United Insurance Holdings Corp. (Nasdaq: UIHC) has made an offer to buy Sunshine State Insurance Co. in the latest insurance deal.
Sunshine State, headquartered in Jacksonville, Florida, offers personal property insurance products including homeowners, fire and flood insurance. Terms of the deal were not disclosed.
St. Petersburg, Florida-based United Insurance, led by CEO John Forney, expects the acquisition to improve the company's risk spread and help continue to grow in Florida.
Raymond James & Associates Inc. is United Insurance's financial adviser for the deal.
The transaction comes at a period of continued consolidation in the insurance sector, with recent deals by USI Insurance Services, which just closed the purchase of 40 insurance brokerage and consulting locations from Wells Fargo Insurance in May, and Orix Life Insurance Corp., which bought Hartford Life Insurance K.K. for $895 million in April.
For more on the insurance sector, see "Racking Up Regional Insurers."