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.