Federated National


Federated National Holding Co., a Florida-based property/casualty insurer, announced the closing of its public offering of 2,358,975 shares of its common stock, which includes 307,692 shares sold pursuant to the exercise of the 30-day option granted to the underwriters to cover overallotments, at a price to the public of $19.50 per share.

The offering generated net proceeds to the company of approximately $43.4 million, after deducting the underwriter’s discount but before offering expenses.

The company said it will use the net proceeds from the sale for general working capital purposes, including as statutory capital in support of the company’s growth and to sustain its capital levels after its investment in a new Florida homeowners insurance company that it is forming.

The company announced  recently that it was joining with the Canadian bank and investment manager C.A. Bancorp Inc. to form a new Florida-based homeowners insurance carrier to be named Monarch National Insurance Co. Each party is putting up $14 million in the new venture, while Transatlantic Reinsurance Co. will have a minority position with a $5 million investment.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Auto, Flood, Business & Commercial, & Life & Financial products as well. Please enjoy the full article below;

http://www.insurancejournal.com/news/southeast/2014/08/06/336939.htm

Federated National Holding Co., a Florida-based property/casualty insurer, announced that it has priced an underwritten public offering of 2,051,283 shares of its common stock at a price to the public of $19.50 per share for gross proceeds of $40.0 million.

The company said the net proceeds from the sale of shares, after deducting the underwriters’ discounts and other expenses, will be approximately $37.4 million.

The company said it has also granted the underwriters a 30-day option to purchase up to an additional 307,692 shares of common stock offered in the public offering to cover over-allotments, if any.

The company said it will use the net proceeds from the sale for general working capital purposes, including as statutory capital in support of the company’s growth and to sustain its capital levels after its investment in a new Florida homeowners insurance company, Monarch, that it is for.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Auto, Flood, Business & Commercial, & Life & Financial products as well.

http://www.insurancejournal.com/news/southeast/2014/08/01/336508.htm

Both FNHC and C.A. Bancorp are each putting up $14 million for a 42 percent ownership stake each in the new venture.

Transatlantic Reinsurance Co. is getting a minority position in the new venture with a $5 million investment, according to the announcement.

The new carrier will target the standard homeowners market, whereas Federated National currently targets the preferred home market. Federated National said it currently binds only 12 percent of the submissions it gets from its more than 3,500 agents. Monarch will allow it to provide these agents with more coverage options.

Monarch will be a separate insurance company from Federated National with its own capital base and own rates and forms.

In 2013, Federated National reported net income of $12.7 million. It reported $104.4 million in net written written premium and a policy count of 116,400, which was up more than 90 percent from 2012.

The launch of Monarch is subject to the receipt of regulatory approvals and other customary conditions. The investors hope the new company will be able to issue its first policy in January, 2015.

“This is a great opportunity for us to partner with two quality organizations that see an opportunity in the Florida homeowners insurance. Additional property capacity is capital intensive and has been long sought after in the Florida marketplace,” said Michael H. Braun, FNHC’s CEO.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Auto, Flood, Business & Commercial, & Life & Financial products as well.

Citizens launched the clearinghouse at the end of January, making it the latest tool for the insurer to reduce its 940,000-plus policyholders.

Until recently, four insurers were participating in the clearinghouse program including Ark Royal Insurance Co., Cabrillo Coastal General Insurance Co., Florida Peninsula Insurance Co., and United Property & Casualty Insurance Co.

As of March 30, six other insurers had joined the clearinghouse: American Traditions Insurance Co., Modern USA Insurance Co., Federated National Insurance Co., First Community Insurance Co., Heritage Insurance Co., and the Tower Hill Insurance Group.

So far, the clearinghouse has led to 1,173 Citizens applications being deemed ineligible for Citizens’ coverage, representing $302 million in exposure. Of those, 658 applications have been confirmed as finding coverage with one of the participating insurers.

That number, however, is just a fraction of the number of applicants being submitted by agents. As of March 3, the latest data available, agents have submitted 26,714 requests for coverage, of which fewer than 20 percent received an offer of coverage from one of the four participating insurers.

Professional Insurance Agents of Florida CEO Corey Matthews said that it is far too soon to measure the success of the clearinghouse. However, he said, so far insurers are not appointing as many agents as hoped for.

Even so, said Matthews, agents remain optimistic that eventually it will open new markets to them.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Flood, Auto, Business & Commercial and Life & Financial products as well. Please enjoy the full article below;

http://www.insurancejournal.com/news/southeast/2014/04/09/325829.htm

19 named storms, 12 became Hurricanes and 5  were cat 3 or better. Wow, we did not even get hit here in S. Florida, but our prices are still on the rise!!  You have seen it happen and it will continue, but prices will continue to increase significantly and people are still being non renewed by their companies including State Farm, Federated, Home Wise,Sunshine State, Olympus and many other’s! We  now look to Citizens Insurance and will it change to become the Insurance company of last resort. That means higher prices and since deregulation will pass over the next legislative session in Tallahassee, prices will head North and Citizens rate increases  are a must for this to work! We will see how our New Governor R. Scott and his Insurance commissioner Choice will handle things this session after getting started in January. In the meantime, please call this office for quotes or do it through the blog page and please enjoy the end of Hurricane season article;

http://www.insurancejournal.com/news/national/2010/11/29/115234.htm#ixzz16luG1P5h

This article about Home Insurance is a  very valid point for consumer’s. Cost of rebuilding is not the same as  resale or new construction prices, but sometimes coverage’s can be lowered. As an agency L & S Insurance has done this customer Service  for it’s clients upon reviewing their coverage’s for renewal or if they have been non renewed as well. Companies  like Home Wise, Olympus, Federated National, HCI, Southern Oak  and many other’s are non renewing policies and raising prices as well.Don’t forget StateFarm cancelling 125K  homes as well as all the other major carriers including Allstate. When we shop for our clients, we first shop for  apples to apples comparisson’s. Once we determine the best company  for a client by price and coverage’s we also do a RCE(Replacement Cost Estimator) to determine the correct amount of coverage. This is not an appraisal, but it is fairly accurate and can be used to determine the correct cost to rebuild. it does seem here in S. Florida that  using about $125/sq foot under air is a good approximate, but each home by age and location is very differant. If your agency is not doing this for you then give us a call to do a complete shop rate request for you. With our 15 carriers of which 9 are currently writing new business here in S. Florida, we have the ability to shop well for any client. Please read the full  article by Julie Patel and what does happen quite commonly;

http://www.sun-sentinel.com/business/fl-insurance-replacement-costs-20101105,0,5232703.story

Here we go again as this Banker’s Insurance subsidiary raises it’s rates like all the carriers have or will soon. This could mean up to 50% increases for people here in S. Florida. That means that your agent needs to have many companies for you to shop with and having a new current mitigation inspection is crucial for getting the best possible rates. Even in Hurricane season there are more carriers that have just opened there doors for business Like Olympus, Universal, St. John’s and others. Good quality carriers like Federated National and Ark Royal have been writing all season w/ limited agencies. Please give us a call here at L & S or go to the  request a quote section and send us your info so we can try to help. Please enjoy the entire article by Julie Patel of the Sun sentinal;

http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2010/10/first_community_27_percent_rat.html

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