FedNat
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Group chief accounting officer Erick Fernandez will step in as an interim. -
The company previously had its Demotech rating downgraded from 'A' to 'S'.
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The company cited its continued Q1 2022 underwriting losses and recent rating downgrade.
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The Floridian carrier must improve its financial strength rating ahead of its 1 July reinsurance renewal.
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The downgrade was attributed to weather claims from Louisiana and Texas following the company’s expansion into those markets.
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Net income was impacted by $4.4mn of reserve strengthening, net of reinsurance recoveries.
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The Floridian carrier recorded $8.1mn cat losses net of reinsurance compared with $27.9mn a year earlier.
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Just under half of the $8mn cat losses stem from insurance books FedNat is running off, with reserve strengthening impacted by 2020 reinsurance gaps.
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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.
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The carrier will put its Maison Insurance operations into run-off.
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Strategic Review Committee chairman Bruce Simberg sets out the challenge ahead for FedNat as natural catastrophes continue to hit southern policyholders.
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The company said claims adjusting fees from the event would offset the hit to its retention.
