Applied Underwriters has revealed its plan to sell Centauri Insurance to the newly formed Arbol subsidiary, Lilypad Insurance.
The transaction is subject to regulatory approval and is anticipated to close within the next 45 days.
As per Applied, Lilypad Insurance, consolidated with the Florida and Louisiana domiciled Centauri companies, will address the admitted insurance needs of homeowners and property investors throughout the US.
Jamie Sahara, President of Applied Underwriters, commented, “We are pleased that our Centauri team will move to Lilypad and be joined by other accomplished professionals to serve policyholders effectively.
“In fact, the admitted property market requires the extraordinarily narrow, concentrated focus of sector specialists with long-term insight and the kind of advanced climate data analysis and related technology that Arbol brings.”
Sahara continued, “This is the hardest property market any of us can remember, and that has possibly ever existed, but we remain bullish in this line. However, our strength is in underwriting—we are not weather predictors.”
Ricardo Espino, CEO of Lilypad, added, “We established Lilypad as a direct response to the growing insurance coverage gap in catastrophe-prone areas.
“By leveraging Arbol’s advanced climate data and technology infrastructure, we are uniquely positioned to offer tailored insurance solutions to address the risks and challenges of coastal living– no small task, but one for which we may now apply Arbol’s sophisticated climate instrumentation to succeed in.”
Traci Stillwagon, COO of Lilypad Insurance and a former member of Centauri’s senior leadership team, noted, “We are grateful to Applied Underwriters for their support during this process, and we look forward to continuing to provide uninterrupted coverage to Centauri’s clients.
“The integration of Centauri’s existing capabilities into Lilypad marks a pivotal advancement in our mission to safeguard coastal homeowners. This transaction not only extends our market reach immediately but also enhances our product offerings, ensuring that more homeowners have access to insurance coverage.
“Operations and policies for Centauri Specialty Insurance Company and Centauri National Insurance Company will continue without disruption, and Lilypad remains committed to continuing the excellent standard of service for Centauri’s clients.”
Steve Menzies, Chairman of Applied Underwriters, observed, “Our business is structured around a carefully thought-out acquisition and corporate development plan.
“In comparison to private equity firms which buy with a plan to sell, or to public companies that invariably integrate every acquisition seeking accretive earnings, we are a private company focusing on business operations with the prospects for long-term organic growth, and then on the rational buying and selling of business units given market conditions.
“In this case, there is a trade-up in value for Centauri as it will benefit from important new synergies with Arbol and its related portfolio of businesses.”
