American Coastal Insurance has completed the sale of its subsidiary, Interboro Insurance Company, to Forza Insurance.
The deal, first announced in May 2024, was settled for approximately $26.4m in cash on Interboro’s preliminary GAAP (generally accepted accounting principles) estimated equity as of the closing date.
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The transaction marks American Coastal’s exit from personal lines insurance and the company will now concentrate on its commercial specialty property portfolio.
Set up in 1914, Interboro operates in New York through a network of more than 450 independent brokers.
The company offers homeowners insurance in New York and is also licensed to operate in South Carolina, Louisiana, Alabama and Washington, DC.
The final purchase price will be adjusted and confirmed within the next 30 days, based on the finalised GAAP equity of Interboro as of 1 April 2025, the company added.
American Coastal Insurance Corporation president and CEO Brad Martz said: “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.”
The transaction was facilitated by Raymond James & Associates, acting as the financial advisor to American Coastal, while legal counsel was provided by Debevoise & Plimpton.
Forza Insurance, which was established in 2021, aims to source capital for strategic investments to promote growth within its portfolio of insurance companies and to deliver returns for its investors.
The acquisition is expected to add to Forza’s existing property insurance portfolio, which includes SureChoice Underwriters Reciprocal Exchange and Elevate Reciprocal Exchange.
