The St. Petersburg-based residential property and casualty insurance company has offered to acquire Sunshine State Insurance Co.
ST. PETERSBURG — United Insurance Holdings Corp. has entered into a non-binding letter of intent to acquire Sunshine State Insurance Co. Founded in 1997, Jacksonville-based Sunshine State Insurance offers personal property insurance products and federal flood insurance through independent agents primarily in the Northeast and North Central areas of Florida.
The merger is expected to help United Insurance Holdings better distribute its risk and allow it to grow in key parts of Florida, where it currently has a more limited presence.
The gross written premium of Sunshine State Insurance's personal property business being acquired was $68 million in 2013.
United Insurance Holdings expects to retain the management and employees of Sunshine State Insurance at the time of closing. Its capital infusion into Sunshine State Insurance is expected to restore that company's Demotech rating and satisfy regulatory requirements.
Raymond James & Associates Inc. is serving as an adviser to United Insurance Holdings on the proposed transaction.
United Property & Casualty Insurance Company, the primary operating subsidiary of United Insurance Holdings, writes and services property and casualty insurance in Florida, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas, and is also licensed to write insurance in Louisiana, Georgia and New Hampshire.