HPN Holdings and Orange Auto Insurance Merge to Advance AI in Nonstandard Auto Insurance

HPN Holdings, Inc. has announced a Letter of Intent to merge with Orange Auto Insurance, signaling a strategic move within the nonstandard auto insurance segment. The combined entity will trade on the OTCIQ Market under the ticker symbol KICK, integrating Orange's advanced AI-driven technology and experienced management team into HPN Holdings' portfolio. This merger aims to leverage cutting-edge automation and analytics to enhance underwriting, claims handling, and product offerings against traditional legacy carriers constrained by outdated systems. Orange Auto Insurance's leadership brings a track record of scaling successful nonstandard auto insurers, including United Automobile Insurance, with proven expertise in operational execution and market expansion. The management team's familiarity with complex market dynamics and technology integration positions the combined company to capitalize on efficiencies and innovative solutions tailored to nonstandard auto risks. The U.S. automobile insurance market exceeded $400 billion in 2025 and is projected to grow substantially. Florida's nonstandard auto insurance market, in particular, presents a significant opportunity due to a favorable regulatory environment following 2023 legislative reforms that reduced litigation costs related to Personal Injury Protection (PIP) claims. These changes, combined with inflationary pressures on rates amidst a hard market condition, create a conducive landscape for technology-enabled entrants like Orange to gain market share. The merger will enable expansion beyond Florida by utilizing advanced AI software designed to streamline operations, enhance pricing segmentation, and improve communication between agents, policyholders, and claims handlers. Additionally, the move to a publicly traded structure provides financial flexibility for further capital investments and potential acquisitions. Orange Auto Insurance aims to deliver a simplified, technology-focused experience for both agents and consumers, emphasizing efficiency in sales, underwriting, and claims processes. The partnership aligns with HPN Holdings' broader strategy to acquire and scale premier operating companies that can rapidly respond to evolving market demands through innovation and disciplined growth. This development reflects broader industry trends emphasizing AI integration and data analytics to disrupt traditional auto insurance sectors, particularly in the nonstandard market. The combined entity's strategic approach aligns with regulatory changes and market conditions favorable to new entrants adopting advanced technology to drive competitive advantage.