Mangrove, Another New Property Insurer, Enters Florida Market

January 27, 2025 by

Itasca Re chairman Stephen Weinstein has launched a new Florida-domiciled insurance carrier, known as Mangrove Property Insurance, with plans to assume thousands of policies from Citizens Property Insurance Corp.

Mangrove, with offices in Tallahassee, will be the 10th new insurer to enter the once-distressed Florida market since the 2022-2023 legislative changes – a package of laws that disincentivized excess claims litigation and stabilized much of the market, the Florida Office of Insurance Regulation reported.

“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,” Weinstein, Mangrove’s CEO, said in a statement Monday. “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.”

The OIR in mid-January approved the firm’s certificate of authority and its plan to assume some 81,000 HO multiperil policies from Citizens by April 15. How many of those offers will be accepted by policyholders won’t be known until later, but OIR data show that only about 10% of takeout offers were accepted by policyholders in 2024.

Mangrove’s takeout application raised a minor question from regulators who noted that the plan would conflict with 2022 Florida law that requires takeouts to offer comparable coverage. But that coverage cannot be achieved through optional endorsements, the consent order explains.

“The premium calculation used to determine the 20% eligibility threshold … must be calculated using offers of coverage without the need to offer additional terms or endorsements,” the order notes.

Mangrove officers have agreed to comply.

Mangrove also has applied for a financial strength rating from the Demotech rating firm, acceptable to Fannie Mae and Freddie Mac secondary mortgage buyers. The consent order requires the rating by Feb. 25 or sooner.

Weinstein is well-known in the industry, having served as chairman of the board at Itasca Re Ltd., a Bermuda-based specialty reinsurance company, as chief legal officer of Renaissance Re Holdings, and on the board of the R Street Institute.

Allan Franklin, a certified public accountant and fraud examiner, is chief financial officer for Mangrove.

The company’s announcement said it hopes to provide coverage through independent agents in all 67 Florida counties.

Update: This article has been updated to provide more information about Weinstein’s background.