FedNat Holding Company Announces Formation of Strategic Review Committee
November 04 2020 - 4:02PM
FedNat Holding Company (NASDAQ:FNHC) (“FedNat” or the “Company”), a
regional insurance holding company, announced today 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.”
Mr. Simberg continued, “The Board recognizes
that the current catastrophe environment is creating significant
challenges for the Company. Today’s additional step to form a
Strategic Review Committee is intended to broaden and deepen our
ongoing strategic evaluation processes so that we may consider and
focus on additional alternatives to enhance shareholder value. At
the same time, our management team will continue to execute on our
current strategies to improve our operations and position the
Company for future growth in earnings and book value.
Throughout this strategic evaluation process, our focus will be on
providing exceptional value to all of our stakeholders, including
shareholders, policyholders and agents.”
Neither the Board nor the Strategic Review
Committee has set a timetable for conclusion of the strategic
review, and the Company does not intend to comment further unless
and until the Board has approved a specific course of action or the
Company has otherwise determined that further disclosure is
appropriate or required by law. There can be no assurance that the
strategic review will result in a transaction or other course of
action.
Notice Regarding Forward-Looking
StatementsThis press release contains "forward-looking"
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, that involve risks and uncertainties. These
forward-looking statements include statements regarding FedNat’s
expectations as to its third quarter results, its belief that it
has opportunities to create shareholder value, and whether the
review of strategic alternatives will result in a transaction or
other outcome. You can identify these statements by the use of
terminology such as “believe,” “will,” “expect,” “anticipate,”
“intend,” “could,” “would,” “estimate,” or “continue” or the other
negative variations thereof or comparable terminology or similar
forward-looking terms. You should not rely on these forward-looking
statements as they involve risks and uncertainties that may cause
actual results to vary materially from the forward-looking
statements. For information regarding the risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in these forward-looking statements, as well
as risks relating to FedNat's business in
general, FedNat refers you to the “Risk Factors” section
of its Securities and Exchange Commission filings,
including its most recent Form 10-K and 10-Q, which are
available on the SEC’s website at www.sec.gov and on the
Company’s website at www.fednat.com. Any forward-looking statements
are based on current expectations and FedNat assumes no
obligation to update change or revise any forward-looking
statement, whether as a result of new information, additional or
subsequent developments or otherwise.
About the CompanyFedNat is a
regional 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 including FedNat Insurance Company,
Maison Insurance Company, and Monarch National Insurance Company,
is focused on providing homeowners insurance in Florida, Texas,
Louisiana, Alabama, South Carolina and Mississippi. We market,
distribute and service our own and third-party insurers’ products
and other services through a network of independent and general
agents.
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
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