Newer, small property and casualty insurance company 1347 Property Insurance Holdings (NASDAQ:PIH) has sold a issue of preferred stock with a 8% coupon.
The new issue has a 5 year optional redemption period starting in 2023 and terms are the normal terms EXCEPT the issue is cumulative which is unusual for an insurance company as most insurance companies are issuing non cumulative shares so they can be counted as tier 1 capital.
1347 does business around the gulf coast and primarily in Louisiana, Texas and Florida. Obviously this is a lucrative market when there are few storms around–of course a great business can turn into a disaster pretty quickly and this little company specializes in homeowners insurance, wind/hail insurance and manufactured home insurance–all areas that can be dicey in the markets they serve. They have 50,000 policies in effect.
Make sure to do plenty of due diligence on this one prior to purchase.
Shares start trading on the OTC Grey market today under the temporary ticker PPNSP.