Fla. Peninsula Insurance To Acquire Edison Insurance Group

NU Online News Service, Jan. 5, 12:42 p.m. EST

Florida Peninsula Insurance Co. said its subsidiary Florida Peninsula Holdings, LLC has entered into an agreement to acquire Edison Insurance Group. Financial terms of the deal were not released.

Florida Peninsula, based in Boca Raton, Fla., will also acquire Edison's two subsidiaries, Edison Insurance Company and Edison Insurance Underwriters. Both companies are primarily writers of homeowners insurance in Florida. Edison is headquartered in St. Petersburg, Fla.

Florida Peninsula said the acquisition includes more than 25,000 Edison policyholders. The company added that there would no change in customer policies or independent insurance agent contacts.

"The addition of Edison Insurance Company will broaden our distribution and agency network in key geographic areas and expand the range of products we offer," said Florida Peninsula Insurance Chief Executive Officer Roger Desjadon in a statement.

Mr. Desjadon added, "The acquisition provides synergies that will translate into additional opportunities to grow our customer base and spread risk, resulting in an overall stronger foundation for both companies."

David Howard, president of Edison Insurance Company, said the two firms are similar and share the same underwriting philosophy.

Edison Insurance opened for business in 2006 and reported $10 million in net premium written and net loss of $131,440 in 2008, according to Highline Data, a subsidiary of Summit Business Media, National Underwriter's parent company.

Florida Peninsula, which began business in 2005, said it has more than 120,000 homeowners, renters and condominium unit policyholders located throughout the state of Florida. The company markets through a network of 2,500 independent insurance agents.

According to Highline Data, Florida Peninsula reported net premium written of $121 million in 2008 and net income of $7.8 million. The company is ranked as the 14^th largest private company insurer in the state in terms of direct premium written with less than $145 million and more than 2 percent of the market.