FedNat

The financials from the listed Floridians show them plotting a path through challenges by exposure management and rate rises, but reinsurers are still picking up notable storm losses from this reinsurance-reliant group.

The carrier will put its Maison Insurance operations into run-off.

Strategic Review Committee chairman Bruce Simberg sets out the challenge ahead for FedNat as natural catastrophes continue to hit southern policyholders.

The company said claims adjusting fees from the event would offset the hit to its retention.

The insurer said it had "a tsunami of rate rolling onto the book".

The insurer reported a combined ratio of 283.5%, sharply worse than the 147.9% in Q2 2020.

The insurer has lifted its ceded premium ratio and noted tougher terms on low-lying all-perils coverage.

The insurer has benefited from recoveries from its captive after reworking its reinsurance treaty with the unit.

The company said adjustments to a previously reported loss related to ceded losses and commissions stemming from a quota share treaty with a captive reinsurer.

The offering ended up well below the $43mn size initially mooted, as the carrier turned to the public market after taking $41mn of losses from winter storm Uri.

Texas winter storm losses to spill over FedNat reinsurance retention.

The company will split out its Florida reinsurance tower and will cede Uri losses to reinsurers after facing six cat events in the past year.