Applied Underwriters Closes on Acquisition of Centauri Insurance Companies

Applied Underwriters Closes on Acquisition of Centauri Insurance Companies

2021-02-08 15:17:31
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Applied Underwriters has completed the acquisition of Centauri Specialty Insurance Co. and Centauri National Insurance Co., located in Sarasota, Florida.

Regulators in Florida, Louisiana and Texas have approved the transaction. The deal lasted for nine months. Terms were not disclosed.

The Centauri purchase is the latest in a series of acquisitions completed by Applied Underwriters in the US, UK and EU.

The Centauri companies sell home and commercial property / accident insurance through independent agents and brokers in 10 states: Alabama, Florida, Hawaii, Louisiana, Massachusetts, Mississippi, North Carolina, Oklahoma, South Carolina, and Texas. They also offer private flood insurance in Florida, Hawaii, and South Carolina.

Steve Menzies, chairman, Applied Underwriters, said his company plans to "grow Centauri and improve ROE (return on equity) through additional acquisitions that efficiently scale operations and spread exposure."

“We are delighted that more than nine months of diligent work by all involved has now resulted in this transaction being realized,” added Rick Espino, president and CEO of Centauri Insurance.

Applied Underwriters acquired Centauri Specialty Managers on March 31, 2020 from majority shareholder AXA / XL and third-party manager Siebels-Bruce. As part of the CSM purchase, Applied Underwriters also had an exclusive option to purchase the two insurance companies, Centauri Specialty Insurance Co. and Centauri National Insurance Co. from the Centauri holding company, a deal it has now finalized.

Founder Menzies took over Applied Underwriters and its subsidiary North American Casualty Co. again in 2019 from Berkshire Hathaway. He was joined on the acquisition by the Quasha Group led by Quadrant Management.

That transaction upset California insurance officials who said they had never approved the sale or relocation of the Applied subsidiary, California Insurance Co. (CIC), to New Mexico. Applied Underwriters is suing California regulators for canceling their plan, which it claims would force its employees' compensation partner, CIC, to stop doing business in the state.

Applied, headquartered in Omaha, Nebraska, operates in the US, UK and EU. Since Menzies regained ownership, it has actively acquired entities and launched new divisions.

Earlier this month, Applied Underwriters announced that it would acquire Concept Special Risks, a UK-based international managing general agent providing coverage for marine vessels and operators. Applied Financial Lines, a new European subsidiary operating out of Paris and Cologne, was founded in December.

Last June, Applied announced that it had acquired the Blue Ridge Specialty Group of Greenfield, South Carolina, a general manager specializing in transportation-related risks. Last November, Menzies established Applied Specialty Underwriters to focus on selected excess and excess risk across the country, with an initial focus on major construction in New York. He also launched Applied Financial Lines and Applied Fine Art and Collectibles in New York.

The deal with Centauri was not without its problems. In May, Centauri Specialty Insurance Holdings (CSIH) and Centauri Specialty Managers (CSM) claimed in a lawsuit that Wellington Insurance of Texas had violated the non-solicitation provisions and that a confidentiality agreement was entered into after negotiations over the sale of CMS to were underway. In addition to $ 30 million in damages, the lawsuit, filed in Sarasota County, Fla., Is seeking a court order to prohibit Wellington from hiring its former employees and using Centauri & # 39; s confidential information and trade secrets.

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