American Coastal Insurance finalizes the sale of Interboro Insurance, marking a significant shift in their business strategy.
American Coastal Insurance Corporation (ACIC), a prominent property and casualty insurance holding firm, has successfully completed the divestiture of its personal lines subsidiary, Interboro Insurance Company, to Forza Insurance Holdings, LLC. Initially announced in May 2024, this sale signifies the conclusion of ACIC’s exit from its personal lines portfolio.
The transaction has resulted in a cash influx of approximately $26.4 million for ACIC, contingent on the estimated generally accepted accounting principles (GAAP) equity of Interboro at the time of closing. A reconciliation of the final purchase price is anticipated to occur within about 30 days, contingent on Interboro’s finalized GAAP equity as of April 1, 2025.
Brad Martz, President & Chief Executive Officer of ACIC, remarked, “The sale of Interboro marks the formal completion of our strategic pivot towards becoming a specialty insurer, with a dedicated focus on underwriting commercial residential property insurance. Our entire capital and human resources are now concentrated on our core operations, and we are confident that our market leadership will continue to generate outstanding value for our shareholders.”
In orchestrating this transaction, Raymond James & Associates acted as the exclusive financial advisor to ACIC, while Debevoise & Plimpton LLP provided legal counsel.
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