The third year did not prove to be a charm for Florida start-up Mount Beacon Insurance Co. after it recently handed over the helm of the company to Florida Specialty Insurance Co.
Reports say that mounting reinsurance costs has made its niche market in mobile homes untenable. The company started going after the mobile homes in the portfolio of state-run Citizens Property Insurance Corp. when it opened in 2014.
This market would have been profitable,
The Palm Beach Post explained, were it not for the attendant reinsurance costs, which insurers need to pay to back up the risk of such homes. As of current count, the company has a total of 37,000 policy holders state wide.
After absorbing the Mount Beacon load, Florida Specialty now has 50,000 customers in the state.
The Post further reported that as of May 15, Mount Beacon does not have any more active policies and that its remaining assets will be merged an out of state firm, Oakwood Insurance Co.
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