Legal teams at Colodny Fass and Broad and Cassel closed a $16.68 million deal to buy out a partner’s interest in an insurance firm.
Colodny Fass partner Sandy Fay in Sunrise and Broad and Cassel partner Nina Gordon in Miami represented Federated National Holding Co.’s purchase through its Federated National Insurance Co. subsidiary.
Federated National Holding Co. entered into a joint venture with two partners to form Florida property insurer Monarch Delaware Holdings LLC in 2014.
Federated National owned a 42.4 percent stake, and partners Crosswinds Holdings Inc. and Transatlantic Reinsurance Co. owned 42.4 percent and 15.2 percent, respectively, according to Fay.
Federated National bought Crosswinds’ share for $12.28 million and TransRe’s interest for $4.4 million to take full control of the insurer.
“I think the parties recognized that Monarch and its policyholders will be best served by having one entity owning the company,” Fay said.
The deal closed after the acquisition was approved by the state Office of Insurance Regulation.
Gordon worked on the securities aspect of the deal.
“I’ve especially enjoyed working with the FedNat team and with Sandy (Fay) to accomplish this new stage of the company’s growth,” she said.
Federal National Insurance and Monarch National Insurance are now subsidiaries of Federated National Holding.
Federated National underwrites homeowner, commercial general liability, federal flood and personal auto insurance in Florida as well as homeowner policies in Alabama, Louisiana, South Carolina and Texas.
Crosswinds is a Toronto-based publicly traded private equity company and asset manager targeting investments in financial services with a focus on insurance. TransRe is a New York-based reinsurance organization.
Colodny Fass and Broad and Cassel have represented Federated National for about 15 years, the attorneys said.