TORONTO, Sept. 12, 2017 (GLOBE NEWSWIRE) -- Crosswinds Holdings Inc. (“Crosswinds” or the “Company”) (TSX: CWI) provides an update on the expected impact of Hurricane Irma on its joint venture investment in Monarch National Insurance Company (“Monarch”), a company that writes Florida homeowners insurance. Crosswinds has an indirect economic interest of approximately 36% in Monarch.
On September 10, 2017, Hurricane Irma made its initial landfall as a Category 4 hurricane in Florida.
Based on information provided by Federated National Insurance Company (“Federated”), the Company’s joint venture partner and managing general agent for Monarch, together with preliminary post-landfall catastrophe model estimates, Monarch currently estimates that its losses from Hurricane Irma, net of reinsurance, should not exceed its first event pre-tax retention amount of USD$3.4 million.
Monarch’s reinsurance program affords Monarch approximately USD$109.8 million of aggregate coverage with a maximum single event coverage totaling approximately USD$68.9 million. See the Company’s press release dated July 5, 2017 for further information.
Monarch’s existing reinsurance program remains in force for future events through the end of its contract period, June 30, 2018. All private market layers of reinsurance protection for Monarch have prepaid automatic reinstatement protection, which affords Monarch additional coverage for subsequent events without incurring incremental premium beyond the original cost of its program. The reinsurance program for Monarch also embodies a cascading structure such that substantially all layers attach above the per event retention.
Crosswinds Holdings Inc.
Crosswinds is a publicly traded private equity firm and asset manager targeting strategic and opportunistic investments in the financial services sector with a particular focus on the insurance industry.
More information
Colin King
Tel: 1-800-439-5136
info@crosswindsinc.com
www.crosswindsinc.com
Caution Regarding Forward-Looking Information
This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue” or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These forward-looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors in the Company’s 2016 Annual Information Form, in the Management’s Discussion and Analysis for the year ended December 31, 2016 and in our other filings with Canadian securities regulators. Additional important factors that could cause actual results to differ materially from expectations include, among other things, actual catastrophic risk exposure, changes in early models and the limitations of those models, actual claims activity, creditworthiness and timeliness of payment by reinsurers, and general economic and market factors.