The state insurance commissioner has approved the acquisition of Hawai'i hurricane insurer ICAT Specialty Insurance Co. by Universal Insurance Holdings of North America.

ICAT has been operating in Hawai'i since 2006, while Universal North America opened its first office here last fall. The purchase will allow Universal North America to add hurricane coverage to its offerings of dwelling, fire and flood insurance.

"ICAT provides hurricane insurance for those Hawai'i homeowners who have had difficulty finding coverage," said Hawai'i Insurance Commissioner J.P. Schmidt. "ICAT's sophisticated underwriting and risk management tools combined with Universal North America's breadth of coverage options and strong financial position will provide important choices for Hawai'i's homeowners."

Schmidt said he hopes the acquisition will spur more insurers to enter the Hawai'i market.

"The more companies you have, the more money you have to cover the costs in case of an emergency," Schmidt said, "And with more competition, you keep the prices down."

Rick Espina, president of Universal North America, said he welcomed the opportunity to offer additional coverage to his company's customers.

"The transaction brings together two highly focused and disciplined underwriting organizations," Espina said, "We are able to provide long-term, stable insurance programs and capacity to agents and consumers in Hawai'i."

ICAT Chief Executive Officer Jack Graham said that although the company will change its name, customers should notice no difference in service.

Zephyr Insurance Company Inc. is the largest provider of hurricane insurance in the state.