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AM Best Revises Outlooks to Stable for Florida Family Insurance Company and Its Subsidiary

AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings 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). 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 outlooks to stable from negative reflect improvement in Florida Family’s operating performance metrics due to management’s various initiatives and recently implemented legislative changes to tort reform. Beginning in 2022, the group implemented a wind exposure reduction effort due to rising reinsurance costs, elevated weather events and an uncertain claims environment. The goal of the program included lowering the probable maximum loss and subsequent reinsurance need, as well as improving the overall risk characteristics of the book business in order to produce more dependable results. The wind exposure initiative focused on limiting exposure to older roofs, as well as policies in southern coastal counties. Based on this initiative, a positive trend in the group’s key operating performance metrics has been demonstrated. Additionally, assignment of benefits reforms and more broadly, one-way attorney’s fees legislation was enacted in December 2022, which has mitigated the level of exposure. As a result, a positive trend in litigated cases is noted leading to improved performance in Florida’s marketplace and within Florida Family’s results.

Further, Florida Family’s improved performance due to these more stringent underwriting guidelines has driven organic surplus growth and strengthened risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). It is AM Best’s expectation that these initiatives will continue to stabilize previously reported volatility in operating performance metrics.

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. For more information, visit

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