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United States : $20M capital raise by Tampas newest insurance company

June 6, 2014

A property and casualty insurer recently shifted again to Tampa with the not-very-catchy name of 1347 Property Insurance Holdings Inc. anticipates to raise approximately $20 million in a stock offering.

The company, managed by Tampa Bay insurance veteran Gordon Pratt, at present offers homeowners insurance in Louisiana through its subsidiary, Maison Insurance. It anticipates to use some of the money raised in the stock offering to create new insurance subsidiaries for expansion into coastal states, including Florida.

1347 Property had a Baton Rouge address when it went public in March, raising about $17.4 million through the sale of 2.2 million shares at $8 a share. Prior to the IPO, Pratt, who previously was vice chairman at St. Petersburg-based United Insurance Holdings Corp. (NASDAQ: UIHC) invested $2 million in 1347 Property Insurance in exchange for 80,000 preferred shares, a prospectus filed with the U.S. Securities and Exchange Commission said. When the IPO closed, the preferred shares were converted to common stock.

The company in April signed a lease for its executive office on in Westshore, the prospectus said.

1347 Property Insurance (NASDAQ: PIH) is offering 2.5 million shares in the present offering. The offering doesn t indicate a price but assumes a public offering price of $8.81 a share, the price reported at the close on May 30. The stock closed Wednesday at $8.07 a share.

The filing said 1347 Property Insurance reported a loss of $748,000 on $5.1 million in total revenue in 2013, an investor presentation said. For the first quarter of 2014, the company s net income was $1.7 million on total revenue of $4.2 million.

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Source: TendersInfo (India)

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