View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
May 25, 2022

Hale to invest $15m in FedNat subsidiary Monarch National Insurance Company

FedNat Holding , an insurance holding company, has signed an agreement with Hale Partnership Capital Management following which funds managed by Hale will invest $15m in FedNat’s subsidiary Monarch National Insurance Company (MNIC).

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

This investment is subject to meeting of certain conditions.

As per the terms of the agreement, FedNat will also contribute further capital to MNIC.

After the investment, Hale will become the majority owner of MNIC, with FedNat holding a minority stake.

With the completion of the Hale deal, which has secured approval from the Florida Office of Insurance Regulation (OIR), MNIC will assume around 83,000 policies insured in Florida from FedNat Insurance Company (FNIC), another subsidiary of FedNat, effective 1 June. 

FNIC’s remaining policies in Florida will stand cancelled effective 29 June.

After cancellation of these policies, all unearned premiums will be remitted to policyholders as per the applicable law.

FNIC claimed that it has sufficient assets to refund all required unearned premiums.

 FedNat also will cancel the rest of the policies in Florida of another subsidiary, Maison Insurance Company (Maison), effective 30 June> This is subject to securing regulatory permits.

Policy servicing as well as claims administration with regard to those policies transferred to MNIC will continue to be undertaken by a completely owned subsidiary of FedNat.

MNIC expects to receive catastrophe excess of loss reinsurance for the 2022-2023 storm season to safeguard its surplus in line with its historical reinsurance structure.

For all FNIC business written in other states – such as Alabama, Louisiana, Mississippi, South Carolina and Texas – through its contracted third-party managing general underwriter SageSure Insurance Managers, regulatory approval will be sought by the two entities for a transaction.

Following this transaction, effective 1 July, a partner of SageSure insurance carrier would assume all remaining FNIC in-force policies in the US states of Alabama, Mississippi, South Carolina and Texas.

With regard to the Louisiana policies of FNIC, it is proposed that these would stand cancelled effective 1 July by FNIC, with policyholders getting an offer of replacement coverage from a SageSure carrier partner.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Life Insurance International