United Insurance Holdings (UPC Insurance) has signed an agreement to acquire New York-based property and casualty insurer Interboro Insurance, for around $57m.

UPC

As part of the deal, UPC Insurance will pay $48.5m of cash at closing and issue an $8.5m promissory note to Interboro Insurance parent firm Interboro, LLC.

Interboro president and CEO David Nichols said: "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."

Through a network of around 600 independent brokers, Interboro provides services in New York, South Carolina, Alabama, Louisiana, and Washington, D.C.

Once the deal concludes, UPC Insurance will acquire around $55m of homeowners’ insurance gross written premium volume in New York and South Carolina.

Interboro’s parent firm and its retained insurance subsidiaries will hold all personal auto and other non-homeowners lines of business, under the deal.

UPC Insurance president and CEO John Forney said: "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."

The deal is subject to customary conditions, including receipt of required regulatory approvals.

Established in 1999, UPC Insurance provides residential property and casualty insurance policies through its network of independent agents and a group of wholly owned insurance subsidiaries.

In February this year, UPC Insurance completed the acquisition of Family Security Holdings (FSH) and its subsidiaries, for around $9m.

FSH is an insurance holding company with two wholly-owned subsidiaries, Family Security Insurance Company (FSIC) and Family Security Underwriters (FSU).


Image: UPC Insurance to acquire New York-based Interboro Insurance. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.