September 2026

Florida Surplus Lines Market Reaches $13.24B Through Q3 as Policy Volume Continues to Climb

With three quarters of 2026 complete, the direction of Florida’s surplus lines market is becoming increasingly clear. Premium volume continues to moderate from 2025 levels, while policy activity remains elevated.

Through September, Florida’s surplus lines market reported $13.24 billion in premium, a 5% decrease compared to the first nine months of 2025. At the same time, policy count increased 13% to nearly 1.49 million policies.

The result is an average cost per policy of $8,910 year-to-date, down 16% from $10,588 during the same period last year.

Third-quarter results followed the same pattern. Premium totaled $3.88 billion, down 3% compared to Q3 2025, while policy count increased 9% to 503,490. Average cost per policy declined 11% to $7,710.

September reinforced the trend. Premium totaled $1.06 billion, down 12% year-over-year, while policy count increased 15% to 166,778. Average cost per policy fell 24% to $6,370.

Taken together, the results point to a market that remains highly active, but where activity is increasingly being measured in transactions rather than premium growth.

"With nine months of data behind us, the market’s direction is becoming much clearer", said FSLSO Executive Director Mark Shealy. "Policy activity remains strong, but the average premium associated with those policies continues to move lower. That does not suggest demand for the surplus lines market is disappearing. It reflects a market operating under different pricing, capacity and competitive conditions than we saw during the recent period of rapid premium growth."

NEW BUSINESS AND RENEWALS

SEPTEMBER 2026 VS. SEPTEMBER 2025

Q3 2026 VS. Q3 2025

YTD 2026 VS. YTD 2025

The mix of new and renewal business remained relatively consistent, although small shifts are notable given how little these proportions typically change. During Q3, new business increased its share of policy count by one percentage point to 43%, while renewals declined to 57%. September moved in the opposite direction, with renewals increasing one percentage point to 56% of policy count and new business declining to 44%.

With overall policy volume continuing to rise, these small shifts represent thousands of policies and provide additional context on how business is moving through the market.

Top 10 Lines of Business

Commercial Property remains the clearest example of the broader 2026 market trend. Through September, premium was down 16% while policy count was up 22%, driving average cost per policy down 31% to $15,628.

The premium decline narrowed to 6% during Q3, helped by a particularly strong August. September, however, again showed a significant separation between premium and policy activity, with premium down 40% year-over-year while policy count increased 28%. Average cost per policy fell 53% to $7,164.

Liability results were somewhat more mixed. Commercial General Liability remained comparatively steady, with premium down 4% year-to-date and policy count virtually unchanged from 2025. Q3 followed a similar pattern, reinforcing CGL as one of the more stable major lines in the market.

Excess Commercial General Liability, meanwhile, continued to grow. Through September, premium increased 10% and policy count increased 13%, with similar growth during Q3. September policy activity accelerated further, increasing 21% compared with a 5% increase in premium, pushing average cost per policy down 14% for the month.

Homeowners HO-3 continues to stand out for the scale of its policy growth and the corresponding decline in average cost per policy. Through September, policy count increased 67% while premium showed a 13% increase, reducing the average cost per policy 32% to $3,625.

The divergence became even more pronounced during Q3, when premium declined 10% while policy count increased 19%. By September, the average cost per HO-3 policy had fallen to $3,316, continuing to keep the line well below the $4,000 mark.

Flood – Personal also entered the Q3 top 10, with premium up 35% and policy count up 40% year-over-year. The timing is notable as Q3 overlaps with the peak of Florida’s hurricane season.

Top 10 Insurers

Underwriters at Lloyd’s, London remains Florida’s largest surplus lines insurer and continues to reflect the broader market trend. Through September, Lloyd’s reported $2.39 billion in premium, down 5% year-over-year, while policy count increased 13%. That divergence widened during Q3, when premium declined 7% and policy count increased 18%. September followed the same pattern, with premium down 17% and policy count up 27%.

MS Transverse Specialty Insurance Company also shows a notable divergence between premium and policy activity. Year-to-date premium was down 24% while policy count increased 36%. During Q3, premium declined 35% while policy count increased 25%. September was softer, with both premium and policy count declining, suggesting some moderation as the quarter closed.

Evanston Insurance Company stands out among the top ten year-to-date for positive premium growth. Through September, premium increased 2% while policy count rose 10%. Q3 premium declined 7%, but September returned to growth, with premium up 4% and policy count up 13%.

Other Captive/Non-Admitted Insurers continues to be one of the more notable movements in the insurer rankings. Through September, premium increased 149% year-over-year and policy count increased 77%. Q3 premium more than doubled, accompanied by an 89% increase in policy count, keeping the category among the top 10 for the year, quarter and September.

Palms Insurance Company Ltd. and AIG Specialty Insurance Company also moved into the quarterly top 10 following periods of elevated premium filing activity. Palms reported a particularly large amount of premium in August, while AIG saw higher premium volume in both August and September, influencing their Q3 rankings. For more on August’s insurer activity, see our August 2026 Premium Report.

Looking Ahead

With three quarters complete and the typically slower fourth quarter ahead, the broader story of 2026 has largely taken shape: policy activity remains strong even as premium volume and average cost per policy decline. That trend aligns with FSLSO’s forecast of approximately $16.2 billion in premium and 1.9 million policies by year-end. For more on FSLSO’s 2026 market forecast, see A Tale of Three Markets.

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