Florida-headquartered HCI Group has announced that its subsidiary, Homeowners Choice Property & Casualty Insurance Company, will acquire the insurance policies of Anchor Property & Casualty Insurance Company.
A purchase price was not disclosed and, according to reports filed with regulators last year, Anchor had 43,209 policies in force representing approximately $69 million in annualised premium.
Anchor’s decision to sell its policies may have been motivated by the broadly difficult environment prevailing in the state.
Demotech stated this week that Florida-focused insurers face a variety of macro-economic and unique state specific issues.
One resolution Demotech published was for carriers to ask the State of Florida to permit a voluntary runoff of outstanding claims.
Policies with an unexpired term may or may not be sold to a third party. These carriers will be downgraded.
Homeowners Choice is currently writing policies in Arkansas, California, Florida, Maryland, New Jersey, Pennsylvania, South Carolina and Texas.
HCI is an InsurTech company with operations in insurance, software development and real estate.