American Coastal Insurance Corp. (ACIC) has agreed to sell its subsidiary Interboro Insurance Co., a New York domiciled insurer, to Forza Insurance Holdings, a Houston-based firm that funds insurance organizations serving coastal property owners.
Forza will expand its coastal coverage by acquiring 100% of the issued and outstanding stock of Interboro. Closing is subject to the approval of the New York Department of Financial Services.
ACIC had indicated it had a buyer for Interboro last November at which time Interboro’s book value was approximately $23 million.
The transaction completes the run-off of ACIC’s personal lines portfolio and allows ACIC to focus on its commercial specialty property portfolio in Florida.
This is the third investment for Forza. Its current portfolio of property insurance companies includes SureChoice Underwriters Reciprocal Exchange (SURE) and Elevate Reciprocal Exchange, both with a geographic focus in the Gulf and Southeast.
Located on Long Island, New York, Interboro writes homeowners insurance in New York through 450 independent brokers. Interboro is also licensed to write business in South Carolina, Louisiana, Alabama, and Washington, D.C.
Interboro’s personal lines homeowners and fire insurance products are written exclusively in New York, with approximately 18,700 policies and $34 million of premium in-force.
Concurrently, Interboro entered into program and claims administration agreements with SageSure, a managing general agent specializing in coastal residential and commercial property insurance.
ACIC was formerly part of United Insurance Holdings Corp. which in August changed its name to American Coastal Insurance Corp., the surviving insurer after United’s insolvency. At the end of 2022, United’s insurance subsidiaries included two Florida domiciled carriers, United Property & Casualty Insurance Co. (UPC) and American Coastal Insurance Co. (ACIC or AmCoastal), along with New York-domiciled Interboro.
In 2022, ACIC began withdrawing and non-renewing all personal lines policies in Florida, Louisiana, Texas, New York and other states. In February 2023, UPC was placed into receivership with the Florida Department of Financial Services, which divested ACIC’s ownership of UPC.
ACIC’s commercial lines business was 100% in Florida at the end of 2022.
Was this article valuable?
Here are more articles you may enjoy.
Elon Musk Beats $500 Million Severance Lawsuit by Fired Twitter Workers 
State Farm Seeking Large Rate Increases in Wildfire-Prone California 
Homebuilders Cut on ‘Sluggish’ Housing Market, Florida Woes 
AT&T Says Data From Around 109M Customer Accounts Illegally Downloaded 
