EXHIBIT 99.1
SUNRISE, Fla., April 30, 2015 (GLOBE NEWSWIRE) -- Federated National Holding Company (the "Company") (Nasdaq:FNHC) today reported results for the quarter ended March 31, 2015.
Highlights (as measured against the same three-month period last year, except where noted):
Mr. Michael H. Braun, the Company's Chief Executive Officer and President, said, "We are pleased to report another successful quarter in which our partner agents bound $42.1 million of new Florida homeowner business with Federated National. We recently announced in March that Monarch National received its Certificate of Authority and are happy to report that our partner agents have already begun binding new business with us during April. We continue to build the company for the long-term by investing in our staff, partner agents, products, controls, infrastructure, and technology to support our continued growth. We have an outstanding and dedicated team of 256 employees that take great pride in continuing to deliver the great service and value that our partners have come to expect from us."
First Quarter 2015 Financial Review
Conference Call Information
The Company will hold an investor conference call at 9:00 AM (ET) tomorrow, May 1, 2015. The Company's CEO and its CFO, Peter J. Prygelski, III, will discuss the financial results and review the outlook for the Company. Messrs. Braun and Prygelski invite interested parties to participate in the conference call.
Listeners interested in participating in the Q&A session may dial-in with the number below:
(877) 303-6913
A live webcast of the call will be available online via the "Conference Calls" section of the Company's website at FedNat.com or interested parties can click on the following link:
http://fednat.com/investors/conference-calls/
Please call at least five minutes in advance to ensure that you are connected prior to the presentation. A webcast replay of the conference call will be available shortly after the live webcast is completed and may be accessed via the Company's website.
About the Company
The Company is authorized to underwrite, and/or place through our wholly owned subsidiaries, homeowners' multi-peril ("homeowners"), commercial general liability, federal flood, personal auto and various other lines of insurance in Florida and various other states. The Company markets and distributes its own and third-party insurers' products and our other services through a network of independent agents. The Company also utilizes a select number of general agents for the same purpose.
Forward-Looking Statements /Safe Harbor Statements
Safe harbor statement under the Private Securities Litigation Reform Act of 1995:
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:
The risks and uncertainties include, without limitation, risks and uncertainties related to estimates, assumptions and projections generally; the nature of the Company's business; the adequacy of its reserves for loss and loss adjustment expense; claims experience; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail) and other catastrophic losses; reinsurance costs and the ability of reinsurers to indemnify the Company; raising additional capital and our potential failure to meet minimum capital and surplus requirements; potential assessments that support property and casualty insurance pools and associations; the effectiveness of internal financial controls; the effectiveness of our underwriting, pricing and related loss limitation methods; changes in loss trends; court decisions and trends in litigation; our potential failure to pay claims accurately; ability to obtain regulatory approval applications for requested rate increases, or to underwrite in additional jurisdictions, and the timing thereof; the impact that the results of the Monarch joint venture may have on our results of operations; 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 the Company, and any settlement thereof; dependence on investment income and the composition of the Company's investment portfolio; insurance agents; ratings by industry services; the reliability of our information technology systems; reliance on key personnel; acts of war and terrorist activities; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission.
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.
| FEDERATED NATIONAL HOLDING COMPANY | ||
| Consolidated Statements of Operations | ||
| (Unaudited) | ||
| Three Months Ended March 31, | ||
| Revenue: | 2015 | 2014 |
| Net premiums earned | 44,785,523 | 44,004,014 |
| Commission income | 1,125,550 | 953,710 |
| Finance revenue | 428,490 | 311,060 |
| Direct written policy fees | 2,491,796 | 1,826,885 |
| Net investment income | 1,546,239 | 1,006,523 |
| Net realized investment gains | 1,703,970 | 1,331,325 |
| Other income | 1,377,624 | 281,265 |
| Quota-share and profit sharing, net | 1,476,782 | -- |
| Total revenue | 54,935,974 | 49,714,782 |
| Expenses: | ||
| Losses and loss adjustment expenses | 23,949,361 | 20,827,513 |
| Operating and underwriting expenses | 6,321,957 | 3,666,890 |
| Salaries and wages | 5,137,953 | 3,049,940 |
| Amortization of deferred policy acquisition costs | 5,043,627 | 8,442,170 |
| Total expenses | 40,452,898 | 35,986,513 |
| Income before provision for income tax expense | 14,483,076 | 13,728,269 |
| Provision for income tax expense | 5,710,597 | 5,305,324 |
| Income before non-controlling interest | 8,772,479 | 8,422,945 |
| Non-controlling interest | (511,275) | -- |
| Net income | $ 9,283,754 | $ 8,422,945 |
| Basic net income per share | $ 0.68 | $ 0.77 |
| Fully diluted net income per share | $ 0.66 | $ 0.74 |
| Weighted average number of common shares outstanding | 13,656,190 | 10,948,646 |
| Weighted average number of common shares outstanding (assuming dilution) | 13,976,131 | 11,317,458 |
| Dividends paid per share | $ 0.04 | $ 0.03 |
| FEDERATED NATIONAL HOLDING COMPANY | ||
| Other Selected Data | ||
| (Unaudited) | ||
| Balance Sheet | ||
| Period Ending | ||
| 03/31/15 | 12/31/14 | |
| Total Cash and Investments | $424,543,354 | $370,919,843 |
| Total Assets | $555,265,827 | $503,631,308 |
| Unpaid Losses and Loss Adjustment Expense | $84,474,937 | $78,330,355 |
| Total Liabilities | $333,466,217 | $311,052,142 |
| Total Shareholders' Equity | $221,799,610 | $192,579,166 |
| Common Stock Outstanding | 13,701,122 | 13,632,414 |
| Book Value Per Share | $16.19 | $14.13 |
| Premium Breakout | ||
| 3 Months Ending | ||
| Line of Business | 03/31/15 | 03/31/14 |
| (Dollars in thousands) | ||
| Homeowners' | $97,778 | $73,980 |
| Commercial General Liability | 3,970 | 3,144 |
| Federal Flood | 1,492 | 1,518 |
| Automobile | 3,462 | 2,460 |
| Gross Written Premiums | $106,702 | $81,102 |
| Loss Ratios | ||
| 3 Months Ending | ||
| 03/31/15 | 03/31/14 | |
| All Lines | 53.48% | 47.33% |
The loss ratio is calculated as losses and loss adjustment expense divided by net premiums earned in the given measured period.
CONTACT: Michael H. Braun, CEO (954) 308-1322
or Peter J. Prygelski, CFO (954) 308-1252
Federated National Holding Company