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.
About Interboro
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.
Forward-Looking Information
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160429006079/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.