United Insurance Holdings Corp. has entered into a stock purchase agreement with Interboro, LLC, to acquire Interboro Insurance Company, 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 Interboro, LLC, which note will mature in 18 months after closing and bear interest at an annual rate of six percent. 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 Interboro, LLC, 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, the 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, the 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.”
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].