“We are thrilled with the steady pace of our diversification,” says Buchmueller, adding that the company is “not merely reaping the benefits of scale and diversification, we are taking advantage of our 'green field' to optimize the diversification of our membership to create the most favorable result.”

In other words, PURE has no legacy issues and can narrow its underwriting to high-net-worth homes, which, according to PURE, are typically well-built homes—even along the hurricane-prone coastlines that other insurers avoid. The company also offers coverage for automobiles, jewelry, art, watercraft and personal liability.

Buchmueller is no stranger to high-end clientele. He started American International Group's (AIG) Private Client Group prior to launching PURE in 2007.

“We have great technology and we have added significant numbers of underwriters, claims professionals, marketing and service staff in each of our offices across the country,” Buchmueller says of PURE.

However, the company, though fast-growing, is “careful not to get ahead of [its] infrastructure,” he adds.

PURE paid claims to “members,” the reciprocal exchange's label for policyholders, in 10 states from Hurricane Irene, Buchmueller says. “We faced many other significant weather challenges and yet our homeowners portfolio is likely to outperform industry results by a significant margin,” he insists.

Agents and brokers Arthur J. Gallagher & Co., HUB International Gulf South, Bancorp Insurance Services, Eagan Insurance Agency, Hartwig Moss Insurance Agency and Gillis, Ellis & Baker will distribute PURE products in Louisiana, whose investment in infrastructure to protect it from storm damage also influenced PURE's decision to enter the market.

“Since 2005, $14 billion have been invested in improvements in New Orleans' levees and flood walls, as well as in the enforcement of stricter building codes,” says Martin Hartley, chief operating officer and head of underwriting, in a statement. “These improvements have made Louisiana a more attractive market for financially strong insurers like PURE to begin writing business.”