FedNat

Receivership has been historically lower in the past 20 years, but trouble in Florida breaks away from the overall P&C industry trend.

As part of its bankruptcy process, the carrier will review strategic alternatives that include the reorganization of the business and the sale of its assets.

The delisting comes after the insurer’s stock price fell below $1 for 30 consecutive days.

As the loss numbers for Hurricane Ian begin to come into focus, three topics to watch are impact from demand surge, litigation trends, and rate activity.

If current forecasts prove accurate, this will be a pivotal moment for the already off-balance Florida cohort and could result in a new market landscape.

This would become an event of default under the company's outstanding $100mn senior unsecured notes due 2029 and $21mn convertible notes due 2026 if not discharged within 60 days.

Demotech earlier warned that more than 15 possible carrier downgrades could come in July.

Board member David Patterson took on the role on an interim basis, while Monarch has recruited a new CFO who previously served at Security First.

The transfer comes a day after FedNat transferred majority ownership of Monarch to Hale Group.

The notification came as the insurer stock traded below $1 per share over the last 30 business days.

Group chief accounting officer Erick Fernandez will step in as an interim.

Insurers could face pressure if interest rate and recession fears intersect with worsening loss cost trends.