Business Moves

AequiCap, Seminole

Two Florida insurers are facing regulatory action as the state’s Office of Insurance Regulation (OIR) ordered commercial insurer AequiCap Insurance Co. into liquidation and suspended the license of insurer Seminole Casualty Insurance Co.

The Fort Lauderdale-based AequiCap was taken over by the state in late February when the company’s financial statement showed that as of Sept. 30, 2010, the insurer had $30 million in assets and $29 million in liabilities. At the time, regulators hoped they could rehabilitate the insurer, which provided workers’ compensation and commercial auto coverage to a small number of policyholders.

According to OIR documents, AequiCap had licenses to operate in Florida, Georgia, Oklahoma, and South Carolina. The insurer had roughly 2,330 policies in force. On March 11, the state started a bidding process for other companies that might want to buy or assume the company’s business.

Florida regulators also suspended the license of the Sunrise-based Seminole Casualty Insurance Co. after it reported a negative policyholder surplus. The company’s 2010 annual financial statement showed it has $25.8 million in assets and $31.6 million in liabilities. Faced with a policyholder surplus of negative $5.8 million, the company agreed to be taken into receivership.

In order to regain its license, Seminole must prove it has secured an infusion of capital or faced being liquidated by the state. The insurer provided commercial auto coverage to businesses around the state.

Bowen Miclette & Britt; Huckleberry Sibley & Harvey

Texas-based insurance broker Bowen, Miclette & Britt Inc. has expanded into Florida through the acquisition of Huckleberry Sibley & Harvey Insurance & Bonds. The acquired agency, HSH, has a client base in personal lines and commercial lines with offices in Maitland, Cocoa, West Palm Beach, Santa Rosa Beach and Sarasota. Included in the transaction is Merrimac Marine Insurance LLC, an affiliated broker serving the specialized marine industry on a national basis.

The expansion to the nation’s fourth-most-populous state supplements BMB’s existing presence in its home state of Texas and in Louisiana, where it expanded in 2006. BMB reports generating $40 million in revenue serving U.S. and global commercial lines clients. Edward G. Britt, Jr. is president and CEO of BMB. Terms of the transaction were not disclosed.

Homewise, First Home

Two of Florida’s domestic insurance companies plan to merge. Homewise Insurance Co. and First Home Insurance Co. are planning to merge sometime in the second quarter pending regulatory approval. The combined companies will retain the Homewise name.

Established in 2005, the Tampa, Florida-based HomeWise offers homeowners, dwelling fire, flood, small commercial property and tenant and condominium coverage. In 2008, it assumed 17,000 policies from Citizens Property Insurance Corp. In June 2008, it expanded to write homeowner coverage in Louisiana.

The Maitland, Florida-based First Home assumed 24,880 Citizens’ policies and started writing new business in October 2007.

IIBHS

The Insurance Institute for Business & Home Safety (IBHS) — formerly known as the Institute for Business & Home Safety — has added “Insurance” to its name, a change made to reflect the group’s ties to its funding source, the insurance industry. The rebranding comes as IBHS —headquartered in Tampa Bay, Florida and with a major research facility in South Carolina — promotes its redesigned website, DisasterSafety.org, which will feature more of the research being conducted by the IBHS.

“Our new name clearly and prominently identifies property insurers, reinsurers and other industry partners as the driving force behind IBHS’s valuable research, education and public policy initiatives,” IBHS President and CEO Julie Rochman said. “These companies deserve to be given huge credit for their leadership and enthusiasm for property loss mitigation.”

The Institute will continue to be informally known as the IBHS, Rochman said.

Topics Florida