United Insurance Holdings Corp. (UPC) announced Thursday that the company has entered into a non-binding letter of intent to acquire 100 percent of Sunshine State Insurance Company (SSIC), a Florida domiciled property and casualty insurance company.
SSIC, based in Jacksonville, Fla. offers personal property insurance products including homeowners, dwelling fire and federal flood insurance through independent agents primarily in the Northeast and North Central territories of Florida.
St. Petersburg-based UPC said the combination is expected to significantly improve the its overall spread of risk and foster growth in a key part of Florida where UPC currently has very limited exposure.
SSIC was founded in 1997; UPC in 1999.
The gross written premium of SSIC’s personal property business being acquired by UPC was approximately $68 million in 2013.
UPC Insurance is an insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of independent agents and a group of wholly owned insurance subsidiaries.
United Property & Casualty Insurance Company, the primary operating subsidiary of UPC Insurance, writes and services property and casualty insurance in Florida, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas, and is licensed to write in Louisiana, Georgia and New Hampshire.
UPC expects to retain management and employees of SSIC at the time of closing, to maintain continuity in policy forms and rates with no adverse impacts on current SSIC policyholders or the working relationships with SSIC agent partners. UPS will also make a capital infusion into SSIC to restore its Demotech rating and satisfy regulatory requirements. The closing of UPC’s acquisition of SSIC is subject to a number of conditions, including negotiation and execution of definitive agreements and customary regulatory approvals.
Raymond James & Associates, Inc. is serving as an advisor to UIHC on this proposed transaction.
Source: UPC Insurance