Federated National Holding Company Authorizes $10 Million Share Repurchase Program
November 29 2016 - 9:15AM
Federated National Holding Company (the “Company”) (NASDAQ:FNHC),
an insurance holding company, announced today that its Board of
Directors authorized an additional share repurchase program under
which the Company may repurchase up to an additional $10 million of
its outstanding shares of common stock through March 1, 2017.
The Company may repurchase shares in open market transactions or
under Rule 10b5-1 trading plans from time to time in its
discretion, based on ongoing assessments of the Company’s capital
needs, the market price of its common stock and general market
conditions. The Company will fund the share repurchase
program with cash from operations.
Share repurchases may be made by the Company
from time to time in open market transactions at prevailing market
prices or under one or more trading plans adopted to comply with
Rule 10b5-1 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). The Company will carry out all such
repurchase transactions in compliance with Rule 10b-18 under the
Exchange Act.
About the Company
The Company is authorized to underwrite, and/or
place through our wholly owned subsidiaries, homeowners’
multi-peril (“homeowners”), commercial general liability, federal
flood, personal auto and various other lines of insurance in
Florida and various other states. The Company also serves as
managing general agent for its joint venture, Monarch National
Insurance Company. The Company markets and distributes its
own and third-party insurers’ products and our other services
through a network of independent agents. The Company also utilizes
a select number of general agents for the same purpose.
Forward-Looking Statements/Safe Harbor
Statements
Safe harbor statement under the Private
Securities Litigation Reform Act of 1995:
Statements that are not historical fact are
forward-looking statements that are subject to certain risks and
uncertainties that could cause actual events and results to differ
materially from those discussed herein. Without limiting the
generality of the foregoing, words such as “anticipate,” “believe,”
“budget,” “contemplate,” “continue,” “could,” “envision,”
“estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,”
“might,” “plan,” “possibly,” “potential,” “predict,” “probably,”
“pro-forma,” “project,” “seek,” “should,” “target,” or “will” or
the negative thereof or other variations thereon and similar words
or phrases or comparable terminology are intended to identify
forward-looking statements.
Forward-looking statements might also include,
but are not limited to, one or more of the following:
- Projections of revenues, income, earnings per share, dividends,
capital structure or other financial items or measures;
- Descriptions of plans or objectives of management for future
operations, insurance products/or services;
- Forecasts of future insurable events, economic performance,
liquidity, need for funding and income; and
- Descriptions of assumptions or estimates underlying or relating
to any of the foregoing.
The risks and uncertainties include, without
limitation, risks and uncertainties related to estimates,
assumptions and projections generally; the nature of the Company’s
business; the adequacy of its reserves for loss and loss adjustment
expense; claims experience; weather conditions (including the
severity and frequency of storms, hurricanes, tornadoes and hail)
and other catastrophic losses; reinsurance costs and the ability of
reinsurers to indemnify the Company; raising additional capital and
our potential failure to meet minimum capital and surplus
requirements; potential assessments that support property and
casualty insurance pools and associations; the effectiveness of
internal financial controls; the effectiveness of our underwriting,
pricing and related loss limitation methods; changes in loss
trends, including as a result of insureds’ assignment of benefits;
court decisions and trends in litigation; our potential failure to
pay claims accurately; ability to obtain regulatory approval
applications for requested rate increases, or to underwrite in
additional jurisdictions, and the timing thereof; the impact that
the results of the Monarch joint venture may have on our results of
operations; inflation and other changes in economic conditions
(including changes in interest rates and financial markets);
pricing competition and other initiatives by competitors;
legislative and regulatory developments; the outcome of litigation
pending against the Company, and any settlement thereof; dependence
on investment income and the composition of the Company’s
investment portfolio; insurance agents; ratings by industry
services; the reliability of our information technology systems;
reliance on key personnel; acts of war and terrorist activities;
and other matters described from time to time by the Company in
releases and publications, and in periodic reports and other
documents filed with the United States Securities and Exchange
Commission. In addition, investors should be aware that
generally accepted accounting principles prescribe when a company
may reserve for particular risks, including claims and litigation
exposures. Accordingly, results for a given reporting period could
be significantly affected if and when a reserve is established for
a contingency. Reported results may therefore appear to be volatile
in certain accounting periods.
Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date on which they are made. We do not undertake any
obligation to update publicly or revise any forward-looking
statements to reflect circumstances or events that occur after the
date the forward-looking statements are made.
CONTACT: Michael H. Braun, CEO (954) 308-1322
or Erick A. Fernandez, Interim CFO (954) 308-1341
Federated National Holding Company
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