United Insurance Holdings Corp. (UPC Insurance or the Company)
(NASDAQ:UIHC), announced today the Company has entered into a
non-binding letter of intent to acquire 100% of Sunshine State Insurance
Company (SSIC), a Florida domiciled property and casualty insurance
company. SSIC, based in Jacksonville, FL, was founded in 1997 and offers
personal property insurance products including homeowners, dwelling fire
and federal flood insurance through independent agents primarily in the
Northeast and North Central territories of Florida. This combination is
expected to significantly improve the Company’s overall spread of risk
and foster growth in a key part of Florida where UPC currently has very
limited exposure.
The gross written premium of SSIC’s personal property business being
acquired by UPC was approximately $68 million in 2013. UPC expects to
retain management and employees of SSIC at the time of closing, to
maintain continuity in policy forms and rates with no adverse impacts on
current SSIC policyholders or the working relationships with SSIC agent
partners, and to make a capital infusion into SSIC to restore its
Demotech rating and satisfy regulatory requirements. The closing of
UPC’s acquisition of SSIC is subject to a number of conditions,
including negotiation and execution of definitive agreements and
customary regulatory approvals.
Raymond James & Associates, Inc. is serving as an advisor to UIHC on
this proposed transaction.
Forward Looking Statements
Certain statements included in this press release are intended as
“forward-looking statements.” These statements include statements
relating to UPC Insurance’s proposed acquisition of SSIC. UPC Insurance
cautions investors not to place undue reliance on the forward-looking
statements contained in this release. These forward-looking statements
involve certain risks and uncertainties that could cause the results to
differ materially from those expected by UPC Insurance. There can be no
assurance that UPC Insurance will be able to complete the acquisition of
SSIC or that the expected benefits of such acquisition will be realized.
Completion of the acquisition of SSIC is subject to numerous conditions,
including, without limitation, satisfactory completion of due diligence,
negotiation and execution of definitive agreements, satisfaction of
customary closing conditions, obtaining regulatory approvals, and other
factors, including those set forth in the Risk Factors section of the
Company’s periodic reports and other documents filed with the SEC,
copies of which are available on the SEC’s website, www.sec.gov.
Any forward-looking statements made in this press release speak only as
of the date of this release and, except as required by law, UPC
Insurance undertakes no obligation to update any forward-looking
statement contained in this press release, even if UPC Insurance’s
expectations or any related events, conditions or circumstances change.
About UPC Insurance
Founded in 1999, UPC Insurance is an insurance holding company that
sources, writes and services residential property and casualty insurance
policies using a network of independent agents and a group of wholly
owned insurance subsidiaries. United Property & Casualty Insurance
Company, the primary operating subsidiary of UPC Insurance, writes and
services property and casualty insurance in Florida, Massachusetts, New
Jersey, North Carolina, Rhode Island, South Carolina and Texas, and is
licensed to write in Louisiana, Georgia and New Hampshire. From its
headquarters in St. Petersburg, UPC Insurance's team of dedicated
professionals manages a completely integrated insurance company,
including sales, underwriting, customer service and claims.
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