Tomahawk, WI 05/21/2014 (Basicsmedia) – Federated National Holding Co (NASDAQ:FNHC) caught every investor’s eye, as it shaped out as a great mover in the last quarter. The company’s share plummeted up sharply on May 19, 2014. This resulted as shares exchanged hands in solid amounts, than any normal session. As the trend ceases to downgrade, FNHC has already registered an emphatic gain, more than 25%, since May 1, 2014.

Last Quarter Reported Significant Profits, YoY

Federated National Holding Co (NASDAQ:FNHC) reported a gross income, estimating to $8.4 million (at $0.77 per undiluted share and at $0.74 per diluted share). This is increased from a gross income of $2.3 million, during the same period last year. FNHC also notified a significant increase in the gross premiums acquired from homeowners.

The net premiums escalated from $35.8 million, in Q1-2013, to $81.1 million in Q1-2014 – by a thumping 78.9%. Revenue generation too followed suit; total revenues notched up in Q1-2013 was staggered at $27.8 millions. However, in Q1-2014, FNHC grabbed $49.7 million; revenues increased by a significant margin of 127.4%.

Whopping Profits Garnered

Q1-2014 has been really significant in helping Federated National Holding Co (NASDAQ:FNHC) evolve as a stock that is strongly recommended for buying! The company’s basic EPS grew over 166%, gross premiums garnered increased 141%, revenues improved 127%, premiums written enhanced 79% and homeowner’s policy count increased by a pronounced 100%.

Newly Proposed Cat Reinsurance Program

Stocks of Federated National Holding Co (NASDAQ:FNHC), a casualty and property insurance company, shot up starkly as the investors estimated the positive inkling and intent of being a dark horse in the subsequent quarters, this year. FNHC or FedNat, considered as expansive Florida-homeowners’ insurer, conjectured on May 16, 2014, to increase its purchase limits on the private markets with regard to the 2014-15 Cat Reinsurance program, by almost 138% – doubling its retention! The new cat reinsurance will add up a lump sum coverage of $1.23 billion, to FedNat’s tally, in lieu of cat losses and significant loss adjustment expenses.

The program comprises four reinstatement phases on account of losses; the retention limit decided in this Aon Benfield-placed structure is $16 million. A value of $339 million fixed as the occurrence limit, above the retention margin.

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