U.S. holding company, C.A. Bancorp Inc. announce joint venture

A U.S.-based holding company and a publicly traded Canadian merchant bank have announced an agreement to form a new Florida-based property and casualty insurance carrier to be named Monarch National Insurance Company.

The agreement between Federated National Holding Company (FNHC) –authorized to underwrite and/or place through its wholly owned subsidiaries, homeowners’ multi-peril, commercial general liability, federal flood, personal auto and various other lines of insurance in Florida and various other states – and C.A. Bancorp Inc. (BKP) – a publicly traded Canadian merchant bank and alternative asset manager with a primary focus on the insurance industry – was announced Monday.

Transatlantic Reinsurance Company (TransRe) is taking a minority position in the new venture, notes an FNHC statement. The launch of Monarch National Insurance is subject to the receipt of regulatory approvals and other customary conditions.

Once Monarch is launched, as future opportunities arise and subject to the availability of capital, FNHC and C.A. Bancorp intend to seek out other potential opportunities to grow the Monarch platform, both within Florida and in other states, the statement adds.

“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,” says Colin King of BKP.

“This is a great opportunity for us to partner with two quality organizations that see an opportunity in the Florida homeowners’ insurance market,” notes Michael H. Braun, FNHC’s CEO and president. “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,” Braun adds.