We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
FedNat Holding Company | NASDAQ:FNHC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.20 | 0.20 | 0.2249 | 0 | 01:00:00 |
First Quarter 2022 Results
Q1 2022 highlights (as measured against the same three-month period last year, except where noted):
Michael H. Braun, FedNat's Chief Executive Officer, said, “We continued to make progress during the first quarter in our Florida homeowners business resulting from our strategic actions over the past five years to right size our Florida book and increase rates to more accurately reflect the higher costs of doing business. The Company also continued to make progress in the first quarter on our strategy to exit non-Florida markets and refocus on our historical market in Florida, a transition we believe would result in a financially stronger company, with less volatility, that would be rightsized to our current capital and surplus position. However, as we have disclosed in recent SEC filings, in April the Demotech rating of FedNat National Insurance Company (FNIC) was downgraded, which we believe will adversely impact our ability to obtain excess-of-loss reinsurance for coverage beginning July 1, 2022 and would place the Company in non-compliance with the regulations of the Florida Office of Insurance Regulation (OIR). FedNat has submitted a proposed action plan to the OIR which, if approved by them and regulators in other impacted states, would be expected to result in the Company becoming much smaller, with significantly fewer policies in force, and potentially result in additional capital coming into the holding company or into our insurance carriers. If approved, the proposed action plan would be expected to enable the Company to obtain excess-of-loss reinsurance on a smaller, Florida-only book of business. Our action plan is currently being reviewed by the OIR and we will provide an update on the outcome of their review when available.”
Revenues
Expenses
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):
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 11:30 AM (ET) Tuesday, May 10, 2022. 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: 6686146
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:
https://edge.media-server.com/mmc/p/7xea8pf6
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
FedNat Holding Company 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 its wholly owned subsidiaries FedNat Insurance Company and Monarch National Insurance Company, is focused on providing homeowners insurance in Florida. More information is available at https://www.fednat.com/investor-relations/.
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:
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 catastrophe losses; reinsurance costs and the ability of reinsurers to indemnify the Company; raising additional capital and our compliance with minimum capital and surplus requirements; the impact of the refocus of our operations on Florida; 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 consistent with our contractual obligations; 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 March 31, | |||||||||||
2022 | 2021 | % Change | |||||||||
Net Income (Loss) Attributable to Common Shareholders | |||||||||||
Net income (loss) | $ | (31,287 | ) | $ | (19,381 | ) | 61.4 | % | |||
Adjusted operating income (loss) | (28,861 | ) | (19,415 | ) | 48.7 | % | |||||
Per Common Share | |||||||||||
Net income (loss) - diluted | $ | (1.79 | ) | $ | (1.35 | ) | 33.1 | % | |||
Adjusted operating income (loss) - diluted | (1.65 | ) | (1.35 | ) | 22.5 | % | |||||
Dividends declared | — | — | NCM | ||||||||
Book value | 0.81 | 8.50 | (90.5 | )% | |||||||
Book value, excluding AOCI | 1.67 | 8.26 | (79.7 | )% | |||||||
Return to Shareholders | |||||||||||
Repurchases of common stock | $ | — | $ | — | NCM | ||||||
Dividends declared | — | — | NCM | ||||||||
$ | — | $ | — | NCM | |||||||
Revenue | |||||||||||
Total revenues | $ | 54,862 | $ | 52,748 | 4.0 | % | |||||
Adjusted operating revenues | 57,288 | 52,656 | 8.8 | % | |||||||
Gross premiums written | 137,892 | 174,207 | (20.8 | )% | |||||||
Gross premiums earned | 164,328 | 179,002 | (8.2 | )% | |||||||
Net premiums earned | 45,985 | 39,745 | 15.7 | % | |||||||
Ratios to Net Premiums Earned | |||||||||||
Net loss ratio | 127.8 | % | 120.8 | % | |||||||
Net expense ratio | 56.8 | % | 68.2 | % | |||||||
Combined ratio | 184.6 | % | 189.0 | % | |||||||
In-Force Homeowners Policies | |||||||||||
Florida | 152,000 | 197,000 | (22.8 | )% | |||||||
Non-Florida | 96,000 | 149,000 | (35.6 | )% | |||||||
248,000 | 346,000 | (28.3 | )% | ||||||||
FEDNAT HOLDING COMPANY AND SUBSIDIARIESConsolidated Statement of Operations(In thousands, except per share data)(Unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
Revenues: | ||||||||
Net premiums earned | $ | 45,985 | $ | 39,745 | ||||
Net investment income | 1,264 | 1,674 | ||||||
Net realized and unrealized gains (losses) | (2,426 | ) | 92 | |||||
Direct written policy fees | 2,613 | 3,315 | ||||||
Other income | 7,426 | 7,922 | ||||||
Total revenues | 54,862 | 52,748 | ||||||
Costs and expenses: | ||||||||
Losses and loss adjustment expenses | 58,783 | 48,016 | ||||||
Commissions and other underwriting expenses | 19,107 | 21,031 | ||||||
General and administrative expenses | 6,997 | 6,066 | ||||||
Interest expense | 2,300 | 1,926 | ||||||
Total costs and expenses | 87,187 | 77,039 | ||||||
Income (loss) before income taxes | (32,325 | ) | (24,291 | ) | ||||
Income tax expense (benefit) | (1,038 | ) | (4,910 | ) | ||||
Net income (loss) | $ | (31,287 | ) | $ | (19,381 | ) | ||
Net Income (Loss) Per Common Share | ||||||||
Basic | $ | (1.79 | ) | $ | (1.35 | ) | ||
Diluted | (1.79 | ) | (1.35 | ) | ||||
Weighted Average Number of Shares of Common Stock Outstanding | ||||||||
Basic | 17,462 | 14,395 | ||||||
Diluted | 17,462 | 14,395 | ||||||
Dividends Declared Per Common Share | $ | — | $ | — | ||||
FEDNAT HOLDING COMPANY AND SUBSIDIARIESSelected Operating Metrics(Unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
(In thousands) | ||||||||
Gross premiums written: | ||||||||
Homeowners Florida | $ | 116,159 | $ | 111,969 | ||||
Homeowners non-Florida | 17,317 | 57,909 | ||||||
Federal flood | 4,481 | 4,389 | ||||||
Non-core | (65 | ) | (60 | ) | ||||
Total gross premiums written | $ | 137,892 | $ | 174,207 |
Three Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
(In thousands) | ||||||||
Gross premiums earned: | ||||||||
Homeowners Florida | $ | 105,138 | $ | 109,426 | ||||
Homeowners non-Florida | 53,939 | 64,923 | ||||||
Federal flood | 5,316 | 4,713 | ||||||
Non-core | (65 | ) | (60 | ) | ||||
Total gross premiums earned | $ | 164,328 | $ | 179,002 |
Three Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
(In thousands) | ||||||||
Net premiums earned: | ||||||||
Homeowners Florida | $ | 34,822 | $ | 23,091 | ||||
Homeowners non-Florida | 11,228 | 16,714 | ||||||
Non-core | (65 | ) | (60 | ) | ||||
Total net premiums earned | $ | 45,985 | $ | 39,745 | ||||
FEDNAT HOLDING COMPANY AND SUBSIDIARIESSelected Operating Metrics (continued)(Unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
(In thousands) | ||||||||
Commissions and other underwriting expenses: | ||||||||
Homeowners Florida | $ | 10,682 | $ | 12,399 | ||||
All others | 13,233 | 11,691 | ||||||
Ceding commissions | (18,051 | ) | (19,460 | ) | ||||
Total commissions | 5,864 | 4,630 | ||||||
Fees | 993 | 1,335 | ||||||
Salaries and wages | 2,511 | 3,572 | ||||||
Other underwriting expenses | 9,739 | 11,494 | ||||||
Total commissions and other underwriting expenses | $ | 19,107 | $ | 21,031 |
Three Months Ended | ||||||
March 31, | ||||||
2022 | 2021 | |||||
Net loss ratio | 127.8 | % | 120.8 | % | ||
Net expense ratio | 56.8 | % | 68.2 | % | ||
Combined ratio | 184.6 | % | 189.0 | % | ||
Gross loss ratio | 67.3 | % | 96.3 | % | ||
Gross expense ratio | 26.9 | % | 26.0 | % | ||
FEDNAT HOLDING COMPANY AND SUBSIDIARIESConsolidated Balance Sheet(Unaudited)
March 31, | December 31, | |||||||
2022 | 2021 | |||||||
ASSETS | (In thousands) | |||||||
Investments: | ||||||||
Debt securities, available-for-sale, at fair value | $ | 270,217 | $ | 327,532 | ||||
Equity securities, at fair value | 5,348 | 5,905 | ||||||
Total investments | 275,565 | 333,437 | ||||||
Cash and cash equivalents | 91,652 | 83,526 | ||||||
Prepaid reinsurance premiums | 162,463 | 242,537 | ||||||
Premiums receivable, net of allowance | 33,089 | 41,174 | ||||||
Reinsurance recoverable, net | 581,921 | 613,203 | ||||||
Deferred acquisition costs, net | 16,438 | 18,829 | ||||||
Current and deferred income taxes, net | 13,446 | 30,014 | ||||||
Other assets | 38,239 | 49,950 | ||||||
Total assets | $ | 1,212,813 | $ | 1,412,670 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Loss and loss adjustment expense reserves | $ | 661,595 | $ | 738,794 | ||||
Unearned premiums | 316,312 | 342,747 | ||||||
Reinsurance payable and funds withheld liabilities | 53,093 | 102,748 | ||||||
Long-term debt, net of deferred financing costs | 118,906 | 118,805 | ||||||
Deferred revenue | 4,162 | 5,240 | ||||||
Other liabilities | 44,606 | 44,950 | ||||||
Total liabilities | 1,198,674 | 1,353,284 | ||||||
Shareholders' Equity | ||||||||
Preferred stock, $0.01 par value: 1,000,000 shares authorized | — | — | ||||||
Common stock, $0.01 par value: 50,000,000 shares authorized; 17,519,237 and 17,446,930 shares issued and outstanding, respectively | 175 | 174 | ||||||
Additional paid-in capital | 186,202 | 186,007 | ||||||
Accumulated other comprehensive income (loss) | (15,190 | ) | (1,034 | ) | ||||
Retained earnings (deficit) | (157,048 | ) | (125,761 | ) | ||||
Total shareholders’ equity | 14,139 | 59,386 | ||||||
Total liabilities and shareholders' equity | $ | 1,212,813 | $ | 1,412,670 | ||||
FEDNAT HOLDING COMPANY AND SUBSIDIARIESGAAP to Non-GAAP Reconciliations(Dollars in thousands)(Unaudited)
As of or For the | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
Revenue | ||||||||
Total revenues | $ | 54,862 | $ | 52,748 | ||||
Less: | ||||||||
Net realized and unrealized investment gains (losses) | (2,426 | ) | 92 | |||||
Adjusted operating revenues | $ | 57,288 | $ | 52,656 | ||||
Net Income (Loss) | ||||||||
Net income (loss) | $ | (31,287 | ) | $ | (19,381 | ) | ||
Less: | ||||||||
Net realized and unrealized investment gains (losses) | (2,426 | ) | 73 | |||||
Acquisition and strategic costs | — | (9 | ) | |||||
Amortization of identifiable intangibles | — | (30 | ) | |||||
Adjusted operating income (loss) | $ | (28,861 | ) | $ | (19,415 | ) | ||
Income tax rate assumed for reconciling items above | — | % | 21.00 | % | ||||
Per Common Share | ||||||||
Book value | $ | 0.81 | $ | 8.50 | ||||
Less: | ||||||||
AOCI | (0.86 | ) | 0.24 | |||||
Book value, excluding AOCI | $ | 1.67 | $ | 8.26 |
1 Year FedNat Chart |
1 Month FedNat Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions