KBRA Places the Rating for Interboro Insurance Company on Watch Developing
15 Nov 2023 | New York
KBRA places on Watch Developing the A- Insurance Financial Strength Rating (IFSR) for Interboro Insurance Company (IIC).
On November 13, 2023, American Coastal Insurance Corporation (ACIC) announced that it had executed a non-binding term sheet with a third-party to acquire IIC. ACIC expects the sale to be completed in 2024 at a price equal to GAAP book value at the time of closing. IIC has a current GAAP book value of approximately $23 million. ACIC has noted that the sale is part of the company's strategy to focus on commercial lines. The Watch Developing status reflects this announcement and the significant uncertainty related to, among other things, the ability to complete the sale, projected future financial results, and IIC's future risk profile or appetite. The IFSR rating for American Coastal Insurance Company and the issuer and debt ratings for ACIC remain unchanged.
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