Key Metrics

Market Cap
Total Shares Outstanding
Book Value
PE Ratio

PS Ratio
PB Ratio
Forward PE Ratio
ROIC

Return on Aseets
Return on Equity
Dividend
Dividend Yield

Balancesheet Metrics

Total Assets	1.41B
Total Liability	1.35B
Assets-to-Libability Ratio	1.04

Total Current Assets	452.23M
Total Current Liability	107.99M
Current Ratio	4.19

Quick Ratio	-
Debt to Equity Ratio	-

Income Statement Metrics

Net Income
EPS
EBITA

Gross Profit
Gross Profit Margin
Operating Margin

Net Profit Margin

Price Metrics

5 Days MA
10 Days MA
20 Days MA
50 Days MA
200 Days MA

52 Weeks High
52 Weeks low
All Time High

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Share Stats

Shares Float
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% Short
% Insider

% Institutions

% Institutions

News

FedNat Holding Company Voluntarily Files for Chapter 11 Bankruptcy ProtectionSUNRISE, Fla., Dec. 12, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company, a regional insurance holding company, today announced that it and certain of its wholly-owned subsidiaries (collectively, the “Company”) have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United Sta...
SUNRISE, Fla., Dec. 12, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company, a regional insurance holding company, today announced that it and certain of its wholly-owned subsidiaries (collectively, the “Company”) have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Florida in order to maximize value for all stakeholders. As part of the Chapter 11 process, the Company will evaluate all strategic alternatives to maximize value for stakeholders, whether that be a reorganization of its business or a sale of its assets. The Company has approximately $6.5 million of cash on hand, which will provide liquidity to support day-to-day operations during the Chapter 11 process, enabling the Company to operate business uninterrupted, including the timely payment of employee wages and benefits and continued servicing of customers. As part of the reorganization process, the Company will file customary “First Day” motions to allow it to maintain operations in the ordinary course. The Company intends to pay its employees in the usual manner and continue their primary benefits and certain customer programs without disruption. The Company expects to receive court approval for all these routine requests. Parties with questions about the Chapter 11 process may contact the Company’s Claims Agent, Stretto, at +1 (949) 861-5292 (toll-free in the U.S.) or +1 (888) 708-0592 (for parties outside the U.S.). The Claims Agent has also set up a website at https://cases.stretto.com/FedNat, which includes court documents and other information regarding the bankruptcy case. To manage the restructuring process, the Company has engaged GGG Partners, LLC (“GGG”) as financial advisors, and Nelson Mullins Riley & Scarborough LLP as legal advisors. As previously reported, on September 30, 2022, the Company engaged Katie S. Goodman, Managing Partner of GGG, to serve as the Company’s Chief Restructuring Officer. Also as previously reported, on November 3, 2022, the Company’s Board of Directors appointed Richard B. Gaudet, GGG’s Head of Finance and Accounting, to serve as interim Chief Financial Officer effective November 18, 2022. About the Company FedNat Holding Company is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries, equity investments and contractual relationships with independent agents and general agents. More information is available at https://www.fednat.com/investor-relations/. Forward-Looking Statements The statements contained herein may contain certain forward-looking statements relating to the Company that are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. These forward-looking statements include, without limitation, statements relating to the results of the Chapter 11 process on the Company’s business prospects, future developments, trends and conditions in the industry and geographical markets in which the Company operates, including its ability to restructure its business or otherwise realize on its assets.. When used herein, the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “going forward”, “intend”, “may”, “ought to”, “plan”, “project”, “seek”, “should”, “will”, “would” and similar expressions, as they relate to the Company or the Company’s management, are intended to identify forward-looking statements. These forward-looking statements reflect the Company’s views at the time such statement were made with respect to future events and are not a guarantee of future performance or developments. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements as a result of a number of factors, including any changes in the laws, rules and regulations relating to any aspects of the Company’s business operations and the results of the Chapter 11 proceeding, general economic, market and business conditions, including capital market developments, changes or volatility in interest rates, foreign exchange rates, equity prices or other rates or prices, the actions and developments of the Company’s competitors and the effects of competition in the insurance industry on the demand for, and price of, the Company’s products and services, various business opportunities that the Company may or may not pursue. Except as required by applicable law and regulations, the Company does not intend to update or otherwise revise such forward-looking statements, whether as a result of new information, future events or otherwise. As a result of these and other risks, uncertainties and assumptions, forward-looking events and circumstances discussed herein might not occur in the way the Company expects, or at all. Accordingly, you should not place reliance on any forward-looking information or statements. All forward-looking statements herein are qualified by reference to the cautionary statements set forth in this section. Contacts Katie S. Goodman, Chief Restructuring Officer (404) 293-0137 Richard B. Gaudet, Interim CFO (404) 256-0003 or investorrelations@fednat.com
FNHC | globenewswire | about 3 years ago | Neutral

FedNat Holding Company Announces Voluntary Nasdaq Delisting (Updated)SUNRISE, Fla., Oct. 26, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company”) (Nasdaq: FNHC), a regional insurance holding company, today announced that it has notified The Nasdaq Stock Market LLC (“Nasdaq”) of the Company’s decision to voluntarily delist its common stock from the Nasdaq...
SUNRISE, Fla., Oct. 26, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company”) (Nasdaq: FNHC), a regional insurance holding company, today announced that it has notified The Nasdaq Stock Market LLC (“Nasdaq”) of the Company’s decision to voluntarily delist its common stock from the Nasdaq Global Market and its intent to file a Form 25 with the U.S. Securities and Exchange Commission (the “SEC”) on or about November 7, 2022. The Company has been advised by Nasdaq that, due to concerns regarding the Company’s noncompliance with Nasdaq’s continued listing requirements, trading in the Company’s common stock will not continue beyond the date of filing the Form 25. Therefore, trading in the Company’s common stock will be suspended prior to market open on November 7, 2022 and Friday, November 4, 2022 will be the last day of trading of the Company’s common stock on Nasdaq. The Company may discuss with market makers for its common stock the possibility of having its common stock quoted on the over-the-counter market, but no arrangements have yet been made in that regard. There can be no assurances that any brokers will continue to make a market in the Company’s common stock or that trading of the common stock will continue on the over-the-counter market or otherwise. As previously reported, the Company has been out of compliance with certain of the Nasdaq listing rules, including Nasdaq Listing Rule 5450(a)(1), which requires listed securities to maintain a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”), and Nasdaq Listing Rule 5810(c)(3)(A), which provides that a failure to meet the Minimum Bid Price Requirement exists if the deficiency continues for a period of 30 consecutive business days. To regain compliance with these Listing Rules, the closing bid price of the Company’s common stock must be at least $1.00 per share for a minimum of 10 consecutive business days prior to November 27, 2022. In addition, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) because of the ongoing delay in the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. Because of uncertainties surrounding the Company’s ability to regain compliance with the foregoing Nasdaq Listing Rules, the Company’s Board of Directors has determined that the voluntary delisting of the Company’s common stock will be in the best interests of the Company and its shareholders. The Board’s decision was based on careful review of several factors, including the likely inability of the Company to regain compliance and the significant costs associated therewith (including costs associated with requesting a hearing to obtain an extension of time for compliance), the benefits to the Company of eliminating the expense of the Nasdaq listing fees, and eliminating the demands on management’s time of complying with the Nasdaq listing standards. About the Company FedNat Holding Company is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries, equity investments and contractual relationships with independent agents and general agents. More information is available at https://www.fednat.com/investor-relations/. Contacts David K. Patterson, Interim CEO (954) 308-1322 J. Gordon Jennings III, Interim CFO (954) 308-1201 Bernard Kilkelly, Investor Relations (954) 308-1409 or investorrelations@fednat.com
FNHC | globenewswire | about 3 years ago | Neutral

FedNat Holding Company Announces Voluntary Nasdaq DelistingSUNRISE, Fla., Oct. 26, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company”) (Nasdaq: FNHC), a regional insurance holding company, today announced that it has notified The Nasdaq Stock Market LLC (“Nasdaq”) of the Company’s decision to voluntarily delist its common stock from the Nasdaq...
SUNRISE, Fla., Oct. 26, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company”) (Nasdaq: FNHC), a regional insurance holding company, today announced that it has notified The Nasdaq Stock Market LLC (“Nasdaq”) of the Company’s decision to voluntarily delist its common stock from the Nasdaq Global Market and its intent to file a Form 25 with the U.S. Securities and Exchange Commission (the “SEC”) on or about November 7, 2022. As a result, the Company expects the delisting of its common stock to become effective 10 days following such filing, or November 17, 2022. The Company may discuss with market makers for its common stock the possibility of having its common stock quoted on the over-the-counter market, but no arrangements have yet been made in that regard. There can be no assurances that any brokers will continue to make a market in the Company’s common stock or that trading of the common stock will continue on the over-the-counter market or otherwise. As previously reported, the Company has been out of compliance with certain of the Nasdaq listing rules, including Nasdaq Listing Rule 5450(a)(1), which requires listed securities to maintain a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”), and Nasdaq Listing Rule 5810(c)(3)(A), which provides that a failure to meet the Minimum Bid Price Requirement exists if the deficiency continues for a period of 30 consecutive business days. To regain compliance with these Listing Rules, the closing bid price of the Company’s common stock must be at least $1.00 per share for a minimum of 10 consecutive business days prior to November 27, 2022. In addition, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) because of the ongoing delay in the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. Because of uncertainties surrounding the Company’s ability to regain compliance with the foregoing Nasdaq Listing Rules, the Company’s Board of Directors has determined that the voluntary delisting of the Company’s common stock will be in the best interests of the Company and its shareholders. The Board’s decision was based on careful review of several factors, including the likely inability of the Company to regain compliance and the significant costs associated therewith (including costs associated with requesting a hearing to obtain an extension of time for compliance), the benefits to the Company of eliminating the expense of the Nasdaq listing fees, and eliminating the demands on management’s time of complying with the Nasdaq listing standards. About the Company FedNat Holding Company is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries, equity investments and contractual relationships with independent agents and general agents. More information is available at https://www.fednat.com/investor-relations/. Contacts David K. Patterson, Interim CEO (954) 308-1322 J. Gordon Jennings III, Interim CFO (954) 308-1201 Bernard Kilkelly, Investor Relations (954) 308-1409 or investorrelations@fednat.com
FNHC | globenewswire | about 3 years ago | Neutral

FedNat Receives Nasdaq Notification of Non-Compliance With Listing Rule 5250(c)(1)SUNRISE, Fla., Aug. 19, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company”) (Nasdaq: FNHC), a regional insurance holding company, today announced that on August 17, 2022, it received notice (the “Notice”) from the Listing Qualifications Department of the Nasdaq Stock Market notifying t...

FNHC | globenewswire | about 3 years ago | Neutral

FedNat Announces Completion of $15 Million Investment in Monarch National Insurance Company by Funds Managed by Hale Partnership and Monarch’s Assumption of Majority of FedNat Insurance Company’s Florida PoliciesSUNRISE, Fla., July 06, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC) (FedNat) announced today that the Florida Office of Insurance Regulation (OIR) has authorized the assumption of approximately 78,000 policies effective June 1, 2022 by Monarch National Insurance Company (Monarch...
SUNRISE, Fla., July 06, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC) (FedNat) announced today that the Florida Office of Insurance Regulation (OIR) has authorized the assumption of approximately 78,000 policies effective June 1, 2022 by Monarch National Insurance Company (Monarch), from a FedNat subsidiary, FedNat Insurance Company (FNIC), resulting in Monarch’s policy count totaling approximately 83,000 policies. This assumption occurred simultaneously with the closing of the previously announced $15,000,000 investment in Monarch by funds managed by Hale Partnership Capital Management LLC (Hale Group). With the closing of the transaction, the Hale Group is now majority owner of Monarch, with FedNat holding a minority interest and maintaining representation on Monarch’s board. Policy servicing and claims administration with respect to the policies transferred to Monarch will continue to be performed by FedNat Underwriters, a wholly owned subsidiary of FedNat. Monarch obtained catastrophe excess of loss reinsurance for the 2022-2023 storm season, protecting policyholders and Monarch’s surplus consistent with its historical reinsurance structure. Monarch anticipates that its reinsurance structure will provide appropriate and responsible protection against multiple catastrophic events. FNIC’s other remaining Florida policies were canceled effective June 29, 2022. FNIC’s non-Florida policies have been cancelled, expired or assumed at this time. The Florida policies of Maison Insurance Company (Maison), which is currently in run off, were canceled effective June 29, 2022, and the vast majority of Maison’s non-Florida policies have been cancelled or expired, with the exception of approximately 7,650 Texas policies that will expire over the next nine months. Michael H. Braun, FedNat's Chief Executive Officer, said, “FedNat has materially exited non-Florida markets and expects to complete our transition in coming months as we continue to refocus solely on our historical market in Florida, which we believe will result in a financially stronger company, with less volatility, that will be rightsized to our current capital and surplus position.” Steve Hale commented, “My firm and investment partners are delighted to invest $15 million into Monarch and facilitate the support of approximately 83,000 Florida policyholders. I look forward to exploring more opportunities for investment within the Florida insurance market.” About FedNat FedNat Holding Company is an insurance holding company that manages substantially all aspects of the insurance underwriting, distribution and claims processes and contractual relationships with independent agents and general agents. FedNat, through its minority equity investment in Monarch National Insurance Company, is transitioning to providing homeowners insurance exclusively within the State of Florida. More information is available at https://www.fednat.com/investor-relations/. Factors that could affect forward-looking statements This press release contains statements that may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally may be identified by the use of forward-looking terminology such as "anticipate," "believe," "budget," "contemplate," "continue," "could," "envision," "estimate," "expect," "forecast," "guidance," "indicate," "intend," "may," "might," "outlook," "plan," "possibly," "potential," "predict," "probably," "pro-forma," "project," "seek," "should," "target," "will," "would," "will be," "will continue" or the negative thereof or other variations thereon or comparable terminology and, in this report includes our statements regarding the expiration, assumption or cancellation of policies , the continuation of policy servicing and claims administration, and cost and coverage of loss reinsurance. FedNat has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While FedNat believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond FedNat's control. Management cautions that any such forward-looking statements are not guarantees of future performance, and readers cannot assume that such statements will be realized or that the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation, the impact of the Monarch transaction on FedNat, as well as the risks and uncertainties discussed under “Risk Factors” in FedNat’s 2021 Form 10-K, and discussed from time to time in FedNat's other reports subsequently filed with the Securities and Exchange Commission. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. FedNat expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Contacts Michael H. Braun, CEO (954) 308-1322 Erick Fernandez, Interim CFO (954) 308-1341 Bernard Kilkelly, Investor Relations (954) 308-1409, or investorrelations@fednat.com
FNHC | globenewswire | about 3 years ago | Neutral

FedNat Announces $15 Million Investment by Hale Partnership in Monarch National Insurance CompanySUNRISE, Fla., May 24, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC) (FedNat), a regional insurance holding company, has entered into an agreement with Hale Partnership Capital Management LLC (Hale) pursuant to which funds managed by Hale will invest $15,000,000 in FedNat’s subsid...
SUNRISE, Fla., May 24, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC) (FedNat), a regional insurance holding company, has entered into an agreement with Hale Partnership Capital Management LLC (Hale) pursuant to which funds managed by Hale will invest $15,000,000 in FedNat’s subsidiary Monarch National Insurance Company (MNIC), subject to satisfaction of certain conditions. Under the terms of the agreement, FedNat will also then contribute additional capital to MNIC, further enhancing MNIC’s surplus position. Following its investment, Hale will become the majority owner of MNIC, with FedNat holding a minority interest. Following completion of the Hale transaction, which has been approved by the Florida Office of Insurance Regulation (OIR), subject to satisfaction of certain conditions, 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 canceled effective June 29, 2022. Upon cancellation of the FNIC Florida policies, all unearned premiums will be remitted to policyholders in accordance with applicable law. FNIC currently has adequate assets on hand to refund all required unearned premiums. FedNat also will cancel the remaining Florida policies of another subsidiary, Maison Insurance Company (Maison), 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. Policy servicing and claims administration with respect to the policies transferred to MNIC will continue to be performed by a wholly owned subsidiary of FedNat. MNIC expects to obtain catastrophe excess of loss reinsurance for the 2022-2023 storm season to protect its surplus consistent with its historical reinsurance structure. MNIC anticipates that its reinsurance structure will provide appropriate and responsible protection against multiple catastrophic events. FedNat also announced that for all FNIC business written in states other than Florida (Alabama, Louisiana, Mississippi, South Carolina and Texas), which is written through SageSure Insurance Managers (“SageSure”), FNIC’s contracted third-party managing general underwriter, FNIC and SageSure intend to seek regulatory approval of a transaction pursuant to which effective July 1, 2022, a SageSure insurance carrier partner would assume all remaining FNIC in-force policies in Alabama, Mississippi, South Carolina and Texas. With respect to FNIC’s Louisiana policies, it is proposed that such policies would be canceled by FNIC effective July 1, 2022, with policyholders receiving an offer of replacement coverage from a SageSure carrier partner effective upon the cancellation of their FNIC policy. About the Company FedNat Holding Company is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and contractual relationships with independent agents and general agents. The Company, through its wholly owned subsidiaries FedNat Insurance Company and Monarch National Insurance Company, is transitioning to providing homeowners insurance exclusively within the state of Florida. More information is available at https://www.fednat.com/investor-relations/. Factors that could affect forward-looking statements This press release contains statements that may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally may be identified by the use of forward-looking terminology such as "anticipate," "believe," "budget," "contemplate," "continue," "could," "envision," "estimate," "expect," "forecast," "guidance," "indicate," "intend," "may," "might," "outlook," "plan," "possibly," "potential," "predict," "probably," "pro-forma," "project," "seek," "should," "target," "will," "would," "will be," "will continue" or the negative thereof or other variations thereon or comparable terminology and, in this report includes our statements regarding the expected continuation of the credit rating of MNIC, the assumption/cancellation of FNIC and Maison policies (including those being assumed by SageSure) and the remitting of unearned premiums, the continuation of policy servicing and claims administration and the expectation of the retention of loss reinsurance. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond the Company's control. Management cautions that any such forward-looking statements are not guarantees of future performance, and readers cannot assume that such statements will be realized or that the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation, approval of regulatory authorities, final results regarding catastrophe losses, our ability to make reinsurance purchases, as well as the risks and uncertainties discussed under “Risk Factors” in the Company's 2021 Form 10-K, and discussed from time to time in the Company's reports filed with the Securities and Exchange Commission. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. The Company expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
FNHC | globenewswire | about 3 years ago | Neutral

FedNat Holding Company Reports First Quarter 2022 ResultsSUNRISE, Fla., May 09, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company” or "FedNat") (Nasdaq: FNHC) today reported results for the three months ended March 31, 2022. First Quarter 2022 Results Q1 2022 highlights (as measured against the same three-month period last year, except whe...
SUNRISE, Fla., May 09, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company” or "FedNat") (Nasdaq: FNHC) today reported results for the three months ended March 31, 2022. First Quarter 2022 Results Q1 2022 highlights (as measured against the same three-month period last year, except where noted): Net loss of $31.3 million or $(1.79) per diluted share as compared to net loss of $19.4 million or $(1.35) per diluted share.Adjusted operating loss of $28.9 million or $(1.65) per diluted share as compared to adjusted operating loss of $19.4 million or $(1.35) per diluted share.$31 million or $1.78 per diluted share of catastrophe claims, net of reinsurance recoveries and other offsets including affiliated fees, including $29 million driven by eleven notable events that impacted Florida, Texas, Louisiana and South Carolina during the first quarter of 2022 of which approximately $10 million relates to non-Florida states.$137.9 million of gross written premiums, compared to $174.2 million, reflecting non-renewals and run-off activities for Non-Florida states.Gross loss ratio for current quarter attritional losses of 27.8% and gross expense ratio of 26.9%, as compared to 36.5% and 26.0%, respectively, in the first quarter of 2021.Florida homeowners in-force policies decreased 23% to approximately 152,000, while Florida gross premiums written increased almost 4%, reflecting execution of our strategy to limit exposure and increase rates in Florida.Non-insurance company liquidity of approximately $47 million at March 31, 2022.Book value per share of $0.81 as of March 31, 2022, or $1.67 per share excluding accumulated other comprehensive income. Michael H. Braun, FedNat's Chief Executive Officer, said, “We continued to make progress during the first quarter in our Florida homeowners business resulting from our strategic actions over the past five years to right size our Florida book and increase rates to more accurately reflect the higher costs of doing business. The Company also continued to make progress in the first quarter on our strategy to exit non-Florida markets and refocus on our historical market in Florida, a transition we believe would result in a financially stronger company, with less volatility, that would be rightsized to our current capital and surplus position. However, as we have disclosed in recent SEC filings, in April the Demotech rating of FedNat National Insurance Company (FNIC) was downgraded, which we believe will adversely impact our ability to obtain excess-of-loss reinsurance for coverage beginning July 1, 2022 and would place the Company in non-compliance with the regulations of the Florida Office of Insurance Regulation (OIR). FedNat has submitted a proposed action plan to the OIR which, if approved by them and regulators in other impacted states, would be expected to result in the Company becoming much smaller, with significantly fewer policies in force, and potentially result in additional capital coming into the holding company or into our insurance carriers. If approved, the proposed action plan would be expected to enable the Company to obtain excess-of-loss reinsurance on a smaller, Florida-only book of business. Our action plan is currently being reviewed by the OIR and we will provide an update on the outcome of their review when available.” Revenues Total revenue increased $2.2 million or 4.0%, to $54.9 million for the three months ended March 31, 2022, compared with $52.7 million for the three months ended March 31, 2021. The increase was driven primarily by decreases in ceded premiums, partially offset by lower gross premiums, direct written policy fees, net investment income and net realized losses, all of which are discussed in further detail below.Gross premiums written decreased $36.3 million, or 20.8%, to $137.9 million in the quarter compared with $174.2 million for the same three-month period last year, driven by a reduction in our policies-in-force and exposure in non-Florida states, as a result of the orderly runoff of MIC and the transfer-upon-renewal of FNIC’s non-Florida business to alternative insurance carrier partners of SageSure.Gross premiums earned decreased $14.7 million, or 8.2%, to $164.3 million for the three months ended March 31, 2022, as compared to $179.0 million for the three months ended March 31, 2021, driven primarily by the same reasons as the decrease in gross premiums written, discussed above.Ceded premiums decreased $21.0 million, or 15.0%, to $118.3 million in the quarter, compared to $139.3 million the same three-month period last year. The decrease was driven by approximately $15 million lower catastrophe reinsurance spend due to additional purchases of supplemental coverage in the 2020-2021 catastrophe excess of loss reinsurance program to backfill layers and gaps in coverage stemming from the non-cascading portion of our reinsurance tower, following the six retention catastrophe events that occurred during that treaty year. Additionally, there was approximately $6 million of lower quota-share ceded premium associated with lower gross premiums earned discussed above which was largely offset by corresponding increases in net loss and LAE, and commission and other underwriting expenses when comparing the periods.Net investment income decreased $0.4 million, or 24.5%, to $1.3 million during the three months ended March 31, 2022, as compared to $1.7 million during the three months ended March 31, 2021. This decrease was driven by a smaller fixed income portfolio as we have been impacted by several catastrophes, hail and wind-related severe weather events and private reinsurers have raised the cost of their coverages.Net realized and unrealized gains (losses) decreased $2.5 million, to $(2.4) million for the three months ended March 31, 2022, compared to $0.1 million the prior year period.Direct written policy fees decreased $0.7 million, or 21.2%, to $2.6 million for the three months ended March 31, 2022, compared with $3.3 million for the three months ended March 31, 2021. The decrease is primarily driven by a reduction in our policies in-force in the state of Florida, as a result of our rigorous exposure management in response to the challenging litigation environment and the orderly exit of the non-Florida business. Expenses Losses and loss adjustment expenses (“LAE”) increased $10.8 million, or 22.4%, to $58.8 million for the three months ended March 31, 2022, compared with $48.0 million for the same three-month period last year. The net loss ratio increased 7.0 percentage points, to 127.8% in the current quarter, as compared to 120.8% in the first quarter of 2021. The higher loss expense and corresponding ratio were primarily driven by larger net catastrophe losses and prior year development as well as lower ceded losses under quota-share reinsurance treaties attributable to lower gross premiums earned, partially offset by lower gross attritional losses in the current quarter. The current quarter included approximately $29.2 million of catastrophe losses, net of reinsurance and claims handling fee income, driven primarily by eleven notable events (including one wildfire) that impacted Florida, Texas, Louisiana and South Carolina. Approximately $10 million of these net catastrophe losses are related to books of business that the Company is in the process of running off, including FNIC's non-Florida book as well as MIC’s book of business. In addition, the Company recorded approximately $2 million of net adverse reserve development in the quarter related to Hurricane Laura, which hit Louisiana in August 2020. By comparison, the first quarter of 2021 catastrophe net losses were $13.1 million, net of reinsurance, primarily by Winter Storm Uri, which caused heavy residential damage in Texas, primarily associated with freezing temperatures causing widespread instances of burst water pipes.Our gross expense ratio was 26.9% during the three months ended March 31, 2022, as compared to 26.0% during the three months ended March 31, 2021. The net expense ratio decreased 11.4% percentage points to 56.8% in the first quarter of 2022, as compared to 68.2% in the first quarter of 2021 due primarily to higher ceded reinsurance premiums in 2021.Commissions and other underwriting expenses decreased $1.9 million, or 9.1%, to $19.1 million for the three months ended March 31, 2022, compared with $21.0 million for the three months ended March 31, 2021. This decrease was due to lower acquisition and underwriting expenses due to lower policies-in-force, offset by lower ceding commission as a result of higher catastrophe costs, which has the affect of reducing the ceded commissions in the quarter. Non-GAAP Performance Measures Non United States generally accepted accounting principles ("GAAP") measures do not replace the most directly comparable GAAP measures and we have included detailed reconciliations thereof on page 10. We exclude the after-tax (using our statutory income tax rate) effects of the following items from GAAP net income (loss) to arrive at adjusted operating income (loss): Net realized and unrealized investment gains (losses);Gains (losses) associated with early extinguishment of debt;Merger and acquisition, integration and other strategic costs and the amortization of specifically identifiable intangibles (other than value of business acquired);Impairment of intangibles;Income (loss) from initial adoption of new regulations and accounting guidance; andIncome (loss) from discontinued operations. We also exclude the pre-tax effect of the first bullet above from GAAP revenues to arrive at adjusted operating revenues. Management believes these non-GAAP performance measures allow for a better understanding of the underlying trend in our business, as the excluded items are not necessarily indicative of our operating fundamentals or performance. Similarly, we exclude accumulated other comprehensive income (loss) ("AOCI") from book value per share to arrive at book value per share, excluding AOCI. Conference Call Information The Company will hold an investor conference call at 11:30 AM (ET) Tuesday, May 10, 2022. The Company’s CEO, Michael Braun and its CFO, Ronald Jordan will discuss the financial results and review the outlook for the Company. Messrs. Braun and Jordan invite interested parties to participate in the conference call. Listeners interested in participating in the Q&A session may access the conference call as follows: Toll-Free Dial-in: (877) 303-6913 Conference ID: 6686146 A live webcast of the call will be available online via the “Conference Calls” section of the Company’s website at FedNat.com or interested parties can click on the following link: https://edge.media-server.com/mmc/p/7xea8pf6 Please call at least five minutes in advance to ensure that you are connected prior to the presentation. A webcast replay of the conference call will be available shortly after the live webcast is completed and may be accessed via the Company’s website. About the Company FedNat Holding Company is a regional insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and contractual relationships with independent agents and general agents. The Company, through its wholly owned subsidiaries FedNat Insurance Company and Monarch National Insurance Company, is focused on providing homeowners insurance in Florida. More information is available at https://www.fednat.com/investor-relations/. Forward-Looking Statements Safe harbor statement under the Private Securities Litigation Reform Act of 1995: Statements that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,” “might,” “plan,” “possibly,” “potential,” “predict,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” or “will” or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. Forward-looking statements might also include, but are not limited to, one or more of the following: Projections of revenues, income, earnings per share, dividends, capital structure or other financial items or measures;Descriptions of plans or objectives of management for future operations, insurance products or services;Forecasts of future insurable events, economic performance, liquidity, need for funding and income; andDescriptions of assumptions or estimates underlying or relating to any of the foregoing. The risks and uncertainties include, without limitation, risks and uncertainties related to estimates, assumptions and projections generally; the nature of the Company’s business; the adequacy of its reserves for losses and loss adjustment expense; claims experience; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail) and other catastrophe losses; reinsurance costs and the ability of reinsurers to indemnify the Company; raising additional capital and our compliance with minimum capital and surplus requirements; the impact of the refocus of our operations on Florida; potential assessments that support property and casualty insurance pools and associations; the effectiveness of internal financial controls; the effectiveness of our underwriting, pricing and related loss limitation methods; changes in loss trends, including as a result of insureds’ assignment of benefits; court decisions and trends in litigation; our potential failure to pay claims consistent with our contractual obligations; ability to obtain regulatory approval applications for requested rate increases, or to underwrite in additional jurisdictions, and the timing thereof; the impact that the results of our subsidiaries’ operations may have on our results of operations; inflation and other changes in economic conditions (including changes in interest rates and financial markets); pricing competition and other initiatives by competitors; legislative and regulatory developments; the outcome of litigation pending against the Company, and any settlement thereof; dependence on investment income and the composition of the Company’s investment portfolio; insurance agents; ratings by industry services; the reliability and security of our information technology systems; reliance on key personnel; acts of war and terrorist activities; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including claims and litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a contingency. Reported results may therefore appear to be volatile in certain accounting periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We do not undertake any obligation to update publicly or revise any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Contacts Michael H. Braun, CEO (954) 308-1322, Ronald Jordan, CFO (954) 308-1363, Bernard Kilkelly, Investor Relations (954) 308-1409, or investorrelations@fednat.com FEDNAT HOLDING COMPANY AND SUBSIDIARIES Selected Financial Highlights (Dollars in thousands, except per share data) (Unaudited) As of or For the Three Months Ended March 31, 2022 2021 % ChangeNet Income (Loss) Attributable to Common Shareholders Net income (loss) $(31,287) $(19,381) 61.4%Adjusted operating income (loss) (28,861) (19,415) 48.7% Per Common Share Net income (loss) - diluted $(1.79) $(1.35) 33.1%Adjusted operating income (loss) - diluted (1.65) (1.35) 22.5%Dividends declared — — NCM Book value 0.81 8.50 (90.5)%Book value, excluding AOCI 1.67 8.26 (79.7)% Return to Shareholders Repurchases of common stock $— $— NCM Dividends declared — — NCM $— $— NCM Revenue Total revenues $54,862 $52,748 4.0%Adjusted operating revenues 57,288 52,656 8.8%Gross premiums written 137,892 174,207 (20.8)%Gross premiums earned 164,328 179,002 (8.2)%Net premiums earned 45,985 39,745 15.7% Ratios to Net Premiums Earned Net loss ratio 127.8% 120.8% Net expense ratio 56.8% 68.2% Combined ratio 184.6% 189.0% In-Force Homeowners Policies Florida 152,000 197,000 (22.8)%Non-Florida 96,000 149,000 (35.6)% 248,000 346,000 (28.3)% FEDNAT HOLDING COMPANY AND SUBSIDIARIES Consolidated Statement of Operations (In thousands, except per share data) (Unaudited) Three Months Ended March 31, 2022 2021 Revenues: Net premiums earned $45,985 $39,745 Net investment income 1,264 1,674 Net realized and unrealized gains (losses) (2,426) 92 Direct written policy fees 2,613 3,315 Other income 7,426 7,922 Total revenues 54,862 52,748 Costs and expenses: Losses and loss adjustment expenses 58,783 48,016 Commissions and other underwriting expenses 19,107 21,031 General and administrative expenses 6,997 6,066 Interest expense 2,300 1,926 Total costs and expenses 87,187 77,039 Income (loss) before income taxes (32,325) (24,291)Income tax expense (benefit) (1,038) (4,910)Net income (loss) $(31,287) $(19,381) Net Income (Loss) Per Common Share Basic $(1.79) $(1.35)Diluted (1.79) (1.35) Weighted Average Number of Shares of Common Stock Outstanding Basic 17,462 14,395 Diluted 17,462 14,395 Dividends Declared Per Common Share $— $— FEDNAT HOLDING COMPANY AND SUBSIDIARIES Selected Operating Metrics (Unaudited) Three Months Ended March 31, 2022 2021 (In thousands)Gross premiums written: Homeowners Florida $116,159 $111,969 Homeowners non-Florida 17,317 57,909 Federal flood 4,481 4,389 Non-core (65) (60)Total gross premiums written $137,892 $174,207 Three Months Ended March 31, 2022 2021 (In thousands)Gross premiums earned: Homeowners Florida $105,138 $109,426 Homeowners non-Florida 53,939 64,923 Federal flood 5,316 4,713 Non-core (65) (60)Total gross premiums earned $164,328 $179,002 Three Months Ended March 31, 2022 2021 (In thousands)Net premiums earned: Homeowners Florida $34,822 $23,091 Homeowners non-Florida 11,228 16,714 Non-core (65) (60)Total net premiums earned $45,985 $39,745 FEDNAT HOLDING COMPANY AND SUBSIDIARIES Selected Operating Metrics (continued) (Unaudited) Three Months Ended March 31, 2022 2021 (In thousands)Commissions and other underwriting expenses: Homeowners Florida $10,682 $12,399 All others 13,233 11,691 Ceding commissions (18,051) (19,460)Total commissions 5,864 4,630 Fees 993 1,335 Salaries and wages 2,511 3,572 Other underwriting expenses 9,739 11,494 Total commissions and other underwriting expenses $19,107 $21,031 Three Months Ended March 31, 2022 2021 Net loss ratio 127.8% 120.8%Net expense ratio 56.8% 68.2%Combined ratio 184.6% 189.0%Gross loss ratio 67.3% 96.3%Gross expense ratio 26.9% 26.0% FEDNAT HOLDING COMPANY AND SUBSIDIARIES Consolidated Balance Sheet (Unaudited) March 31, December 31, 2022 2021 ASSETS (In thousands)Investments: Debt securities, available-for-sale, at fair value $270,217 $327,532 Equity securities, at fair value 5,348 5,905 Total investments 275,565 333,437 Cash and cash equivalents 91,652 83,526 Prepaid reinsurance premiums 162,463 242,537 Premiums receivable, net of allowance 33,089 41,174 Reinsurance recoverable, net 581,921 613,203 Deferred acquisition costs, net 16,438 18,829 Current and deferred income taxes, net 13,446 30,014 Other assets 38,239 49,950 Total assets $1,212,813 $1,412,670 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Loss and loss adjustment expense reserves $661,595 $738,794 Unearned premiums 316,312 342,747 Reinsurance payable and funds withheld liabilities 53,093 102,748 Long-term debt, net of deferred financing costs 118,906 118,805 Deferred revenue 4,162 5,240 Other liabilities 44,606 44,950 Total liabilities 1,198,674 1,353,284 Shareholders' Equity Preferred stock, $0.01 par value: 1,000,000 shares authorized — — Common stock, $0.01 par value: 50,000,000 shares authorized; 17,519,237 and 17,446,930 shares issued and outstanding, respectively 175 174 Additional paid-in capital 186,202 186,007 Accumulated other comprehensive income (loss) (15,190) (1,034)Retained earnings (deficit) (157,048) (125,761)Total shareholders’ equity 14,139 59,386 Total liabilities and shareholders' equity $1,212,813 $1,412,670 FEDNAT HOLDING COMPANY AND SUBSIDIARIES GAAP to Non-GAAP Reconciliations (Dollars in thousands) (Unaudited) As of or For the Three Months Ended March 31, 2022 2021 Revenue Total revenues $54,862 $52,748 Less: Net realized and unrealized investment gains (losses) (2,426) 92 Adjusted operating revenues $57,288 $52,656 Net Income (Loss) Net income (loss) $(31,287) $(19,381)Less: Net realized and unrealized investment gains (losses) (2,426) 73 Acquisition and strategic costs — (9)Amortization of identifiable intangibles — (30)Adjusted operating income (loss) $(28,861) $(19,415) Income tax rate assumed for reconciling items above —% 21.00% Per Common Share Book value $0.81 $8.50 Less: AOCI (0.86) 0.24 Book value, excluding AOCI $1.67 $8.26
FNHC | globenewswire | about 3 years ago | Neutral

FedNat Announces First Quarter 2022 Earnings Call for Tuesday, May 10, 2022SUNRISE, Fla., April 27, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC), a regional insurance holding company, will announce its 2022 first quarter financial results after 4:00 PM (ET) on Monday, May 9, 2022. The investor conference call will be held on Tuesday, May 10, 2022, at 11...

FNHC | globenewswire | about 3 years ago | Neutral

FedNat Receives Nasdaq Notification of Non-Compliance With Listing Rule 5250(c)(1)SUNRISE, Fla., April 01, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC), a regional insurance holding company, today announced that on April 1, 2022, it received a letter (the Letter) from the Listing Qualifications Department of the Nasdaq Stock Market (Nasdaq) notifying the Compa...

FNHC | globenewswire | about 3 years ago | Neutral

FedNat Holding Company Reports Fourth Quarter and Full Year 2021 ResultsSUNRISE, Fla., March 03, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company”) (Nasdaq: FNHC) today reported results for the three and twelve months ended December 31, 2021. Q4 2021 highlights (as measured against the same three-month period last year, except where noted): Net loss of ...
SUNRISE, Fla., March 03, 2022 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company”) (Nasdaq: FNHC) today reported results for the three and twelve months ended December 31, 2021. Q4 2021 highlights (as measured against the same three-month period last year, except where noted): Net loss of $8.6 million or $0.49 per diluted share as compared to net loss of $38.1 million or $2.77 per diluted share.Adjusted operating loss of $7.3 million or $0.42 per diluted share as compared to adjusted operating loss of $32.0 million or $2.33 per diluted share.Loss before income taxes of $9.9 million as compared to $47.6 million$8.1 million or $0.46 per diluted share of claims from severe weather events, net of recoveries and fee income, primarily impacting Florida, Texas and Louisiana, as previously disclosed.$4.4 million of reserve strengthening, net of reinsurance recoveries and fee income, related to prior accident quarters, as previously disclosed.Gross attritional loss ratio for current quarter of 29.5% as compared to 35.7% in the fourth quarter of 2020, demonstrating tangible progress from past rate actions.22.7% decrease in Florida homeowners in-force policies to approximately 160,000, reflecting continued execution of our strategy to limit exposure in Florida until rates more accurately reflect increased costs of claims and reinsurance.22.1% decrease in non-Florida homeowners in-force policies to approximately 120,000, in-line with our strategy to refocus operations on the Florida market and exit non-Florida markets, including non-renewal of FedNat Insurance Company's (FNIC) non-Florida business and runoff of Maison Insurance Company (Maison).Non-insurance company liquidity of $40 million at December 31, 2021.Book value per share of $3.40 at December 31, 2021. Michael H. Braun, FedNat's Chief Executive Officer, said, “The strategic shift that FedNat announced in November to refocus on the Florida homeowners market is proceeding as planned with the orderly runoff of Maison’s insurance operations and the non-renewal and transfer of FNIC’s non-Florida business. We expect the runoff of Maison’s business to be substantially completed by the end of 2022 and the non-renewal and transfer of FNIC’s non-Florida business to be substantially finished by the second quarter of 2023. Upon completion of the transition, we expect FedNat to be a financially stronger company, with less volatility, that will be rightsized to our current capital and surplus position, with approximately $450 million of in-force premium exclusively in Florida and approximately $113 million in surplus. The benefits of the transition have already begun to materialize and the pace of runoff will accelerate further during the second quarter of 2022.” Mr. Braun added, “We continue to see positive trends in our Florida homeowners business resulting from the dramatic actions we’ve taken over the past five years to shrink our Florida book and increase rates to more accurately reflect the higher costs of doing business. Our Florida book has declined by over 40% from 272,000 policies-in-force in 2017 to 160,000 at the end of 2021. In that same time period, we have increased FNIC’s rates in Florida by approximately 70%, cumulatively, restoring rate adequacy and resulting in improved attritional loss ratios in FNIC’s Florida book in the fourth quarter. With approved and continued pending rate increases in Florida rolling into our book, we continue to expect FedNat to achieve ex-catastrophe earnings improvement in 2022.” Revenues Total revenue decreased $17.8 million, or 21.0%, to $67.0 million for the three months ended December 31, 2021, compared with $84.8 million for the three months ended December 31, 2020. The decrease was driven by lower gross premiums earned and net realized and unrealized gains, which are discussed in further detail below.Gross written premiums decreased $11.1 million, or 6.6%, to $157.3 million in the quarter, compared with $168.4 million for the same three-month period last year, driven by our decision to refocus on Florida and runoff our non-Florida books of business, partially offset by rate actions that we have taken across our insurance subsidiaries. Gross premiums written in Florida increased 2.9% despite the reduction in policies-in-force, indicating greater prospective rate adequacy in the Florida book of business.Gross premiums earned decreased $9.0 million, or 4.9%, to $173.0 million for the three months ended December 31, 2021, as compared to $182.0 million for the three months ended December 31, 2020, driven by the strategic exposure management efforts discussed earlier.Ceded premiums remained relatively flat at $118.8 million in the quarter, as compared to the same three-month period last year. There was approximately $10 million of higher quota-share ceded premium: $9 million related to new and incremental quota-share treaties for FNIC's Florida book of business and $1 million related to the 80% quota-share treaty for FNIC's non-Florida book of business. Additionally, there was approximately $10 million lower catastrophe reinsurance spend, driven by purchases of supplemental coverage in 2020 to backfill gaps in coverage stemming from the non-cascading portion of our reinsurance tower, following the multiple retention catastrophe events that occurred in the second half of 2020. This decrease to catastrophe reinsurance spend was partially offset by higher rate-on-line prices in the 2021-2022 catastrophe excess of loss reinsurance program.Net realized and unrealized gains decreased $9.1 million, to less than $0.1 million for the three months ended December 31, 2021, compared to $9.2 million in the prior year period. Expenses Losses and LAE decreased $30.9 million, or 39.3%, to $47.7 million for the three months ended December 31, 2021, compared with $78.6 million for the same three-month period last year. The net loss ratio decreased 36.3 percentage points, to 88.0% in the current quarter, compared to 124.3% in the fourth quarter of 2020. The lower ratio was the result of lower current accident year attritional losses as a result of our exposure reduction and rate increases taken over the last year, and lower catastrophe net losses as compared to the prior year period. During the current quarter of 2021, net losses were driven by $8.1 million of net catastrophe losses, net of reinsurance and claims handling fee income, and prior accident quarter reserve strengthening of $7.6 million, offset by lower attritional losses in the quarter. The $7.6 million reserve strengthening is partially offset by a $4.4 million benefit from lower reinstatement premiums, which are presented in ceded premiums within net premiums earned. The fourth quarter of 2020 net losses were driven by net catastrophe losses of $27.9 million, related to losses from Hurricanes Delta, Zeta and Eta, as well as prior period reserve strengthening of $11.5 million.Commissions and other underwriting expenses decreased $14.9 million, or 43.7%, to $19.2 million for the three months ended December 31, 2021, compared with $34.1 million for the three months ended December 31, 2020. The net expense ratio decreased 16.3 percentage points, to 47.5% in the current quarter, as compared to 63.8% in the fourth quarter of 2020. The decrease was primarily driven by higher ceding commissions as a result of the incremental quota share treaties in FNIC's Florida and non-Florida book of business, in the current quarter, as compared to the prior year period, as discussed above. In addition, when comparing these periods, this decrease was also driven by elevated other underwriting expenses in the fourth quarter of 2020 stemming from FNIC's non-Florida business.For the three months ended December 31, 2021, the Company recorded a non-cash impairment charge of $1.3 million of identifiable intangible assets from the Maison acquisition. As of December 31, 2021, there are no other intangible assets on the Company's balance sheet related to the Maison acquisition. 2021 vs. 2020 Full Year Results The Company reported net income (loss) of $(103.1) million, or $(6.18) per diluted share, for 2021 as compared to net income (loss) of $(78.2) million, or $(5.64) per diluted share, for 2020. The larger loss in 2021 was primarily the result of higher reinsurance costs and the lack of any income tax benefits in 2021. In 2020, we recorded $33.5 million of income tax benefit related to carrying back net operating loss to prior years, as previously disclosed. There was no such income tax benefit this year, as we had fully exhausted our ability to carry back any net operating losses into prior years. Catastrophe weather events and related impacts were the primary driver of losses in both years. These catastrophe losses represented an unprecedented level of activity in the two-year period, including winter storm Uri in 2021, which drove $27 million of net retained losses, partially due to gaps in excess-of loss reinsurance coverage stemming from the non-cascading portions of the tower following the multiple hurricanes during the second half of 2020, and due to the loss cap in the non-Florida quota-share treaty in place during 2021. Additionally, in 2021 we incurred approximately $25 million of reinstatement premiums and additional back-up purchases primarily related to the impacts from the six retention catastrophe events during the 2020/2021 treaty year. Non-GAAP Performance Measures Non-U.S. generally accepted accounting principles ("GAAP") measures do not replace the most directly comparable GAAP measures and we have included detailed reconciliations thereof on page 10. We exclude the after-tax (using our statutory income tax rate) effects of the following items from GAAP net income (loss) to arrive at adjusted operating income (loss): Net realized and unrealized gains (losses), including, but not limited to, gains (losses) associated with investments and early extinguishment of debt;Merger and acquisition, integration and other strategic costs and the amortization of specifically identifiable intangibles (other than value of business acquired);Impairment of intangibles;Income (loss) from initial adoption of new regulations and accounting guidance; andIncome (loss) from discontinued operations. We also exclude the pre-tax effect of the first bullet above from GAAP revenues to arrive at adjusted operating revenues. Management believes these non-GAAP performance measures allow for a better understanding of the underlying trend in our business, as the excluded items are not necessarily indicative of our operating fundamentals or performance. Similarly, we exclude accumulated other comprehensive income (loss) ("AOCI") from book value per share to arrive at book value per share, excluding AOCI. Conference Call Information The Company will hold an investor conference call at 11:00 AM (ET) Friday, March 4, 2022. The Company’s CEO, Michael Braun and its CFO, Ronald Jordan will discuss the financial results and review the outlook for the Company. Messrs. Braun and Jordan invite interested parties to participate in the conference call. Listeners interested in participating in the Q&A session may access the conference call as follows: Toll-Free Dial-in: (877) 303-6913 Conference ID: 6628816 A live webcast of the call will be available online via the “Presentations and Events” section of the Company’s website at FedNat.com or interested parties can click on the following link: http://www.fednat.com/investor-relations/investor-presentations/ Please call at least five minutes in advance to ensure that you are connected prior to the presentation. A webcast replay of the conference call will be available shortly after the live webcast is completed and may be accessed via the Company’s website. About the Company FedNat Holding Company is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and contractual relationships with independent agents and general agents. The Company, through its wholly owned subsidiaries FedNat Insurance Company and Monarch National Insurance Company, is focused on providing homeowners insurance in Florida. More information is available at https://www.fednat.com/investor-relations/. Forward-Looking Statements /Safe Harbor Statements Safe harbor statement under the Private Securities Litigation Reform Act of 1995: Statements that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,” “might,” “plan,” “possibly,” “potential,” “predict,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” or “will” or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. Forward-looking statements might also include, but are not limited to, one or more of the following: Projections of revenues, income, earnings per share, dividends, capital structure or other financial items or measures;Descriptions of plans or objectives of management for future operations, insurance products or services; Forecasts of future insurable events, economic performance, liquidity, need for funding and income; andDescriptions of assumptions or estimates underlying or relating to any of the foregoing. The risks and uncertainties include, without limitation, risks and uncertainties related to estimates, assumptions and projections generally; the nature of the Company’s business; the adequacy of its reserves for losses and loss adjustment expense; claims experience; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail) and other catastrophic losses; reinsurance costs, terms and availability, and the ability of reinsurers to indemnify the Company; our ability to raise additional capital and our compliance with minimum capital and surplus requirements; potential assessments that support property and casualty insurance pools and associations; the effectiveness of internal financial controls; the effectiveness of our underwriting, pricing and related loss limitation methods; changes in loss trends, including as a result of insureds’ assignment of benefits; court decisions and trends in litigation; our potential failure to pay claims accurately; ability to obtain regulatory approval applications for requested rate increases or rate increases already in use, or to underwrite in additional jurisdictions, and the timing thereof; the impact that the results of our subsidiaries’ operations may have on our results of operations; inflation and other changes in economic conditions (including changes in interest rates and financial markets); pricing competition and other initiatives by competitors; legislative and regulatory developments; the outcome of litigation pending against the Company, and any settlement thereof; dependence on investment income and the composition of the Company’s investment portfolio; insurance agents; ratings by industry services and debt rating agencies; the reliability and security of our information technology systems; reliance on key personnel; acts of war and terrorist activities; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including claims and litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a contingency. Reported results may therefore appear to be volatile in certain accounting periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We do not undertake any obligation to update publicly or revise any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Contacts Michael H. Braun, CEO (954) 308-1322, Ronald Jordan, CFO (954) 308-1363, Bernard Kilkelly, Investor Relations (954) 308-1409, or investorrelations@fednat.com FEDNAT HOLDING COMPANY AND SUBSIDIARIES Selected Financial Highlights (Dollars in thousands, except per share data) (Unaudited) As of or For the Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 % Change 2021 2020 % ChangeNet Income (Loss) Attributable to Common Shareholders Net income (loss) $(8,569) $(38,067) (77.5)% $(103,100) $(78,158) 31.9%Adjusted operating income (loss) (7,346) (31,978) (77.0)% (103,262) (77,281) 33.6% Per Common Share Net income (loss) – diluted $(0.49) $(2.77) (82.3)% $(6.18) $(5.64) 9.5%Adjusted operating income (loss) – diluted (0.42) (2.33) (81.9)% (6.19) (5.58) 10.9%Dividends declared — 0.09 (100.0)% — 0.36 (100.0)%Book value 3.40 11.53 (70.5)% 3.40 11.53 (70.5)%Book value, excluding AOCI 3.46 10.70 (67.6)% 3.46 10.70 (67.6) % Return to Shareholders Repurchases of common stock $— $— NCM $— $10,000 (100.0)%Dividends declared — 1,258 (100.0)% — 5,077 (100.0)% $— $1,258 (100.0)% $— $15,077 (100.0)% Revenue Total revenues $67,039 $84,829 (21.0)% $245,549 $431,863 (43.1)%Adjusted operating revenues 66,971 75,679 (11.5)% 243,957 413,831 (41.0)%Gross premiums written 157,282 168,393 (6.6)% 684,777 726,885 (5.8)%Gross premiums earned 172,972 181,979 (4.9) % 708,820 720,967 (1.7)%Net premiums earned 54,148 63,200 (14.3)% 183,303 364,134 (49.7)% Ratios to Net Premiums Earned Net loss ratio 88.0% 124.3% 127.0% 103.4% Net expense ratio 47.5% 63.8% 57.6% 40.5% Combined ratio 135.5% 188.1% 184.6% 143.9% In-Force Homeowners Policies Florida 160,000 207,000 (22.7)% 160,000 207,000 (22.7)%Non-Florida 120,000 154,000 (22.1)% 120,000 154,000 (22.1)% 280,000 361,000 (22.4)% 280,000 361,000 (22.4)% FEDNAT HOLDING COMPANY AND SUBSIDIARIES Consolidated Statement of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 Revenues: Net premiums earned $54,148 $63,200 $183,303 $364,134 Net investment income 1,678 2,149 6,770 11,786 Net realized and unrealized gains (losses) 68 9,150 11,017 18,032 Direct written policy fees 3,321 3,308 13,051 13,970 Other income 7,824 7,022 31,408 23,941 Total revenues 67,039 84,829 245,549 431,863 Costs and expenses: Losses and loss adjustment expenses 47,670 78,587 232,760 376,449 Commissions and other underwriting expenses 19,203 34,083 81,180 124,288 General and administrative expenses 6,501 6,179 24,355 23,420 Interest expense 2,307 1,916 8,758 7,661 Impairment of intangibles 1,280 11,699 1,280 11,699 Total costs and expenses 76,961 132,464 348,333 543,517 Income (loss) before income taxes (9,922) (47,635) (102,784) (111,654)Income tax expense (benefit) (1,353) (9,568) 316 (33,496)Net income (loss) $ (8,569) $ (38,067) $ (103,100) $ (78,158) Net Income (Loss) Per Common Share Basic $(0.49) $(2.77) $(6.18) $(5.64)Diluted (0.49) (2.77) (6.18) (5.64) Weighted Average Number of Shares of Common Stock Outstanding Basic 17,447 13,718 16,675 13,846 Diluted 17,447 13,718 16,675 13,846 Dividends Declared Per Common Share $— $0.09 $— $0.36 FEDNAT HOLDING COMPANY AND SUBSIDIARIES Selected Operating Metrics (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 (In thousands)Gross premiums written: Homeowners Florida $107,826 $104,777 $428,439 $444,576 Homeowners non-Florida 45,130 59,637 235,278 263,534 Federal flood 4,430 4,055 21,304 19,022 Non-core (104) (76) (244) (247)Total gross premiums written $157,282 $168,393 $684,777 $726,885 Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 (In thousands)Gross premiums earned: Homeowners Florida $107,164 $112,274 $434,120 $459,511 Homeowners non-Florida 60,580 65,121 254,740 244,192 Federal flood 5,332 4,660 20,204 17,511 Non-core (104) (76) (244) (247)Total gross premiums earned $172,972 $181,979 $708,820 $720,967 Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 (In thousands)Net premiums earned: Homeowners Florida $37,774 $39,940 $117,641 $230,567 Homeowners non-Florida 16,478 23,336 65,906 133,814 Non-core (104) (76) (244) (247)Total net premiums earned $54,148 $63,200 $183,303 $364,134 FEDNAT HOLDING COMPANY AND SUBSIDIARIES Selected Operating Metrics (continued) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 (In thousands)Commissions and other underwriting expenses: Homeowners Florida $10,854 $12,862 $47,817 $54,043 All others 12,354 11,595 48,672 49,384 Ceding commissions (21,099) (13,174) (77,090) (27,143)Total commissions 2,109 11,283 19,399 76,284 Fees 1,528 1,385 5,367 5,079 Salaries and wages 4,137 3,723 13,896 13,791 Other underwriting expenses 11,429 17,692 42,518 29,134 Total commissions and other underwriting expenses $19,203 $34,083 $81,180 $124,288 Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 Net loss ratio 88.0% 124.3% 127.0% 103.4%Net expense ratio 47.5% 63.8% 57.6% 40.5%Combined ratio 135.5% 188.1% 184.6% 143.9%Gross loss ratio 84.2% 150.6% 180.3% 144.2%Gross expense ratio 27.1% 29.4% 25.8% 24.3% FEDNAT HOLDING COMPANY AND SUBSIDIARIES Consolidated Balance Sheet (Unaudited) December 31, 2021 2020 ASSETS (In thousands)Investments: Debt securities, available-for-sale, at fair value (amortized cost of $324,861 and $473,126, respectively) $327,532 $488,210 Equity securities, at fair value 5,905 3,157 Total investments 333,437 491,367 Cash and cash equivalents 83,526 102,367 Prepaid reinsurance premiums 242,537 278,272 Premiums receivable, net of allowance of $125 and $233, respectively 41,174 50,803 Reinsurance recoverable, net of allowance of $249 and $65, respectively 613,203 413,026 Deferred acquisition costs, net 18,829 25,405 Current and deferred income taxes, net 30,014 35,035 Other assets 49,950 32,262 Total assets $1,412,670 $1,428,537 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Loss and loss adjustment expense reserves $739,135 $540,367 Unearned premiums 342,747 366,789 Reinsurance payable and funds withheld liabilities 102,748 202,827 Long-term debt, net of deferred financing costs of $2,195 and $1,317, respectively 118,805 98,683 Deferred revenue 5,240 7,187 Other liabilities 44,609 54,524 Total liabilities 1,353,284 1,270,377 Shareholders' Equity Preferred stock, $0.01 par value: 1,000,000 shares authorized — — Common stock, $0.01 par value: 50,000,000 shares authorized; 17,446,930 and 13,717,908 shares issued and outstanding, respectively 174 137 Additional paid-in capital 186,007 169,298 Accumulated other comprehensive income (loss) (1,034) 11,386 Retained earnings (deficit) (125,761) (22,661)Total shareholders’ equity 59,386 158,160 Total liabilities and shareholders' equity $1,412,670 $1,428,537 FEDNAT HOLDING COMPANY AND SUBSIDIARIES GAAP to Non-GAAP Reconciliations (Dollars in thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 Revenue Total revenues $67,039 $84,829 $245,549 $431,863 Less: Net realized and unrealized investment gains (losses) 68 9,150 1,592 18,032 Adjusted operating revenues $66,971 $75,679 $243,957 $413,831 Net Income (Loss) Net income (loss) $(8,569) $(38,067) $(103,100) $(78,158)Less: Net realized and unrealized investment gains (losses) 68 5,481 1,592 10,801 Acquisition and strategic costs 14 (130) (12) (171)Amortization of identifiable intangibles (25) (23) (138) (90)Impairment of intangibles (1,280) (11,417) (1,280) (11,417)Adjusted operating income (loss) $(7,346) $(31,978) $(103,262) $(77,281) Income tax rate assumed for reconciling items above —% 40.10% —% 40.10% Per Common Share Book value $3.40 $11.53 $3.40 $11.53 Less: AOCI (0.06) 0.83 (0.06) 0.83 Book value, excluding AOCI $3.46 $10.70 $3.46 $10.70
FNHC | globenewswire | about 4 years ago | Neutral

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Fednat Holding Co (FNHC)

FedNat Holding Company, together with its subsidiaries, engages in the insurance underwriting, distribution, and claims processing business in Florida, Louisiana, Texas, Georgia, South Carolina, Alabama, and Mississippi. The company is involved in the homeowners and casualty insurance; and personal automobile insurance businesses, as well as commercial general liability and federal flood businesses. It markets and distributes its own and third-party insurers' products, and other services through a network of independent and general agents. The company was formerly known as Federated National Holding Company and changed its name to FedNat Holding Company in May 2018. FedNat Holding Company was founded in 1991 and is based in Sunrise, Florida. On December 11, 2022, FedNat Holding Company, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Florida.

Exchange: NASDAQ

IPO Date: 11/5/1998

Sector: Financials

Industry: Insurance

Employees: 341

Address: 14050 N.W. 14th Street, Sunrise, FL, United States, 33323

https://www.fednat.com

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