Federated National Holding Company Announces Closing of Joint Venture and Approval of Monarch National Insurance Company
Columbus, Ohio, May 6, 2015: Federated National Holding Company (“FNHC”) recently announced the closing of its joint venture with Crosswinds Holdings Inc. (“Crosswinds”), through its majority-owned limited partnership, and Transatlantic Reinsurance Company (“TransRe”), to form a new Property and Casualty insurance carrier in Florida known as Monarch National Insurance Company (“Monarch Insurance”).
Michael H. Braun, FNHC’s President & CEO, said, “We are pleased that Florida’s Office of Insurance Regulation has granted Monarch Insurance’s certificate of authority to write Florida homeowners’ insurance and expect to begin writing new business this month. This is a great opportunity to expand our product offerings to our existing partner agents in the Florida homeowners’ market and to achieve greater economies of scale from our operations. We look forward to working closely with our joint venture partners as we launch and grow Monarch Insurance in the coming years.”
Colin King, Crosswinds’ CEO, said, “This joint venture represents the consummation of a Crosswinds platform investment in the insurance industry. We are excited to be entering into this venture with high caliber partners, each of whom brings a tremendous amount of expertise to the table.”
According to Demotech’s President, Joseph L. Petrelli, “Mike Braun and his team at Federated National have been leaders in Florida’s residential property insurance marketplace. We are pleased to see that Monarch Insurance will provide them with an opportunity to expand the products available to agents throughout Florida.”
Monarch Insurance’s underwriting and claims administration will be managed by a wholly-owned subsidiary of FNHC. Monarch Insurance has also entered into a Reinsurance Capacity Right of First Refusal Agreement with TransRe. Crosswinds, through its wholly-owned subsidiary, will provide investment management services to Monarch Insurance and its parent companies.
Additional details about the joint venture are available at www.fednat.com and in public disclosure documents available at www.sec.gov.
About Federated National Holding Company
Federated National Holding Company is authorized to underwrite, and/or place through its wholly-owned subsidiaries, homeowners’ multi-peril, commercial general liability, federal flood, personal auto and various other lines of insurance in Florida and various other states. Through its subsidiaries, FNHC markets and distributes its own and third-party insurers’ products and other related services through a network of independent agents. FNHC also utilizes a select number of general agents for the same purpose.
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Since 1985, Demotech, Inc. has been serving the insurance industry by providing actuarial consulting as well as accurate and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurance companies and Title underwriters. FSRs are a leading indicator of the financial stability of an insurer. Our rating process provides an objective baseline as well as insight as to the financial stability of an insurer. Demotech levels the playing field by offering FSRs to insurers of all sizes.