FedNat Holding Company, formerly known as Federated National Holding Company, has rebranded Federated National Insurance Company, its largest insurance subsidiary, under the FedNat name, and has agreed to the terms of its new smaller quota share reinsurance programme for 2018-2019.
The subsidiary, now known as FedNat Insurance Company (FNIC), changed its name after recently receiving approval from the Florida Office of Insurance Regulation, as well as from shareholders at the company’s annual meeting.
Michael H. Braun, Chief Executive Officer (CEO) and President of FedNat Holding Company, said: “We are excited with our name change which will match our branding initiative which includes aligning our holding company, largest insurance company and our managing general agency with the same FedNat name that our partner agents and staff have known us by for a long time.
“Our mission remains the same which is to provide best-in-class service to our policyholders and partner agents while providing an appropriate return to our shareholders.”
Additionally, the company’s new quota share reinsurance programme, approved by FedNat Holding, will provide a 2% quota share on FNIC’s Florida homeowners book of business, and will be effective from July 1, 2018 on an in-force, new and renewal basis excluding named storms.
This agreement represents a reduction to the company’s existing 10% quota share programme, which expires on the same date on a cut-off basis, meaning the reinsurer will not be liable for losses as a result of occurrence after this date, and the unearned premium previously ceded will return to FNIC.
The new arrangement will also grant FNIC the flexibility to increase or decrease the cession percentage up to three times during the term of the programme.
FNIC’s quota share reinsurance programme is one of the means by which the company reinsures a portion of its written premiums to limit its loss exposures.
Through its wholly owned subsidiaries, FedNat Holding Company underwrites and places homeowners multi-peril, federal flood and other lines of insurance in Florida and other states, distributing products through a network of independent and general agents.