Applied Underwriters Continues Comprehensive Approach in Homeowners, Personal Lines Markets; Sells Centauri Holdings to Newly Formed Coastal Risk Specialty Insurer
Evolving market exigencies suggest sale of concentrated book of admitted business to Lilypad Insurance, an Arbol Inc. subsidiary
Omaha, Nebraska -- Thursday, April 18, 2024 -- Applied Underwriters has announced the strategic sale of its Sarasota-based Centauri Insurance to newly formed Lilypad Insurance, a subsidiary of Arbol Inc., the climate risk solutions provider. Through its Home National personal lines division, Applied Underwriters continues to serve a large, fast-growing, and broad portfolio of property business.
The transaction is subject to regulatory approval, with closing anticipated within the next 45 days. The Centauri companies are domiciled in Florida and Louisiana. Lilypad Insurance, consolidated with Centauri, will address the admitted insurance needs of homeowners and property investors throughout the US.
Mr. Bob Courtemanche, CEO of Home National, observed that Centauri continues to be a solid business diversified across many states including a large footprint in Hawaii, and is ideal for this new organizational structure: “Centauri has stood its ground firmly, weathering many major storm events over the years, including Ian. Meanwhile, we at Home National have diversified and grown our MGA business platform rapidly, gaining traction in higher limit business, such as commercial condo and apartment complexes, higher-end homes, and shared and layered placements—all almost entirely in the E&S space. The level of climate risk specialization now needed for the hurricane-exposed admitted markets makes this strategic transaction meaningful for all parties. We welcome Lilypad to the field.”
Mr. Jamie Sahara, President of Applied Underwriters, emphasized the importance of the uninterrupted presence of experienced leadership in navigating the ever-evolving complexities of coastal insurance: “We are pleased that our Centauri team will move to Lilypad and be joined by other accomplished professionals to serve policyholders effectively. In fact, the admitted property market requires the extraordinarily narrow, concentrated focus of sector specialists with long-term insight and the kind of advanced climate data analysis and related technology that Arbol brings.”
Mr. Sahara continued: “This is the hardest property market any of us can remember, and that has possibly ever existed, but we remain bullish in this line. However, our strength is in underwriting—we are not weather predictors.”
Ricardo Espino, CEO of Lilypad, commented: "We established Lilypad as a direct response to the growing insurance coverage gap in catastrophe-prone areas. By leveraging Arbol's advanced climate data and technology infrastructure, we are uniquely positioned to offer tailored insurance solutions to address the risks and challenges of coastal living– no small task, but one for which we may now apply Arbol’s sophisticated climate instrumentation to succeed in.”
"We are grateful to Applied Underwriters for their support during this process, and we look forward to continuing to provide uninterrupted coverage to Centauri's clients,” stated Traci Stillwagon, COO of Lilypad Insurance and a former member of Centauri's senior leadership team, adding: “The integration of Centauri's existing capabilities into Lilypad marks a pivotal advancement in our mission to safeguard coastal homeowners. This transaction not only extends our market reach immediately but also enhances our product offerings, ensuring that more homeowners have access to insurance coverage. Operations and policies for Centauri Specialty Insurance Company and Centauri National Insurance Company will continue without disruption, and Lilypad remains committed to continuing the excellent standard of service for Centauri's clients.”
Mr. Steve Menzies, Chairman of Applied Underwriters, praised the transaction: “Our business is structured around a carefully thought-out acquisition and corporate development plan. In comparison to private equity firms which buy with a plan to sell, or to public companies that invariably integrate every acquisition seeking accretive earnings, we are a private company focusing on business operations with the prospects for long-term organic growth, and then on the rational buying and selling of business units given market conditions. In this case, there is a trade up in value for Centauri as it will benefit from important new synergies with Arbol and its related portfolio of businesses.”
For further information, contact press@auw.com.
About Applied Underwriters
Applied Underwriters® is a global risk services firm that helps businesses and people manage uncertainty through its business services, insurance and reinsurance solutions. As a company, Applied Underwriters has been distinguished by its innovative approaches to client care and by its strong financial strength. Applied Underwriters operates widely throughout the US, UK, EU and Middle East. Its operational headquarters is located in Omaha, Nebraska.
About Centauri Insurance (www.centauriinsurance.com)
Centauri Specialty Insurance Company and Centauri National Insurance Company are rated ‘A’ (Exceptional) by Demotech. Formed in 2006 and based in Sarasota, FL, Centauri Insurance is a property and casualty insurance company licensed to serve policyholders in 10 states including Alabama, Florida, Hawaii, Louisiana, Massachusetts, Mississippi, North Carolina, Oklahoma, South Carolina and Texas. Centauri is well known for providing catastrophe coverage and for its ability to provide financial protection to its policyholders through innovative solutions and personalized service.
About Arbol (www.arbol.io)
Arbol is a global climate-risk coverage platform and FinTech company offering full-service solutions for any business looking to analyze, manage, and transfer climate risk. Arbol's products offer parametric coverage based on objective data triggers rather than a subjective loss assessment. Arbol's key differentiator versus traditional InsureTech, or climate-analytics platforms, is the complete ecosystem it has built to address climate risk. This ecosystem includes a massive, climate-data infrastructure, scalable product development, automated, instant pricing–using an artificial intelligence underwriter–blockchain-powered operational efficiencies, and non-traditional risk capacity bringing capital from non-insurance sources. By combining all these factors, Arbol brings scale, transparency, and efficiency to parametric coverage in stark contrast to the oligopoly of reinsurers currently dominating the climate-risk insurance space.