FEDERATED NATIONAL HOLDING COMPANY (NASDAQ:FNHC) Files An 8-K Completion of Acquisition or Disposition of Assets

Federated National Holding Company (the “Company”) (NASDAQ: FNHC), an insurance holding company, has announced that its wholly owned subsidiary, Federated National Insurance Company (“FNIC”), completed on February 21, 2018 the purchase of interests in Monarch Delaware Holdings LLC (“MDH”) held by the Company’s joint venture partners and repayment of the related debt.

FNIC purchased for $12,282,000 in cash the Class A membership interests of MDH held by Crosswinds Investor Monarch LP (“Crosswinds”), representing 42.4% of MDH’s membership interests, and purchased for $4,403,000 in cash the Class B membership interests of MDH held by Transatlantic Reinsurance Company (“TransRe”), representing 15.2% of MDH’s membership interests. The outstanding principal and accrued but unpaid interest due on the $5.0 million note to TransRe was also repaid in full. With the closing of this acquisition, FNIC now owns 50% of Monarch National Insurance Company, the primary operating subsidiary of MDH.

In connection with the closing, the Company and an affiliate of Crosswinds entered into a consulting agreement whereby such affiliate will serve in an advisory capacity to the Company for a fee of $75,000 per calendar quarter through December 31, 2018. In addition, TransRe and a subsidiary of Crosswinds entered into right-of-first-refusal agreements with FNIC to participate in FNIC’s catastrophe excess-of-loss reinsurance program through December 31, 2018, at market rates and terms, up to a placement of $10 million in reinsurance limit in excess of its placement on FNIC’s current catastrophe excess-of-loss reinsurance program from TransRe and up to a placement of $10 million in reinsurance limit in the aggregate from Crosswinds.

The Company also announced that it has rescheduled the release of its 2017 fourth quarter and year-end financial results to after 4:00 PM (ET) on Tuesday, March 13, 2018. The investor conference call will be held on Wednesday, March 14, 2018, at 9:00 AM (ET).

A copy of the Company’s press release is attached to this Current Report on Form 8-K as Exhibit 99.1, which shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and it shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or under the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Current Report on Form 8-K.

FEDERATED NATIONAL HOLDING Co ExhibitEX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE,…To view the full exhibit click here
About FEDERATED NATIONAL HOLDING COMPANY (NASDAQ:FNHC)
Federated National Holding Company (FNHC) is an insurance holding company that controls all steps in the insurance underwriting, distribution and claims processes through its subsidiaries and its contractual relationships with its independent agents and general agents. The Company is authorized to underwrite homeowners’ multi-peril (homeowners), commercial general liability, federal flood, personal auto and various other lines of insurance in Florida and various other states. The Company markets, distributes and services its own and third-party insurers’ products and its other services through a network of independent agents. The Company’s insurance lines of business include Homeowners’ Property and Casualty Insurance, Commercial General Liability, Personal Automobile and Flood. FNIC and MNIC underwrite homeowners’ insurance in Florida, and FNIC underwrites insurance in Alabama, Louisiana and South Carolina. Alabama and Louisiana.