Florida-based United Insurance Holdings Corp. said Monday that it will acquire Family Security Holdings, LLC and its two subsidiaries, including Family Security Insurance Co., a Hawaii-domiciled property and casualty insurer, for $9 million."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," John Forney, president and CEO of UPC Insurance, said in a statement.
Family Security Insurance Co. is licensed to provide homeowner and auto insurance in Hawaii through its network of agents. According to public documents, the business was registered in 2011 and was licensed in August 2012.
Under the terms of agreement, subject to Family Security Holdings shareholder approval, United Insurance (Nasdaq: UIHC) will acquire all of the issued and outstanding shares, units and other ownership rights of Family Security Holdings for $9 million. The merger consideration will be paid 100 percent in shares of United Insurance common stock, with the number of shares determined by the average closing price of the stock in the 180 days prior to closing.
United Insurance also will pay 3 percent of all gross premiums written on the renewal of Family Security Insurance Company policies 12 months after the deal closes.
The deal is expected to close on or before Jan. 31, 2015.
The acquisition also includes Family Security Holdings, LLC's other subsidiary, Family Security Underwriters, LLC, a managing general agency performing administrative and marketing services for Family Security Insurance Co.
UPC Insurance is an insurance holding company that sources, writes and services residential property and casualty insurance policies through independent agents and a group of wholly owned insurance subsidiaries.
United Property & Casualty Insurance Co., the primary operating subsidiary of UPC Insurance, writes and services property and casualty 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.