American Coastal Insurance Corporation has announced the sale of its New York domiciled insurer, Interboro Insurance Company, to Forza Insurance Holdings, LLC, a move which completes the run-off of American Coastal’s personal lines portfolio.
The definitive agreement sees Forza acquire 100% of the issued and outstanding stock of Interboro and enables American Coastal to focus on its expanding commercial specialty property portfolio.
Once the deal closes, following approval of the New York Department of Financial Services, the acquisition of Interboro stands to further diversify Forza’s portfolio of property insurance companies, which currently includes SureChoice Underwriters Reciprocal Exchange, and Elevate Reciprocal Exchange.
Concurrent with the acquisition, Interboro and SageSure entered into a Program Administrator Agreement and a Claims Services Agreement on May 9th, 2024, under which SageSure will provide policy administration, underwriting and claims administration services on behalf of Interboro.
Brad Martz, President of American Coastal, commented on the deal: “Interboro is a strong strategic fit for Forza and SageSure. We are incredibly pleased that we have found the right purchaser and program administrator to continue Interboro’s 100+ year journey. Peter N. Resnick, President of Interboro, and his talented team will complement the teams from Forza and SageSure and will be able to take Interboro to new heights.”
Travis Lewis, Executive Chairman of Forza, said: “Interboro is a longstanding, reliable writer of homeowners business in New York, a natural addition to Forza’s holdings. We look forward to welcoming new associates from Interboro and to developing and growing our resilient portfolio that continues to expand our strategic partnership with SageSure.”
Terrence McLean, President and CEO of SageSure, added: “SageSure is proud to bring our market-leading underwriting, service and claims experience to Interboro policyholders and producers. We are excited to partner with Interboro and grow our Forza partnership.”
For this transaction, Raymond James & Associates acted as exclusive financial advisor to American Coastal, and Debevoise & Plimpton LLP served as legal counsel. Howden Capital Markets & Advisory served as exclusive financial advisor to Forza, and ACCEL Law Group served as legal counsel to Forza.
