American Coastal Insurance Corp. has finalized the sale of Interboro Insurance Co., a New York-based personal lines carrier, to Forza Insurance Holdings, LLC.
The transaction brought American Coastal approximately $26.4 mn in cash, based on Interboro’s estimated equity at closing under GAAP.
Both parties will adjust the final purchase price within 30 days, once Interboro’s equity as of April 1 is confirmed.
Brad Martz, president and CEO of American Coastal, said the sale completes the company’s shift to a specialty insurer underwriting commercial residential property.
All of our capital and human resources are now fully focused on our core business.
Raymond James & Associates served as exclusive financial adviser to American Coastal. Debevoise & Plimpton LLP acted as legal counsel.
American Coastal, which insures condominium and homeowner association properties and apartments in Florida, previously reported projected hurricane-related losses of about $20 mn for Q3 and Q4 2024.
Hurricanes Debby and Helene caused $3.8 mn in Q3 losses. Of that, $2.4 mn will be retained by AmCoastal Insurance Co., and $1.4 mn by its captive reinsurance unit. These losses are not expected to exceed AmCoastal’s excess-loss reinsurance thresholds.
American Coastal Insurance reported full-year 2024 revenue of $296.7 mn, a 3.5% increase from 2023. Net income declined 7.2% to $76.3 mn.
The profit margin fell from 29% to 26%, mainly due to higher expenses. Earnings per share dropped from $1.89 to $1.60.
Revenue exceeded analyst expectations by 7.3%, while EPS missed forecasts by 4.3%.
Over the next two years, revenue is projected to grow at an average annual rate of 6.5%, outpacing the broader U.S. insurance industry’s expected growth rate of 5.2%.
