Reinsurance News

FedNat CFO Jordan quits

18th May 2022 - Author: Pete Carvill

Ronald A. Jordan, CFO of troubled insurance company FedNat, has resigned from his role.

fednat-logoThe resignation of Jordan is the latest in a series of travails for the firm. A filing from the FedNat Holding Company announced that he has handed in his resignation, effective June 10th, 2022. The filing states the resignation was done on May 12.

Erick A. Fernandez, the chief accounting officer at FedNat, has stepped in to serve in Jordan’s role on an interim basis.

As our sister site reported earlier this week, the firm is aiming to reduce its scale and refocus its business on Florida, with a significant cancellation of Florida property insurance policies requested and potential sale and recapitalisation of its carrier Monarch as well, with new money set to come into the company.

This was to help the company secure its necessary reinsurance for the 2022 hurricane season, as it sought to downsize exposure, while recapitalising to win back its ratings and position the company more profitably on a go-forward basis.

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Earlier this month, the firm said that it was looking to downsize ahead of a reinsurance squeeze.

As Reinsurance News reported,  Michael H. Braun, CEO of Florida based primary insurer FedNat, revealed that the company was seeking to become ‘much smaller, with significantly fewer policies in force’ ahead of what it anticipated to be an extremely challenging mid-year renewal period.

Last month, leaders at FedNat cast doubts over the company’s ability to continue, after having its financial stability ratings (FSR) downgraded from an ‘A’ to ‘S’ by rating agency Demotech.

Almost a decade ago, FedNat embarked on its expansion outside of Florida, but losses outside of the state, notably in Louisiana and Texas, made this extremely challenging, leading the carrier to announce plans to revert to writing business only in Florida again towards the end of last year.

The company has recently posted a series of alarming results.

Its net loss widened to $31.3m in Q1 2022, compared with a loss of $19.4m for the same period last year, including an adjusted operating loss of $28.9m, versus $19.4m previously.

The company reported $31m of catastrophe claims, net of reinsurance recoveries and other offsets including affiliated fees, including $29m driven by eleven notable events that impacted Florida, Texas, Louisiana and South Carolina during Q1 2022 of which approximately $10m relates to non-Florida states.

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