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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