United Insurance to acquire Sunshine State

United Insurance Holdings has signed a non-binding letter of intent to acquire fellow Floridian property and casualty (P&C) insurer Sunshine State Insurance Company (SSIC).

United plans to inject capital in to Sunshine to restore its Demotech rating.

It believes that the combination will significantly improve the company’s overall spread of risk and foster growth in a key part of Florida where it currently has very limited exposure.

The gross written premium of SSIC’s personal property business being acquired was approximately $68 million in 2013.