February 2026: $1.14B Premium,
Average Costs Down 9%

February results continue to reflect a softening market, with total premium remaining essentially flat year-over-year at $1.14B (-0.4%). Policy count increased 10%, rising from 125K to 137K compared to February 2025. As a result, Average Cost Per Policy declined 9%, decreasing from $9.1K to $8.3K, a pattern reflected across several of the top coverage lines.

MONTHLY PREMIUM BREAKDOWN

MONTHLY POLICY COUNT BREAKDOWN

NEW BUSINESS AND RENEWALS | FEBRUARY 2026 VS. FEBRUARY 2025

Business mix remained largely consistent year-over-year, with a slight 1% shift toward new business.

TOP 10 LINES OF BUSINESS | FEBRUARY 2026

Commercial Property recorded a 16% year-over-year decline in premium to $313.9M, while policy count increased 21% to 24,554. Average Cost Per Policy declined 31% year over year to $12.8K, a level not seen since the fourth quarter of 2021. The combination of rising volume and lower average pricing demonstrates that pricing compression is offsetting growth in written policies.

Commercial General Liability remained flat for the second month with premium increasing from $195M in February 2025 to $203M in February 2026 (+4%). Policy count remained essentially unchanged at 20.5K (-0.1%) compared to the prior year. This mix provided a slight rise in the Average Cost Per Policy from $9.5K to $9.9K (+4%). The combination of modest pricing growth and stable volume is consistent with an overall leveling trend observed since mid-2025.

Windstorm and/or Hail – Commercial reported a 25% year-over-year decrease in Average Cost Per Policy, declining from $18K in February 2025 to $13.6K in February 2026. This continues a broader downward trend from the line’s peak during the summer 2023 high-water mark, when Average Cost Per Policy reached $62.3K in June 2023. While pricing remained elevated through early 2024, the sustained decline began in May 2024 at $47.2K and has trended downward consistently since that time.

Homeowners HO-3 reported a 45% year-over-year decrease in Average Cost Per Policy, declining from $7K in February 2025 to $3.9K in February 2026. This represents the lowest level recorded since September 2021, with both January and February posting consistent results below $4K. Policy count increased 177% year-over-year, rising from 5.7K to 15.8K, indicating materially higher transaction volume alongside lower pricing levels.

“Homeowners HO-3 pricing has moved back below $4,000, levels not seen since 2021. At the same time, policy volume has increased significantly year-over-year. This shift is occurring alongside regulatory changes, including the repeal of the Diligent Effort requirement, showing reforms for homeowners pricing is working.”

- Mark Shealy, FSLSO Executive Director

Miscellaneous Liability reported a 761% year-over-year increase in Average Cost Per Policy, rising from $7K to $59.8K. Premium increased 103% year-over-year, from $15.4M to $31.3M. Historical data shows this line has experienced comparable swings in prior years, indicating that such movements are not unprecedented within this coverage.

TOP 10 INSURERS | FEBRUARY 2026

In February, eight of the top ten insurers by premium reported year-over-year decreases in Average Cost Per Policy. Several carriers, including Lloyd’s, MS Transverse, Kinsale, and Scottsdale, paired lower average pricing with increases in policy count, indicating continued activity alongside pricing compression. Notable exceptions include Axis Surplus Insurance Company and Lexington Insurance Company, which recorded 40% and 35% increases in Average Cost Per Policy, respectively.

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