Federated National Holding Co. unit Federated National Insurance Co. has closed its planned purchase of the interests in Monarch Delaware Holdings LLC held by Federated National Holding's joint venture partners.

The closing of the deal followed the satisfaction of all closing conditions, including receipt of regulatory approval from the Florida Office of Insurance Regulation.

Federated National Insurance purchased for about $12.3 million in cash the class A membership interests of Monarch held by Crosswinds Investor Monarch LP, representing 42.4% of Monarch's membership interests. In addition, Federated National Insurance purchased for $4.4 million in cash the class B membership interests of Monarch held by Transatlantic Reinsurance Co., representing 15.2% of Monarch's membership interests.

Crosswinds Holdings Inc., in its capacity as a majority limited partner of Crosswinds Investor Monarch, received about $10.5 million of the sale proceeds.

The outstanding principal and accrued but unpaid interest due on the $5.0 million note to Transatlantic Reinsurance was also repaid in full. With the closing of this acquisition, Federated National Insurance now owns 100% of Monarch Delaware's primary operating subsidiary, Monarch National Insurance Co.

Upon closing of the transaction, Crosswinds Holdings unit Crosswinds Re entered into a right of first refusal agreement permitting it to write up to $10 million of limit on reinsurance business with Federated National Holding during 2018. The agreement terminates on Dec. 31.

In addition, Crosswinds Holdings unit Crosswinds AUM LLC entered into an agreement with Federated National Holding for Crosswinds AUM to consult on insurance market and general operational matters. The consulting agreement will be in effect until it terminates on Dec. 31.