Federated National Insurance, a subsidiary of 21st Century Holding, has finalised its property catastrophe reinsurance programme for 2012-2013 for its homeowners book of business.
The company will file a current report on form 8-K with the Securities and Exchange Commission that provides additional details regarding the 2012 programme.
Under the 2012 Program, which includes participants from Bermuda and Europe as well as the Florida Hurricane Catastrophe Fund ("FHCF"), Federated National has an $8 million retention and up to $226 million of financial protection from a single hurricane-related loss in the State of Florida and up to $308 million for multiple hurricane losses during this season. The estimated cost of the 2012 programme is $40.7 million.
Michael Braun, chief executive officer said: "Our estimated reinsurance expenditure as a percentage of in-force property premiums is projected to be approximately 43 percent in our 2012 programme, as compared to 50 percent in our 2011 programme and 61 percent in our 2010 programme.
“These significant improvements in our reinsurance expenditures, which are by far the largest contributing factor to underwriting profitability, are the direct result of our disciplined underwriting approach, along with the rate increases approved and implemented over the past two years. In addition, our homeowners' written premium for this year to date has exceeded the comparable period in 2011 by approximately 25 percent. We expect all of these factors to positively impact our financial results in the upcoming quarters."
