AM Best Revises Outlooks to Negative for Florida Lawyers Mutual Insurance Company

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AM Best has revised the Financial Strength Rating (FSR) outlook to negative from stable and the Long-Term Issuer Credit Rating (Long-Term ICR) outlook to negative from positive for Florida Lawyers Mutual Insurance Company (FLMIC). The ratings agency cited the company's year-end 2024 operating losses of $872,000, driven by an underwriting loss of $4 million, as well as increased operating losses of $3.6 million through September 2025 due to higher claims frequency and severity.

Why it matters

The negative outlook reflects growing concerns about FLMIC's financial performance and ability to manage increasing volatility in the legal professional liability insurance market, which is a key focus area for the company. This could impact the availability and cost of coverage for lawyers in Florida.

The details

FLMIC reported a combined ratio of 133.1 for 2024, materially beyond its earlier projection of 89.5. Through September 2025, the company reported a combined ratio of 155.1 and is projecting a combined ratio of 136.8 at the end of 2025, which compares unfavorably to its legal professional liability peers. The company cited changing market dynamics, with several areas of practice claims having increased in both frequency and severity over the past two years.

• FLMIC reported year-end 2024 operating losses of $872,000.
• Through September 2025, FLMIC reported increased operating losses of $3.6 million.

What’s next

AM Best will continue to monitor FLMIC's financial performance and underwriting results to determine if further rating actions are warranted.