|Over a week ago|
FedNat Holding reports Q1 EPS ($1.35), consensus ($1.07) » 17:3605/0405/04/21
Reports Q1 revenue…
Reports Q1 revenue $52.7M, two estimates $64.32M. Michael Braun, CEO, said "Our first quarter results were impacted by higher-than-expected catastrophe losses primarily from Winter Storm Uri which caused heavy residential damage in Texas in February. This winter storm was the sixth severe weather event to impact FedNat since July 1, which has resulted in challenging times for the Company financially. To meet these challenges, FedNat took action to conserve liquidity at the holding company and maintain appropriate capital positions at our insurance companies. FedNat recently completed two capital raising transactions which raised gross proceeds of $38M and purchased additional reinsurance coverage to help provide more protection and statutory surplus relief for our insurance companies. We continue to execute on our initiatives to improve the profitability of our homeowners business and build long-term value, including implementation of rate increases in both our Florida and non-Florida markets and reducing our Florida book of business until rates are more adequate. Based on the in-force book as of the fourth quarter of 2020, these rate increases would contribute over $90M in incremental gross earned premium in 2021 and over $230M of cumulative incremental premium in 2021 and 2022, as compared to 2020, when fully earned out in the first quarter of 2022. However, these multiple rate increases afford us the opportunity to hold our total in-force premiums flat while reducing our total policy counts and total insured values."
|Over a month ago|
FedNat Holding initiated with an Overweight at Piper Sandler » 06:0804/0504/05/21
Piper Sandler analyst…
Piper Sandler analyst Paul Newsome initiated coverage of FedNat Holding with an Overweight rating and $7 price target. At 41% of most recently reported book value and 53% of estimated Q1 book value taking into account losses from winter storm Uri, the stock trades at a "significant discount" to its five-year price to book average of 95% and its peer average of 120%, Newsome tells investors in a research note.
Federated National 3.5M share Secondary priced at $4.75 » 06:0503/1203/12/21
Piper Sandler acted as…
Piper Sandler acted as sole book running manager for the offering.
Federated National files to sell common stock, no amount given » 07:0403/0503/05/21
Piper Sandler & Co.…
Piper Sandler & Co. is acting as sole bookrunner for the proposed offering.
Federated National reports Q4 EPS ($1.96), consensus ($2.65) » 16:0803/0203/02/21
Reports Q4 revenue…
Reports Q4 revenue $85.2M, consensus $82.82M. Michael H. Braun, FedNat's Chief Executive Officer, said "FedNat's fourth quarter and full year 2020 results reflect the unprecedented impact of a record number of severe weather events, with 30 named storms including 12 named storms that made landfall in the U.S. I want to commend our staff, over 95% of which continues to work remotely, for their dedication and commitment to providing our policyholders and partner agents with the highest quality service in their time of need." Mr. Braun continued, "In the face of these challenges, FedNat's management team took action at year end to maintain appropriate capital positions at our insurance companies, while conserving liquidity at the holding company. These actions included purchasing additional reinsurance coverage to help provide more protection and statutory surplus relief for our insurance companies. As a result, we ended 2020 with RBC ratios in excess of 300% at our insurance companies and $59 million in liquidity at the holding company. We have continued our initiatives to improve the profitability of our homeowners business and build long-term value, including shrinking our book of business in Florida until rates more accurately reflect our increased costs of doing business as well as implementing multiple rate increases in both our Florida and non-Florida markets. These rate increases are expected to contribute
|Over a quarter ago|
Federated National downgraded to Market Perform from Outperform at Raymond James » 08:3511/0611/06/20
Raymond James analyst C.…
Raymond James analyst C. Gregory Peters downgraded Federated National to Market Perform from Outperform without a price target. Peters says the company missed his previously revised estimates and reported pre-tax catastrophe loss totaling ~$45M, with the majority of losses stemming from Hurricane Laura and Hurricane Sally. The company also announced the formation of a Strategic Review Committee to review strategic alternatives, Peters adds.
Federated National downgraded to Market Perform from Outperform at Raymond James » 06:1811/0611/06/20
Raymond James analyst C.…
Raymond James analyst C. Gregory Peters downgraded Federated National to Market Perform from Outperform.
Federated National reports Q3 EPS ($1.57), consensus ($1.37) » 16:1811/0411/04/20
Reports Q3 revenue…
Reports Q3 revenue $97.3M, consensus $89.99M. "FedNat's results in the third quarter were impacted by an elevated number of severe weather events during this year's hurricane season," said Mr. Michael H. Braun, FedNat's Chief Executive Officer. "Our strong reinsurance program and additional reinsurance purchases during the quarter enabled us to maintain over $140 million of capital in our insurance companies as of September 30, 2020 with liquidity over $60 million at the holding company." Mr. Braun continued, "We remain committed to proactively managing our capital while focusing for the remainder of 2020 and throughout 2021 on continuing to implement increased rates in our homeowners business in Florida and non-Florida markets. We are also restricting business and shrinking our book in Florida as appropriate until our rates meet our profitability targets. Based on rate increases we have already implemented in 2020 and anticipated rate increases in the balance of 2020 and in 2021, we expect to generate over $65 million in incremental additional premium in 2021 as compared to 2020."
Federated National forms strategic review committee » 16:1611/0411/04/20
FedNat Holding announced…
FedNat Holding announced that the Company's Board of Directors has formed a Strategic Review Committee, which will oversee a review of the Company's business plan, capital deployment, geographic footprint and long-term strategy to identify strategic alternatives in an effort to create enhanced value for the Company's stakeholders, in particular its shareholders. These strategic alternatives are not limited in their scope and could include, among other things, changes in the Company's strategy or operations, a strategic business combination or other possible transaction involving the Company, or continuing to execute on the Company's current business plan. The Strategic Review Committee has retained Piper Sandler & Co. as its financial advisor to assess all potential strategic alternatives. Bruce F. Simberg, FedNat's Chairman of the Board and Chairman of the Strategic Review Committee, said, "Similar to many homeowners insurers, FedNat's results have been impacted in 2020 by catastrophe losses from an unusually high number of severe weather events. In responding to these events, our management and employees have demonstrated FedNat's resiliency and commitment to policyholders, agents and reinsurance partners. FedNat believes it retains solid holding company liquidity, sufficient capital and the capability to continue to execute on our current business plan. The Company has implemented a number of strategies for long-term growth in earnings and book value, including initiatives to raise rates, reduce our policy counts in Florida until rates are adequate, and strengthening our management team with the addition of a new Chief Operating Officer and new Senior Vice President of Claims."
Federated National reports Q2 EPS ($1.57), consensus ($1.48) » 16:1608/0508/05/20
Reports Q2 revenue $134M,…
Reports Q2 revenue $134M, consensus $111.35M. Our second quarter results were impacted by a high number of severe weather events in Florida, and across the Southeast, including fourteen industry events, which included Tropical Storm Cristobal," said Mr. Michael H. Braun, FedNat' s Chief Executive Officer. "The claims environment in the Florida homeowners market continues to be challenging, and as a result we decided to proactively strengthen our property reserves for the 2019 accident year. We are also taking action to mitigate the difficult claims environment by continuing to raise rates and restrict new business in Florida until our rates more accurately reflect our increased cost of doing business primarily as a result of claims severity and reinsurance costs. The profitability of our non-Florida homeowners business, excluding the impact of these recent severe weather events, continues to meet our expectations and we remain focused on our long-term growth strategy of expanding profitably in more attractive coastal homeowners markets outside of Florida." Mr. Braun continued, "FedNat's balance sheet and capital structure remain solid, which will enable us to continue providing best in class service to our policyholder and agents while maintaining our commitment to returning capital to our shareholders through our dividend and opportunistic share repurchases, based on the needs of our company and the market price of our shares. We commend the dedication and hard work of our employees, who remain focused on ensuring FedNat's commitment to providing the highest quality service to our policyholders and trusted agents, especially during these challenging times where 95% of our staff is working remote."