American Coastal Insurance Corp., formerly affiliated with Florida-based United Property & Casualty Insurance, announced it has a cash buyer for Interboro Insurance Co. in New York.
According to the company, the unnamed buyer will acquire 100% of the issued and outstanding securities of Interboro in exchange for cash at a purchase price equal to book value of Interboro at the time of closing, which the company expects will be in about five months.
The Interboro book value is currently approximately $23 million. However, ACIC expects Interboro to have some earnings between now and the closing and will grow its book value, Bennett Bradford Martz, president and chief financial officer, told analysts in a third quarter conference call.
The purchase price will reflect the final balance sheet near closing. The company said it entered into the agreement with the unidentified acquirer on Oct. 6.
Interboro’s personal lines homeowners and fire insurance products are written exclusively in New York, with approximately 18,700 policies and $34 million of premium in-force.
Once Interboro is sold, American Coastal will have achieved its multiyear strategy to divest all personal lines and focus on specialty commercial property/casualty lines.
ACIC was formerly part of United Insurance Holdings Corp. which in August changed its name to American Coastal Insurance Corp., the surviving insurer after United’s insolvency this year. At the end of 2022, United’s insurance subsidiaries included two Florida domiciled carriers, United Property & Casualty Insurance Co. (UPC) and American Coastal Insurance Co. (ACIC or AmCoastal), along with New York-domiciled Interboro. American Coastal was founded in 2007 and has specialized in commercial residential coverage in Florida.
In 2022, ACIC began withdrawing and non-renewing all personal lines policies in Florida, Louisiana, Texas, New York and other states. In February 2023, UPC was placed into receivership with the Florida Department of Financial Services, which divested ACIC’s ownership of UPC.
ACIC’s commercial lines business was 100% in Florida at the end of 2022.
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