SUNRISE, Fla., July 06. 10, 2022 (GLOBE NEWSWIRE) — FedNat Holding Company (Nasdaq: FNHC) (FedNat) today announced that the Florida Office of Insurance Regulation (OIR) has authorized support for approximately 78,000 policies beginning June 1. 2022 by Monarch National Insurance Company (Monarch), of a FedNat subsidiary, FedNat Insurance Company (FNIC), bringing Monarch’s total policy count to approximately 83,000 policies. This assumption occurred concurrently with the closing of the previously announced $15,000,000 investment in Monarch by funds managed by Hale Partnership Capital Management LLC (Hale Group). With the closing of the transaction, the Hale Group is now the majority shareholder of Monarch, with FedNat holding a minority stake and retaining representation on Monarch’s board of directors.
Policy management and claims administration for policies transferred to Monarch will continue to be performed by FedNat Underwriters, a wholly owned subsidiary of FedNat. Monarch has obtained excess of loss reinsurance for the 2022-2023 storm season, protecting Monarch’s policyholders and excess in accordance with its historical reinsurance structure. Monarques expects its reinsurance structure to provide appropriate and responsible protection against multiple catastrophic events.
Other remaining FNIC policies in Florida have been canceled effective June 29, 2022. Non-Florida FNIC policies have been canceled, expired or supported for the time being. Maison Insurance Company (Maison) Florida policies, which are currently in liquidation, have been canceled effective June 29, 2022, and the vast majority of Maison’s non-Florida policies have either been canceled or expired, except of approximately 7,650 Texas fonts. which will expire within the next nine months.
Michael H. Braun, President and CEO of FedNat, said, “FedNat has materially exited markets outside of Florida and expects to complete its transition in the coming months as we continue to refocus solely on our historic market. in Florida, which we believe will result in a financially stronger company, with less volatility, which will be adjusted to our current capital and surplus position.
Steve Hale commented, “My company and my investment partners are thrilled to invest $15 million in Monarch and facilitate support for approximately 83,000 policyholders in Florida. I look forward to exploring other investment opportunities in the Florida insurance market.
FedNat Holding Company is an insurance holding company that manages substantially all aspects of the insurance underwriting, distribution and claims process and contractual relationships with independent agents and general agents. FedNat, through its minority stake in Monarch National Insurance Company, is transitioning to providing homeowners insurance exclusively in the state of Florida. More information is available at https://www.fednat.com/investor-relations/.
Factors That May 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 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. terms such as “anticipate”, “believe”, “budget”, “consider”, “continue”, “could”, “consider”, “estimate”, “expect”, “plan”, “guidelines”, “indicate “, “intend”, “could”, “might”, “outlook”, “plan”, “eventually”, “potential”, “predict”, “probably”, “pro-forma”, “project” , “seek,” “should”, “target”, “will”, “would”, “will”, “continue” or the negative form thereof or other variations thereof or comparable terminology and , in this report, includes our statements regarding the expiration, assumption or cancellation of policies, the continuation of policy service and claims administration, and the cost and coverage of loss reinsurance FedNat has based these forward-looking statements on its current expectations, assumptions, estimates and projections. Although FedNat believes that such expectations, assumptions, estimates and projections are reasonable , these forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond FedNat’s control. Management cautions that these forward-looking statements are not guarantees of future performance, and readers should not assume that these statements will occur or that forward-looking events and circumstances will occur. Factors that could cause such a difference include, but are not limited to, the impact of the Monarch transaction on FedNat, as well as the risks and uncertainties discussed under “Risk Factors” in FedNat’s 2021 Form 10-K, and discussed from time to time in the FedNat report. other reports subsequently filed with the Securities and Exchange 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. FedNat expressly disclaims any intention, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with respect thereto or any change in events, conditions or circumstances on which such statements are based.
Michael H. Braun, CEO (954) 308-1322
Erick Fernandez, Acting Chief Financial Officer (954) 308-1341
Bernard Kilkelly, Investor Relations (954) 308-1409,