FEDNAT HOLDING COMPANY

Overview

We are a regional insurance holding company that controls virtually all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and our contractual relationships with independent agents and agents. generals.

We, through our wholly owned subsidiaries, are authorized to purchase and / or purchase property and casualty, federal flood and other insurance for homeowners in Florida and other states. We market, distribute and serve our own insurers and third parties ?? products and other services through a network of independent and general agents.

FedNat Insurance Company, our largest wholly owned insurance subsidiary, is licensed as a licensed carrier to underwrite homeowners’ damage insurance by the State Insurance Departments of Florida, Louisiana, Texas, South Carolina , Alabama, Georgia and Mississippi.

Maison Insurance Company, an insurance subsidiary that we acquired on December 2, 2019, is licensed as an authorized carrier to underwrite homeowners’ damage insurance and wind / hail risks only by the insurance departments of the states of the Louisiana, Texas and Florida.

Monarch National Insurance Company, an insurance subsidiary, is licensed to purchase P&C insurance in Florida.

Through our wholly owned subsidiary, FedNat Underwriters, Inc., we serve as the general managing agent for FedNat Insurance Company, Maison Insurance Company and Monarch National Insurance Company.

Company Information

We were incorporated in Florida in 1991 and changed our name from 21^st Century Holding Company to Federated National Holding Company in 2012 and FedNat Holding Company in 2018. Our principal management offices are located at 14050 NW 14th Street, Suite 180, Sunrise, Florida 33323, and our phone number is (800) 293-2532. Our website is www.fednat.com. The information on our website is not incorporated by reference into this prospectus, and such information should not be construed as forming part of this prospectus.

For more information about us and our financial information, you should refer to our documents filed with the SEC. See ?? Incorporation of certain documents by reference. ??

Recent developments

In August 2021, Hurricane Ida (?? Ida ??), a Category 4 hurricane, hit Louisiana, where two of our insurance subsidiaries, FedNat Insurance Company and Maison Insurance Company, underwent insurance policies. home insurance and hit western Mississippi, where FedNat Insurance The company also underwrites home insurance policies. We have deployed the appropriate resources in affected areas to better serve our policyholders when needed. For the current treaty year starting July 1, 2021, we have implemented two separate reinsurance programs. While it is too early to estimate the gross losses from this event, we expect the gross losses to exceed our combined retention of $ 18.3 million in the two reinsurance programs. Up to approximately $ 910 million of comprehensive coverage is available for Ida, parts of which are available for each of our insurance subsidiaries, depending on the reinsurance program in which they participate. We will receive fees in our claims settlement subsidiaries for handling Ida claims and expect our overall net financial impact to be significantly less than reinsurance retention.

Steven A. Hale II, who beneficially owns 11.5% of our outstanding common shares, became an advisor to the Strategic Review Committee formed by our Board of Directors in October 2020. Mr. Hale assists the Committee in the review of the company ?? business plan, capital deployment, geographic footprint and long-term strategy to identify strategic alternatives for the Company.

On September 15, 2021, Demotech, Inc. reaffirmed the A, Exceptional, Financial Stability Ratings^® of our insurance companies based on its review of our insurance subsidiaries ?? operating results as of June 30, 2021 and our operating plan. Such ratings are subject to future review and adjustment by Demotech.

RISK FACTORS

Do you need to carefully consider the specific risks set out under “Risk Factors”? in the applicable prospectus supplement or in any of our documents filed with the SEC pursuant to Sections 13 (a), 13 (c), 14 or 15 (d) of the Exchange Act, incorporated by reference herein, before making an investment decision. For more information, see Where can I find more information? and ?? Incorporation of certain documents by reference. ??

The risks described in the documents mentioned above are not the only risks we face. Additional risks and uncertainties that are not currently known to us or that we currently believe to be insignificant may also have a material adverse effect on our business, financial condition and results of operations. If any of these risks did occur, our business, financial condition and results of operations could be adversely affected. In this case, the price of our common shares could fall and you could lose some or all of your investment.

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