Customers of Hawaiian Insurance & Guaranty Co., the state's No. 4 hurricane insurer, shouldn't expect any disruption in service as Great Northwest Insurance Co. takes over the company, the new owner said yesterday.

"We have been working diligently with the current staff over the past several weeks to ensure a smooth transition for the more than 20,000 HIG customers," said Stephen Doucette, chief executive officer of Great Northwest and HIG, in a press statement released yesterday.

Great Northwest emerged as the buyer of Hawaiian Insurance & Guaranty after months of uncertainty about the fate of the local company, which was weakened when its Alabama-based parent company had suffered losses. The state Insurance Division, which took control of HIG in June, was able to get a key court approval for the sale just hours before HIG was supposed to shut down and cancel policies.

The news was a relief to Ray Mierta, a homeowner in Kekaha, Kaua'i, who gets his homeowner's and hurricane insurance coverage from HIG. Mierta said he began a frenzied search for affordable coverage as the liquidation date for HIG neared.

Mierta, an energy services supervisor for the Kauai Island Utility Cooperative, said he is paying $1,220 a year to HIG for insurance on his 66-year-old, single-wall home that's less than 1,000 feet from the ocean. The only quote he could get was for $3,500, with $2,900 of this for hurricane insurance.

"It would have put us in a major financial bind," said Mierta, 56. With HIG getting a new owner "I'm definitely happy, even if there's a small increase to rates."

HIG hasn't raised hurricane rates in at least six years and has among the lowest rates for this coverage. Insurance industry observers have said they expect Great Northwest to raise premiums.

Great Northwest's announcement didn't mention a possible rate increase.

"It is our intention for HIG to continue providing competitive rates and exceptional service," Doucette said in the press statement. "Our interest in the local market is long term, and we value HIG's history and tradition of providing insurance value and stability since 1915."

The new owner said all of HIG's policy provisions remain in effect, including its premium terms. It has been working with local insurance agents to make sure all insurance needs under current policies are met.

Great Northwest, a 17-year-old company, and its affiliates operate in 17 states.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.