AM Best Upgrades Issuer Credit Ratings of Florida Family Insurance Company and Its Subsidiary

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating (FSR) of B++ (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). The outlook of the Long-Term ICRs has been revised to stable from positive, while the outlook of the FSR is stable. Both companies are domiciled in Bonita Springs, FL.

The Credit Ratings (ratings) reflect Florida Family’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The upgrade of the Long-Term ICRs reflects sustained improvement in Florida Family’s balance sheet strength metrics relative to earlier years, largely a product of exposure management and profitability initiatives applied by management, recent legislative changes that have driven a healthier operating environment in Florida, and lighter-than-average weather patterns. 2025 marked the third consecutive year of organic policyholders’ surplus growth, with Florida Family’s surplus having grown by 44% over the previous year, reaching its highest level of absolute surplus in company history. This has favorably impacted both underwriting and reserve leverage, which have trended downward gradually over the past several years. Further, Florida Family’s loss reserving trends have turned favorable on both a calendar and accident year basis over the most recent three years.

Altogether, this has led to material improvement in Florida Family’s overall risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR), which sits well within the strongest indication through first-quarter 2026.

The stable outlooks reflect AM Best’s expectation that Florida Family’s very strong balance sheet strength will be maintained, supported by stability in overall risk-adjusted capital and a continuation of the recently established balance sheet trends. It further reflects the group’s adequate operating performance, which should continue to benefit from management’s refined risk appetite and loss mitigation efforts, as well as a calmer litigious environment. Florida Family’s business profile remains limited, reflective of its single-state geographic footprint and property-focused book of business, which inherently exposes results to potentially frequent and severe catastrophe events. Lastly, ERM is viewed as appropriate, given the maintenance of a multi-layered risk management framework and Florida Family’s risk management capabilities, which properly align with its 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 www.ambest.com.

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