SUNRISE, Florida, May 24, 2022 (GLOBE NEWSWIRE) — FedNat Holding Company (Nasdaq: FNHC) (FedNat), a regional insurance holding company, has signed an agreement with Hale Capital Management LLC (Hale) under which funds managed by Hale will invest $15,000,000 at FedNat subsidiary National Monarch Insurance Company (MNIC), subject to the fulfillment of certain conditions. Under the terms of the agreement, FedNat it will also contribute additional capital to MNIC, further enhancing MNIC’s surplus position. Following his investment, Hale will become the majority owner of MNIC, with FedNat with a minority share.
Following the completion of the Hale transaction, which has been approved by the Florida Office of Insurance Regulation (OIR), subject to the satisfaction of certain conditions, MNIC will assume approximately 83,000 policies insuring Florida insured from another FedNat subsidiary, FedNat Insurance Company (FNIC), cash June 1, 2022. remaining from FNIC Florida the policies will be canceled from June 29, 2022. Upon cancellation of FNIC Florida policies, all unearned premiums will be remitted to policyholders in accordance with applicable law. FNIC currently has adequate assets available to repay all required unearned premiums. FedNat will also cancel the rest Florida policies of another subsidiary, Maison insurance company (Maison), effective June 30, 2022, subject to obtaining the corresponding regulatory approvals. All businesses underwritten by the Maison are currently in liquidation, and policyholders are sent non-renewal notices as their policies expire.
Policy servicing and claims administration with respect to policies transferred to MNIC will continue to be performed by a wholly owned subsidiary of FedNat. MNIC expects to obtain excess catastrophic loss reinsurance for the 2022-2023 storm season to protect its surplus in accordance with its historical reinsurance structure. MNIC anticipates that its reinsurance structure will provide adequate and responsible protection against multiple catastrophic events.
FedNat also announced that for all FNIC business underwritten in states other than Florida (Alabama, Louisiana, Mississippi, South Carolina Y Texas), which is underwritten through SageSure Insurance Managers (“SageSure”), the third-party managing general underwriter retained by FNIC, FNIC and SageSure intend to seek regulatory approval of a transaction under which July 1, 2022a partner of SageSure’s insurance company would assume all remaining FNIC policies in force in Alabama, Mississippi, South Carolina Y Texas. Regarding the FNICs Louisiana policies, it is proposed that said policies be canceled by FNIC effective July 1, 2022and policyholders receive an offer of replacement coverage from a SageSure insurance partner that is effective upon cancellation of their FNIC policy.
About the company
FedNat Holding Company is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and contractual relationships with independent agents and general agents. The Company, through its wholly owned subsidiaries FedNat Insurance Company Y National Monarch Insurance Company, is transitioning to providing homeowners insurance exclusively within the state of Florida. More information is available at https://www.fednat.com/investor-relations/.
Factors That Could Affect Forward-Looking Statements
This press release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can generally be identified by the use of forward-looking statements. look for terminology such as “anticipate”, “believe”, “budget”, “contemplate”, “continue”, “could”, “imagine”, “estimate”, “expect”, “forecast”, “guide”, “indicate”, “intend”, “may”, “could”, “prospect”, “plan”, “possibly”, “potential”, “predict”, “probably”, “pro-forma”, “project”, “look for”, ” should”, “target”, “will”, “should”, “will”, “will continue” or the negative thereof or other variations thereon or comparable terminology and, in this report, includes our statements regarding the expected continuation of MNIC’s credit rating, the assumption/cancellation of FNIC and Maison policies (including those assumed by SageSure) and remission of unearned premiums, continued service of the cing policy and claims administration and the expectation of loss reinsurance retention. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. Although the Company believes that these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond the Company’s control. Management cautions that such forward-looking statements are not guarantees of future performance, and readers should not assume that such statements will be made or that the forward-looking events and circumstances will occur. Factors that could cause such a difference include, but are not limited to, regulatory approvals, ultimate results with respect to catastrophic losses, our ability to purchase reinsurance, as well as the risks and uncertainties discussed under “Risk Factors.” ” on the Company’s Form 10-2021. K, and discussed from time to time in Company reports filed with the National Stock Market Commission. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. The Company expressly disclaims any intention, obligation or undertaking to update or revise any forward-looking statements made in this document to reflect any change in our expectations with respect thereto or any change in the events, conditions or circumstances on which such forward-looking statements are based. statements.
Michael H. Braun, CEO (954) 308-1322
Erick Fernandez, Interim CFO (954) 308-1341
Bernard Kilkelly, Investor Relations (954) 308-1409,
Source: FedNat Holding Company
2022 GlobeNewswire, Inc., source Press releases