NU Online News Service, Nov. 14, 1:52 p.m. EST
Louisiana domestic homeowners' insurer Lighthouse Property Insurance Corp. said it has acquired homeowners polices in the state written by Tampa, Fla.-based HomeWise Insurance Co.
The news comes several days after Florida domestic insurer Homeowners Choice Property & Casualty Insurance Co. said it might double in size after acquiring HomeWise's policies in the Sunshine State.
For Lighthouse, the deal includes the transfer of more than 11,000 homeowners' policies representing about $25 million of premium.
Most Lighthouse agents are HomeWise agents, said Lighthouse President Ron Chapman, formerly chief operating officer at Homeowners Choice, in a statement.
Chapman said he expects the transition to “go very smoothly” and the purchase of the policies “re-affirms our strong commitment to the Louisiana homeowners market.”
Terms of the transaction were not disclosed.
Lighthouse, which started business in 2008, has assumed policies under the Louisiana Citizens Property Insurance Corp. depopulation program meant to alleviate some of the last-resort insurer's exposure.
All of the insurer's $22.8 million in direct premiums written are from Louisiana, according to SNL Financial.
Lighthouse reported 2011 second-quarter net income of $369,680 compared to a net loss of about $182,500 in 2010 during the same quarter. The company's policyholder surplus is about $5.7 million.
In September, HomeWise Preferred was ordered into receivership. The company stopped writing policies a year prior but claims continued to drain the insurer, a sister company of HomeWise Insurance Co.
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