US insurer FedNat secures $15m investment from large funds manager

Florida headquartered primary insurance carrier FedNat has entered into an agreement with a large funds manager for a $15 million investment in its subsidiary Monarch National Insurance Company (MNIC).

The investment will make hedge fund Hale Partnership Capital Management a majority owner of MNIC, with FedNat holding a minority interest. The transaction has been approved by the Florida Office of Insurance Regulation (OIR).

Under the terms of the agreement, FedNat will also contribute additional capital to MNIC to further enhance its surplus position.

MNIC will assume approximately 83,000 policies insuring Florida insureds from another FedNat subsidiary, FedNat Insurance Company (FNIC), effective June 1, 2022.  FNIC’s remaining Florida policies will be cancelled effective June 29, 2022. Upon cancellation of the FNIC Florida policies, all unearned premiums will be remitted to policyholders in accordance with applicable law.

FedNat will also cancel the remaining Florida policies of another subsidiary, Maison Insurance Company, effective June 30, 2022, subject to obtaining applicable regulatory approvals. All business written by Maison is currently in run-off, with policyholders being sent notices of nonrenewal as their policies come up for expiration.

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