Joseph Duncan
Long only, growth at reasonable price

Federated National Holding Company: A Growth Story


Federated National Holding Company (NASDAQ:FNHC) is a personal residential homeowners insurer operating primarily in Florida. Florida accounts for 96% of its revenues. As of 3/31/2014 its market share in Florida was 2.6% with $216 million of insurance in force. Homeowner's insurance accounts for 90% of premiums, general commercial for 4%, flood for 2%, and automobile is 3%.

In recent years the industry has greatly benefited from the restructuring of Citizens Insurance. In 2013 Citizens had 1.5 million policies in force. It has dramatically reduced its policy count to 0.9 million today with a publicly stated goal of reaching 0.5 million in the future, although it is uncertain whether Citizens will attain this count. Today, Citizens has a...

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