HCI Group Inc., a holding company with operations in homeowners insurance, IT services, real estate and reinsurance, says its subsidiary, TypTap Insurance Co., will assume up to 25,000 policies from Citizens Property Insurance Corp., Florida’s state-backed insurance company.
TypTap received approval by the Florida Office of Insurance Regulation, according to a Thursday news release from HCI Group. Florida law encourages private companies to assume policies from Citizens. The policy is known as "depopulation."
"TypTap has leveraged internally developed technology enabling it to grow organically in Florida," says Paresh Patel, HCI's CEO, in the statement. "With the operating environment improving in Florida, we see an opportunity to supplement TypTap’s existing business through the Citizens depopulation program."
The number of policies to be assumed from Citizens is expected to be finalized in December, HCI Group says. Citizens policyholders are entitled to reject the assumption in some cases or move their business to another company.
HCI Group says TypTap is a technology-driven homeowners insurance company. TypTap's operations are powered in large part by insurance-related IT developed by HCI Group's software subsidiary, Exzeo USA.
HCI's largest subsidiary, Homeowners Choice Property and Casualty Insurance Co., provides homeowners insurance primarily in Florida. HCI Group's real estate subsidiary, Greenleaf Capital, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.