Insurance leader expands with $250M acquisition

CLEARWATER — Clearwater-based property and casualty insurance holding company Heritage Insurance Holdings Inc. signed a definitive agreement to acquire NBIC Holdings Inc.

NBIC Holdings is the parent company of Rhode Island-based Narragansett Bay Insurance CO., an underwriter of residential insurance products in the Eastern U.S.

“We are very excited to join forces with NBIC, a seasoned company with a strong track record and talented management team,” says Heritage Insurance Holdings Chairman and CEO Bruce Lucas in a statement. “Completing this acquisition is the next critical step in executing our geographic diversification strategy.”

According to a press release, the acquisition purchase price is $250 million, subject to post-closing adjustments. The acquisition will be financed with $210 million in cash and $40 million of the company's common stock.

The boards of directors of Heritage and NBIC unanimously approved the transaction. The transaction is expected to close as soon as the fourth quarter of 2017. The combined entity is expected to have over $900 million of gross premiums written.