Mangrove Property Assumes 30,000 Florida Citizens Policies in Depopulation Effort

Mangrove Property Insurance has taken on 30,000 property insurance policies from Florida's Citizens Property Insurance Corporation as part of the state's ongoing depopulation strategy. The Florida Office of Insurance Regulation had previously authorized Mangrove to assume up to 81,040 policies between April and June 2024. Mangrove Property Insurance, a new entrant established in January 2024 and headquartered in St. Petersburg, received its certificate of authority early in the year and collaborates with Gallagher Re and Gallagher Securities for reinsurance and capital markets advice.

The company reports an 86.4% policy acceptance rate for the April assumption phase, employing data analytics and portfolio structuring to ensure underwriting aligns with actuarially sound standards within 20% of Citizens rates, as mandated by Florida regulations. Incumbent agents have been engaged to facilitate a smooth transition process.

Florida regulations require that any private insurer assuming policies from Citizens must offer insurance premiums no more than 20% higher than the Citizens' rates. Policyholders with multiple offers will be assigned to the insurer offering the lowest premium if they do not make an active selection.

The depopulation efforts by Florida regulators continue with approvals for other private carriers, including Patriot Select Property and Casualty Insurance (up to 39,500 policies) and Slide Insurance (15,000 policies), to assume significant policy volumes from Citizens. These moves are part of a larger trend aiming to reduce Citizens' market share, which saw over 407,000 policies transitioned to private insurers in 2023 and more than 428,000 policies transferred as of late 2024.

Currently, Citizens' policy count has fallen notably, reaching around 851,000 in March 2024, the lowest in nearly three years, signaling a sustained shift towards private market absorption of risks previously held by the state insurer of last resort. This depopulation trend impacts Florida's property insurance market by reallocating risk to private insurers and potentially influencing rate dynamics and underwriting practices in the homeowner insurance sector.