Florida-based FedNat Holding Company has estimated its aggregate gross liabilities as a result of Hurricane Florence, which it says will be paid out in the coming months, will be $4 million.
Based on preliminary post-landfall catastrophe model estimates, the company says the figure is well within its current non-Florida property catastrophe excess of loss first event reinsurance retention of $15 million.
FedNat Holding’s insurance subsidiary, FedNat Insurance Company, writes a small book of homeowners’ insurance in South Carolina, but has no exposure in North Carolina.
Monarch National Insurance Company, its second insurance subsidiary, has no exposure to Hurricane Florence as it currently writes homeowners’ insurance only in Florida.
FedNat Holding is deploying resources to policyholders affected by Florence, which has brought record-breaking levels of rainfall to the Carolinas since making landfall on Thursday night.
Furthermore, Any aggregate gross liabilities from Florence will be reduced by 50% after taking into account the profit sharing agreement that FedNat has with the non-affiliated managing general underwriter that writes its non-Florida property business, thereby decreasing estimated exposure to $2 million.
