Interboro Sold to Forza by ACIC
Deal News | Apr 03, 2025 | Re-Insurance News
American Coastal Insurance Corporation (ACIC) has finalized the sale of its personal lines subsidiary, Interboro Insurance Company, to Forza Insurance Holdings, LLC. This sale, first announced in May 2024, marks the completion of ACIC's divestment and strategic transformation into a specialty insurer focusing on commercial residential property insurance. The deal is valued at approximately $26.4 million based on Interboro's estimated GAAP equity, with the final price to be reconciled within 30 days post-closing. Brad Martz, ACIC's CEO, highlighted the company's future focus on underwriting commercial residential property insurance, aiming to continue delivering value to shareholders. Raymond James & Associates acted as the financial advisor, while Debevoise & Plimpton LLP provided legal counsel.
Sectors
- Insurance
- Financial Advisory
- Legal Services
Geography
- United States – Both ACIC and Interboro operate in the United States, and the transaction involves changes in U.S.-based entities.
- New York – Interboro Insurance Company is based in New York, making it a significant geographic point for the transaction.
Industry
- Insurance – The article discusses a transaction involving an insurance company, emphasizing a strategic shift within the insurance sector.
- Financial Advisory – Raymond James & Associates' role as a financial advisor highlights the involvement of financial advisory services in facilitating M&A transactions.
- Legal Services – The involvement of Debevoise & Plimpton LLP indicates the role of legal advisors in ensuring the smooth transfer of corporate ownership in the insurance sector.
Financials
- $26.4 million – The approximate cash received by ACIC from Forza based on Interboro's estimated GAAP equity as of the closing date.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| American Coastal Insurance Corporation (ACIC) | Selling Company | Company | A property and casualty insurance holding company operating in the United States. |
| Interboro Insurance Company | Target Company | Company | A personal lines insurance subsidiary sold by ACIC. |
| Forza Insurance Holdings, LLC | Bidding Company | Company | The acquirer of Interboro, a company involved in the insurance sector. |
| Raymond James & Associates | Financial Advisor | Company | Provided exclusive financial advisory services to ACIC for the transaction. |
| Debevoise & Plimpton LLP | Legal Advisor | Company | Provided legal counsel for ACIC during the transaction. |
| Brad Martz | President & Chief Executive Officer | Person | CEO of ACIC, who commented on the strategic focus shift of the company. |