ST. PETERSBURG, Fla.--(BUSINESS WIRE)--
United Insurance Holdings Corp. (NASDAQ:UIHC)(UPC Insurance or
the Company), a property and casualty insurance holding company,
announced today that it has entered into a Stock Purchase Agreement (the
Agreement) with Interboro, LLC (Parent) to acquire Interboro Insurance
Company (Interboro), a New York-domiciled property and casualty insurer
authorized in New York, South Carolina, Alabama, Louisiana, and
Washington, D.C.
Under the terms of the Agreement, UPC Insurance will acquire all of the
issued and outstanding common stock of Interboro for $57.0 million. UPC
Insurance will pay $48.5 million of cash at closing and issue an $8.5
million promissory note to Parent, which note will mature in 18 months
after closing and bear interest at an annual rate of 6%. The purchase
price is subject to adjustment if Interboro’s GAAP net book value is
less than or greater than $40.7 million as of the closing of the
transaction.
Upon consummation of this transaction, UPC Insurance will acquire
approximately $55.0 million of homeowners’ insurance gross written
premium volume in New York and South Carolina. All personal auto and
other non-homeowners lines of business will remain with Parent and its
retained insurance subsidiaries. This transaction is subject to
customary conditions, including receipt of required regulatory approvals.
UPC Insurance is being 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 in connection
with the transaction.
“We are excited about this opportunity,” said John Forney, President and
Chief Executive Officer of UPC Insurance. “Interboro has been in
business for over 100 years, and we are proud to add it to the UPC
Insurance portfolio. The homeowners book that we will acquire as part of
this transaction provides us a big jump start on our New York expansion
efforts, and we look forward to working with brokers and policyholders
in New York to provide premier service on existing policies and to grow
the business in the coming months and years.”
“We are pleased to pass on the stewardship of Interboro Insurance
Company to UPC Insurance,” said David Nichols, President and Chief
Executive Officer of Interboro. “We believe that UPC Insurance will
continue to serve our customers homeowner’s insurance needs in the
tradition that Interboro has maintained for over 100 years and we will
continue to provide that same tradition of service to our automobile
customers through Maidstone Insurance Company.”
About UPC Insurance
Founded in 1999, 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. UPC Insurance writes and services property
and casualty insurance in Florida, Georgia, Louisiana, Massachusetts,
New Jersey, North Carolina, Rhode Island, South Carolina and Texas, and
is licensed to write in Alabama, Connecticut, Delaware, Hawaii,
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.
About Interboro
Founded in 1914, Interboro Insurance is the oldest insurance company on
Long Island. 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.
Forward-Looking Statements
Statements in this press release, and otherwise, that are not
historical facts are “forward-looking statements” that anticipate
results based on our estimates, assumptions and plans that are subject
to uncertainty.These statements are made subject to the
safe-harbor provisions of the Private Securities Litigation Reform Act
of 1995 (PSLRA). These forward-looking statements do not relate strictly
to historical or current facts and may be identified by their use of
words like“may,” “will,” “expect,” “believe,” “anticipate,”
“intend,” “could,” “would,” “estimate,” “or “continue” and other words
with similar meanings. We believe these statements are based on
reasonable estimates, assumptions and plans. However, if the estimates,
assumptions or plans underlying the forward-looking statements prove
inaccurate or if other risks or uncertainties arise, actual results
could differ materially from those communicated in these forward-looking
statements. Factors that could cause actual results to differ materially
from those expressed in, or implied by, the forward-looking statements
may be found in our filings with the U.S. Securities and Exchange
Commission, including the “Risk Factors” section in our most recent
Annual Report on Form 10-K and quarterly report on Form 10-Q.
Forward-looking statements speak only as of the date on which they are
made, and we assume no obligation to update or revise any
forward-looking statement.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150928005811/en/
United Insurance Holdings Corp.
John Rohloff, 727-895-7737
Director
of Financial Reporting
jrohloff@upcinsurance.com
or
Investor
Relations:
The Equity Group
Adam Prior, 212-836-9606
Senior
Vice-President
aprior@equityny.com
Source: United Insurance Holdings Corp.