Summerlin Life and Health Insurance Co. said it's withdrawing from its commercial preferred provider health insurance business in Nevada, though it will continue to offer its health plans in Hawai'i.

The Las Vegas-based company said recent changes in the health insurance market in Nevada have made it increasingly difficult to compete against larger insurers and so it was withdrawing from the market. Summerlin, which provided coverage to 10,500 people in Nevada, said it is recommending they switch to services provided by Anthem Blue Cross and Blue Shield.

"It's just unfortunate the way the market is in Nevada and that we had to make a tough decision," said Lawrence Frank, Summerlin's senior director of legal services and government affairs. He said the company was having a tough time in the Nevada market, which is dominated by large national carriers.

Summerlin, which is owned by Tempe, Ariz.-based I/MX companies, was formed in Nevada in 2003, according to its Web site, and began business in Hawai'i the following year. Frank said Summerlin insures 25,000 people in Hawai'i. Besides the Summerlin operation based in Honolulu, the company also maintains a claims-processing firm in Hawai'i.

"We're very pleased with the way things are going in Hawai'i and hope to stay there a long time," Frank said.

Hawai'i Insurance Commissioner J.P. Schmidt said he knew Summerlin was pulling out of the Nevada market. He said he had talked to Summerlin officials about how the move might affect operations here.

"I don't think at this point there's any reason for concern," Schmidt said. "It's our understanding that their business here is doing well and that they'll continue to expand here."

Schmidt said Summerlin has about 2 percent of the health insurance market here, behind Hawaii Medical Service Association, Kaiser Permanente, UHA and HMAA.