Insurer FedNat reports gross cat losses of $17m in Q2 2019

US insurer FedNat Holding Company (FedNat) has reported gross catastrophe losses of $17 million, including $15.5 million from the company’s non-Florida property business in Q2 2019.

Hail and wind storms from 12 catastrophe events during Q2 accounted for the losses, which were recorded by Property Claim Services in the US states where the insurer operates.

In a filing to the US Securities and Exchange Commission, FedNat said losses during the quarter ending June 30, 2019 will cut its pre-tax income by $9.3 million.

Losses associated with the non-Florida business are subject to a 50 percent profit-sharing agreement with a non-affiliated managing general underwriter.

In the filing the insurer said: “The company’s catastrophic reinsurance protection in place through June 30, 2019 provides coverage on each event if covered gross losses thereon exceed $15 million for FedNat’s non-Florida business and $20 million for its Florida business.

“The retention amount is $3 million for Monarch National Insurance Company’s business, which is all within the state of Florida.”
FedNat said it does not anticipate that any of the individual events in the second quarter will reach these retention levels.

In October 2018, the insurer reported estimated aggregate gross losses from hurricane Michael of approximately $275 million. However, it said the majority of the 2018 losses would be covered by reinsurance.

Earlier this year, in February, FedNat announced a $51 million deal to buy Maison Insurance Company and other homeowners insurance entities from 1347 Property Insurance Holdings (1347 PIH).

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