NU Online News Service, Sept. 6, 3:29 p.m.EDT

Interboro Insurance Co. emerged from rehabilitation just fouryears ago and today is looking to expand beyond its New Yorkborders with the intended acquisition of OneBeacon's auto insurancebusiness, AutoOne.

In an interview with NU Online News Service, DavidNichols, chief executive officer and president of Mineola,N.Y.-based insurer Interboro, says, “Our intention, once thetransaction is completed, is to utilize the company to continue thegrowth of our organization.”

Nichols was referring to the AutoOne acquisition announced last week.

“We've seen significant growth in our homeowners business and wehope 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 fromrehabilitation in 2007 and was transformed into a stock company.

Since then, it has concentrated its business primarily in thehomeowners market in the New York City and Long Island. Accordingto Highline Data, a member of Summit BusinessMedia, which also owns National Underwriter, in 201081 percent of the company's direct premiums written weremulti-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” bythe fourth quarter of this year.

Nichols says the intention of the deal for Interboro is to useit “to grow geographically” expanding into upstate New York and“other states where possible.”

AutoOne's assigned risk business fits into the company's sweetspot, says Nichols. Interboro's auto business already consists ofpicking-up assignments from other carriers, and he believes hiscompany can use the new resources as an avenue for growth in thatpart of the business.

According to Highline Data, direct written premium in2010 totaled $50.2 million, $40.8 million of which was inhomeowners multi-peril and $8.8 million in private passenger auto.The company writes its business through independent insurancebrokers.