United Insurance Holdings Formation of Journey Insurance Company

Transaction Overview

United Insurance Holdings (“UPC”) launches new company, Journey Insurance Company

  • Journey is an admitted, Florida domiciled insurance carrier rated “A-” by A.M. Best
  • Journey will focus on offering homeowners and commercial residential property insurance
    • Initial geographic focus will include Florida, Texas and South Carolina

Journey has been formed by UPC in strategic partnership with Tokio Marine Kiln (“TMK”)

  • Journey is 66.7% owned by UPC and 33.3% by R.J. Kiln & Co. (No. 3) Limited, (sub of TMK)

Journey provides UPC a new way to grow its business in key markets

  • Ability to serve customers and distribution channels UPC previously could not reach

UPC is a leading provider of personal and commercial property insurance in coastal states

  • Over $1bn of premium-in-force with business across twelve states
  • Long track record of consistent underwriting profitability
  • Completed a merger with American Coastal Insurance Company (“ACIC”) in 2017
    • ACIC is a specialty underwriter focused primarily on FL commercial residential property

TigerRisk Capital Markets & Advisory Role

TCMA acted as Exclusive Placement Agent in connection with the formation of Journey

  • Provided strategic advice and evaluated alternatives to obtain an A.M. Best “A-” rating
  • Exclusive placement agent in connection with Journey common equity issuance to TMK
  • Key transaction steps led by TCMA included:
    • Assistance in preparing Journey business plan and financial projections
    • Assistance in preparing A.M. Best materials to achieve desired “A-” (Excellent) rating
    • Assistance in the design of Journey’s reinsurance program
    • Assistance in preparing financial packages and materials for potential investors
    • Marketing the transaction to potential investors
    • Offering insight around common equity offering transaction terms & conditions