American Coastal Exits Personal Lines with Interboro Sale

American Coastal Insurance has sold its subsidiary Interboro Insurance Company to Forza Insurance, marking its exit from the personal lines insurance market. The sale, valued at approximately $26.4 million, was finalized based on Interboro's estimated equity at the closing date. With this strategic move, American Coastal aims to concentrate on the commercial specialty property portfolio.

Founded in 1914, Interboro operates primarily in New York through over 450 independent brokers, focusing on homeowners insurance. The company is also licensed to conduct business in South Carolina, Louisiana, Alabama, and Washington, DC. The final transaction amount will be adjusted in the coming 30 days based on Interboro's finalized GAAP equity as of April 1, 2025.

American Coastal's president Brad Martz stated that this sale completes their transformation into a specialty insurer aimed at commercial residential property insurance. They plan to direct all resources towards this core business, expecting to enhance their market leadership and create shareholder value. Meanwhile, Forza Insurance, established in 2021, intends to expand its portfolio through strategic investments in insurance companies, including the newly acquired Interboro.