FedNat Holding Company issued the following announcement on Nov. 4.
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.
Original source can be found here.
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