Florida’s HomeWise, First Home To Merge

NU Online News Service, March  24, 2:02 p.m. EST

Florida domestic insurers HomeWise Insurance Co. and First Home Insurance Co. say they will merge.

The proposal needs regulatory approval but it is hoped that the merger will be finalized in the second quarter, says Tampa, Fla.-based HomeWise. First Home is located in Maitland, Fla.

The new company will be known under the HomeWise name, the company says.

Both Florida start-ups began operations in 2005 as take-out companies—approved by the Florida Office of Insurance Regulation (OIR) as part of a state plan to depopulate the last-resort insurer, Citizens Property Insurance Corp. HomeWise and First Home are part of a group of companies permitted to remove policies from Citizens in an effort to reduce its exposure.

First Home acquired additional capital in 2007 and began writing new business, its website says.

According to Highline Data, HomeWise, which now also writes in Louisiana, reported a 2010 net income loss of about $2 million and a combined ratio of 118.7. First Home posted a net loss in 2010 of more than $9 million with a combined ratio of nearly 231. The company writes exclusively in Florida.

Last year HomeWise held homeowners multiperil market share of 2.1 percent in Florida. First Home had a 0.2 percent market share. Data excludes state-run Citizens, the largest insurer of property in Florida.