Catastrophe Exposure Risk: High exposure to severe weather events, particularly hurricanes in Florida, can lead to substantial claims and financial losses.

Reinsurance Market Volatility Risk: Dependence on reinsurance to manage catastrophe risk means rising reinsurance costs or reduced availability can significantly impact profitability and capital.

Florida Legislative and Regulatory Risk: Frequent and often unpredictable changes in Florida's insurance laws and regulations can adversely affect claims costs, litigation, and ability to obtain adequate rates.