Federated National Holding Company and C.A. Bancorp Inc. Announce Joint
SUNRISE, Fla. and TORONTO, July 21, 2014 (GLOBE NEWSWIRE) -- Federated
National Holding Company (Nasdaq:FNHC) and C.A. Bancorp Inc. (TSX:BKP) today
announced an agreement to form a new Florida-based property and casualty
insurance carrier to be named Monarch National Insurance Company (Monarch).
Transatlantic Reinsurance Company (TransRe) is taking a minority position in
the new venture. The launch of Monarch is subject to the receipt of regulatory
approvals and other customary conditions.
FNHC and C.A. Bancorp have worked cooperatively to structure and execute on a
new entrant to the Florida property and casualty market. "We are looking
forward to partnering with FNHC and leveraging FNHC's known expertise in the
Florida P&C market, together with C.A. Bancorp's investment management
experience," said Colin King of C.A. Bancorp. Once Monarch is launched, as
future opportunities arise and subject to the availability of capital, FNHC
and C.A. Bancorp intend to seek out other potential opportunities to grow the
Monarch platform, both within Florida and in other states.
Michael H. Braun, FNHC's Chief Executive Officer and President, said, "This is
a great opportunity for us to partner with two quality organizations that see
an opportunity in the Florida homeowner's insurance market. Additional
property capacity is capital intensive and has been long sought after in the
Florida marketplace. We are proud that we will both have a significant
ownership stake in Monarch and also provide managing general agent and claims
administration services to the new venture."
Headwaters MB is acting as exclusive financial advisor to C.A. Bancorp in the
transaction. Dechert LLP and AUM Law are, respectively, serving as U.S. and
Canadian legal counsel to C.A. Bancorp, Broad and Cassel is serving as legal
counsel to FNHC, and Sidley Austin LLP is serving as legal counsel to TransRe.
FNHC Conference Call Information
FNHC's CEO and its CFO, Peter J. Prygelski, III will hold an investor
conference call to discuss the joint venture today, July 21, 2014 at 4:00 PM
(ET). Messrs. Braun and Prygelski invite interested parties to participate in
the conference call. Listeners interested in participating in the Q&A session
can access the conference call by dialing toll free 877-303-6913. Participants
are advised to join the call at least five minutes in advance. A webcast
replay of the conference call will be available shortly after the live webcast
is completed and may be accessed via FNHC's website.
A live webcast of the call will be available online via the "Conference Calls"
section of FNHC's website at FedNat.com or interested parties can click on the
A copy of the investor presentation will be available online by 10:00 AM (ET)
today, July 21, 2014, via the "Investor Presentation" section of FNHC's
website at FedNat.com or interested parties can click on the following link:
Federated National Holding Company (FNHC) is authorized to underwrite, and/or
place through its wholly owned subsidiaries, homeowners' multi-peril,
commercial general liability, federal flood, personal auto and various other
lines of insurance in Florida and various other states. Through its
subsidiaries, FNHC markets and distributes its own and third-party insurers'
products and other related services through a network of independent agents.
FNHC also utilizes a select number of general agents for the same purpose.
About C.A. Bancorp:
C.A. Bancorp Inc. (BKP) is a publicly traded Canadian merchant bank and
alternative asset manager with a primary focus on the insurance industry.
Safe harbor statements under the Private Securities Litigation Reform Act of
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 thereof or other
variations thereon 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:
oProjections of revenues, income, earnings per share, dividends, capital
structure or other financial items or measures;
oDescriptions of plans or objectives of management for future operations,
insurance products, or services;
oForecasts of future insurable events, economic performance, liquidity,
need for funding and income; and
oDescriptions of assumptions or estimates underlying or relating to any of
The risks and uncertainties include, without limitation, uncertainties related
to estimates, assumptions and projections generally; risks related to the
nature of FNHC's business; the adequacy of its liability for loss and loss
adjustment expense; claims experience; weather conditions (including the
severity and frequency of storms, hurricanes, tornadoes and hail) and other
catastrophe losses; changes in loss trends; court decisions and trends in
litigation, ability to obtain regulatory approval applications for requested
rate increases or to underwrite in additional jurisdictions, and the timing
thereof; 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 FNHC, and any settlement thereof;
dependence on investment income and the composition of FNHC's investment
portfolio; insurance agents; ratings by industry services; reliance on key
personnel; acts of war and terrorist activities; and other matters described
from time to time by FNHC in releases and publications, and in periodic
reports and other documents filed with the United States Securities and
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.
Caution Regarding Forward-Looking Information
This release may contain forward-looking statements about C.A. Bancorp and
Monarch. Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may", "will", "expect", "intend",
"estimate", "anticipate", "believe", "should", "plans" or "continue" or the
negative thereof or variations thereon or similar terminology. Although C.A.
Bancorp believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations
will prove to be correct. These forward- looking statements are subject to a
number of risks and uncertainties, not all of which are known to C.A. Bancorp,
including receipt of any required regulatory approvals, completion of
definitive documentation and corporate structures and the timing thereof,
market conditions, currency risk, concentration of investments, limited
operating experience, reliance on key personnel and management and
counterparties, risks in the insurance industry and the Florida market and
execution risk. Actual results could differ materially from those anticipated
in these forward-looking statements. Reference should also be made to the risk
factors published in the C.A. Bancorp's continuous disclosure documents
including its most current annual information form available at
www.sedar.com.C.A. Bancorp takes no responsibility for the accuracy or
completeness of the presentation or investor conference call being held by
FNHC which responsibility is solely that of FNHC.
CONTACT: Federated National Holding Company
Michael H. Braun, CEO (954) 308-1322 or
Peter J. Prygelski, CFO (954) 308-1252
C.A. Bancorp Inc.
Colin King (800) 439-5136
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