Heritage Insurance has completed the acquisition of Zephyr Acquisition (ZAC) and its subsidiary Zephyr Insurance for around $134m.
Last September, Heritage first signed the deal to acquire Zephyr for $120m.
The additional $14m was paid by the company, as the Zephyr reported higher earnings in the second half of 2015 and the first quarter of this year.
Established in 2000, Zephyr offers wind-only insurance coverage for personal residential and commercial residential policyholders.
The deal allows Heritage to immediately start its operations in the US state of Hawaii.
It will also enable Heritage to diversify business operations and achieve larger synergies in reinsurance, in addition to expanding its presence outside of Florida.
Heritage chairman and CEO Bruce Lucas said: "The acquisition of Zephyr Insurance is a major step in our diversification process.
"Zephyr will add over $60m of voluntary premium to our book and add strategic diversification to our platform."
Zephyr president and CEO Richard Toyama said: "Zephyr is proud to be known as a prominent and leading residential insurance provider in Hawaii and we look forward to continuing to serve our policyholders with superior customer service."
Heritage Insurance is a property and casualty insurance holding firm that writes about $500m of personal and commercial residential premium through its agents.
Image: Heritage Insurance has acquired Zephyr Acquisition and its wholly-owned subsidiary Zephyr Insurance. Photo: courtesy of stockimages / FreeDigitalPhotos.net.