Filed Under:Markets, Personal Lines

Interboro Chief Exec Seeks Growth Beyond New York Borders

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.

Featured Video

Most Recent Videos

Video Library ››

Top Story

10 insights into how small-business owners perceive cyber risk

Cyberattacks on small businesses are a real and growing problem, and the latest research by Nationwide shows owners are not prepared. Insurance agents can help.

Top Story

Friday's cyber attacks a 'wake-up call' for insurers and public alike

Waves of DDoS attacks shut down swatches of the internet on Friday, prompting the need for the insurance industry to issue standard cyber liability coverage forms.

More Resources


eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.