United Insurance Holdings Corp. (UPC Insurance) said it plans to acquire Family Security Holdings LLC for $9 million.
The transaction is expected to close by Jan. 31, 2015.
FSH is an insurance holding company with two wholly owned subsidiaries, Family Security Insurance Co., a Hawaii-domiciled P/C insurer authorized in Hawaii and Louisiana, and Family Security Underwriters LLC, a managing general agency.
Under the agreement, UPC Insurance will acquire all of the issued and outstanding shares, units and other ownership rights of FSH for $9 million. The acquisition will be paid 100 percent in shares of UPC Insurance’s common stock, with the number of shares issued to be determined by the average closing price of the stock in the 180 days immediately prior to closing.
UPC Insurance , which is based in St. Petersburg, Fla., also agreed to pay FSH contingent consideration of 3 percent of all gross premiums written for all FSIC policies that renew within 12 months of the closing.
“The acquisition of Family Security provides us with a second insurance company that has an excellent book of business in Louisiana and access to the Hawaii homeowners market,” said UPC President and CEO John Forney. “Strategically, it is a great fit for UPC Insurance. Operationally, Family Security has built a strong team of professionals which we look forward to integrating into the UPC Insurance team.”
United Property & Casualty Insurance Co., the primary operating subsidiary of UPC Insurance, writes and services P/C insurance in Florida, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas and is licensed to write in Connecticut, Delaware, Georgia, Louisiana, Maryland, Mississippi, New Hampshire and Virginia.
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