Item 1.01 Conclusion of a definitive agreement.
On
“Company”),
(“HGMA”), has entered into a management consulting services agreement dated and
effective from
Underwriters, Inc.
parent company, FedNat Holding Company (“FNHC”) in developing a restructuring plan for
FNHC non-statutory entities, including identification of cost savings and other
necessary or desirable measures in this respect and, after approval of these
plan by the FNHC Board of Directors, oversee the implementation of this plan. The
the duration of the advisory services agreement is up to
his services under the advisory services agreement is equivalent to 1.5% of gross income
annual bonus of
In the background, the
Monarch will support approximately 78,000 in-force policies
Monarch’s total font count totals around 83,000 fonts. The FNU will
continue as managing general agent for Monarch. From
million
(“HPCM”) in Monarch, Monarch is 60% owned by various funds managed by HPCM,
and 40% owned by FNHC. HPCM and its affiliates are beneficial owners in all
11.27% of the outstanding common shares of FNHC (for which they filed a
Waiver of Control Affidavit with the
Regulation
FNHC Board Committee.
hold approximately 34.9% of the outstanding common shares of the Company.
The foregoing description of the advisory services agreement does not purport
be complete and qualified in its entirety by reference to the Advisory
Service Agreement, a copy of which is filed as Exhibit 10.1 to this report and
incorporated herein by reference.
Simultaneously with the conclusion of the consulting services agreement, the company
formed White Rock
2022
(the “Reinsurance Contract”) with
about 7,650
Reinsurance contract. The reinsurance contract provides
House of more than one
premiums for the duration of the contract. The reinsurance contract ends on
Maison is a wholly owned subsidiary of FNHC.
The foregoing description of the Reinsurance Contract does not purport to be
complete and is qualified in its entirety by reference to Reinsurance
Contract, a copy of which is filed as Exhibit 10.2 of this report and
incorporated herein by reference.
Item 9.01 Financial statements and supporting documents.
(d) Exhibits 10.1 Management Advisory Services Agreement, entered into as ofJuly 1, 2022 by and betweenHG Managing Agency, LLC andFedNat Underwriters, Inc. (filed herewith). 10.2 Excess Catastrophe Reinsurance Contract, entered into as ofJuly 1, 2022 by and betweenMaison Insurance Company and The Subscribing Reinsurer (filed herewith). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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