Mangrove Property Insurance Co. Launches in Florida with Exceptional Rating
Florida’s insurance landscape is evolving, and the introduction of Mangrove Property Insurance Co. marks a significant milestone. This new insurer has recently earned a Financial Stability Rating (FSR) of “A, Exceptional” from Demotech, Inc., a firm renowned for analyzing and rating regional and specialty insurers. This rating is a testament to Mangrove’s commitment to providing reliable coverage in a state known for its unique insurance challenges.
Approval from the Florida Office of Insurance Regulation
On January 15, 2025, the Florida Office of Insurance Regulation (OIR) granted Mangrove its certificate of authority to operate as a property and casualty insurer in Florida. This approval is crucial as it allows Mangrove to participate in the state’s insurance market, which has seen significant changes in recent years. The OIR mandated that Mangrove obtain a financial strength rating from Demotech by February 25, 2025, a requirement that aligns with the standards set for insurers working with Fannie Mae and Freddie Mac.
Understanding Demotech’s Financial Stability Rating
Demotech assigns its “A, Exceptional” rating to insurers demonstrating exceptional financial stability. According to Demotech, this rating reflects an insurer’s ability to maintain a positive surplus regarding policyholders, manage liquidity effectively, and maintain reasonable loss reserves and pricing strategies. Currently, Demotech evaluates around 440 insurers across the United States, making this rating a crucial factor for consumers and investors alike.
Plans for Homeowners Coverage
Stephen Weinstein, the CEO of Mangrove and chairman of Itasca Re, has ambitious plans for the company. Mangrove aims to begin writing homeowners insurance exclusively in Florida’s admitted homeowners’ market in the first quarter of 2025. This focus on homeowners insurance is particularly relevant in a state where the demand for reliable coverage is paramount, especially in the wake of recent legislative changes aimed at stabilizing the insurance market.
Policy Assumptions from Citizens Property Insurance Corp.
In a strategic move, Mangrove has been approved to assume policies from Citizens Property Insurance Corp., the state-backed insurer. By April 15, 2025, Mangrove plans to take on approximately 81,000 homeowners multiperil policies from Citizens. This transition is significant, as data from the OIR indicates that about 10% of policyholders accepted takeout offers in 2024, highlighting the challenges and opportunities within the Florida insurance market.
A New Era for Florida’s Insurance Market
Mangrove is entering the Florida insurance market as the tenth new insurer since the legislative reforms of 2022-2023. These reforms aimed to disincentivize excessive claims litigation and stabilize the market, making it more attractive for new entrants. With offices in Tallahassee, Mangrove intends to deliver coverage through independent agents across all 67 counties in Florida, ensuring accessibility for homeowners statewide.
Commitment to Exceptional Service
Weinstein expressed pride in Mangrove’s achievement, stating, “We’re honored to earn this exceptional rating, and believe it reflects our strategy of building a permanent franchise in the Florida marketplace, committed to exceptional underwriting and claims service, and backed by robust capital and reinsurance protections.” His extensive experience in the insurance industry, including leadership roles in notable companies, positions Mangrove for success in this competitive market.
The Future of Home Insurance in Florida
As Mangrove Property Insurance Co. prepares to launch its services, it brings a fresh perspective to Florida’s homeowners insurance sector. With a strong financial backing and a commitment to quality service, Mangrove is poised to make a significant impact in a market that has faced numerous challenges in recent years. Homeowners in Florida can look forward to more options and potentially better coverage as new players like Mangrove enter the arena.
For more information on the evolving insurance landscape in Florida, visit Demotech, Inc. and Florida Office of Insurance Regulation.