United Insurance Holdings Corp. has ended its bid to acquire property/casualty insurer Sunshine State Insurance Co., United said Wednesday.
St. Petersburg, Florida-based United said it was terminating its May 15 letter of intent to acquire 100% of fellow insurer Sunshine, based in Jacksonville, Florida.
No terms of the proposed transaction had been disclosed.
“While we are disappointed not to be able to move forward with this acquisition, we are confident that this decision is in the best interest of our shareholders,” John Forney, president and CEO of United, said in the statement.
A March 11 consent order issued by the Florida Office of Insurance Regulation said Sunshine had to “raise capital to bring its surplus level to $15 million or present an executed agreement for the acquisition or recapitalization of the company accompanied by a good faith deposit.”
With Sunshine’s future now thrown into question with the termination of the letter of intent, the Florida Office of Insurance Regulation said “the Office is exploring options to ensure a smooth transition for policyholders,” according to a spokesman.