Startup insurer gets big victory

A recent court order bolstered the fast-growth ambitions at Heritage Insurance Holdings, a Clearwater-based property and casualty firm that recently went public.

The firm, according to a statement, will absorb 35,000 policies previously under Jacksonville-based Sunshine State Property & Casualty Insurance Co., which is in state court-ordered liquidation. The policies, starting June 27, will be transferred to Heritage's wholly owned subsidiary, Heritage Property & Casualty Insurance Co. The policies cover homes, condos, renters and commercial residential policies.  

It's a big victory for Heritage, founded in August 2012, and it comes less than a month after its lackluster IPO. The firm went public May 22 on the New York Stock Exchange. It sold 6 million shares at $11 a share and raised $66 million — $30 million less than its highest projections. (See Business Observer, May 30.)

Heritage executives hope the transferred policies from Sunshine State Property & Casualty will lead to new areas of growth. Heritage, with 90 employees, had $34.2 million in net income in 2013 on $218.5 million in gross premiums, according to documents filed for its IPO.

On the actual policy transfers, Florida Association of Insurance Agents President Jeff Grady, in the release, says former Sunshine State consumers won't have to fill out new applications. Grady adds that premiums will stay at the same rate, which Heritage CEO Bruce Lucas supports.

“The goal is to protect the consumer, and that has to be our first priority,” Lucas says in the statement. “Our transition plan keeps rates, forms and coverages in place to minimize disruption to the consumers and agents.”