Federated National Holding Co. created a joint venture with Canadian merchant bank and asset manager C.A. Bancorp to launch a property and casualty insurer in Florida.
The Sunrise-based company had 134,081 property insurance policies in Florida as of March 31, ranking No. 11, according to the Florida Office of Insurance Regulation. Now it will partner with Toronto-based C.A. Bancorp to create Monarch National Insurance Corp.
“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,” C.A. Bancorp CEO Colin King said in a news release.
Federated National will be the managing general agent of the new insurer and will make a $14 million equity investment for a 42 percent ownership stake. It hopes to issue its first policy in January.
Transatlantic Reinsurance Co. will take a minority position in Monarch National with a $5 million equity investment. C.A. Bancorp will make a $14 million equity investment and will manage Monarch National’s investment portfolio.
The deal is pending regulatory approval.