United Insurance Holdings Corp. (UPC Insurance) will pay $57 million for Interboro Insurance Company, a regional property/casualty insurer licensed to operate in four states and Washington, D.C.
The deal involves both cash and stock and allows for the acquisition of all outstanding Interboro common stock from corporate parent Interboro LLC. UPC Insurance said it will pay $48.5 million in cash at closing, and also issue a $8.5 million promissory note with 6 percent interest designed to mature in 18 months.
David Nichols, president and CEO of Interboro, said in prepared remarks that “we are pleased to pass on the stewardship of Interboro Insurance Company to UPC insurance.”
What UPC gets: $55 million of homeowner’s insurance gross written premium volume in New York and South Carolina. Though all personal auto and other non-homeowners lines of business will stay with Interboro LLC and the subsidiaries it keeps, according to the deal announcement
Nichols noted that the remaining enterprise will continue to service its automobile customers through Maidstone Insurance Company.
Interboro Insurance Company is domiciled in New York. It writes homeowners insurance there, and in South Carolina, by way of more than 600 independent brokers. It is also licensed to write business in Alabama, Louisiana and Washington, D.C. The insurer launched in 1914 and is the oldest insurance company in Long Island.
UPC Insurance debuted in 1999 and is based in Florida. It is an insurance holding company that sources, writes and serves residential property/casualty insurance policies through a network of independent agents and wholly owned insurance subsidiaries.
A final purchase price could vary if Interboro’s GAAP net book value is less then or greater than $40.7 million at the transaction’s closing. Deal closure will depend on all the necessary regulatory approvals.
Source: United Insurance Holdings Corp./UPC Insurance