Universal North America Insurance to Enter Hawaii Homeowners Market

Florida-based insurance company, Universal North America Insurance Co., has been approved to begin writing homeowners policies in Hawaii beginning Sept. 22.

Hawaii Insurance Commissioner J.P. Schmidt said in a statement that, unlike many other policies in Hawaii, Universal North America, a member of Universal Insurance Group of Puerto Rico, will offer policies with dwelling, fire, flood and hurricane options.

James R. Watje, Universal North America vice president of operations for the Western region, said the consumers in the island state "have limited options to purchase both homeowners insurance and hurricane coverage in one policy. Universal offers these types of coverages together -- reducing the cost of coverage -- making policy maintenance easier and more convenient."

The insurer plans to write automobile policies in 2009.

The company currently offers insurance in Texas, Arizona, Nevada, South Carolina and Florida. Universal North America was capitalized when formed in 2005 with about $22 million from the contributions its parent company (BestWire, April 1, 2008). The company says it has more than $300 million in policyholder surplus.

Universal North America Insurance Co. currently has a Best's Financial Strength Rating of A- (Excellent).

In 2007, the top five writers of homeowners multiperil coverage in Hawaii, according to A.M. Best Co. state/line product information based on direct premiums written, were: State Farm Group, with a 26.6% market share; Kingsway America Group, with 22.4%; CNA Insurance Cos., with 11%; USAA Group, with 9.3%; and Allstate Insurance Group, with 6.6%.

(By Chad Hemenway, associate editor, BestWeek: [email protected])