SUNRISE, Fla., Aug. 12, 2019 (GLOBE NEWSWIRE) -- The Board of Directors of FedNat Holding Company (NASDAQ: FNHC), an insurance holding company, today announced that two insurance industry experts, David Michelson and David Patterson, have been selected as candidates to serve on the Board as new, independent directors. As soon as their appointments have satisfied insurance regulatory review, the Board will immediately expand to nine members and Michelson and Patterson will become directors.
“We are pleased to welcome both candidates,” said FedNat Chairman, Bruce Simberg. “Both bring deep property and casualty insurance expertise, as well as regional market experience that will be significant contributors to the successful execution of our long-term plan.”
David Michelson is a 26-year veteran of publicly traded specialty property and casualty insurer National Interstate Corporation (“National Interstate”), where he served as President and Chief Executive Officer from 2008 until 2016. He also served as a director of National Interstate from 2009 until 2016. During Mr. Michelson’s tenure, National Interstate delivered a consistent record of underwriting profitability which culminated in the company being acquired by a global diversified insurance group in 2016. Mr. Michelson is also a member of the board of directors of Protective Insurance Corporation, a publicly traded specialty property and casualty insurer focused on the commercial automobile insurance market. Prior to National Interstate, Mr. Michelson was responsible for all P&C business at Torchmark Corporation, which included a portfolio of personal property products in the Southeastern U.S.
David Patterson has more than 40 years of operational and executive leadership experience in the property and casualty insurance industry. Most recently he served as President and Chairman of ESIS, Inc. (“ESIS”), the risk management services subsidiary of Ace Limited (now Chubb Limited) from 2004 to 2015. Prior to joining ESIS, Mr. Patterson was the President and Chief Executive Officer of Kemper National Services, Inc., a claims service organization serving the property and casualty insurance operations of Kemper National, from 1994 to 2003. While at Kemper, Mr. Patterson served in a variety of regional and home office senior leadership roles in claims, systems and operations.
FedNat also announced today it has entered into a cooperation agreement with its third largest shareholder, Capital Returns Management, LLC (“Capital Returns”). Today’s appointments of Michelson and Patterson were made as part of the agreement, which also provides that Capital Returns will abide by certain customary standstill and voting provisions lasting approximately one year.
“FedNat has always believed in maintaining collaborative dialogue with all of our shareholders, including Capital Returns and its President, Ronald Bobman, and appreciates their insights, viewpoints and assistance in identifying Michelson and vetting these exceptional candidates to join the Board,” said Michael H. Braun, Chief Executive Officer. “I echo Bruce’s sentiment on our new Board candidates and look forward to working with them as we execute on FedNat’s strategy to drive profitable growth and value creation for our shareholders.” Effective immediately, Michelson and Patterson have been designated as Board observers while their appointments as directors receive regulatory review.
“We appreciate the constructive dialogue with FedNat’s management and Board and are pleased to see the Company strengthen its Board,” said Mr. Bobman. “We believe these two new directors will help FedNat continue building value for shareholders.”
In addition to the appointments of Messrs. Michelson and Patterson and the agreement with Capital Returns, the Company announced that the Company’s 2019 annual meeting of shareholders (the “2019 Meeting”) will be held on October 17, 2019. The Company will deliver a proxy statement to shareholders containing information regarding the Board’s nominees and other matters in advance of the 2019 Meeting.
About the Company
The Company is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims management processes through its subsidiaries and contractual relationships with independent agents and general agents. The Company, through our wholly-owned subsidiaries, is authorized to underwrite and/or place homeowners multi-peril, federal flood and other lines of insurance in Florida and other states. We market, distribute and service our own and third-party insurers’ products and other services through a network of independent and general agents.
