FedNat

This would become an event of default under the company's outstanding $100mn senior unsecured notes due 2029 and $21mn convertible notes due 2026 if not discharged within 60 days.

Loss creep from Hurricane Ida has led to the loss and an increase in loss reserves.

Demotech earlier warned that more than 15 possible carrier downgrades could come in July.

Board member David Patterson took on the role on an interim basis, while Monarch has recruited a new CFO who previously served at Security First.

Group chief accounting officer Erick Fernandez will step in as an interim.

The company previously had its Demotech rating downgraded from 'A' to 'S'.

The company cited its continued Q1 2022 underwriting losses and recent rating downgrade.

The Floridian carrier must improve its financial strength rating ahead of its 1 July reinsurance renewal.

The downgrade was attributed to weather claims from Louisiana and Texas following the company’s expansion into those markets.

Net income was impacted by $4.4mn of reserve strengthening, net of reinsurance recoveries.

The Floridian carrier recorded $8.1mn cat losses net of reinsurance compared with $27.9mn a year earlier.

Just under half of the $8mn cat losses stem from insurance books FedNat is running off, with reserve strengthening impacted by 2020 reinsurance gaps.

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.