FedNat Insurance

FedNat Insurance
Saturday, July 4, 2020

Reinsurance Program

FedNat Insurance Company, Monarch National Insurance Company and Maison Insurance Company

FedNat Insurance Company (“FNIC,” NAIC #10790), Monarch National Insurance Company (“Monarch National,” NAIC #15715) and Maison Insurance Company (“Maison,” NAIC #14568), are all admitted insurance carriers licensed to write homeowners insurance in all or some of the states of Florida, Louisiana, Texas, South Carolina, Alabama, Georgia, and Mississippi. The combined entity, FNIC, Monarch National and Maison, has a reinsurance program that affords approximately $1.9 billion of aggregate coverage, with a maximum single event limit of approximately $1.3 billion. This reinsurance program, at a cost of nearly $224.4 million, is designed to reimburse FNIC, Monarch National and Maison for losses incurred resulting from one or more catastrophic events, including hurricanes. FNIC’s per event pre-tax net retention is $20 million and we purchase a separate underlying reinsurance agreement to cover second event losses (hurricane only) for $18 million excess of $2 million for non-Florida and a second and third event layer that attaches at $10 million per event on a combined basis for FNIC Florida and Monarch National. Monarch National’s per event pre-tax net retention in Florida is $2 million and Maison’s per event pre-tax net retention is $5 million. Reinsurance is purchased to protect existing capital and reduce earnings volatility while significantly decreasing financial exposure to hurricanes.

FNIC, Monarch National and Maison all separately have a Financial Stability Rating of “A” which is “Exceptional” with Demotech, Inc.

Annual reinsurance agreements are effective July 1, 2019 through June 30, 2020
Reinsurance Company A.M. Best S&P
Arch Reinsurance Limited A+ A+
Allianz Risk Transfer A+ AA-
Allied World Assurance Company, Limited A A-
American Agricultural Insurance Company A NR
American Standard Insurance Company of Wisconsin A NR
Ariel Re Bda Limited/Argo Re Ltd. A NR
Ascot Reinsurance Company Limited A A+
Ascot Underwriting Inc./Lloyd’s Syndicate 1414 (ASC) A A+
AXIS Specialty Limited A+ A+
BGS Services (Bermuda) Limited/Lloyds Syndicate 2987 A A+
Chubb Tempest Reinsurance Ltd. A++ AA
Convex Insurance UK, Limited A- NR
Convex Re Limited A- NR
DaVinci Reinsurance Ltd. A A+
Endurance Specialty Insurance Ltd. A+ A+
Everest Reinsurance Company A+ A+
Fidelis Insurance Bermuda Limited A- NR
Fidelis Underwriting Limited A- NR
Fubon Insurance Co., Ltd. A A-
General Insurance Corporation of India A- NR
Hamilton Re, Ltd. A- NR
Hannover Rueck SE A+ AA-
Horseshoe Re Limited Collateralized* Collateralized*
Humboldt Re A- NR
Kelvin Re Limited A- NR
Lansforsakringar Sak Forsakringsaktiebolag NR A
Liberty Specialty Services Ltd (Paris)/Lloyd’s Syndicate 4472 A A+
Lloyd’s of London (multiple syndicates) A A+
Lumen Re Ltd. A NR
MS Amlin AG, Switzerland, Bermuda Branch A A
Munich Reinsurance America, Inc. A+ AA-
Nautical Management Ltd on behalf of Syndicate 2357 A A+
National Liability and Fire Insurance Company A++ AA+
Neon Underwriting Bermuda Limited/Lloyd’s Syndicate 2468 A A+
New India Assurance Company Limited, UK Branch A- NR
Odyssey Reinsurance Company A A-
Partner Reinsurance Company Limited A A+
Peak Reinsurance Company Ltd A- NR
Pioneer Underwriting Limited (UCCDF)/Taiping Reinsurance Co. Ltd A A
Pioneer Underwriting Limited/Cathay Century Delegated Facility NR A-
Pioneer Underwriting Ltd (Pioneer CAT USDF) / Peak Reinsurance Company Ltd A- NR
Qatar Reinsurance Company Limited A A
Renaissance Reinsurance Ltd. A+ A+
Satec Srl/New Reinsurance Company Ltd. A+ AA-
Third Point Reinsurance (USA) Ltd. A- NR
Transatlantic Reinsurance Company A+ A+
TransRe/General Reinsurance Corporation A++ AA+

*Collateralized means the reinsurance company has already pledged the full resources that FedNat Insurance and Monarch National may need in the event of a claim.

Please do not hesitate to contact our Underwriting Department with any further questions.