American Coastal Insurance Sells Interboro Insurance to Forza HoldingsAmerican Coastal Insurance has successfully completed the sale of its New York-based personal lines subsidiary, Interboro Insurance, to Forza Insurance Holdings for approximately $26.4 million in cash. This strategic move is part of American Coastal’s plan to focus exclusively on becoming a specialized commercial residential property insurer.The transaction amount is based on Interboro’s projected equity following generally accepted accounting principles as of the closing date. Both parties are set to finalize the purchase price within the next 30 days, adjusting it to align with Interboro’s actual equity as of April 1.“The sale of Interboro marks the completion of our strategic transformation into a specialized insurer focusing on commercial residential property insurance,” stated Brad Martz, president and CEO of American Coastal. “All our resources—both capital and human—are now fully directed towards our core business.”American Coastal’s primary focus is insuring condominium associations, homeowner associations, and apartment complexes in Florida. The divestment of Interboro enables the company to streamline its operations and strengthen its core business strategy.Raymond James & Associates provided exclusive financial advisory services to American Coastal, while Debevoise & Plimpton LLP offered legal counsel throughout the transaction. The announcement of the sale was initially made in November 2023.In recent financial updates, American Coastal reported that hurricanes Debby, Helene, and Milton are expected to incur losses amounting to $20 million across the third and fourth quarters of 2024. Of this, $3.8 million was attributed to the third quarter, with $2.4 million retained by subsidiary AmCoastal Insurance Co. and $1.4 million by its captive reinsurer. These losses are not expected to exceed AmCoastal’s reinsurance layers.As of the afternoon of April 2, shares of American Coastal Insurance Corp. were being traded at $11.37, reflecting a 1.39% decrease from the previous close.
Yorum Yap