FedNat Holding Company (the “Company”) (Nasdaq: FNHC) today
reported results for the three months ended March 31, 2020.
Q1 2020 highlights (as measured against the same three-month
period last year, except where noted):
- Net income of $2.1 million or $0.15 per diluted share as
compared to net loss of $3.9 million or $0.30 per diluted
share.
- Adjusted operating income of $4.3 million or $0.30 per diluted
share as compared to adjusted operating loss of $2.4 million or
$0.19 per diluted share.
- $8.7 million of claims, net of recoveries, pre-tax, from
several wind, thunderstorms and hail related weather events,
impacting Florida, Texas and Louisiana.
- 30.8% increase in gross written premiums to $173.0 million,
including $17.6 million from Maison.
- Net premiums earned increased 19.3% or $17.1 million, to $105.9
million, including $14.3 million from Maison.
- Combined ratio of 105.3%, down 8.9 points, including 8.2 points
of net catastrophe losses in the period.
- Quarter-end Florida homeowners in-force policies decreased 1.6%
to approximately 240,000, reflecting execution of our strategy to
limit our exposure in this market.
- 169% increase in non-Florida homeowners in-force policies to
approximately 140,000, in-line with our diversification strategy to
grow homeowners policies outside of Florida.
- Book value per share decreased $0.10, or 0.6%, to $17.15 as
compared to $17.25 as of December 31, 2019, due primarily to
unrealized losses on our fixed-income portfolio of $0.29 per share
and dividends declared of $0.09 per share, partially offset by
repurchases of stock of $0.17 per share and net income of $0.15 per
share.
- Repurchased 523,583 shares of common stock, at a discount to
book value per share, at a total cost of $6.8 million during the
first quarter of 2020.
Please note that the Company will hold its investor conference
call at 11:00 AM (ET) Wednesday, May 6, 2020.
“Our team drove improved results in the first quarter of 2020,
demonstrating resilience as we navigate these uncertain times, in
which we are all operating,” said Mr. Michael H. Braun, the
Company’s Chief Executive Officer. “We are pleased with our
non-Florida market expansion strategy, which performed well this
quarter and was bolstered by the performance of Maison, our recent
acquisition. We are holding our in-force premium level steady in
the Florida market, while continuing to proactively take additional
rate increases as we employ our rigorous underwriting practices
amidst challenging market conditions. Our growth initiatives
continue to focus outside of our home state until our Florida
pricing more accurately reflects our increased costs of doing
business, which we anticipate being later this year. We ended the
first quarter with over $123 million in cash and cash equivalents
and entered the second quarter with a solid, efficient capital
structure. Additionally, we continued our commitment to return
capital to shareholders, purchasing over $6.8 million of shares in
the first quarter and an additional $3.2 million subsequent to
quarter end. As we look ahead, FedNat remains focused on providing
the highest quality service to our policyholders and our trusted
agents. We have implemented procedures that are intended to
prioritize the safety and health of our employees while also
remaining focused on the needs of our insureds.”
Revenues
- Total revenue increased $14.5 million or 14.3%, to $115.7
million for the three months ended March 31, 2020, compared
with $101.2 million for the three months ended March 31, 2019.
The increase was driven by net premiums growth, including the
effect of the acquisition of Maison, partially offset by net
investment losses, all of which are discussed below.
- Gross premiums written increased $40.8 million, or 30.8%, to
$173.0 million in the quarter compared with $132.2 million for the
same three-month period last year. Gross premiums written increased
due to organic non-Florida growth, and $17.6 million from Maison,
96% of which was non-Florida. Our organic non-Florida business
continues to show exceptional growth year over year, especially in
the state of Texas, which has allowed us to leverage our
infrastructure and diversify insurance risk. Overall, Homeowners
grew 31.1%.
- Gross premiums earned increased $37.2 million, or 26.9%, to
$175.6 million for the three months ended March 31, 2020, as
compared to $138.4 million for the three months ended
March 31, 2019. The higher gross premiums earned was primarily
driven by continued non-Florida growth, including $19.8 million
from the acquisition of Maison.
- Ceded premiums increased $20.1 million, or 40.5%, to $69.7
million in the quarter, compared to $49.6 million the same
three-month period last year. The increase was driven by higher
gross earned premiums, including Maison, as well as an increase in
our excess of loss reinsurance spend.
- Net investment income increased $0.2 million, or 4.9%, to $3.9
million during the three months ended March 31, 2020, as
compared to $3.7 million during the three months ended
March 31, 2019. The increase was primarily due to fixed income
portfolio growth from the Maison acquisition.
- Net realized and unrealized investment gains (losses) decreased
$5.1 million, to $(2.8) million for the three months ended
March 31, 2020, compared to $2.3 million in the prior year
period. We recognized $(3.3) million and $2.3 million in unrealized
investment gains (losses) for equity securities during these
respective periods. The unrealized losses for the current year was
due to market volatility and declining economic conditions
resulting from COVID-19.
- Direct written policy fees increased $1.1 million, or 45.0%, to
$3.5 million for the three months ended March 31, 2020, as compared
to $2.4 million during the three months ended March 31, 2019.
The increase is primarily driven by the fees associated with
Maison’s premiums and, to a lesser extent, organic non-Florida
growth.
- Other income increased $1.3 million, or 31.0%, to $5.3 million
in the quarter, compared with $4.0 million in the same three-month
period last year. The increase in other income was primarily driven
by higher brokerage revenue. The brokerage revenue increase is the
result of higher excess of loss reinsurance spend from the
reinsurance programs in place during the first quarter of 2020 as
compared to the first quarter of 2019.
Expenses
- Losses and loss adjustment expenses (“LAE”) increased $2.1
million, or 3.1%, to $68.9 million for the three months ended
March 31, 2020, compared with $66.8 million for the same
three-month period last year. The net loss ratio decreased 10.2
percentage points, to 65.1% in the current quarter, as compared to
75.3% in the first quarter of 2019. The lower loss ratio was
primarily the result of lower weather-related net losses when
comparing the periods, as 2020 included $10.4 million, net of
reinsurance (of which, $3.5 million non-Florida losses were subject
to a 50% profit-sharing agreement) and 2019 included $19.0 million
from the Brevard hail storm. Additionally, higher gross premiums
earned volume drove approximately $10.0 million of higher losses as
compared to 2019.
- The net expense ratio increased 1.3 percentage points to 40.2%
in the first quarter of 2020, as compared to 38.9% in the first
quarter of 2019. Commissions and other underwriting expenses
increased $8.2 million, or 28.8%, to $36.4 million for the three
months ended March 31, 2020, compared with $28.2 million for
the three months ended March 31, 2019. The increase was driven
by higher non-Florida acquisition related costs as a result of
premium growth.
- Interest expense decreased $3.2 million to $1.9 million for the
three months ended March 31, 2020, compared with $5.1 million
in the prior year period, which included $3.6 million of prepayment
fees, including the write-off of remaining debt issuance costs.
This decline was partially offset by the fact that our March 2019
debt offering was only outstanding for a portion of 1Q19.
Stock Repurchase Program
- During the first quarter of 2020, the Company repurchased
523,583 shares of common stock for $6.8 million at an average price
per share of $12.89. As of May 1, 2020, the Company has repurchased
276,652 shares of common stock for $3.2 million at an average price
per share of $11.75 in the second quarter of 2020.
Subsequent Events
- In the month of April 2020, five catastrophe events were
cataloged by Property Claim Services in the states in which the
Company writes property business. These events consisted of hail
and wind related storms in the states of Texas, Louisiana, Florida
and other states. As of the date of this release, we have 1,417
reported claims and $15.2 million gross incurred losses across all
of our states that we do business in and across all three insurance
carriers for these five severe weather events. Additionally, $6.3
million of the total $15.2 million gross incurred losses are from
FedNat Insurance Company’s non-Florida business, which will be
subject to a 50% profit-sharing arrangement with the non-affiliated
managing general underwriter that writes this business. Due
to the recency of these events, the Company has not yet produced an
estimate on the full financial impact of these severe weather
events. An elevated level of severe weather events is not uncommon
in the southeast United States during the second quarter.
Consistent with our past practice, we anticipate providing our
estimated ultimate catastrophe losses after June 30, 2020.
- Refer to the March 31, 2020 Form 10-Q for further information
on these events.
Non-GAAP Performance Measures
Non United States generally accepted accounting principles
("GAAP") measures do not replace the most directly comparable GAAP
measures and we have included detailed reconciliations thereof on
page 10.
We exclude the after-tax (using our statutory income tax rate)
effects of the following items from GAAP net income (loss) to
arrive at adjusted operating income (loss):
- Net realized and unrealized gains (losses), including, but not
limited to, gains (losses) associated with investments and early
extinguishment of debt;
- Acquisition, integration and other costs and the amortization
of specifically identifiable intangibles (other than value of
business acquired);
- Impairment of intangibles;
- Income (loss) from initial adoption of new regulations and
accounting guidance; and
- Income (loss) from discontinued operations.
We also exclude the pre-tax effect of the first bullet above
from GAAP revenues to arrive at adjusted operating revenues.
Management believes these non-GAAP performance measures allow
for a better understanding of the underlying trend in our business,
as the excluded items are not necessarily indicative of our
operating fundamentals or performance.
Similarly, we exclude accumulated other comprehensive income
(loss) ("AOCI") from book value per share to arrive at book value
per share, excluding AOCI.
Conference Call Information
The Company will hold an investor conference call at 11:00 AM
(ET) Wednesday, May 6, 2020. The Company’s CEO, Michael Braun and
its CFO, Ronald Jordan will discuss the financial results and
review the outlook for the Company. Messrs. Braun and Jordan invite
interested parties to participate in the conference call.
Listeners interested in participating in the Q&A session may
access the conference call as follows:
Toll-Free Dial-in: (877) 303-6913
Conference ID: 3582987
A live webcast of the call will be available online via the
“Conference Calls” section of the Company’s website at FedNat.com
or interested parties can click on the following link:
http://www.fednat.com/investors/conference-calls/
Please call at least five minutes in advance to ensure that you
are connected prior to the presentation. A webcast replay of the
conference call will be available shortly after the live webcast is
completed and may be accessed via the Company’s website.
About the Company
The Company is an insurance holding company that controls
substantially all aspects of the insurance underwriting,
distribution and claims processes through our subsidiaries and
contractual relationships with independent agents and general
agents. The Company, through our wholly owned subsidiaries, are
authorized to underwrite, and/or place homeowners multi-peril,
federal flood and other lines of insurance in Florida and other
states. We market, distribute and service our own and third-party
insurers’ products and other services through a network of
independent and general agents.
The Company presents users with data related to different
aspects of our business to afford users greater transparency into
our results. Homeowners Florida consists of data related to our
homeowners and fire property and casualty insurance business, which
currently operates in Florida. Homeowners non-Florida consists of
data related to our homeowners and fire property and casualty
insurance business, which currently operates in Alabama, Louisiana,
South Carolina, Texas and Mississippi. Non-core consists of
financial information related to nonstandard personal automobile
insurance business which operated in Florida, Georgia, Texas and
Alabama and our commercial general liability insurance
business.
Forward-Looking 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 or
other variations thereof, 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 losses 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 compliance with 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 our subsidiaries’ operations 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 and security 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.
Contacts
Michael H. Braun, CEO (954) 308-1322,Ronald
Jordan, CFO (954) 308-1363,Bernard Kilkelly, Investor Relations
(954) 308-1409,or investorrelations@fednat.com
FEDNAT HOLDING COMPANY AND SUBSIDIARIESSelected
Financial Highlights(Dollars in thousands, except per share
data)(Unaudited)
|
|
As of or For the |
|
|
Three Months Ended |
|
|
2020 |
|
2019 |
|
% Change |
Net Income (Loss)
Attributable to Common Shareholders |
|
|
|
|
|
|
Net income (loss) |
|
$ |
2,133 |
|
|
$ |
(3,865) |
|
|
(155.2) |
% |
Adjusted operating income
(loss) |
|
4,320 |
|
|
(2,394) |
|
|
(280.5) |
% |
|
|
|
|
|
|
|
Per Common
Share |
|
|
|
|
|
|
Net income (loss) -
diluted |
|
$ |
0.15 |
|
|
$ |
(0.30) |
|
|
(149.3) |
% |
Adjusted operating income
(loss) - diluted |
|
0.30 |
|
|
(0.19) |
|
|
(261.3) |
% |
Dividends declared |
|
0.09 |
|
|
0.08 |
|
|
NCM |
|
Book value |
|
17.15 |
|
|
16.98 |
|
|
1.0 |
% |
Book value, excluding
AOCI |
|
16.70 |
|
|
16.73 |
|
|
(0.2) |
% |
|
|
|
|
|
|
|
Return to
Shareholders |
|
|
|
|
|
|
Repurchases of common
stock |
|
$ |
6,750 |
|
|
$ |
— |
|
|
NCM |
|
Dividends declared |
|
1,302 |
|
|
1,041 |
|
|
NCM |
|
|
|
$ |
8,052 |
|
|
$ |
1,041 |
|
|
NCM |
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
Total revenues |
|
$ |
115,699 |
|
|
$ |
101,197 |
|
|
14.3 |
% |
Adjusted operating
revenues |
|
118,524 |
|
|
98,896 |
|
|
19.8 |
% |
Gross premiums written |
|
172,962 |
|
|
132,233 |
|
|
30.8 |
% |
Gross premiums earned |
|
175,574 |
|
|
138,367 |
|
|
26.9 |
% |
Net premiums earned |
|
105,910 |
|
|
88,784 |
|
|
19.3 |
% |
|
|
|
|
|
|
|
Ratios to Net Premiums
Earned |
|
|
|
|
|
|
Net loss ratio |
|
65.1 |
% |
|
75.3 |
% |
|
|
Net expense ratio |
|
40.2 |
% |
|
38.9 |
% |
|
|
Combined ratio |
|
105.3 |
% |
|
114.2 |
% |
|
|
|
|
|
|
|
|
|
In-Force Homeowners
Policies |
|
|
|
|
|
|
Florida |
|
240,000 |
|
|
244,000 |
|
|
(1.6) |
% |
Non-Florida |
|
140,000 |
|
|
52,000 |
|
|
169.2 |
% |
|
|
380,000 |
|
|
296,000 |
|
|
28.4 |
% |
FEDNAT HOLDING COMPANY AND
SUBSIDIARIESConsolidated Statement of Operations(In thousands,
except per share data)(Unaudited)
|
|
Three Months Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
Revenues: |
|
|
|
|
Net premiums earned |
|
$ |
105,910 |
|
|
|
$ |
88,784 |
|
|
Net investment income |
|
3,892 |
|
|
|
3,710 |
|
|
Net realized and unrealized investment gains (losses) |
|
(2,825 |
) |
|
|
2,301 |
|
|
Direct written policy fees |
|
3,466 |
|
|
|
2,391 |
|
|
Other income |
|
5,256 |
|
|
|
4,011 |
|
|
Total revenues |
|
115,699 |
|
|
|
101,197 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
Losses and loss adjustment expenses |
|
68,930 |
|
|
|
66,839 |
|
|
Commissions and other underwriting expenses |
|
36,355 |
|
|
|
28,234 |
|
|
General and administrative expenses |
|
6,245 |
|
|
|
6,311 |
|
|
Interest expense |
|
1,915 |
|
|
|
5,051 |
|
|
Total costs and expenses |
|
113,445 |
|
|
|
106,435 |
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
2,254 |
|
|
|
(5,238 |
) |
|
Income tax expense
(benefit) |
|
121 |
|
|
|
(1,373 |
) |
|
Net income (loss) |
|
2,133 |
|
|
|
(3,865 |
) |
|
Net income (loss) attributable to non-controlling interest |
|
— |
|
|
|
— |
|
|
Net income (loss) attributable to FedNat Holding Company
shareholders |
|
$ |
2,133 |
|
|
|
$ |
(3,865 |
) |
|
|
|
|
|
|
Net Income (Loss) Per
Common Share |
|
|
|
|
Basic |
|
$ |
0.15 |
|
|
|
$ |
(0.30 |
) |
|
Diluted |
|
$ |
0.15 |
|
|
|
$ |
(0.30 |
) |
|
|
|
|
|
|
Weighted Average
Number of Shares of Common Stock Outstanding |
|
|
|
|
Basic |
|
14,249 |
|
|
|
12,795 |
|
|
Diluted |
|
14,312 |
|
|
|
12,795 |
|
|
|
|
|
|
|
Dividends Declared Per
Common Share |
|
$ |
0.09 |
|
|
|
$ |
0.08 |
|
|
FEDNAT HOLDING COMPANY AND SUBSIDIARIESSelected
Operating Metrics(Unaudited)
|
|
Three Months Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
|
|
(In thousands) |
Gross premiums written: |
|
|
|
|
Homeowners Florida |
|
$ |
111,547 |
|
|
|
$ |
103,963 |
|
|
Homeowners non-Florida |
|
57,942 |
|
|
|
25,320 |
|
|
Federal flood |
|
3,660 |
|
|
|
3,004 |
|
|
Non-core |
|
(187 |
) |
|
|
(54 |
) |
|
Total gross premiums written |
|
$ |
172,962 |
|
|
|
$ |
132,233 |
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
|
|
(In thousands) |
Gross premiums earned: |
|
|
|
|
Homeowners Florida |
|
$ |
116,100 |
|
|
|
$ |
112,672 |
|
Homeowners non-Florida |
|
55,525 |
|
|
|
21,170 |
|
Federal flood |
|
4,136 |
|
|
|
3,467 |
|
Non-core |
|
(187 |
) |
|
|
1,058 |
|
Total gross premiums earned |
|
$ |
175,574 |
|
|
|
$ |
138,367 |
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
|
|
(In thousands) |
Net premiums earned: |
|
|
|
|
Homeowners Florida |
|
$ |
68,054 |
|
|
|
$ |
70,488 |
|
Homeowners non-Florida |
|
38,043 |
|
|
|
17,323 |
|
Non-core |
|
(187 |
) |
|
|
973 |
|
Total net premiums earned |
|
$ |
105,910 |
|
|
|
$ |
88,784 |
|
FEDNAT HOLDING COMPANY AND SUBSIDIARIESSelected
Operating Metrics (continued)(Unaudited)
|
|
Three Months Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
|
|
(In thousands) |
Commissions and other
underwriting expenses: |
|
|
|
|
Homeowners Florida |
|
$ |
13,827 |
|
|
|
$ |
13,222 |
|
|
All others |
|
11,618 |
|
|
|
5,267 |
|
|
Ceding commissions |
|
(2,899 |
) |
|
|
(2,784 |
) |
|
Total commissions |
|
22,546 |
|
|
|
15,705 |
|
|
|
|
|
|
|
Fees |
|
1,114 |
|
|
|
679 |
|
|
Salaries and wages |
|
3,598 |
|
|
|
3,322 |
|
|
Other underwriting expenses |
|
9,097 |
|
|
|
8,528 |
|
|
Total commissions and other underwriting expenses |
|
$ |
36,355 |
|
|
|
$ |
28,234 |
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
Net loss ratio |
|
65.1 |
% |
|
75.3 |
% |
Net expense ratio |
|
40.2 |
% |
|
38.9 |
% |
Combined ratio |
|
105.3 |
% |
|
114.2 |
% |
Gross loss ratio |
|
113.1 |
% |
|
211.4 |
% |
Gross expense ratio |
|
25.9 |
% |
|
27.0 |
% |
FEDNAT HOLDING COMPANY AND
SUBSIDIARIESConsolidated Balance Sheet(Unaudited)
|
|
March 31, |
|
December 31, |
|
|
2020 |
|
2019 |
ASSETS |
|
(In thousands) |
Investments: |
|
|
|
|
Debt securities, available-for-sale, at fair value |
|
$ |
542,835 |
|
|
$ |
526,265 |
|
Debt securities, held-to-maturity, at amortized cost |
|
4,271 |
|
|
4,337 |
|
Equity securities, at fair value |
|
17,324 |
|
|
20,039 |
|
Total investments |
|
564,430 |
|
|
550,641 |
|
Cash and cash equivalents |
|
123,190 |
|
|
133,361 |
|
Prepaid reinsurance
premiums |
|
89,465 |
|
|
145,659 |
|
Premiums receivable, net of
allowance |
|
38,337 |
|
|
41,422 |
|
Reinsurance recoverable,
net |
|
261,150 |
|
|
209,615 |
|
Deferred acquisition costs and
value of business acquired, net |
|
57,715 |
|
|
56,136 |
|
Current and deferred income
taxes, net |
|
2,358 |
|
|
2,552 |
|
Goodwill |
|
10,997 |
|
|
10,997 |
|
Other assets |
|
29,456 |
|
|
28,633 |
|
Total assets |
|
$ |
1,177,098 |
|
|
$ |
1,179,016 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
Liabilities |
|
|
|
|
Loss and loss adjustment
expense reserves |
|
$ |
375,675 |
|
|
$ |
324,362 |
|
Unearned premiums |
|
358,258 |
|
|
360,870 |
|
Reinsurance payable |
|
63,051 |
|
|
102,467 |
|
Long-term debt, net of
deferred financing costs |
|
98,562 |
|
|
98,522 |
|
Deferred revenue |
|
6,770 |
|
|
6,856 |
|
Other liabilities |
|
35,608 |
|
|
37,246 |
|
Total liabilities |
|
937,924 |
|
|
930,323 |
|
Shareholders'
Equity |
|
|
|
|
Preferred stock, $0.01 par
value: 1,000,000 shares authorized |
|
— |
|
|
— |
|
Common stock, $0.01 par value:
25,000,000 shares authorized; 13,949,971 and 14,414,821 shares
issued and outstanding, respectively |
|
139 |
|
|
144 |
|
Additional paid-in
capital |
|
168,130 |
|
|
167,677 |
|
Accumulated other
comprehensive income (loss) |
|
6,253 |
|
|
10,281 |
|
Retained earnings |
|
64,652 |
|
|
70,591 |
|
Total shareholders’ equity |
|
239,174 |
|
|
248,693 |
|
Total liabilities and shareholders' equity |
|
$ |
1,177,098 |
|
|
$ |
1,179,016 |
|
FEDNAT HOLDING COMPANY AND SUBSIDIARIESGAAP to
Non-GAAP Reconciliations(Dollars in thousands)(Unaudited)
|
|
As of or For the |
|
|
Three Months Ended |
|
|
2020 |
|
2019 |
Revenue |
|
|
|
|
Total revenues |
|
$ |
115,699 |
|
|
$ |
101,197 |
|
Less: |
|
|
|
|
Net realized and unrealized investment gains (losses) |
|
(2,825) |
|
|
2,301 |
|
Adjusted operating revenues |
|
$ |
118,524 |
|
|
$ |
98,896 |
|
|
|
|
|
|
Net Income
(Loss) |
|
|
|
|
Net income (loss) |
|
$ |
2,133 |
|
|
$ |
(3,865) |
|
Less: |
|
|
|
|
Net realized and unrealized investment gains (losses) |
|
(2,132) |
|
|
1,718 |
|
Acquisition and other costs |
|
(27) |
|
|
(520) |
|
Amortization of identifiable intangibles |
|
(28) |
|
|
— |
|
Gain (loss) on early extinguishment of debt |
|
— |
|
|
(2,669) |
|
Adjusted operating income (loss) |
|
$ |
4,320 |
|
|
$ |
(2,394) |
|
|
|
|
|
|
Income tax rate assumed for
reconciling items above |
|
24.52 |
% |
|
25.35 |
% |
|
|
|
|
|
Per Common
Share |
|
|
|
|
Book value |
|
$ |
17.15 |
|
|
$ |
16.98 |
|
Less: |
|
|
|
|
AOCI |
|
0.45 |
|
|
0.25 |
|
Book value, excluding AOCI |
|
$ |
16.70 |
|
|
$ |
16.73 |
|
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