Clearwater firm says 'Aloha' to new market

CLEARWATER — Property and casualty insurance firm Heritage Insurance Holdings Inc. plans to acquire Zephyr Insurance Co., a Honolulu-based specialty insurance provider.

The acquisition will provide Heritage with an immediate presence in Hawaii; Zephyr Insurance, a subsidiary of Zephyr Acquisition Co., has a 30% market share of wind-only insurance policies in the state, a release states.

The statement announcing the agreement says the acquisition will further Heritage Insurance Holdings' diversification strategy, while saving the companies money on reinsurance. The all-cash transaction is expected to close in the fourth quarter. It is valued at about $120 million.

Zephyr Insurance began operations in 2000 and writes wind-only insurance coverage for personal and commercial residential real estate.

Heritage Insurance Holdings Inc. (symbol: HRTG; recent price: $18.25) announced plans earlier this year to expand into North Carolina, South Carolina, Massachusetts and Rhode Island.