Expansion of Florida's Private Property Insurance Market

Mangrove Property Insurance has actively engaged in Florida's depopulation initiative by incorporating 30,000 policies from Florida’s Citizens Property Insurance Corporation as of April 15, 2025. This strategic move is part of Florida's larger objective to reduce the role of Citizens, the state's insurer of last resort, by transitioning policies to the private market. The Florida Office of Insurance Regulation had previously granted Mangrove the license to assume up to 81,040 policies between April and June. Mangrove reported a successful policy acceptance rate of 86.4% for the April cycle and plans to maintain this strategy during the upcoming June period.

Mangrove Property Insurance, a fresh entity in Florida's insurance landscape, was officially incorporated at the beginning of the year on January 9. Headquartered in St. Petersburg, Mangrove quickly established its operations with the issuance of a certificate of authority from the Florida Office of Insurance Regulation (OIR) on January 15. This certification empowers Mangrove to offer comprehensive property and casualty insurance throughout the state. To fortify its operational capabilities, the company collaborates with Gallagher Re as its reinsurance broker and Gallagher Securities for capital market advisement.

The company’s approach is largely data-driven, utilizing robust analytics and strategic portfolio structuring. Stephen Weinstein, the founder and CEO of Mangrove Property, emphasized the importance of maintaining collaborative partnerships with incumbent agents to assure a smooth transition process. The company's strategy includes targeting policies that can be underwritten based on actuarially sound principles within a 20% margin of Citizens' rates. Additionally, Mangrove is committed to diversification through careful exposure management, aligning with state regulations that stipulate a private insurer's coverage cannot exceed 20% above Citizens' rates.

State efforts to lessen the burdens on Citizens by empowering private insurers continue to gain momentum. In recent developments, the Florida Office of Insurance Regulation approved other private insurers to absorb a cumulative 135,540 residential multiperil policies from Citizens. Among these are Patriot Select Property and Casualty Insurance Co., authorized for up to 39,500 policies, and Slide Insurance Co., which received approval for up to 15,000 policies. Historically, private insurers were permitted to assume up to one million policies from Citizens in 2023, with 407,643 successfully transitioned by year-end. The continued decline in Citizens’ policy count—from over 936,182 at the close of 2024 to approximately 851,210 by mid-March 2025—illustrates a significant shift towards private market solutions. Overall, these initiatives reflect the state's commitment to reforming its insurance sector and reducing reliance on state-sponsored insurance.