FL E&S Market Near $1.5B in March & $3.98B for Q1

As we monitor Florida’s excess and surplus lines market data, all indications continue to show a flattening market with year-over-year growth rates in the low single digits. March premium totals neared $1.5B to close the quarter at $3.98B for the start of 2025. As March showed a rebound in growth rates from February, the quarter closed at a 2% overall premium growth rate over Q1 2024. This continues the trend we saw in the latter half of 2024 which showed a gradual tapering of growth rates in premium.

Policy counts for March totaled 131,543 policies and represented a 4% growth rate over March of 2024. Quarter totals overall also ended in a positive 7% growth rate increase over Q1 2024 with 384,891 in total policies. 

The average cost per policy across all lines for Q1 2025 was $10,331 which represented a 5% decrease over the average cost per policy in Q1 of 2024.

A Look at the Lines of Business

As we close out the first quarter of 2025, March's top lines of coverage mirrored the lines observed throughout the quarter. Commercial Property remained the leading line of business, posting premium volume of $512M for March, bringing the total for the quarter to $1.3B. However, this represents a 5% decline in premium growth compared to Q1 2024. Despite this, Commercial Property policy counts rose to 65,960, marking a 23% year-over-year increase, and for the first time in 20 years, exceeding Commercial General Liability in total policy count. 

“The market is in a unique position, experiencing an overall plateau, while some lines are growing at a rate not seen in two decades,” commented FSLSO Executive Director, Mark Shealy. “This reflects the balance of capacity and pricing within our state, coupled with the ongoing growth of our economy and infrastructure." 

On the other hand, Commercial General Liability saw strong performance, with premiums up by 28% compared to March of last year, ending the quarter with a 17% premium growth rate overall. Policy count growth remained more modest, rising 4% in March and 5% for the quarter.

Windstorm and/or Hail coverage experienced a significant shift, with premiums down by 25% for the quarter compared to Q1 2024. However, policy count grew by 55%, resulting in an overall 52% decrease in the average cost of a policy when comparing the two quarters. 

Finally, the HO-3 coverage line saw a decline in both premium growth and policy count, with decreases of 3% each for the quarter. 

In summary, the first quarter of 2025 showed some notable shifts in policy growth and premium trends, with Commercial Property holding steady as a key performer despite a slight premium dip, and Windstorm/Hail coverage showing considerable growth in policy count with premium reductions. 

New Business and Renewals

New business and renewals for the quarter were consistent with the same period in 2024, with new business accounting for 41% of the market and renewals representing 59%. 

2024 Annual Report Now Available

In addition to our Florida Monthly Premium Report, we’re thrilled to announce the release of FSLSO's 2024 Annual Report. This comprehensive report offers in-depth insights into key marketplace statistics and operational metrics, giving you a complete overview of the past year’s performance.

www.fslso.com

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