 SUNRISE, Fla., Aug. 05, 2020 GLOBE NEWSWIRE -- FedNat Holding Company the Company Nasdaq: FNHC today reported results for the three and six months ended June 30, 2020. Q2 2020 highlights as measured against the same three-month period last year, except where noted: Net loss of 21.5 million or 1.57 per diluted share as compared to net income of 7.1 million or 0.55 per diluted share. Adjusted operating loss of 28.1 million or 2.05 per diluted share as compared to adjusted operating income of 5.7 million or 0.44 per diluted share. 48.3 million of claims, net of recoveries, pre-tax, from fourteen Property Claims Services PCS weather events, impacting Florida, Texas and Louisiana, including Tropical Storm Cristobal and a Florida panhandle wildfire, as previously communicated. Strengthened reserves for prior accident years by 7.5 million, pre-tax, related primarily to the 2019 accident year in the Florida homeowners line of business, as previously communicated. 21.4 increase in gross written premiums to 205.4 million, including 28.1 million from Maison. Net premiums earned increased 20.8 or 19.2 million, to 111.5 million, including 14.9 million from Maison. Combined ratio of 147.9, up 46.4 points, including 43.3 points of net catastrophe losses and 6.7 points of prior year development and 6.7 points of prior year development in the period. Quarter-end Florida homeowners in-force policies decreased 4.2 to approximately 230,000, reflecting continued execution of our strategy to limit our exposure in this market until rates more accurately reflect increased costs of claims and reinsurance. 148.3 increase in non-Florida homeowners in-force policies to approximately 149,000, in-line with our diversification strategy. Book value per share decreased 1.07, or 6.2, to 16.18 as compared to 17.25 as of December 31, 2019, due primarily to a net loss of 1.38 per share and dividends declared of 0.18 per share, partially offset by unrealized gains on our fixed-income portfolio of 0.30 and repurchases of stock of 0.27 per share. Repurchased 276,652 shares of common stock, at a discount to book value per share, at a total cost of 3.3 million during the second quarter of 2020.Our second quarter results were impacted by a high number of severe weather events in Florida, and across the Southeast, including fourteen industry events, which included Tropical Storm Cristobal, said Mr. Michael H. Braun, FedNat s Chief Executive Officer. The claims environment in the Florida homeowners market continues to be challenging, and as a result we decided to proactively strengthen our property reserves for the 2019 accident year. We are also taking action to mitigate the difficult claims environment by continuing to raise rates and restrict new business in Florida until our rates more accurately reflect our increased cost of doing business primarily as a result of claims severity and reinsurance costs. The profitability of our non-Florida homeowners business, excluding the impact of these recent severe weather events, continues to meet our expectations and we remain focused on our long-term growth strategy of expanding profitably in more attractive coastal homeowners markets outside of Florida. Mr. Braun continued, FedNats balance sheet and capital structure remain solid, which will enable us to continue providing best in class service to our policyholder and agents while maintaining our commitment to returning capital to our shareholders through our dividend and opportunistic share repurchases, based on the needs of our company and the market price of our shares. We commend the dedication and hard work of our employees, who remain focused on ensuring FedNats commitment to providing the highest quality service to our policyholders and trusted agents, especially during these challenging times where 95 of our staff is working remote. Revenues Total revenue increased 28.7 million or 27.3, to 134.0 million for the three months ended June 30, 2020, compared with 105.3 million for the three months ended June 30, 2019. The increase was driven by net premiums growth, including the effect of the acquisition of Maison and net investment gains, all of which are discussed below. Gross premiums written increased 36.2 million, or 21.4, to 205.4 million in the quarter compared with 169.2 million for the same three-month period last year. Gross premiums written increased due to organic non-Florida growth, and 28.1 million from Maison, 83 of which was non-Florida. Our organic non-Florida business continues to show exceptional growth year over year, especially in the state of Texas, which has allowed us to leverage our infrastructure and diversify insurance risk. Overall, Homeowners grew 21.6. Gross premiums earned increased 38.7 million, or 27.4, to 179.9 million for the three months ended June 30, 2020, as compared to 141.2 million for the three months ended June 30, 2019. The higher gross premiums earned was primarily driven by continued non-Florida growth, including 19.7 million from the acquisition of Maison. Ceded premiums increased 19.5 million, or 39.9, to 68.4 million in the quarter, compared to 48.9 million the same three-month period last year. The increase was driven by higher excess of loss reinsurance spend primarily related to increased property exposures in our non-Florida business, including from the Maison acquisition. Net investment income decreased 1.0 million, or 21.6, to 3.3 million during the three months ended June 30, 2020, as compared to 4.3 million during the three months ended June 30, 2019. The decrease was due primarily to the lower interest rate environment in 2020 and elevated second quarter 2019 income earned on debt proceeds that had not yet been deployed on the Maison acquisition, partially offset by fixed income portfolio growth in 2020 from the Maison acquisition. Net realized and unrealized investment gains losses increased 8.4 million, to 10.4 million for the three months ended June 30, 2020, compared to 2.0 million in the prior year period. We recognized 3.3 million and 1.2 million in unrealized investment gains losses for equity securities during these respective periods. Our current and prior year net realized gains are primarily associated with our portfolio managers, under our control, moving out of positions due to both macro and micro conditions, a typical practice each and every quarter. Furthermore, to mitigate the potential COVID-19 related adverse impact on the financial stability of the issuers of securities we hold, certain positions were liquidated during 2020. Direct written policy fees increased 1.2 million, or 49.5, to 3.6 million for the three months ended June 30, 2020, as compared to 2.4 million during the three months ended June 30, 2019. The increase is primarily driven by the fees associated with Maisons premiums and, to a lesser extent, organic non-Florida growth. Other income increased 0.8 million, or 19.3, to 5.2 million in the quarter, compared with 4.4 million in the same three-month period last year. The increase in other income was primarily driven by higher brokerage revenue. The brokerage revenue increase is the result of higher excess of loss reinsurance spend from the reinsurance programs in place during the second quarter of 2020 as compared to the second quarter of 2019.Expenses Losses and loss adjustment expenses LAE increased 64.6 million, or 98.8, to 129.9 million for the three months ended June 30, 2020, compared with 65.3 million for the same three-month period last year. The net loss ratio increased 45.7 percentage points, to 116.5 in the current quarter, as compared to 70.8 in the second quarter of 2019. The higher loss ratio was primarily the result of higher weather-related net losses when comparing the periods, as the second quarter of 2020 included 59.2 million, net of reinsurance of which, 22.0 million were from FedNat Insurance Companys FNIC non-Florida losses which are subject to a 50 profit-sharing agreement and strengthening reserves for prior accident years by 7.5 million related primarily to 2019 accident year in the Florida homeowners line of business. The second quarter 2020 catastrophe losses were fourteen PCS weather events, impacting Florida, Texas and Louisiana, including Tropical Storm Cristobal and a Florida panhandle wildfire. See the Companys Form 8-K filed with the SEC on July 17, 2020 for a breakout of catastrophe losses by state. Additionally, higher volume of policies in force drove approximately 12.0 million of higher losses as compared to 2019. These items were partially offset by weather-related losses in the corresponding period in 2019, which included twelve catastrophe events totaling 17.0 million in losses and LAE. The net expense ratio increased 0.7 percentage points to 31.4 in the second quarter of 2020, as compared to 30.7 in the second quarter of 2019. Commissions and other underwriting expenses increased 6.7 million, or 29.7, to 29.3 million for the three months ended June 30, 2020, compared with 22.6 million for the three months ended June 30, 2019. The increase was primarily driven by higher non-Florida acquisition related cost as a result of premium growth. This was partially offset by a higher benefit in the current quarter from the 50 profit-sharing agreement, as FNICs non-Florida business experienced higher weather losses in the current quarter than the second quarter of 2019. Income taxes benefits decreased 13.9 million, to a benefit of 11.3 million for the three months ended June 30, 2020, compared to a tax expense of 2.6 million for the three months ended June 30, 2019. 