HPN Holdings, Inc. Executes Letter of Intent to Merge with Innovative Nonstandard Auto Insurance Provider Orange Insurance

Core Insights - HPN Holdings, Inc. has executed a Letter of Intent to merge with Orange Auto Insurance, indicating a strategic move towards the future of nonstandard auto insurance through the utilization of AI technology [1] Company Overview - Orange Auto Insurance is a non-standard automobile insurance company that focuses on exploiting hard markets to achieve better-than-market returns, offering a technology-driven solution for sales, underwriting, and claims [6] Management Team - The executive team at Orange, led by CEO Dean Kozlowski, has significant experience in scaling nonstandard auto insurance companies, including growing United Automobile Insurance Company into a $400 million business [2][3] Competitive Advantage - Orange Auto Insurance possesses a competitive edge over legacy carriers by leveraging advanced AI technology and a management team experienced in navigating the complexities of the insurance market [3] Market Opportunity - The automobile insurance market reached $400 billion in 2025 and is projected to grow to $700 billion by 2030, with Florida's non-standard auto market presenting a favorable environment for new entrants like Orange [4] - Recent legislative reforms in 2023 have reduced litigation costs associated with Personal Injury Protection (PIP) coverage, further enhancing the market conditions for Orange [4] Strategic Positioning - The merger with HPN Holdings will provide Orange with the necessary capital to expand its technology stack, enter new states, and pursue acquisition opportunities, positioning the company for growth in a favorable market [3][4]