HCI Group, Inc. (NYSE: HCI) announced today that its wholly owned insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., has entered into a definitive policy replacement agreement with Anchor Property & Casualty Insurance Company under which Anchor will cancel all its policies as of April 1, 2020 and Homeowners Choice will offer to those policyholders short-term replacement policies having substantially the same terms and rates as the cancelled policies and expiring the same dates the cancelled policies would have expired had they not been cancelled. Anchor’s policyholders will be under no obligation to accept the replacement policies. Anchor will retain liability for policyholder claims arising from events occurring on or before March 31, 2020. Upon expiration of the replacement policies, Homeowners Choice will offer renewals to the policyholders at its own rates and terms. The agreement contains no purchase price for the transition of business to Homeowners Choice, but to encourage a smooth transition, includes a payment based on the premium in force associated with the replacement polices remaining in force at June 1, 2020.
Anchor is a Florida-based provider of homeowners insurance. Based on data provided by Anchor, Homeowners Choice estimates that at April 1, 2020, Anchor will have a maximum of 43,000 policies available for replacement representing a maximum of $69 million in annualized premium.
Karin Coleman, president of Homeowners Choice, said: “We are pleased to participate in this process, which ensures Anchor’s policyholders experience a seamless transition from Anchor to Homeowners Choice and continue to receive quality coverage for their homes.”