Mangrove Property Insurance Becomes Latest Entrant in Florida's Revitalized Insurance Market
TALLAHASSEE, Fla. – Florida’s property insurance landscape continues to evolve as Mangrove Property Insurance has become the latest company approved to operate in the state. This marks the 11th new insurer to enter the market since legislative reforms were enacted to stabilize the industry and attract new players.
The Florida Office of Insurance Regulation (OIR) approved Mangrove Property Insurance on January 15, granting the St. Petersburg-based company a certificate of authority. Mangrove will provide property insurance coverage through licensed independent agents across all 67 counties in Florida, further expanding consumer options in a market that has seen significant turbulence in recent years.
Mangrove’s Role in Citizens Depopulation
On the same day as its approval, Mangrove was also authorized to assume up to 81,040 residential insurance policies from Citizens Property Insurance Corp., Florida’s state-run insurer of last resort. Citizens has been working aggressively to reduce its policy count through a depopulation program, having already shed over 400,000 policies since its peak of 1.4 million in September 2023. Policyholders selected for takeout are required to transition to private insurers if they receive an offer with premiums within 20% of the projected cost of a Citizens policy.
Company Leadership and Financial Readiness
Mangrove Property Insurance was officially registered as a Florida corporation on January 8. The company has committed to securing at least $15 million in capital and surplus before commencing business operations. The company is led by Stephen Weinstein, a seasoned insurance executive with a background at Bermuda-based reinsurer RenaissanceRe. Weinstein also chairs the board of Itasca Re Ltd. and the Bermuda Institute of Ocean Sciences.
Weinstein expressed confidence in Florida’s reformed insurance environment, stating, “Smart legislative and regulatory reforms have stabilized Florida’s marketplace, giving us confidence to enter the market with new capital and capacity to help homeowners meet their property insurance needs. Just as mangroves protect Florida’s coastlines from erosion and storm surge, Mangrove Property Insurance Company is committed to being a permanent solution Floridians can turn to in protecting their property.”
Mangrove’s launch has been supported by key partners, including reinsurance broker GallagherRe and capital markets adviser Gallagher Securities, which serves as the company’s sole structuring and placement agent. Additionally, the company has applied for a Financial Strength Rating from Demotech Inc., a critical step in earning consumer confidence and meeting industry standards.
A Growing Market for Insurers
Mangrove joins a growing list of new insurance companies entering the Florida market following legislative reforms in 2022 and 2023. The changes have curbed legal system abuse and limited excessive attorney fees, which previously drove up litigation costs and pressured insurers. These measures have contributed to renewed financial stability within the sector, encouraging new insurers to enter and existing companies to expand their presence.
Insurance Commissioner Mike Yaworsky highlighted the positive impact of these reforms, noting that the 10 other companies approved since the legislative changes have brought over $297 million in policyholder surplus. As of September 2024, domestic insurance companies reported more than $389 million in net income.
The 10 Other New Insurers
Along with Mangrove Property Insurance, the following companies have been approved to enter Florida’s insurance market:
ASI Select Insurance Corp.
Trident Reciprocal Exchange
Ovation Home Insurance Exchange
Manatee Insurance Exchange
Condo Owners Reciprocal Exchange
Orange Insurance Exchange
Orion180 Select Insurance Company
Orion180 Insurance Company
Mainsail Insurance Company
Tailrow Insurance Exchange
Market Outlook
Industry experts view the entry of these insurers as a sign of market stabilization and renewed investor confidence. Mark Friedlander, director of corporate communications for the Insurance Information Institute, stated, “We continue to see strong interest from existing property insurers and start-ups wanting to write home insurance in Florida. This is because the market has vastly improved over the past year due to legislative reforms that addressed the man-made risk crisis of legal system abuse and assignment of benefits claim fraud.”
With more than 7.55 million residential insurance policies in Florida, the addition of Mangrove Property Insurance and other insurers is expected to enhance competition and provide homeowners with more choices, potentially leading to better pricing and service in the long run.
