On The Waterfront…Ocean Harbor is a Leading Contender for Northeast Markets in U.S. Expansion

By: Art Shea

In case you have wondered whatever became of Ralph Milo, long a popular industry figure as the Chairman and CEO of Clarendon, the four hundred million dollar insurance group sold to Hannover Re in 1999, you will find him these days at Ocean Harbor Insurance Group, which he now chairs with the same level of dynamism that grew Clarendon in the 90’s. It’s a company to watch.

Ocean Harbor is the consolidated organization of Ocean Harbor Casualty Insurance Company, Safe Harbor Insurance Company in Florida, Zephyr Insurance Company in Hawaii, Hawaiian Insurance & Guaranty Company and Great Northwest Insurance Company. The total group put together by Milo and a team of experienced insurance pros is now writing business in New York, Florida, Hawaii and elsewhere as it expands in its niche markets. The Company at present is A’(APrime) Rated with Demotech, boasts a substantial policyholder surplus as well as a pattern of growth that has had very few bumps. In New York the Company writes through Mike Mahoney at Complex Coverage and is focusing in areas where major carriers have pulled back from the property/ casualty market.

Mr. Milo actually formed Ocean Harbor in 1986 while he was the CEO of Clarendon, to write business that did not suit Clarendon’s business model. The company began writing primary non-standard automobile business in Florida in 1994. After deciding to expand and grow Ocean Harbor in 2002 he brought on Michael Eigen and later William Roche to manage the company’s operations.

Mr. Roche is currently the President, CEO and Treasurer of the Ocean Harbor Insurance Group and is the Chairman of the Board of the recently acquired Zephyr Insurance Company. He played a key role as Senior Vice President / Chief Underwriting Officer and Chief Actuary in the sale of Clarendon to Hannover Re in 1999. While at Clarendon, Mr. Roche developed a portfolio of insurance programs produced by selected general agents from start-up to an annual premium volume exceeding $1 billion, across non-standard auto, commercial auto and personal property (homeowners) lines of business. Mr. Roche is an Associate of the Casualty Actuarial Society and a member of the American Academy of Actuaries.

Mr. Eigen has served as the Vice President of Ocean Harbor Insurance Group since early 2002 and serves on the Board of Directors of Safe Harbor Insurance Company, Zephyr Insurance Company and Great Northwest Insurance Company. Mr. Eigen focuses on overseeing the day to day operations of the group and its subsidiaries as well as long term strategic planning and expansion. During his tenure with Ocean Harbor, he has been instrumental in expanding the company into additional states and lines of business. Prior to joining Ocean Harbor, Mr. Eigen spent seven years with TD Waterhouse Investor Services where he was a Vice President in Marketing and Business Development. Through 2005, Ocean Harbor focused on expanding its automobile writings adding business in California and New York. The company reached peak writings of approximately $100 million during this period.

Following the storms of 2004 and 2005 in Florida and the Gulf, and with auto margins tightening, management made the strategic decision to shift Ocean Harbor’s focus to property business. In order to capitalize on the opportunity, in 2006 the company formed a subsidiary, Safe Harbor Insurance Company, which began writing mobile home and homeowners business in Florida.

As major carriers continued to pull back from coastal markets, in 2009 Ocean Harbor began writing homeowners business in New York, and mobile home business in South Carolina and Texas. In October 2009, the group acquired Zephyr Insurance Company, the leading writer of Hawaii hurricane business. This furthered the group’s transition into the property business and helped balance the group’s Florida property exposure by adding a large book of non-correlated business.

In 2011, the Midwest property business began to look much like the coastal business had previously, with carriers reducing exposure after several years of weather related losses. To expand its property writings and further diversify its exposures, Ocean Harbor acquired the Great Northwest Insurance Company, a Midwest/ Northwest property and auto writer along with its sister company, Hawaiian Insurance & Guaranty Company, Ltd., which further expanded the group’s presence in Hawaii.

In 2011, the group wrote approximately $253 million of premium, $150 million of which was property business, making it the 61st largest homeowner’s writer in the U.S.

According to Milo, “We plan to continue to grow our property business in 2013 and beyond. In late 2009, we began writing homeowners business in New York in partnership with Complex Coverage Management – a great relationship – and today the business we are writing is mainly coastal and primarily on Long Island, where other carriers have been reducing exposure; there is a need for a company like Ocean Harbor.”

“New York is an area we are focusing on growing our business for several reasons. First and foremost, it is business we like and there is a need for additional capacity. Also, unlike a lot of other carriers, the Northeast is not a peak zone for us. Our peaks zones are in Florida, Hawaii, and the Midwest/Northwest. This leaves us with plenty of capacity to grow our New York business. But almost as important is the fact that we are New Yorkers and it’s nice to do business in your own backyard,” he added.

According to Michael Eigen, “Our inforce business in New York is approximately $8 million and growing. We are currently writing homeowners, renters, and condos with values up to $1.3 million through independent agencies. Approximately 50% of our in-force business is within ¼ mile of a coastal waterway; 70% is within 1/2 mile.”

Mr. Roche highlighted the Companies excellent brokerage relations. “We are a serious player in our markets and do deliver carefully and punctually for our agency partners together with Mike Mahoney and Complex Coverage.”

We queried some agents on L.I. about the Company and got these upbeat reports. Chris D. Clausen of The Clausen Agency, Rocky Point, L.I. said, “Mike Mahoney and his team at Complex Coverage understand what the independent agent is looking for–competitive pricing, great service and claim settlements that are fast and fair. It is a pleasure to do business with them!”

Adam K. Jacobs, Vice President of David J. Jacobs Co., Inc. stated “it is refreshing to see an admitted insurance company comfortable with writing coastal risk, online quoting, aggressive underwriting, fast response on underwriting inquiries and quick turnaround on endorsements. What more can an agent ask for?” So what’s Ralph Milo been up to? He and his team at Ocean Harbor and their “partner” at Complex Coverage are up to making one solid market niche happen here in New York. Watch this company grow.