ST. PETERSBURG, Fla.–(BUSINESS WIRE)– United Insurance Holdings Corp. (NASDAQ:UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, today announced that it has successfully closed on its acquisition of Interboro Insurance Company.
UPC Insurance acquired all of the issued and outstanding common stock of Interboro Insurance Company for $57.0 million. UPC Insurance paid $48.5 million of cash at closing and issued an $8.5 million promissory note to Interboro LLC, which note will mature in 18 months after closing of the transaction and bear interest at an annual rate of 6%. The purchase price is subject to a post-closing adjustment if Interboro Insurance Company’s GAAP net book value is less than or greater than $40.7 million as of the post-closing accounting of the transaction.
UPC Insurance was advised in this transaction by Raymond James & Associates and the law firm of Squire Patton Boggs (US) LLP. Willis Capital Markets & Advisory acted as exclusive financial advisor and Nixon Peabody LLP served as legal counsel to Interboro LLC in connection with the transaction.
“We are pleased to have closed on this important strategic initiative, but it is the beginning not the end of this phase of our journey,” said John Forney, President and Chief Executive Officer of UPC Insurance. “Interboro has been around for over 100 years, and has an excellent book of homeowners’ business in New York and South Carolina. We look forward to welcoming our new associates from Interboro to the UPC family, and to working with them to grow the business in a meaningful way.”
About UPC Insurance
Founded in 1999, UPC Insurance is an insurance holding company that sources, writes and services residential and commercial property and casualty insurance policies using a network of independent agents and a group of wholly owned insurance subsidiaries. Our insurance affiliates write and service property and casualty insurance in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas and are licensed to write in Alabama, Delaware, Maryland, Mississippi, New Hampshire, New York and Virginia. From its headquarters in St. Petersburg, UPC Insurance’s team of dedicated professionals manages a completely integrated insurance company, including sales, underwriting, customer service and claims.
Founded in 1914, Interboro is the oldest insurance company on Long Island, New York. Interboro writes homeowners insurance in New York and South Carolina through a network of over 600 independent brokers. Interboro is also licensed to write business in Louisiana, Alabama, and Washington, D.C. Interboro is dedicated to ensuring financial protection for its policyholders by providing quality products and exceptional service.
Some of the statements in this release, including those about estimated catastrophe losses, are “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements are made pursuant to the safe harbor provisions of the PSLRA. Actual results may differ materially from those suggested by the forward-looking statements as a result of risks and uncertainties, which include, among others, those discussed or identified from time to time in our public filings with the Securities and Exchange Commission. UPC Insurance assumes no obligation to update any forward-looking information set forth in this release, which speaks as of its date.