Heritage to Acquire Zephyr, Expansion in Hawaii Planned

Florida-based Heritage Insurance Holdings, Inc., a property and casualty insurance holding company, announced that it has entered a definitive agreement to acquire Zephyr Acquisition Company and its wholly-owned subsidiary, Zephyr Insurance Company, a specialty insurer in Hawaii.

The acquisition will provide Heritage with an immediate presence in Hawaii with Zephyr holding approximately 30 percent of the wind-only market share in the state. The acquisition is expected to further the Company’s strategic push to diversify business operations and achieve greater synergies in reinsurance while expanding growth opportunities outside of Florida.

The all-cash transaction is expected to close in the fourth quarter of 2015, subject to regulatory and other customary closing conditions, and is valued at approximately $120 million. For the period ended June 30, 2015, Zephyr’s in-force premium was nearly $68 million, its statutory surplus was $58 million, and ZAC’s unaudited GAAP equity as of June 30, 2015 was $63 million.

Zephyr began operations in 2000 and writes wind-only insurance coverage for personal residential and commercial residential policyholders. Zephyr has an A’ rating from Demotech, Inc.

Source: Heritage Insurance Holdings Inc.