Arbol Unit Buys Centauri Insurance, Forms Lilypad to Broaden Climate Risk Coverage

A subsidiary of Arbol Inc., a firm that has specialized in climate risks for businesses, including parametric insurance products, has acquired Sarasota, Florida-based Centauri Insurance from Applied Underwriters.

The companies announced in an statement that Centauri will become part of Arbol’s newly launched Lilypad Insurance, subject to regulatory approval. Lilypad plans to offer homeowners’ and other property insurance in coastal areas in Louisiana and other states.

It has not yet received a certificate of authority in Florida, but Centauri is licensed in 10 states, including Alabama, Florida, Hawaii, Louisiana, Massachusetts, Mississippi, North Carolina, Oklahoma, South Carolina and Texas.

The Centauri team will now move to Lilypad, and operations and policies for Centauri Specialty Insurance Company and Centauri National Insurance Company will continue without interruption, the firms said. Ricardo Espino, who was with Centauri for a number of years, is now CEO of Lilypad.

Centauri was formed in 2006 and has specialized in catastrophe coverage. It temporarily stopped writing new business in Florida in June 2022. The company at year’s end 2021 held some 26,000 policies in force with $79 million in total written premium, according to the Florida Office of Insurance Regulation. In January of this year, Centauri discontinued its flood coverage program.

Omaha-based Applied Underwriters, which acquired Centauri in 2021, said it will use the opportunity to redouble its focus on excess and surplus lines business through its Home National division.

“This is the hardest property market any of us can remember, and that has possibly ever existed, but we remain bullish in this line,” said Jamie Sahara, president of Applied Underwriters.”However, our strength is in underwriting—we are not weather predictors.”

Arbol is based in New York. Terms of the deal were not disclosed.