American Coastal Insurance Corporation (Nasdaq Ticker: ACIC)
(“the Company”, “American Coastal” or “ACIC”), the insurance
holding company of Interboro Insurance Company (“Interboro”), a New
York domiciled insurance company, announced today that it has
signed definitive agreements with Forza Insurance Holdings, LLC
(“Forza”) in which ACIC will sell and Forza will acquire 100% of
the issued and outstanding stock of Interboro. Closing is subject
to the approval of the New York Department of Financial Services.
The transaction completes the run-off of ACIC’s personal lines
portfolio and allows ACIC to focus on its fast-growing commercial
specialty property portfolio.
Concurrently, Interboro and SageSure entered into a Program
Administrator Agreement and a Claims Services Agreement on May 9,
2024. Under the terms of these service agreements, SageSure will
provide policy administration, underwriting and claims
administration services on behalf of Interboro.
“Interboro is a strong strategic fit for Forza and SageSure. We
are incredibly pleased that we have found the right purchaser and
program administrator to continue Interboro’s 100+ year journey.
Peter N. Resnick, President of Interboro, and his talented team
will complement the teams from Forza and SageSure and will be able
to take Interboro to new heights,” said Brad Martz, President of
American Coastal.
Once closed, the acquisition of Interboro will further diversify
Forza’s portfolio of property insurance companies, which currently
includes SureChoice Underwriters Reciprocal Exchange (“SURE”) and
Elevate Reciprocal Exchange (“Elevate”), both with a geographic
focus in the Gulf and Southeast.
“Interboro is a longstanding, reliable writer of homeowners
business in New York, a natural addition to Forza’s holdings,” said
Travis Lewis, Executive Chairman of Forza. “We look forward to
welcoming new associates from Interboro and to developing and
growing our resilient portfolio that continues to expand our
strategic partnership with SageSure.”
“SageSure is proud to bring our market-leading underwriting,
service and claims experience to Interboro policyholders and
producers,” said Terrence McLean, President and CEO of SageSure.
“We are excited to partner with Interboro and grow our Forza
partnership.”
Raymond James & Associates acted as exclusive financial
advisor to American Coastal. The law firm of Debevoise &
Plimpton LLP served as legal counsel to American Coastal. Howden
Capital Markets & Advisory served as exclusive financial
advisor to Forza. ACCEL Law Group served as legal counsel to
Forza.
About American Coastal Insurance Corporation
American Coastal Insurance Corporation (amcoastal.com) is the
holding company of the insurance carrier, American Coastal
Insurance Company, which was founded in 2007 for the purpose of
insuring Condominium and Homeowner Association properties, and
apartments in the state of Florida. American Coastal Insurance
Company has an exclusive partnership for distribution of
Condominium Association properties in the state of Florida with
AmRisc Group (amriscgroup.com), one of the largest Managing General
Agents in the country specializing in hurricane-exposed properties.
American Coastal Insurance Company has earned a Financial Stability
Rating of ‘A, Exceptional’ from Demotech. American Coastal
Insurance Corporation is rated BB+ with a Stable Outlook by Kroll
Bond Rating Agency.
About Forza Insurance Holdings LLC
Founded in 2021, Forza oversees the strategic growth of
insurance brands designed to protect coastal property and offer
reliable capacity for distribution partners. Led by a team with
decades of experience building and managing profitable insurance
entities, Forza sources capital for strategic investments to
accelerate growth for its portfolio of insurance companies and to
generate attractive returns for investors. Its current holdings
include the Texas-domiciled reciprocal insurance exchanges SURE and
Elevate. To learn more, visit forzains.com.
About Interboro Insurance Company
Founded in 1914, Interboro is the oldest insurance company
domiciled on Long Island, New York. Interboro writes homeowners
insurance in New York through a network of over 450 independent
brokers. Interboro is also licensed to write business in South
Carolina, Louisiana, Alabama, and Washington, D.C. Interboro is
dedicated to ensuring financial protection for its policyholders by
providing quality products and exceptional service through strong
relationships with its brokers.
About SageSure
SageSure is the managing general agent specializing in coastal
residential and commercial property insurance. SageSure offers more
than 50 competitively priced insurance products in 14 coastal
states on behalf of its carrier partners, serves more than 550,000
policyholders, and has more than $1.6 billion of inforce premium.
Since its launch in 2009, SageSure has been pioneering property
insurance through its market-leading online quoting and binding
platform and its sophisticated risk modeling and scoring
technology. For more information, visit sagesure.com.
Forward-Looking Statements
Statements made in this press release may be “forward-looking
statements.” These statements are made subject to the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements do not relate strictly to
historical or current facts and may be identified by their use of
words such as “may,” “will,” “expect,” "endeavor," "project,"
“believe,” "plan," “anticipate,” “intend,” “could,” “would,”
“estimate” or “continue” or the negative variations thereof or
comparable terminology, and include statements regarding signing
definitive documentation for the transaction, receipt of regulatory
approvals and effectiveness of the quota share reinsurance
agreement. 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
subsequent Quarterly Reports on Form 10-Q. Forward-looking
statements speak only as of the date on which they are made, and,
except as required by applicable law, we undertake no obligation to
update or revise any forward-looking statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20240509157208/en/
Alexander Baty Vice President, Finance & Investor Relations,
American Coastal Insurance Corporation
investorrelations@amcoastal.com (727) 425-8076
Karin Daly Investor Relations, Vice President, The Equity Group
kdaly@equityny.com (212) 836-9623
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