FEDERATED NATIONAL HOLDING COMPANY (NASDAQ:FNHC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Entry into a Material Definitive Agreement.
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Monarch National Insurance Company (Monarch National),
subsidiaries of Federated National Holding Company (the Company),
have each entered into a Reimbursement Contract (the Contracts),
with The State Board of Administration of Florida (SBA) for the
2017-2018 hurricane season. The SBA is the agency that
administers the Florida Hurricane Catastrophe Fund (FHCF).
National for covered property losses under their respective
homeowners insurance policies resulting from hurricanes that
cause damage in the State of Florida, from June 1, 2017 through
May 31, 2018.
approximately $750.0 million (75% of $1 billion) of aggregate
seasonal coverage for covered losses in excess of approximately
$327.0 million subject to a 25% participation by Federated
National. Federated Nationals premium for the FHCF reinsurance
coverage will be approximately $53.4 million.
approximately $30.3 million (75% of $40.4 million) of aggregate
seasonal covered losses in excess of approximately $12.4 million
subject to a 25% participation by Monarch National. Monarch
Nationals premium for the FHCF reinsurance coverage will be
approximately $2.0 million.
2017, October 1, 2017, and December 1, 2017. The actual
attachment points, total coverages and costs may vary as
Federated National and Monarch National continue to write new and
renewal business and will not be finalized until December 31,
2017.
the risks insured under policies are transferred to other
companies through the purchase of reinsurance. The Company
routinely purchases reinsurance through excess of loss type
treaties from both the FHCF and multiple private reinsurance
carriers. Federated Nationals existing catastrophe reinsurance
treaties with private reinsurance carriers from 2016 are in
effect through June 30, 2017 and certain treaties remain in
effect until June 30, 2018. Monarch Nationals existing
catastrophe reinsurance treaties with private reinsurance
carriers from 2016 are in effect through June 30, 2017. For those
treaties ending on June 30, 2017 the Company will be negotiating
the new private excess of loss type treaties in the coming
months, which will afford additional coverage to Federated
National and Monarch National separately, in conjunction with the
coverage provided by the FHCF, and will have a term of at least
one year beginning July 1, 2017.
financial condition and capital resources as of the end of the
2016 fiscal year, the Companys Board of Directors has approved
downstreaming $25 million of capital into FNIC effective December
31, 2016 to support FNICs book of business.
their entirety by reference to the full text of the Contracts
which are filed as Exhibits 10.1 and 10.2 to this Current Report
on Form 8-K and are incorporated herein by reference.
(c)
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Exhibits.
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10.1
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Reimbursement Contract between Federated National Insurance
Company and The State Board of Administration of Florida (SBA) as administrator of the Florida Hurricane Catastrophe Fund (FHCF), effective June 1, 2017 |
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10.2
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Reimbursement Contract between Monarch National Insurance
Company and The State Board of Administration of Florida (SBA) as administrator of the Florida Hurricane Catastrophe Fund (FHCF), effective June 1, 2017 |
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. FEDERATED NATIONAL HOLDING COMPANY (NASDAQ:FNHC) Recent Trading Information
FEDERATED NATIONAL HOLDING COMPANY (NASDAQ:FNHC) closed its last trading session 00.00 at 20.60 with 79,963 shares trading hands.