HCI finalizes insurance policy replacement agreement with Anchor
February 14, 2020 - Homeowners Choice Property & Casualty Insurance has signed a definitive policy replacement agreement with Anchor Property & Casualty Insurance Co. in St. Petersburg. The deal comes about a month after Anchor said it would cease writing new business and run off its remaining liabilities. Anchor will cancel all its policies as of April 1, when it is expected to have about 43,000 policies representing about $69 million in annualized premium. Homeowners Choice, a subsidiary of Tampa-based HCI Group (NYSE: HCI), will offer policyholders short-term replacement policies with substantially the same terms, rates and expiration dates as the cancelled policies. Anchor’s policyholders will be under no obligation to accept the replacement policies, a regulatory filing said. The agreement doesn't contain a purchase price, but to encourage a smooth transition, HCI said it would make a payment based on how many policies remain in force as of June 1. HCI said it would pay $50,000 per $1 million of premium in force.