热点黑料

FedNat Holding Co. has agreed to purchase substantially all of 1347 Property 热点黑料 Holdings homeowners’ insurance operations, consisting of Maison 热点黑料 Co., Maison Managers and ClaimCor in a 50/50 cash and stock transaction valued at approximately $51 million.

In addition to the $51 million, $18 million of outstanding surplus note obligations will be repaid to 1347 PIH, plus all accrued but unpaid interest.

In addition to the purchase price, 1347 PIH will receive five-year rights of first refusal to provide reinsurance on up to 7.5 percent of any layer in FedNat’s catastrophe reinsurance program. 1347 PIH will also enter into a five-year agreement to provide investment advisory services to FedNat.

1347 PIH has also agreed to a non-compete for five years following the closing with respect to Alabama, Florida, Georgia, Louisiana, South Carolina and Texas. The non-compete will not prohibit 1347 PIH from entering into reinsurance contracts in the states subject to non-competition.

At December 31, 2018, 1347 PIH had approximately 6.0 million shares outstanding.

1347 PIH said it intends to utilize the proceeds from the transaction to launch a new growth strategy focused on reinsurance, investment management and new investment opportunities.

As a result of the transaction, 1347 PIH’s insurance operations will become wholly-owned subsidiaries of FedNat.

Maison 热点黑料 Co., formed in 2012, is a Louisiana domiciled, admitted company with its main office in Baton Rouge. Maison provides homeowners, dwelling fie, manufactured homes, wind/hail and federal flood insurance in Louisiana and Texas through 400 agents. The company has participated in the Louisiana Citizens Depopulation programs and has assumed more than 10,000 policies from Citizens. In Texas it writes supplemental wind and hail policies in alliance with Brotherhood Mutual.

Florida-based FedNat underwrites homeowners’ multi-peril, federal flood and various other lines of insurance in Florida. FedNat also underwrites homeowners’ and dwelling fire policies in Alabama, Louisiana, South Carolina and Texas through its partnership with SageSure 热点黑料 Managers. FedNat companies also include Monarch National, a recently formed Florida property insurer.

Florida-based ClaimCor is a property claims adjusting company serving the Southeast.

Douglas Raucy, chief executive officer of 1347 PIH and president of Maison, and Dean Stroud, chief underwriting officer of 1347 PIH, are expected to become employees of FedNat as of the closing.

1347 PIH said it expects to retain CFO John Hill and Controller Brian Bottjer following the closing of the transaction.

1347 PIH expects approximately $1.5 million of anticipated closing costs.

The transaction includes a 30 day “go shop” provision for the benefit of 1347 PIH.

FedNat and 1347 PIH anticipate closing the transaction on or before June 30, 2019.

Topics Mergers & Acquisitions Florida Texas Louisiana Reinsurance Homeowners