About FedNat Holding

FedNat Holding Company operates as a regional insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through its subsidiaries and contractual relationships with independent agents and general agents. The company, through its wholly owned subsidiaries, is authorized to underwrite, and/or place homeowners multi-peril (homeowners), federal flood and other lines of insurance in Florida and other states. The company markets, distributes and services its own and third-party insurers’ products and other services through a network of independent and general agents. FedNat Insurance Company (FNIC), the company’s largest wholly-owned insurance subsidiary, is licensed as an admitted carrier to write homeowners property and casualty insurance by the state insurance departments in Florida, Louisiana, Texas, South Carolina, Alabama, Georgia, and Mississippi. Maison Insurance Company (MIC or Maison), an insurance subsidiary that the company acquired on December 2, 2019, is licensed as an admitted carrier to write homeowners property and casualty insurance, as well as wind/hail only exposures by the state insurance departments in Louisiana, Texas, and Florida. Monarch National Insurance Company (MNIC), an insurance subsidiary, is licensed to write homeowners property and casualty insurance in Florida. The company, through its wholly-owned subsidiary, FedNat Underwriters, Inc. (FNU), serves as managing general agent for FNIC, MIC, and MNIC. ClaimCor, LLC (ClaimCor), a wholly-owned subsidiary, is a claims solutions company that processes claims for FNIC, MIC and MNIC. Material Distribution Relationships The company is a party to an insurance agency master agreement with Ivantage Select Agency, Inc. (ISA), an affiliate of Allstate Insurance Company (Allstate), pursuant to which the company has been authorized by ISA to appoint Allstate agents to offer its homeowners insurance products to consumers in Florida. The company is a party to a managing general underwriting agreement with SageSure Insurance Managers, LLC (SageSure) in which they underwrite the company’s FNIC homeowners business outside of Florida. Insurance Lines of Business Homeowners Property and Casualty Insurance FNIC, MIC and MNIC underwrite homeowners insurance in Florida and FNIC and MIC also underwrites homeowners insurance in Louisiana and Texas, while FNIC also underwrites homeowners in South Carolina, Alabama and Mississippi. Homeowners insurance generally protects an owner of real and personal property against covered causes of loss to that property. As of December 31, 2021, the total homeowners policies in-force was 280,000, of which 160,000 were in Florida and 120,000 were outside of Florida. Florida The company’s homeowners insurance products provide maximum dwelling coverage of approximately $3.6 million, with the aggregate maximum policy limit being approximately $6.3 million. The company offers dwelling coverage ‘A’ up to $4.0 million with an aggregate total insured value of $6.5 million. The company, through MIC, has assumed Florida policies through the state-run insurer Citizens Property Insurance Corporation (Citizens). Non-Florida The company’s FNIC non-Florida homeowners insurance products, produced through its partnership with SageSure, provide maximum dwelling coverage ‘A’ up to $1.8 million, with the aggregate maximum policy limit being approximately $3.5 million. The company’s MIC non-Florida insurance products include homeowners insurance, manufactured home insurance and dwelling fire insurance. MIC writes both full peril property policies, as well as wind/hail only exposures. Other Lines of Business Flood: FNIC writes flood insurance through the National Flood Insurance Program (NFIP). The company writes the policy for the NFIP, which assumes 100% of the flood risk while it retains a commission for its service. FNIC offers this line of business in Florida, Louisiana, Texas, Alabama, South Carolina, and Mississippi. FNIC plans to file an admitted flood endorsement as an alternative to the NFIP program. Until December 2021, MIC wrote flood insurance through a partnership with Bintech Partners, Inc. who assumes 100% of the risk, in Louisiana only. Marketing and Distribution The company’s independent agents and general agents have the authority to sell and bind insurance coverage in accordance with procedures established by FNU. FNU generally accepts all coverage that falls within stated underwriting criteria. The company markets its products and services throughout Florida by establishing relationships with independent agents and general agents. Competition Three of the company’s larger competitors in Florida are Citizens, Universal Property and Casualty Insurance Company, and Heritage Property and Casualty Insurance Company. History The company was founded in 1991. It was formerly known as 21st Century Holding Company and changed its name to Federated National Holding Company in 2012 and to FedNat Holding Company in 2018.