FedNat agreed to a consent order filed by the Florida Department of Insurance on May 13, 2022 to cancel 56,500 of its 140,000 in-force Florida policy count as of May 12th, Monarch National must cancel 8,400 of its personal property policies and all of the approximately 3,300 Maison Insurance policies effective 45 days post-order are being cancelled as well. The Department determined that the early cancellation of the policies was in the best interest of the policyholders and gives some relief to the Florida Insurance Guaranty Association (FIGA) that has been deluged with claims from three2022 insolvencies and those from 2021.

The strategic plan filed with the Department includes additional capital for Monarch National who will be assuming the remaining 83,000 FedNat policies. FedNat has indicated to the Department that it has adequate resources to runoff the liabilities of the companies, and wind down operations.

The Department is reviewing the acquisition plan filed on May 9th that includes Monarch entering into an agreement with an investor that stipulates that the cancellations must take place in order for the acquisition to be successful.