Insurance holding company FedNat has closed the acquisition of the homeowners insurance operations of 1347 Property Insurance.

The acquired operations include Maison Insurance Company, Maison Managers, and ClaimCor, collectively known as “Maison”. FedNat paid $51m in a mix of cash and stock for the deal.

Maison operates as a property and casualty insurer specialising in coastal homeowners markets in Texas and Louisiana.

The company posted $96.1m of gross written premiums for the trailing twelve months ended 30 September 2019.

Commenting on the deal, FedNat CEO Michael Braun said: “This acquisition represents a significant milestone in our long-term strategy to profitably expand FedNat’s core homeowners operations in the southeast United States.

“With the acquisition of Maison, we’ve grown our book of business in markets where we already operate and where we like the macro fundamentals, specifically Texas and Louisiana.”

Maison president Douglas Raucy said: “Since Maison’s inception, our goal has been to establish ourselves in select homeowners’ insurance markets.

“Now, we have the opportunity to significantly expand margins in our book of business, adopting FedNat’s prudent underwriting approach and reducing expenses in the near-term.”

FedNat via its wholly owned subsidiaries underwrites and/or places homeowners’ multi-peril, federal flood and other lines of insurance in Louisiana, South Carolina, Florida, Texas, and Alabama.