Competition in Florida's homeowners insurance market has intensified as a wave of new carriers enters the state, according to Universal Insurance Holdings chief executive officer Stephen Donaghy.
Speaking during the company's third-quarter earnings call, Donaghy said many of the new entrants may not fully understand the state's complex and evolving market conditions. He said Universal, which has operated in Florida for 25 years, continues to focus on maintaining rate adequacy rather than pursuing premium growth at the expense of stability.
Donaghy also noted that independent agents are showing a preference for established insurers when rates remain competitive.
Universal, Florida's largest private homeowners insurer, reported an available net income of $39.8 million in the third quarter, reversing a $16.2 million net loss a year earlier. Net premiums earned rose 4% to $359.7 million, while the combined ratio improved 20.5 points to 96.4, according to a report from BestWire.
Donaghy said the company has moved past what he described as a period of widespread fraud in the Florida property market, adding that claim volumes have declined significantly. The reduction has allowed the company to process claims more efficiently, which he said is improving the overall quality of its book of business.
Despite these gains, Donaghy said Universal plans to maintain its current strategic approach until at least early 2026, when it will reassess growth opportunities.
Direct premiums written in Florida fell to $428.6 million from $440 million a year earlier, while premiums in other states rose to $164.1 million from $134.3 million. Donaghy said competition outside Florida remains strong, particularly from national carriers.
Chief Financial Officer Frank Wilcox said the company adopted a more conservative reserving approach this year and began its actuarial review process earlier than usual. Based on that review, Universal added $3.9 million in reserves related to prior-year catastrophes, with none tied to 2024 storms.
Florida Insurance Commissioner Mike Yaworsky recently reported that 17 new companies have entered the state’s property market since legislative reforms targeting claims abuse took effect in 2022 and 2023. He added that several insurers are maintaining or reducing rates.
According to BestLink data, the top five homeowners multiperil insurers in Florida in 2024 were Citizens Property Insurance Corp. (14.71% market share), Universal Insurance Holdings Group (8.03%), State Farm Group (6.97%), Florida Peninsula Group (6.34%), and Slide Insurance Group (5.45%).
Universal Insurance Holding Group is one of the largest home insurance companies in Florida. Get to know them in this guide.
