AM Best Revises Outlook to Positive for Florida Family Insurance

FOR IMMEDIATE RELEASE

OLDWICK - JUNE 18, 2025 03:34 PM (EDT)
AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of “bbb” (Good) of Florida Family Insurance Company and its subsidiary, Florida Family Home Insurance Company, which together make up the two pool members of Florida Family Group (Florida Family). The outlook of the FSR is stable. Both companies are domiciled in Bonita Springs, FL.

The Credit Ratings (ratings) reflect Florida Family’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlook to positive from stable for the Long-Term ICR reflects improvements in Florida Family’s balance sheet metrics, driven by a series of strategic initiatives undertaken by management. Primarily, beginning in 2022, the company launched a wind exposure reduction program in response to rising reinsurance costs, increased frequency of severe weather events, and an uncertain claims environment. The primary objectives of the program were to lower the probable maximum loss (PML), reduce reinsurance dependency, and enhance the overall risk profile of the book of business to deliver more consistent and dependable results. This effort led to a meaningful decline in wind-related exposures through 2025. Coupled with continued growth in policyholder surplus, lower PMLs and an adequate level of reinsurance coverage, these actions contributed to a notable improvement in Florida Family’s risk-adjusted capitalization, which is assessed as strongest, as measured by Best’s Capital Adequacy Ratio (BCAR).

Florida Family continues to achieve organic surplus growth, further strengthening its balance sheet and supporting a positive trend across key financial metrics. Additionally, the wind exposure reduction and other management initiatives are expected to enhance and stabilize operating performance through the enforcement of disciplined underwriting practices. AM Best anticipates that these efforts will 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 appropriately aligned with the concentrated risk profile.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.