Editor's Note: Final figures for 2005 have been compiled for the Surplus Lines market in Florida, and signs indicate that the market is heading for another strong year as the top 10 insurers by premium volume indicated they plan not to reduce their presence in the market this year. Chief Financial Officer Tony Krause of the Florida Surplus Lines Service Office offers this report on the market.

The market conditions in Florida appear to have set the stage for a banner year in the surplus lines industry. Based on the final figures for 2005, the total premiums reported for the year are up nearly $480 million from 2004. The total premiums reported for 2005 were $3.43 billion as compared to $2.95 billion for 2004.

In addition, based on recent surveys of the top 10 insurers (by premium volume), all indications suggest that there are no plans for the insurers to reduce writings in Florida in 2006. In fact, certain insurers have plans to expand in the Florida market. This should all add up to an already strong market for the surplus lines industry for 2006.