Florida Surplus Lines Market Reaches $4B for Q1 Reflecting Stable Premium and Continued Growth in Policy Volume 

Florida’s surplus lines market generated $1.72 billion in premium across 167,775 policies in March 2026, marking a strong rebound following a slower start to the year. 

For the first quarter, total premium reached $4.0 billion across 427,903 policies, representing a 1% increase in premium and an 11% increase in policy count compared to Q1 2025. 

While March showed notable momentum, quarterly results indicate that overall premium growth remains relatively flat, with policy volume continuing to outpace premium. 

Average cost per policy reflects this shift. In March, the average cost declined 8% year over year to $10,249, while the quarterly average fell 9% to $9,358, signaling continued competitive pressure and expanding capacity across the market. 

NEW BUSINESS AND RENEWALS | March 2026 vs March 2025

NEW BUSINESS AND RENEWALS | Q1 2026 vs Q1 2025

New business and renewals remained consistent with prior year levels, with renewals accounting for 59% of activity for the quarter, indicating a stable and active renewal environment.

We are continuing to see strong participation across Florida’s surplus lines market, with growth being driven more by policy volume than pricing. At the same time, targeted activity from captive and non-admitted insurers in certain segments reflects the market’s ability to adapt and respond to specific risks. Together, these trends point to a competitive and evolving marketplace. 
— Mark Shealy, Executive Director, FSLSO 

Lines of Business: Property Softens, Liability Trends Diverge, and Homeowners Expands 

TOP 10 LINES OF BUSINESS | March

* NOTE: The YOY Percent of Change are calculated as a comparison between March 2026 and March 2025.

TOP 10 LINES OF BUSINESS | 1Q26

* NOTE: The YOY Percent of Change are calculated as a comparison between Q1 2026 and Q1 2025.

Commercial Property 
Commercial Property saw increased premium activity in March; however, quarterly results reflect continued softening. For Q1, premium totaled approximately $1.2 billion, down 9% compared to the same period in 2025. 

Policy count increased for both the month and the quarter, resulting in a 20% decline in average cost per policy for the quarter. This trend reflects continued repricing as capacity expands and competition remains strong. 

Homeowners HO-3: The HO-3 market continues to show significant expansion in both premium and policy volume. For the quarter, policy count increased 123%, significantly outpacing premium growth and reinforcing increased availability in the surplus lines market. 

Average cost per policy remained just above $3,800, representing a 38% decrease from the prior year and indicating continued movement toward affordable pricing levels. 

Commercial General Liability (CGL): CGL posted premium decreases in both March and across the quarter. Despite this, policy counts continued to rise, resulting in an average cost per policy of $10,617, an 8% decrease year over year. 

With the exception of CGL, other liability coverages posted increases in both premium and policy count for the quarter, highlighting continued growth across liability segments. 

Physician/Surgeon and Dentist Professional Liability: This segment experienced a notable increase in both premium and policy count during March. Growth appears to be driven by increased participation from Captive Insurers, particularly through direct placements on a limited number of large healthcare risks. 

These placements, often tied to hospitals and large medical facilities, contributed to concentrated premium increases within a relatively small number of policies. 

Insurer Activity: Market Leadership Holds While Captives Expand

TOP 10 INSURERS | March

* NOTE: The YOY Percent of Change are calculated as a comparison between March 2026 and March 2025.

TOP 10 INSURERS | 1Q26

* NOTE: The YOY Percent of Change are calculated as a comparison between Q1 2026 and Q1 2025.

Lloyd’s remained the largest market participant for Q1, reporting $664 million in premium across more than 89,000 policies, representing approximately 21% of the market by policy count. 

Other leading insurers for the quarter included: 

• MS Transverse Specialty Insurance Company with $137.9 million across 14,076 policies

• Lexington Insurance Company with $112.5 million across 1,983 policies  

• Evanston Insurance Company with $90.9 million across 17,821 policies  

Other Captive and Non-Admitted Insurers emerged as a notable presence in both March and quarterly results, posting a 463% increase in premium for March 2026 compared to March 2025, driven largely by professional liability activity. 

Despite this growth, policy count for this segment represented only 0.1% of total market volume, underscoring the high-limit, low-frequency nature of these placements. This group ranked among the top contributors for the quarter.

Q1 Wrap-Up and Looking Ahead 

March activity helped offset a slower start to the year, bringing the market into a more balanced position for Q1. While premium growth remains relatively flat, continued expansion in policy volume reflects increased participation and broader availability across the market. 

www.fslso.com

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