FedNat Holding subsidiaries FedNat Insurance and Monarch Insurance have entered into contracts with Florida’s State Board of Administration (SBA) that will reimburse both firms for covered property losses under their respective homeowners’ insurance policies resulting from hurricanes in the State between 1 June 2019 and 31 May 2020.
The SBA is the agency that administers the Florida Hurricane Catastrophe Fund (FHCF).
Under FedNat Insurance’s contract, the FHCF will provide approximately $539.7 million (75% of $719.7 million) of aggregate seasonal coverage for covered losses in excess of approximately $255.1 million subject to a 25% participation by FedNat Insurance.
FedNat Insurance’s premium for the FHCF reinsurance coverage will be approximately $38.7 million.
Under the contract for Monarch, the FHCF will provide approximately $17.4 million (75% of $23.2 million) of aggregate seasonal covered losses in excess of approximately $8.3 million subject to a 25% participation by Monarch.
Monarch’s premium for the FHCF reinsurance coverage will be approximately $1.25 million.
The Contracts are payable in three premium instalments due August 1, 2019, October 1, 2019, and December 1, 2019.
The actual attachment points, total coverages and costs may vary as FedNat and Monarch continue to write new and renewal business and will not be finalised until December 31, 2019.
