21st Century Holding Company has entered into an agreement with HomeWise Holdings to acquire HomeWise Insurance Company and HomeWise Management Company. The agreement also includes a renewal rights agreement to acquire certain insurance policies from HomeWise preferred Insurance Company.
As per the agreement, the proposed transaction is subject to customary definitive documentation, regulatory approval and completion of satisfactory due diligence. Due diligence has already begun and is expected to be completed in next several weeks. The company expectes transaction to close prior to June 1, 2010.
Michael Braun, CEO and president of 21st Century Holding Company, said: “We are pleased to have signed this agreement with HomeWise, a top-ranked Florida insurance company with a high quality book of business. Once completed, the transaction should yield substantial, immediate benefits for 21st Century Holding Company shareholders.
“Synergies include greater diversification of risk within Florida and into Louisiana, the ability to write more premium for each dollar we spend on reinsurance and expense savings from combining our two companies.”
HomeWise Insurance is based in Tampa and provides homeowners property coverage in Florida and Louisiana through a network of experienced, independent agents. It reported approximately $38.2m gross written premium in 2009, and statutory surplus of $20.3m.