Michael H. Braun, CEO of Florida based primary insurer FedNat, has revealed that the company is seeking to become “much smaller, with significantly fewer policies in force,” ahead of what it anticipates to be an extremely challenging mid-year renewal period.
Last month, leaders at FedNat cast doubts over the company’s ability to continue, after having its financial stability ratings (FSR) downgraded from an ‘A’ to ‘S’ by rating agency Demotech.
Alongside the release of FedNat’s Q1 results, Braun explained that he believes the FSR downgrade “will adversely impact our ability to obtain excess-of-loss reinsurance for coverage beginning July 1, 2022 and would place the Company in non-compliance with the regulations of the Florida Office of Insurance Regulation (OIR).”
