Lighthouse Property Insurance is acquiring US-based domiciled property and casualty insurance carrier Prepared Insurance Company from Prepared Holdings Group for an undisclosed sum.
The deal remains subject to regulatory reviews and approvals.
Under the terms of the transaction, Lighthouse will assume Prepared’s portfolio and write directly in the state of Florida through managing general agent Prepared Managers.
The resulting carrier, including the buyer’s subsidiary, Lighthouse Excalibur Insurance, will have a statutory surplus in excess of USD 45.00 million and cover around 175,000 homes throughout the southeastern US.
Furthermore, the gross written premium for the combined business will be more than USD 275.00 million.
Headquartered in Tampa, Prepared writes polices across Florida and Louisiana.
Its products include homeowner insurance, as well as condo and fire damage cover, among other programmes.
Formed in 2009, Prepared also provides insurance schemes for flooding, which it describes as the most natural disaster in the US.
The acquiror’s controlling shareholder, Patrick White, acquired a minority stake in the target in March 2017 and serves as the chief executive both parties.
White said: “In light of the current legal and regulatory challenges facing the Florida homeowners insurance market, we believe that our Prepared policyholders, my Prepared Holdings co-investors, and our insurance enterprise as a whole will be best served by the financial strength of a unified carrier.”
Located in Austin, Lighthouse provides claims, flood and natural disaster cover for customers across Texas, Louisiana and South and North Carolina.
Its offerings include rental and commercial property insurance programmes, among others.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 606 deals targeting direct property and casualty insurance carriers announced globally in 2019.
The largest of these took the form of an acquisition and involved HCC Insurance Holdings buying US-based Privilege Underwriters for USD 3.10 billion.
© Zephus Ltd