Federated National Insurance Co. and Monarch National Insurance Co. signed reimbursement contracts with the State Board of Administration of Florida, which administers the Florida Hurricane Catastrophe Fund, for the 2018-2019 hurricane season.
Under Federated National's contract, the fund will provide approximately $700.5 million, or 75% of $934 million, of aggregate seasonal coverage for covered losses in excess of about $297 million, reflecting a 25% participation by Federated National, from June 1 through May 31, 2019. The company's premium for the fund's reinsurance coverage will be approximately $46.5 million.
Under Monarch National's contract, the fund will provide approximately $24.3 million, or 75% of $32.4 million, of aggregate seasonal covered losses in excess of approximately $10.3 million, reflecting a 25% participation by Monarch National. The company's premium for the fund's reinsurance coverage will be about $1.6 million.
The contracts are payable in three premium installments due Aug. 1, Oct. 1 and Dec. 1.
In connection with Federated National Holding Co.'s review of its subsidiaries' financial condition and capital resources as of the end of the 2017 fiscal year, the board approved a $30 million capital infusion into Federated National Insurance, effective Dec. 31, 2017.
