American Coastal Insurance Corporation Announces the Sale of its Personal Lines Subsidiary, Interboro Insurance Company

American Coastal Insurance (NASDAQ: ACIC) has completed the sale of its personal lines subsidiary, Interboro Insurance Company (IIC), to Forza Insurance Holdings for approximately $26.4 million in cash.

Rhea-AI Summary

American Coastal Insurance (NASDAQ: ACIC) has completed the sale of its personal lines subsidiary, Interboro Insurance Company (IIC), to Forza Insurance Holdings for approximately $26.4 million in cash. The transaction, which closed on April 1, 2025, is based on IIC's estimated GAAP equity as of the closing date, with a final purchase price reconciliation expected within 30 days.

This strategic divestment marks ACIC's transformation into a specialized insurer focused exclusively on commercial residential property insurance. The company aims to strengthen its market leadership in this core business segment, with all capital and human resources now fully dedicated to this focus area.

Positive

• Received $26.4 million in cash from sale of Interboro Insurance Company
• Strategic focus transformation to specialized commercial residential property insurance
• Complete allocation of capital and resources to core business

Negative

• Reduction in business diversification by exiting personal lines insurance segment

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ST. PETERSBURG, Fla., April 01, 2025 (GLOBE NEWSWIRE) -- American Coastal Insurance Corporation (Nasdaq Ticker: ACIC) (“the Company”, “American Coastal” or “ACIC”), the insurance holding company of American Coastal Insurance Company (“AmCoastal”), announced today that it has completed the previously announced sale of Interboro Insurance Company (“Interboro” or “IIC”) to Forza Insurance Holdings, LLC (“Forza”).

The Company received approximately $26.4 million in cash from Forza based on the generally accepted accounting principles (“GAAP”) estimated equity of IIC as of the closing date. The Company and Forza will reconcile the purchase price within approximately 30 days, based on the finalized GAAP equity of IIC as of April 1, 2025.

“The sale of Interboro formally completes our strategic transformation into a specialty insurer focused on underwriting commercial residential property insurance. All of our capital and human resources are now fully focused on our core business, and we expect our market leadership will continue to drive exceptional value for our shareholders.” said Brad Martz, President & Chief Executive Officer.

Raymond James & Associates acted as exclusive financial advisor to American Coastal and Debevoise & Plimpton LLP served as legal counsel to American Coastal in connection with this transaction.

About American Coastal Insurance Corporation:
American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, Exceptional’ from Demotech, and maintains an “A-” insurance financial strength rating with a Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable outlook by Kroll.

Contact Information:
Alexander Baty
Vice President, Finance & Investor Relations, American Coastal Insurance Corporation
investorrelations@amcoastal.com
(727) 425-8076

Karin Daly
Investor Relations, Vice President, The Equity Group
kdaly@equityny.com
(212) 836-9623

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did ACIC receive for the sale of Interboro Insurance Company?

ACIC received approximately $26.4 million in cash from Forza Insurance Holdings, based on Interboro's estimated GAAP equity at closing.

When will the final purchase price for Interboro Insurance be determined?

The final purchase price will be reconciled within 30 days of the April 1, 2025 closing date, based on Interboro's finalized GAAP equity.

What is ACIC's new strategic focus after selling Interboro?

ACIC is now focused exclusively on underwriting commercial residential property insurance as a specialty insurer.

Who were the advisors for ACIC in the Interboro sale transaction?

Raymond James & Associates served as financial advisor, while Debevoise & Plimpton LLP acted as legal counsel.