FedNat Announces $15 Million Investment by Hale Partnership in Monarch National Insurance Company - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Companies
    • Earnings
    • Video
    • Monthly Focus
    • Sponsored Articles
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be an INNsider.
  • INN Exclusives
  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • AdvisorNews
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
May 24, 2022 Newswires No comments
Share
Share
Tweet
Email

FedNat Announces $15 Million Investment by Hale Partnership in Monarch National Insurance Company

GlobeNewswire

SUNRISE, Fla., May 24, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC) (FedNat), a regional insurance holding company, has entered into an agreement with Hale Partnership Capital Management LLC (Hale) pursuant to which funds managed by Hale will invest $15,000,000 in FedNat’s subsidiary Monarch National Insurance Company (MNIC), subject to satisfaction of certain conditions. Under the terms of the agreement, FedNat will also then contribute additional capital to MNIC, further enhancing MNIC’s surplus position. Following its investment, Hale will become the majority owner of MNIC, with FedNat holding a minority interest.

Following completion of the Hale transaction, which has been approved by the Florida Office of Insurance Regulation (OIR), subject to satisfaction of certain conditions, MNIC will assume approximately 83,000 policies insuring Florida insureds from another FedNat subsidiary, FedNat Insurance Company (FNIC), effective June 1, 2022.  FNIC’s remaining Florida policies will be canceled effective June 29, 2022. Upon cancellation of the FNIC Florida policies, all unearned premiums will be remitted to policyholders in accordance with applicable law. FNIC currently has adequate assets on hand to refund all required unearned premiums. FedNat also will cancel the remaining Florida policies of another subsidiary, Maison Insurance Company (Maison), effective June 30, 2022, subject to obtaining applicable regulatory approvals. All business written by Maison is currently in run-off, with policyholders being sent notices of nonrenewal as their policies come up for expiration.

Policy servicing and claims administration with respect to the policies transferred to MNIC will continue to be performed by a wholly owned subsidiary of FedNat. MNIC expects to obtain catastrophe excess of loss reinsurance for the 2022-2023 storm season to protect its surplus consistent with its historical reinsurance structure. MNIC anticipates that its reinsurance structure will provide appropriate and responsible protection against multiple catastrophic events.

FedNat also announced that for all FNIC business written in states other than Florida (Alabama, Louisiana, Mississippi, South Carolina and Texas), which is written through SageSure Insurance Managers (“SageSure”), FNIC’s contracted third-party managing general underwriter, FNIC and SageSure intend to seek regulatory approval of a transaction pursuant to which effective July 1, 2022, a SageSure insurance carrier partner would assume all remaining FNIC in-force policies in Alabama, Mississippi, South Carolina and Texas. With respect to FNIC’s Louisiana policies, it is proposed that such policies would be canceled by FNIC effective July 1, 2022, with policyholders receiving an offer of replacement coverage from a SageSure carrier partner effective upon the 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 and Monarch National 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 deemed 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 generally may be identified by the use of forward-looking terminology such as "anticipate," "believe," "budget," "contemplate," "continue," "could," "envision," "estimate," "expect," "forecast," "guidance," "indicate," "intend," "may," "might," "outlook," "plan," "possibly," "potential," "predict," "probably," "pro-forma," "project," "seek," "should," "target," "will," "would," "will be," "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 the credit rating of MNIC, the assumption/cancellation of FNIC and Maison policies (including those being assumed by SageSure) and the remitting of unearned premiums, the continuation of policy servicing and claims administration and the expectation of the retention of loss reinsurance. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes 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 any such forward-looking statements are not guarantees of future performance, and readers cannot assume that such statements will be realized or that the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation, approval of regulatory authorities, final results regarding catastrophe losses, our ability to make reinsurance purchases, as well as the risks and uncertainties discussed under “Risk Factors” in the Company's 2021 Form 10-K, and discussed from time to time in the Company's reports 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. The Company expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.


Contacts

Michael H. Braun, CEO (954) 308-1322

Erick Fernandez, Interim CFO (954) 308-1341

Bernard Kilkelly, Investor Relations (954) 308-1409,

or [email protected]

Primary Logo

Source: FedNat Holding Company

Older

Verisk and Swiss Re Help Insurers Drive High Performance Auto Portfolios

Newer

Survey: More Than Half of Consumers Are Supporting Local Restaurants Over Chains

Advisor News

  • Succession Planning: mentorship and strategic planning
  • Social Security overpaid billions to people. Now, it’s demanding the money back
  • Convicted murderer Alex Murdaugh pleads guilty to 22 federal financial fraud charges
  • Navigating the marketing rule: Lessons from recent SEC enforcement action
  • Layin' It on the Line: Social Security alone may not be enough to retire on
More Advisor News

Annuity News

  • Committee of Annuity Insurers Issues Public Comment to Treasury Dept.
  • Annuity sales up 27% through six months, LIMRA reports
  • Indexed annuity products set record of $25.1B in Q2, Wink finds
  • Features, taxation of individual annuities help middle-class Americans feel confident about retirement
  • Oklahoma Insurance Department adopts best interest annuity rule
Sponsor
More Annuity News

Health/Employee Benefits News

  • 500K have Medicaid coverage restored after computer problem fixed
  • Healthcare2U introduces Direct Primary Care Advantage
  • A South Florida man invests $10 million in a local PPE business. What could go wrong?
  • Appeals court takes up transgender health coverage case
  • ProPublica investigation examines insurance claim appeals
More Health/Employee Benefits News

Life Insurance News

  • Analysis shows decreasing mortality risks for Black, Hispanic life insurance applicants
  • U.S attorney alleges obstruction, seeks stiffer sentence for ‘Annuity King’
  • Unharness your business’s epic ascension with life settlement superhero power
  • NC regulators release $1.2B from former Lindberg insurers in receivership
  • Japan’s changing insurance industry can learn some lessons from the U.S. market
More Life Insurance News

- Presented By -

Top Read Stories

  • SEC cracks down on 9 firms for Marketing Rule violations
  • MAPFRE Insurance faces lawsuit for data breach
  • Low financial literacy may be costing consumers money
  • California legislators fall short on deal to stabilize P&C insurance market
  • Unharness your business’s epic ascension with life settlement superhero power
More Top Read Stories >

Press Releases

  • Senior Market Sales Adds EMG Insurance Brokerage to Growing Network of Health and Wealth Companies
  • Investors Preferred Life Insurance Company Names Nikki Pethtel as Its Next President
  • Insurity Celebrates its 15-Year Partnership with RCG Global Services, Marking a Legacy of Trust, Growth, and Digital Transformation
  • Sally Jewell Named Chair of Symetra Financial Corporation Board of Directors
  • TBX® and Ideon Team up to Transform Benefits Management Data Exchange
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Companies
  • Earnings
  • Video
  • Monthly Focus
  • Sponsored Articles

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • INN Magazine

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet