Applied Underwriters sells Centauri Holdings
Applied Underwriters has announced the strategic sale of its Sarasota-based Centauri Insurance to newly formed Lilypad Insurance , a subsidiary of Arbol , 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.
Founded in 2018, Arbol offers a variety of solutions around parametric risk transfer and climate and weather insurance/reinsurance. In 2022, it partnered with Centauri Insurance to implement a parametric reinsurance solution tailored to cover hurricane risks in Florida, which resulted in a $10 million payout.
“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. 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.” – Jamie Sahara, President of Applied Underwriters.
“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.” – Ricardo Espino, CEO of Lilypad.
“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. 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.” – Traci Stillwagon, COO of Lilypad Insurance and a former member of Centauri’s senior leadership team.
“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.” – Steve Menzies, Chairman of Applied Underwriters.
