Heritage Insurance Holdings Inc. announced its purchase of the Hawaii-based Zephyr Acquisition Co. and Zephyr Insurance Co.
Zephyr offers coverage to homeowners and apartment residents for windstorms during inclement weather. An article on bizjournals.com noted that Zephyr has a 30% market share for wind-only coverage in Hawaii.
The deal was worth $134 million—$14 million higher than its projected price when it was originally announced last September. According to a company press release, the price climb was the result of Zephyr’s “higher-than-expected earnings in the second half of 2015 and the first quarter of 2016,” which led to an increase in shareholders equity.
Zephyr’s acquisition will add over $60 million in premiums, said Heritage chairman and CEO Bruce Lucas. He also added that the deal was a major step in Heritage’s diversification.
