By James Thaler

Jan 26 - Former longtime RenaissanceRe general counsel and senior executive Steve Weinstein has secured approval from the Florida Office of Insurance Regulation (FLOIR) to launch admitted homeowners carrier Mangrove Property Insurance, in an apparent endorsement of the improved regulatory environment in the state, The Insurer can reveal.

Weinstein - a well-known figure in (re)insurance circles in Bermuda and beyond - originally joined RenRe in 2002 as general counsel and served on the firm’s executive committee from 2006 until retiring from the firm at the end of 2020.

RenRe CEO Kevin O’Donnell has previously credited Weinstein with serving as a “trusted advisor” as it expanded its global platforms and diversified its business, while advancing the industry’s leadership in natural disaster mitigation, “especially related to climate change”.

After receiving the go-ahead earlier this month to begin operating in the state of Florida, a spokesperson for the new venture confirmed its launch, saying that the new company is “armed with a strong initial capital base”.

Mangrove has ambitions to become “a long-term franchise player” with plans to provide Florida homeowners “with high-quality P&C coverage”, the company said.

The company spokesperson said that Mangrove was established “with the strategic vision of providing sustainable, long-term P&C solutions tailored to Florida’s unique market”.

It added that the new company “is designed to meet the evolving needs of policyholders and independent agents while fostering market stability and resilience”.

“While the prospects for Florida’s property insurance market conditions continue to strengthen, Mangrove believes the homeowners market is still in great need of additional capacity and competition,” the company said.

Mangrove said it is committed to delivering efficient, customer-centric services through partnerships with local independent agents in all 67 Florida counties.

It also says that its disciplined, data-driven approach will provide homeowners with actuarially sound, competitive rates that are steeped in strong catastrophic event risk management.

“As the third most populated state in the US, and one of the largest economies in the world, Florida is a special state to me and our company. We want to help enhance Florida’s financial and physical resiliency as it safely continues to grow,” Weinstein commented.

Mangrove has been approved to participate in the April assumption of policies from Citizens Property Insurance Corporation.

The Weinstein-led venture has also applied for a financial strength rating from Demotech, and plans to begin writing homeowners coverage for policyholders outside of Citizens as soon as possible after receipt of that rating.

The company said that homeowners will soon be able to apply for Mangrove coverage by connecting with a Florida licensed independent insurance agent appointed to represent Mangrove.

“Mangrove intends to build a partnership culture, and we look forward to partnering with Florida’s independent agents to provide stability and security to our mutual customers – Florida’s homeowners,” Weinstein explained in a statement.

Weinstein is understood to be working with Gallagher Re as Mangrove’s appointed reinsurance broker of record.

Among his many industry associations, Weinstein spent eight years as a director for the Florida Chamber of Commerce, seven years chairing the extreme events committee for the Reinsurance Association of America – a trade body – and six years on the board of the Bermuda Business Development Agency with terms as deputy chair and then chair.

He also currently serves as the board chair of Bermuda-based Itasca Re, as the chair of Bermuda Institute of Ocean Sciences, and is a board member of public policy research group R Street Institute.

Weinstein, known for promoting ties between Florida and Bermuda and other key reinsurance markets, also served as a member of Bermuda’s Covid-19 Economic Advisory Committee during the pandemic and as a member of the UK-based ClimateWise Insurance Advisory Council.

Seizing on improved regulatory environment following FL reforms

Mangrove’s entry into the admitted Florida homeowners market comes after the state enacted historic regulatory reform in recent years, designed in part to combat abusive litigation practices by plaintiffs’ attorneys that historically have driven up claims costs, making it difficult for insurers to operate in the state.

Over the past three years, Governor Ron DeSantis led insurance reforms through five legislative sessions, enacting measures to stabilise the market.

Key initiatives included expanding home hardening programmes, eliminating one-way attorney fees, and reducing frivolous lawsuits, according to the FLOIR.

The FLOIR noted improvements in the property insurance market, with more than 7.55mn residential policies in force. Average monthly rate increases for homeowners have dropped to 1.2 percent, compared to 14 percent a few years ago.

Since reforms were enacted, nine new property and casualty insurers have entered Florida’s market. Among the top 10 national carriers, 60 percent have expanded their business while 40 percent filed rate decreases, according to the FLOIR.

Reinsurance costs also declined, with risk-adjusted costs for 2024 decreasing by 1.7 percent.

Citizens Property Insurance Corporation reduced its portfolio to under 1mn policies, transferring 428,000 policies to private insurers in 2024, which the FLOIR reported has lowered its exposure by nearly $200bn.

Florida domestic property companies reported $389mn in net income for the first three quarters of 2024, up from $313mn in 2023, according to the FLOIR.