AM Best has revised the Long-Term Issuer Credit Rating (Long-Term ICR) outlook of Florida Family Insurance Company and its subsidiary, Florida Family Home Insurance Company, to positive from stable, and affirmed the Financial Strength Rating of B++ and the Long-Term ICRs of “bbb”.
Both companies, domiciled in Bonita Springs, FL, make up the two pool members of Florida Family Group (Florida Family).
The ratings reflect Florida Family’s balance sheet strength, which AM Best assesses as strong, along with its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
AM Best said the outlook revision reflects improved balance sheet metrics, driven by strategic initiatives implemented by management.
Beginning in 2022, the company launched a wind exposure reduction program to address rising reinsurance costs, more frequent severe weather, and an uncertain claims environment. Aimed at lowering probable maximum loss (PML), reducing reinsurance reliance, and improving risk profile, the program significantly reduced wind-related exposures through 2025. Coupled with continued growth in policyholder surplus, lower PMLs, and adequate reinsurance, this strengthened Florida Family’s risk-adjusted capitalization.
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Florida Family continues to generate organic surplus growth, further strengthening its balance sheet and supporting a positive trend across key financial metrics.
AM Best also expects the wind exposure reduction efforts and other management initiatives to enhance and stabilise operating performance through disciplined underwriting. These efforts are anticipated to help reduce volatility in reported operating results over time.
The limited business profile reflects the limited geographic spread of risk in Florida. An appropriate ERM program is maintained through risk appetite and tolerance statements with risk management capabilities aligned with the concentrated risk profile.
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