FedNat Insurance

FedNat Insurance
Tuesday, May 21, 2019

Reinsurance Program

FedNat Insurance Company and Monarch National Insurance Company

FedNat Insurance Company (“FedNat Insurance”, NAIC #10790) is an admitted insurance carrier licensed to write homeowners insurance in the states of Florida, Alabama, Louisiana, Texas and South Carolina and Monarch National Insurance Company (“Monarch National”, NAIC #15715) is an admitted insurance carrier licensed to write homeowners insurance in the state of Florida. The combined entity, FedNat Insurance and Monarch National, has a reinsurance program that affords its policyholders approximately $1.81 billion of aggregate coverage, with a maximum single event limit of approximately $1.34 billion. This reinsurance program, at a cost of nearly $153 million, is designed to reimburse FedNat Insurance and Monarch National for losses incurred by our homeowner policyholders’ resulting from one or more catastrophic events, including hurricanes. FedNat Insurance’s per event pre-tax net retention in Florida is $20 million and we purchase a separate underlying reinsurance agreement to cover first event losses outside of Florida for $5 million excess of $15 million and second event losses (hurricane only) for $13 million excess of $2 million. Monarch National’s per event pre-tax net retention in Florida is $3 million. We utilize reinsurance to protect our existing capital and reduce our earnings volatility while significantly decreasing our financial exposure to hurricanes.

Both FedNat Insurance and Monarch National have a Financial Stability Rating of “A” which is “Exceptional” with Demotech, Inc.

Annual reinsurance agreements are effective July 1, 2018 through June 30, 2019
Reinsurance Company A.M. Best S&P
Allied World Assurance Company, Limited A g A-
American Agricultural Insurance Company A NR
American Standard Insurance Company of Wisconsin A r NR
Arch Reinsurance Limited A+ A+
Ariel Re Bda Limited/Argo Re Ltd. A NR
Aspen Bermuda Limited A A
AXIS Specialty Limited A+ A+
BGS Services (Bermuda) Limited/Lloyds Syndicate 2987 A A+
Chubb Tempest Reinsurance Ltd. A++ AA
DaVinci Reinsurance Ltd. A A+
Endurance Specialty Insurance Ltd. A+ A+
Everest Reinsurance Company A+ g A+
Fidelis Insurance Bermuda Limited A- NR
Greenlight Reinsurance Limited A- NR
Hamilton Re, Ltd. A- g NR
Hannover Rueck SE A+ AA-
Hiscox Insurance Company (Bermuda) Limited A g A
Humboldt Re A- NR
Kelvin Re Limited A- NR
Navigators Insurance Company A A
Neon Underwriting Bermuda Limited/Lloyd’s Syndicate 2468 A A+
Odyssey Reinsurance Company A A-
Partner Reinsurance Company Limited A A+
Qatar Reinsurance Company Limited A g A
Renaissance Reinsurance Ltd. A+ A+
Tokio Millennium Re AG A++ A+
Transatlantic Reinsurance Company A+ A+
TransRe/General Reinsurance Corporation A++ AA+
XL Bermuda Ltd A u A+
Ascot Underwriting (Bermuda) Limited (backed by AIG) A A+
Ascot Underwriting (CPPIB) A NR
China Reinsurance (Group) Corporation A g A
Lumen Re A NR
Fidelis Underwriting Limited A- g NR
Fubon Insurance Co., Ltd. A A-
Lansforsakringar Sak Forsakringsaktiebolag (publ) NR A
Liberty Specialty Services Ltd (Paris)/Lloyd’s Syndicate 4472 A A+
Lloyd’s Syndicate (multiple syndicates) A A+
MS Amlin AG, Switzerland, Bermuda Branch A A
New India Assurance Company Limited, UK Branch A- NR
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
Securis Capital (London) Collateralized* Collateralized*

*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.