Florida Surplus Lines Industry Closes 2025 on a Firm, Competitive Footing

December closed with clear signals that Florida’s surplus lines market remains both active and healthy. Total written premium for the month reached $1.3 billion, a 15% increase over December 2024, while policy count was up 17% to 131,439 filings. The simultaneous growth in both premium and volume points to sustained demand, with business continuing to move through the market at competitive pricing levels.

MONTHLY PREMIUM BREAKDOWN | DECEMBER 2025

For the full year, total written premium reached $17.3 billion, while policy count climbed to 1,706,935 filings. Together, these figures translate to an average cost per policy of $10,153, representing a 10% decrease from 2024. The divergence between premium and policy growth remains the defining feature of the current cycle. While overall premium has held relatively flat, policy volume continues to expand, reinforcing that the market is no longer being driven by rate alone.

MONTHLY POLICY COUNT BREAKDOWN | DECEMBER 2025

New business accounted for 42% of annual activity, with renewals representing 58%. This compares closely with 2024, when the split was 43% new business and 57% renewals. The consistency in this mix highlights a stable renewal environment, even as carriers remain engaged in writing new placements.

NEW BUSINESS AND RENEWALS | ANNUAL 2025

“This balance suggests we’ve entered a more mature phase of the market cycle, where growth is being driven by participation and competition rather than pricing pressure. For Florida, that’s a positive indicator. It reflects a healthier marketplace where business is not being excessively shopped, prices are leveling out, and policy volume continues to grow.”

— Mark Shealy, Executive Director, FSLSO

Lines of Business: Pricing Softens as Capacity Expands

Commercial Property

Commercial Property continued its year-long repricing trend in December, with premium totaling $296.9 million, down 7% year-over-year, while policy count rose 36% to 21,287 filings.

For the full year, the line finished at $6.2 billion in premium, a 5% decrease from 2024, alongside 299,531 policies, up 42% year-over-year. The average cost per policy closed the year at $20,680, a 33% decline, reinforcing that policies are being written at increasingly competitive prices as capacity broadens.

Commercial Auto Excess Liability

December saw a notable rise in Commercial Auto Excess Liability, with premium reaching $134.4 million, representing a 9,282% year-over-year increase. Policy volume increased 8% to 40 filings, pushing the average cost per policy to $3,361,139.

This movement appears to be a market anomaly, driven by activity tied to State Farm Specialty, which ranked among December’s Top 10 Insurers with $130 million in premium and may signal admitted business shifting into the surplus lines market.

Builders Risk – Commercial

Builders Risk posted a 17% year-over-year decline in December premium to $31.3 million, while policy count increased 42% to 740 filings.

For the year, the line closed at $412.4 million in premium, down 12% from 2024, with 7,664 total policies, up 29% year-over-year. The resulting average cost per policy of $53,810 reflects a 32% decrease, another strong indicator of competitive pricing conditions.

Windstorm and/or Hail – Commercial

Windstorm and/or Hail ended the year with $376.2 million in premium, down 17% from 2024, while policy count jumped 56% to 21,225 filings. This combination produced an average cost per policy of $17,726, representing a 47% decrease year-over-year, marking a notable repricing trend in the market.

TOP 10 LINES OF BUSINESS | DECEMBER 2025

TOP 10 LINES OF BUSINESS | ANNUAL 2025

Insurer Activity: Emerging Entrants, Captive Growth, and Market Concentration

December delivered several notable shifts among Florida’s surplus lines insurers, highlighting both emerging participants and the continued dominance of established market leaders.

State Farm Specialty entered the Top 10 Insurers for the month with $130 million in written premium, marking its first appearance in this tier. Notably, all of State Farm Specialty’s December premium was tied to Commercial Auto Excess Liability, directly correlating with the sharp premium increase observed in that line of business.

IPC/Captive Filings also posted a significant December increase totaling $73.2 million in premium, a 531% year-over-year rise, with a 19% decline in policy count to 57 filings. While filings from this insurer group rose in December, this segment finished the year ranked 13th overall, representing 1.25% of total market premium with $218.7 million in annual volume, reflecting the high-limit, low-volume nature of this business.

TOP 10 INSURERS | DECEMBER 2025

From a full-year perspective, the Florida surplus lines market remains anchored by a small group of dominant carriers.

Lloyd’s Underwriters at London closed out 2025 with more than $3 billion in premium, accounting for 17.45% of total market volume, retaining its position as the state’s largest surplus lines insurer.

MS Transverse Specialty Insurance Company ranked second with nearly $713 million in premium, representing approximately 4% of the statewide surplus lines market, followed by Lexington Insurance Company, which finished the year with just under $468 million in premium and a 2.7% market share.

TOP 10 INSURERS | ANNUAL 2025

Homeowners Market: Reform-Driven Stabilization Takes Hold

Florida’s homeowners market is now clearly reflecting the impact of the 2022 and 2023 legislative reforms. After years of market flux, the data points to improving availability, moderating prices, and expanding participation. A full year without major hurricane landfalls has further supported pricing stability, helping to keep homeowners coverage competitive as the market continues to recalibrate.

HO-3 | 2024 VS. 2025 COMPARISON

HO-3 premium grew modestly, rising 5% from $657 million in 2024 to $692 million in 2025, while policy count rose 24%, climbing from 105,024 to 130,058 policies. The average cost per policy dropped from $6,259 to $5,323, a meaningful decline that signals improving affordability. The repeal of the diligent effort requirement has likely contributed by accelerating the flow of homeowners business into the surplus lines market.

HO-5 | 2024 VS. 2025 COMPARISON

HO-5 followed a similar trajectory. Premium increased 6% from $187 million to $198 million, while policy count rose 20% from 6,263 to 7,514 policies. Average cost per policy declined 12%, falling from $29,797 to $26,361, reinforcing the theme of growing access at more competitive pricing.

HO-6 | 2024 VS. 2025 COMPARISON

HO-6 remained largely stable. Premium finished the year at $184.2 million, down just 1% from 2024, while policy count edged up 2% to 76,619. Average cost per policy closed at $2,404, a 3% decrease, reflecting a market that has largely plateaued in this segment.

2025 Wrap-Up

As 2025 draws to a close, Florida’s surplus lines market reflects a year defined by rising policy volume, intensifying competition, and expanding capacity. Premium growth is expected to soften further and may move into a period of slight retrenchment, even as policy counts continue to rise. With property coverages continuing to soften and liability lines showing sustained premium growth, liability is emerging as a critical area of focus, and a special edition report examining those trends in greater depth will be released next quarter.

For additional insights on premium trends, policy volume, and insurer activity, visit FSLSO’s Market Data Reports.

www.fslso.com

Have questions? Contact us at 800.562.4496, option 1 or email agent.services@fslso.com.