Hawaii Hurricane Insurance Company Being Sold

HONOLULU (AP) — Hawaii's largest hurricane insurance company is being sold for $31 million.

Kingsway Financial Services Inc. of Canada announced Wednesday that it is selling Zephyr Insurance Co. to Florida-based Ocean Harbor Holding Inc. and the Hawaii-based investor group MP Holdings LLC.

Kingsway bought Honolulu-based Zephyr about four years ago.

Zephyr is a specialty property insurance company founded to protect Hawaii homeowners and residents from catastrophic loss due to hurricanes.

Kingsway says for the first half of 2009, Zephyr had gross premiums written of about $36 million, or 7 percent of the premiums of the Kingsway group of companies.

The purchase is expected to be completed before the end of the year. Zephyr's 17 staffers are to be retained.