American Coastal Insurance Transitions to Specialty Insurer Focus
American Coastal Insurance Corporation Completes Key Sale
American Coastal Insurance Corporation (NASDAQ: ACIC) announced the completion of its strategic sale of Interboro Insurance Company to Forza Insurance Holdings, LLC. This move signals a significant step in American Coastal's mission to refocus on core operations and improve its business model.
Financial Aspects of the Transaction
The transaction, valued at approximately $26.4 million, reflects the generally accepted accounting principles (GAAP) estimated equity of Interboro at the time of closing. The final purchase price will be reconciled in about 30 days, allowing for adjustments based on Interboro’s finalized GAAP equity. This financial maneuver underscores American Coastal's commitment to strategic financial management and shareholder value.
Strategic Transformation and Company Vision
In light of this sale, President and CEO Brad Martz expressed confidence in the company’s transformation into a specialty insurer. By concentrating efforts on commercial residential property insurance, American Coastal aims to leverage its expertise and resources to solidify its presence in the market. The leadership is optimistic that this strategic focus will lead to sustained value creation for shareholders moving forward.
Key Leadership and Advisory Assistance
Raymond James & Associates played a vital role as the exclusive financial advisor throughout this transaction, contributing essential insights and guidance. Legal matters were handled by Debevoise & Plimpton LLP, ensuring that all aspects of the sale adhered to necessary regulations and standards.
About American Coastal Insurance Corporation
Founded in 2007, American Coastal Insurance Corporation functions as the parent company of American Coastal Insurance Company. The company primarily addresses the insurance needs of Condominium and Homeowner Association properties across Florida. American Coastal has formed a significant partnership with AmRisc Group, a leading Managing General Agent renowned for its specialization in hurricane-exposed properties.
Recognitions and Ratings
American Coastal Insurance Company has achieved a commendable Financial Stability Rating of "A, Exceptional" by Demotech, highlighting its rigorous standards and reliability in financial operations. Additionally, it maintains an “A-” insurance financial strength rating from Kroll, further accentuating its operational effectiveness and market reliability. The issuer rating for American Coastal, with a 'BB+' status also from Kroll, reflects a stable outlook for the company, suggesting continued confidence among investors and partners alike.
Company Contact Information
For more inquiries, you can reach out to the following contacts:
Alexander Baty
Vice President of Finance & Investor Relations
Phone: (727) 425-8076
Email: investorrelations@amcoastal.com
Karin Daly
Investor Relations, Vice President, The Equity Group
Phone: (212) 836-9623
Email: kdaly@equityny.com
Frequently Asked Questions
What prompted the sale of Interboro Insurance Company?
The sale is part of American Coastal's strategic transformation to focus on commercial residential property insurance, allowing for better resource allocation.
How much was the sale of Interboro Insurance Company worth?
The sale transaction was valued at approximately $26.4 million, based on GAAP estimated equity as of the closing date.
Who provided financial advisory services for the transaction?
Raymond James & Associates acted as the exclusive financial advisor to American Coastal throughout the sale of Interboro Insurance Company.
What is the future focus of American Coastal Insurance Corporation?
American Coastal is transitioning into a specialty insurer, concentrating on underwriting commercial residential property insurance.
What ratings has American Coastal Insurance Company achieved?
The company has earned a Financial Stability Rating of "A, Exceptional" from Demotech and an "A-" insurance financial strength rating from Kroll.
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