Transaction is likely to increase Harleysville Mutual's size and scale in this niche segment
Harleysville Mutual Insurance and Delta Lloyds Insurance of Houston, Texas, have agreed to a transaction in which Harleysville will assume Delta’s book of ‘Write Your Own’ (WYO) flood business, effective November 1, 2009.
Delta General Agency will continue to provide training, servicing and marketing support for flood insurance to those agents.
Michael Browne, president and CEO of Harleysville, said: “Since entering the WYO flood program in 1999, our goal has been to become a major participant in this fee-based segment of the insurance business. The Delta Lloyds transaction will increase our size and scale in this niche. More importantly, our agent partners tell us that flood insurance is a valuable part of the portfolio of products that they can offer to their clients.”
Delta Lloyds, a participant in the WYO flood program since 1984, wrote approximately $13.5m in direct WYO flood premiums in Texas in 2008. Harleysville has participated in the WYO flood program since 1999, and wrote approximately $82.6m in direct flood premiums nationwide in 2008.
WYO flood claims are 100% reinsured by the federal government’s National Flood Insurance Program. Philo Smith & Co. served as Delta Lloyds’ exclusive financial adviser in the transaction.