Nitor Capital
Long/short equity, value, special situations, Deep Value

Federated National Holdings Company - Buying Into A Fixed Income Portfolio At A Significant Discount

Federated National Holdings Company (NASDAQ:FNHC) is a Florida based property and casualty insurance provider. In 2012, Federated's insurance business grew dramatically. The Company's Homeowners' Policy count grew by 35%, and its 'Net Premiums Earned' increased by 20%. In the most recent quarter, FNHC's net income increased by 75% year-over-year, despite incurring substantial losses as a result of tropical storm Isaac. More importantly, the Company's tangible book value (TBV), a key metric for valuing insurance companies, increased from $7.01 per share to $8.24 per share, representing an 18% increase over last year.

As of the end of the year, Federated's Enterprise Value stood at a mere $32 million ($42 million market cap, $10 million cash balance, and zero debt)....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
Annual subscriptions may be cancelled for any reason within the first 30 days and receive a full and prompt refund. Details