Harleysville Mutual to Acquire Delta Lloyds Flood Insurance Business

Pennsylvania-based Harleysville Mutual Insurance Company and will be assuming the book of “Write Your Own” (WYO) flood business of Delta Lloyds Insurance Company of Houston, Texas, effective Nov. 1, 2009.

Delta General Agency Corporation, through its more than 500 retail flood agents, will represent Harleysville in much the same way it represented Delta Lloyds, the companies’ announcement said. As such, Delta General will continue to provide training, servicing and marketing support for flood insurance to those agents. Terms of the transaction were not disclosed.

Harleysville President and CEO Michael L. Browne said the company entered the WYO flood program in 1999. It has increased its WYO flood book at a 14 percent compound annual rate since 2005, he said. Harleysville wrote approximately $82.6 million in direct flood premiums nationwide in 2008. Based on flood premiums alone, Harleysville ranks 11th nationally and 17th in Texas.

Delta Lloyds, a participant in the WYO flood program since 1984, wrote approximately $13.5 million in direct WYO flood premiums in Texas in 2008. Based on flood premiums alone, Delta Lloyds is the 23rd largest WYO flood carrier nationally and the 7th largest in Texas.

WYO flood claims are 100 percent reinsured by the federal government’s National Flood Insurance Program. Philo Smith & Co. served as Delta Lloyds’ exclusive financial adviser in the transaction.

Harleysville Mutual Insurance Company owns 53 percent of Harleysville Group Inc., a publicly traded holding company for eight regional property/casualty insurance companies collectively rated A- (Excellent) by A.M. Best Company.

Source: Harleysville, www.harleysvillegroup.com

Topics Mergers & Acquisitions Texas Flood