Today’s announcement that Gulfstream Property & Casualty Insurance Company (Gulfstream) was being placed under administrative supervision by the Florida Office of Insurance Regulation marks just another instance of the ongoing challenges facing the Florida property market. As ALIRT outlined in a substantial release last June,[1] the Florida domestic homeowners’ market – which is largely comprised of small, thinly capitalized insurers – remains under significant pressure given exposure to large windstorm losses, issues surrounding assignment of benefit abuses, and spiking reinsurance rates over the past several years.
The graph below shows the ALIRT Score trend of Gulfstream over the period 2011 through 2020. As shown on the current ALIRT Analysis (see attached), Gulfstream’s score fell from a high of 52 in 2015 to a multi-year low of just 20 as of the full year 2020 financial reporting.
[1] ALIRT Research – Florida Domestic Insurer Market Update – June 2020
