Federated National Holding Co. is withdrawing from automobile business and its board has authorized an additional $10 million share repurchase program.
Together with the $2 million remaining balance from its previous share repurchase authorization, the company has an aggregate of $12 million available for future common stock repurchases. The company expects to fund the share repurchase programs from existing holding company liquidity or the proceeds of a private placement of notes. The program runs through Dec. 31, 2018.
Additionally, Federated National announced its decision to undergo an orderly withdrawal from the private passenger automobile line of business and will begin the appropriate withdrawal steps, including seeking approval from the state regulatory authorities. The automobile business represented $12.5 million, or 4.8%, of the company's net premiums earned in 2016 and $13.6 million, or 5.7%, of its net premiums earned for the nine months ended Sept. 30.
The decision to withdraw from this business allows the company to focus resources and capital on new or existing business opportunities, Federated National CEO and President Michael Braun said in a statement.
