Flood Insurance Amid

Climate Uncertainty.

Flood Insurance

46

broader mortality implications

of this, not necessarily to

differentiate between those

who have/have not contracted

COVID.”

Under the report’s most

optimistic scenario, excess

mortality rates could return to

normal in 2028. That outlook

sees medical advances including

cancer developments and mRNA

vaccines combined with a drop

in the impact of COVID-19 and

healthier lifestyle choices.

“COVID-19 is far from

over,” Paul Murray, chief

executive officer, life and health

reinsurance, Swiss Re, said in

a statement announcing the

findings. “If this continues, our

analysis suggests a potential

scenario of elevated excess

mortality extending over the

next decade. However, excess

mortality can return to pre-

pandemic levels much sooner.

The first step is to get COVID

under control, with measures

such as vaccinations for the

vulnerable.”

Europe’s Big Four reinsurers—Munich Re, Swiss

Re, Hannover Re and Scor—saw strong operating

results in 2023. They saw the performance of life

insurance portfolios improve in part on the reduced

impact from pandemic-related deaths, AM Best

said in a Best’s Market Segment Report,

Global

Reinsurance – The Big Four European Reinsurers

. That

report noted excess mortality remained elevated in

the United States.

Murray said the number of COVID-19 fatalities

reported in the United States is comparable to

fentanyl or firearm fatalities. Longer-term solutions

such as medical advancements and lifestyle changes

will prove key, he said.

In 2021, excess mortality spiked to 23% above

the 2019 baseline prior to the health emergency in

the United States and 11% in the United Kingdom,

the Swiss Re report said.

Fluctuations tend to be short term following a

medical breakthrough or large epidemic and reverts

BEST’S REVIEW

•

NOVEMBER 

to the baseline, the report said.

That hasn’t been the case in

either the United States or

the United Kingdom, which

in 2023 saw excess mortality

remain significantly elevated

in the range of 3%-7% and

5%-8%, respectively.

The primary driver of the

trend is respiratory disease,

including COVID-19 and

influenza, Swiss Re said. Other

causes include cardiovascular

disease, cancer and metabolic

illnesses. The cause of death

figures vary by a country’s

reporting mechanism, Swiss Re

said.

“Insurers may wish to

continue to monitor excess

mortality and its underlying

drivers in the general

population closely, as well as

the differences between general

and insured populations,” the

report said.

Last year, industry figures

had bad news for those hoping

that mortality patterns would

return to normal as the

COVID-19 pandemic subsides: The excess mortality

seen during the past several years is likely to be

sticky, panelists at a Society of Actuaries event said.

“We’re still going to see some small amount

of excess mortality out into 2030, but the path is

definitely heading back to the path we were on

before the pandemic,” said R. Dale Hall, managing

director of research for the Society of Actuaries.

“Definitely COVID is no longer a prominent cause

of death. Obviously COVID is still there, but

nowhere near what we were seeing during the height

of the pandemic.”

Non-COVID deaths due to chronic diseases have

“hung around,” he said. The conditions include

illnesses such as diabetes, kidney disease and liver

disease that grew during the pandemic as causes of

death and remain elevated.

He used diabetes as an example: Prior to the

pandemic, it accounted for about 22 deaths per

100,000 in the United States in 2019 and reached

“COVID feels like it’s in

the rearview mirror but

the impacts can still

be felt for a number

of years. You’ve got to

look at the insured and

non-insured population.”

Edward Kohlberg

AM Best

Life Insurance