NU Online News Service, Sept. 6, 3:29 p.m. EDT
Interboro Insurance Co. emerged from rehabilitation just four years ago and today is looking to expand beyond its New York borders with the intended acquisition of OneBeacon’s auto insurance business, AutoOne.
In an interview with NU Online News Service, David Nichols, chief executive officer and president of Mineola, N.Y.-based insurer Interboro, says, “Our intention, once the transaction is completed, is to utilize the company to continue the growth of our organization.”
Nichols was referring to the AutoOne acquisition announced last week.
“We’ve seen significant growth in our homeowners business and we hope to utilize AutoOne in the auto area,” says Nichols.
The company was one of a handful to go into rehabilitation in 2004. Then a mutual company, it emerged from rehabilitation in 2007 and was transformed into a stock company.
Since then, it has concentrated its business primarily in the homeowners market in the New York City and Long Island. According to Highline Data, a member of Summit Business Media, which also owns National Underwriter, in 2010 81 percent of the company’s direct premiums written were multi-peril home and the remainder primarily auto.
While not allowed to discuss any financial aspects of the deal, Nichols says he is “confident it will be approved and completed” by the fourth quarter of this year.
Nichols says the intention of the deal for Interboro is to use it “to grow geographically” expanding into upstate New York and “other states where possible.”
AutoOne’s assigned risk business fits into the company’s sweet spot, says Nichols. Interboro’s auto business already consists of picking-up assignments from other carriers, and he believes his company can use the new resources as an avenue for growth in that part of the business.
According to Highline Data, direct written premium in 2010 totaled $50.2 million, $40.8 million of which was in homeowners multi-peril and $8.8 million in private passenger auto. The company writes its business through independent insurance brokers.
