Crosswinds Holdings’ subsidiary Crosswinds Investor Monarch (CIML) has entered into an agreement to sell all of its Monarch Delaware interests to its joint venture partner, Federated National, for an aggregate purchase price of $12.28 million.
In its capacity as a limited CIML partner, Crosswinds will receive about $10.5 million of the proceeds from the transaction.
Subject to completion of the purchaser’s financing and receipt of regulatory approval, it is expected that the deal will close in the first-quarter of 2018.
As part of the deal, Crosswinds Re will be granted a right of first refusal to write up to $10 million of limit on reinsurance business with Federated National, at market terms and rates, during 2018.
In addition, Crosswinds or an affiliate of Crosswinds, will receive a one year advisory engagement permitting it to earn $300,000 in fees.
The existing investment management agreement with Crosswinds’ subsidiary, Crosswinds AUM LLC, would terminate on closing of the transaction.
Crosswinds has granted exclusivity to Federated National from the date of the agreement to the earlier of closing or termination of the deal, subject to certain terms and conditions.
The transaction remains subject to regulatory approval from the Florida Office of Insurance Regulation.
