Heritage Insurance Company has completed its $250 million acquisition of Narragansett Bay Insurance Company, a deal that it said will create a personal lines carrier with a presence in 11 states.
“Completing this acquisition represents a quantum leap forward in executing our geographic diversification strategy,” Heritage Insurance Chairman and CEO Bruce Lucas said in prepared remarks. “We see an enormous opportunity to leverage our combined platform to accelerate growth along the Eastern seaboard.”
Lucas added he expects the deal to lead to a 50 percent increase in gross premiums written and net income in 2018.
“The new products, partnerships, and bundled products we will gain from the [Narragansett Bay Insurance Company] make this transformative acquisition an important step in our continued growth.”
Heritage sealed the deal with a purchase of the Narragansett Bay’s parent company – NBIC Holdings, in a transaction including $210 million in cash and $40 million in shares of its common stock, subject to post-closing announcements. Heritage Insurance Holdings is Heritage’s corporate parent.
The combined entity will handle more than $900 million in gross premiums written, and Heritage said the transaction will be immediately accretive to earnings per share and return on equity.
With the NBIC acquisition, Heritage now conducts business, through a large network of agents, in Florida, Hawaii, North Carolina, South Carolina, Georgia, Alabama, Connecticut, Massachusetts, New Jersey, New York and Rhode Island.
Source: Heritage Insurance Holdings, Inc.