Federated National Holding Company (FNHC) and CA Bancorp have signed an agreement to establish a Florida-based property and casualty insurance joint venture (JV), as part of a plan to boost their commercial insurance footprint.
The launch of new JV, which will be branded as Monarch National Insurance Company (Monarch), is subject to regulatory approvals and other customary conditions.
Transatlantic Reinsurance Company (TransRe) will own a minority position in the new P&C JV.
Both, FNHC and CA Bancorp have worked together to structure and execute on a new entrant to the Florida property and casualty market.
Colin King of CA Bancorp said: "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."
Following successful launch of Once Monarch; both FNHC and CA Bancorp plan to expand the Monarch platform, both within Florida and in other states.
FNHC CEO and president Michael Braun 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 serving as exclusive financial advisor to CA Bancorp, while Dechert and AUM Law are, respectively, serving as US and Canadian legal counsel to CA Bancorp, Broad.
Cassel is acting as legal counsel to FNHC, and Sidley Austin is serving as legal counsel to TransRe.
Image: Federated National and CA Bancorp to establish P&C insurance JV. Photo: courtesy of scottchan / FreDdigitalPhotos.net.