United Insurance Holdings 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.