Florida’s Property Insurance Market
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Two major hurricanes hit Florida within two weeks of each other recently. Somewhat surprisingly, that one-two punch has not significantly damaged the Sunshine State’s once-wobbly property insurance market. Find out why. Also for today: Welltower, a major player in the senior housing space, releases its third-quarter numbers.
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— Tom Acitelli, Deputy Editor
Florida’s Property Insurance Market: Sunnier Skies Ahead After Hurricanes
Florida’s government-backed property insurance market appears staggered but stable after two major hurricanes hit the state in just 13 days. Hurricane Milton and Hurricane Helene triggered a torrent of property damage claims but haven’t exhausted funds to pay claims at state-run Citizens Property Insurance, the largest insurer of Florida homes against wind damage. Florida’s state-run hurricane catastrophe fund still has a blue-chip credit rating and serves as a low-cost source of reinsurance for property insurers. And more insurers have entered the Florida market, adding to competition that could restrain the rise of the state’s sky-high property insurance premiums. Citizens Property Insurance went into the 2024 hurricane season in improved financial health after earning net income of $746.5 million in 2023, compared to a net loss of $2.24 billion in 2022. Citizens’ good fortune wasn’t an outlier.
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Welltower Made $2.2B of Acquisitions in Q3 and a 23% Net Income Increase
Welltower, a real estate investment trust (REIT) specializing in senior housing, reported strong third-quarter earnings Tuesday, as the firm said it has closed $2.2 billion worth of transactions and saw the net operating income of its senior housing portfolio increase 23 percent in the third quarter, the eighth consecutive quarter in which growth surged past 20 percent. The third quarter marked the first time in the company’s history that quarterly revenue exceeded $2 billion — reaching $2.05 billion, an increase from $1.6 billion in the third quarter of 2023. Funds from operations (FFO) — a proxy for cash flow — increased 21 percent per share quarter-over-quarter, according to the firm, whose stock price was $135.90 as of Tuesday afternoon. Welltower’s stock price has increased about 66 percent from its Oct. 30, 2023, price of $81.87. To this end, the firm raised its full-year FFO per diluted share guidance from a high of $4.21 to $4.33, its fourth guidance raise in 2024.
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