Infinity Auto to Return $46,246,666 to Florida Policyholders

Infinity Auto’s $46,246,666 return to eligible Florida customers adds another sizable adjustment to the state’s auto insurance market. The amount covers the 2023, 2024 and 2025 calendar years, and will be delivered through premium credits and refunds. The state’s insurance office has not disclosed how many policyholders qualify or the typical amount each will receive.

Infinity Auto, a nonstandard and specialty insurer based in Birmingham, Alabama, filed an excess profits report in June. In an Oct. 22 order, Florida Insurance Commissioner Mike Yaworsky said the Florida Office of Insurance Regulation determined the company had realized excessive profits of $46,246,666 owed to applicable policyholders. The order follows the calculation set out in Florida’s excess profit provisions.

How Florida calculates excess profits

The state’s formula compares an insurer’s underwriting gain over three recent calendar-accident years with an anticipated underwriting profit threshold. Under the law, excess profit is realized when the combined gain for those years is greater than the anticipated profit plus 5 percent of earned premiums for the same period.

That framework ties the return to underwriting performance over a defined period. The $46,246,666 figure is the total identified for eligible Infinity Auto policyholders; the source does not provide the company’s underlying earned premiums, anticipated profit, or year-by-year calculations. It also does not break down the total between checks and credits.

Those missing details matter to customers trying to estimate what the order means for their own policies. Florida’s insurance office has not said how many people will receive a refund or credit, and it has not reported an average payment. The total therefore signals the scale of the obligation, but not its distribution among policyholders.

Checks, credits and returned mail

Refund checks are expected to be mailed within the next two months. Yaworsky said Infinity Auto agreed to try to locate policyholders whose checks are returned. The company also waived its right to an administrative hearing on the refund order, clearing the way for the payment process described by the state.

Kemper, Infinity Auto’s parent company, said it has reduced rates for Florida auto customers as conditions in the state’s insurance market improved. The company attributed that improvement to legislative reforms that it said reduced legal system abuse. Kemper said it is returning approximately $46.2 million through premium credits and refunds in line with Florida’s excess profit provisions.

The company’s statement points to two separate ways customers may see value: a credit against premiums or a refund payment. The available information does not specify which customers will receive each form, how credits will be applied, or whether the amounts will vary by policy. Customers will need the insurer’s communications to learn how the total is allocated in practice.

A smaller return than Progressive’s, but part of a wider pattern

Infinity Auto’s order follows a much larger Florida refund involving Progressive. A year earlier, Progressive was required to return about $950 million in profits above the statutory threshold. That action affected more than 2.7 million insureds, with an average refund of about $300. The two totals show how widely the scale of these adjustments can vary across insurers; the source provides no comparable policyholder count or average for Infinity Auto.

The timing also places the order amid other reported rate reductions. Days before the Infinity Auto announcement, Florida’s insurance office announced an auto insurance rate cut by USAA and decreases in homeowners rates from 11 carriers. The developments span different insurers and coverage lines, so they do not establish a single marketwide trend. They do, however, put the excess profit return alongside other signs of changing pricing in Florida’s insurance market.

Florida’s insurance office said it expects more excess profit refunds in the near future. For Infinity Auto customers, the immediate questions are when notices arrive, whether their account receives a credit or check, and what amount is assigned to them. The total is clear; the customer-level picture is still to come.