PAWTUCKET – Narragansett Bay Insurance Co. has entered into a renewal-rights agreement with Adirondack Insurance Exchange that is expected to bring in 4,500 homeowner policies with premiums of about $10 million.

The agreement will also mean that numerous independent agents who service the accounts will receive appointments with Narragansett Bay Insurance.

“The acquisition of the Adirondack policies demonstrates our determination to grow our homeowners business and our ability to add capacity,” said Stewart H. Steffey Jr., CEO of Narragansett Bay. “This has been accomplished by an experienced and disciplined management team backed by some of the best independent insurance agents in the industry.”

The property insurer emerged from the wreckage of the failed Pawtucket Mutual Insurance Co. after the company was acquired from the R.I. Department of Business Regulation in December 2005 by Blackstone Financial Group Inc., NBIC’s parent company.

In January, NBIC received funding totaling $200 million from three private equity investors to grow its homeowners business, which focuses on single-family, owner-occupied homes on the Eastern seaboard.

The agreement expands Narragansett Bay’s presence in New York, and the company is reportedly looking to expand further along the East Coast.

Backed by highly rated reinsurers, the company said it has undergone a rigorous examination of its financial security and has received an “A Exceptional” Financial Stability Rating by Demotech, Inc., an independent financial analysis and actuarial services firm for property and casualty insurers.

“The depth of analytics that we apply directly to the homeowners market in the Northeast has usually been reserved to more catastrophe prone areas [such as] Florida, Louisiana and California,” explains Mark Talerico, chief risk officer for Narragansett Bay.

Through the application of stochastic simulation models, in which different parameters of hurricanes are promulgated through a landscape, Narragansett Bay has the ability to estimate the damage to portfolios, the company said. By analyzing the probability distribution of loss, Narragansett Bay is able to determine competitive homeowner’s rates.

Based in Pawtucket, Narragansett Bay Insurance Co. offers specialty insurance services and products to homeowners through a network of independent agents along the Eastern seaboard. Additional information is available at www.nbic.com.

Buffalo, N.Y.-based Adirondack Insurance Exchange is a full-service property-casualty insurance company operating exclusively in New York state. AIE is managed by Adirondack AIF LLC, a member of OneBeacon Insurance Group. For more information, visit www.aie-ny.com.