Florida-based home insurer FedNat Holding Company has announced plans to further expand into other states through an acquisition of 1347 Property Insurance Holdings.
According to a statement, FedNat will acquire substantially all of 1347 PIH’s homeowners insurance operations, consisting of Maison Insurance Company, Maison Managers Inc., and ClaimCor LLC, in a cash and stock transaction valued at approximately $51 million.
Maison is a property and casualty insurer focused on the coastal homeowners’ markets in Louisiana and Texas, with additional operations in Florida. FedNat Chief Executive Officer Michael H. Braun says the move presents an opportunity to diversify FedNat’s business.
“Maison represents a unique opportunity to accelerate the diversification of our predominantly Florida homeowners’ book into Louisiana and coastal Texas, two states where we have already been operating and have been looking for additional growth opportunities,” he said.
For the nine months ended September 30, 2018, Maison reported gross written premium of $70.6 million and total statutory surplus of $35.6 million as of that date. Maison Insurance Company carries a financial strength rating of “A” (Exceptional) from Demotech.
Maison President Douglas Raucy expects the acquisition will turn into an “excellent partnership.”
“FedNat shares our vision for profitably growing property and casualty business through measured geographic expansion and further cultivating value-added relationships with agency partners,” he said.
“We look forward to continuing to execute our strategic plan under the Maison brand with the support, expertise and financial strength of our new partners at FedNat.”