Gallagher Re’s renewal report highlighted that recent legislative reforms in Florida encouraged reinsurers to write more broadly at mid-year renewals to maintain their market share on programs.
The reforms, enacted in late December 2022, significantly reduced litigated property claims, creating a more predictable and stable environment.
This shift led some companies that had withdrawn from Florida to return or consider reentering the property market. While the full benefits of the reforms were expected to take time, Gallagher Re reported a notably more positive period for the Florida market at mid-year.
During the marketing phase, reinsurers expressed a clear intention to grow, with some reentering after previous cutbacks.
Quotes were generally risk-adjusted flat, although certain markets that had pushed furthest during the hard market sought additional increases.
Capacity indications reflected a strong pool of available capital across the risk spectrum, which helped assess final terms, and firm orders were competitive and broadly supported.
Gallagher Re noted that more reinsurers were willing to write broadly to defend their market share. In some cases, however, this capacity was not accepted at bottom layers because cedants preferred incumbents who had paid losses in prior years.
2025’s renewals are showing a consistent trend: a growing market in which the balance of supply and demand has tilted back toward reinsurance buyers. The scale of the changes we have seen in underlying pricing and underwriting actions in recent years cannot be overstated.
North American casualty, for example, has seen five consecutive years of material compound rate increases and additional loss mitigation strategies, to correct the well-known challenges.
After several highly profitable years, reinsurers are increasingly looking to deploy their significant capital, but they are disciplined in approach. In some businesses and geographies, we are still seeing reinsurers willing to sacrifice share to protect profitability — particularly larger, less growth-oriented players.
Programs were often oversubscribed, allowing removal of unfavorable terms and conditions, including many frontloaded and differential payment provisions.
At the June 2025 Florida property reinsurance renewals, risk-adjusted prices fell by 10.7% overall. Decreases occurred across all layers: low layers dropped by 9%, mid layers by 12%, and upper layers by as much as 20%.
Strategic buydown layers became available, allowing clients to lower retentions year over year. Gallagher Re observed that supply kept pace with increased demand even in a decreasing rate environment.
The broker emphasized that legislative reforms reshaped Florida’s risk landscape, reducing property litigated claims and improving predictability for insurers and reinsurers.
Hurricane Milton further tested the effectiveness of the reforms, providing valuable data and reinforcing reinsurers’ confidence.
Gallagher Re’s Florida summit earlier in the year also allowed reinsurers to engage with local lawyers, roofers, and contractors, offering practical market insights.
This growing confidence has led reinsurers to reassess risk, adjust strategies, and reconsider previously reduced or exited positions.
The improved risk environment encouraged reinsurers to expand portfolios and seek market share in what is now seen as a less volatile region.
