FedNat Holding Co (Form: 10-K, Received: 03/29/2021 17:29:59)

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20\F7V1111 Quota Share Reinsurance Contract Effective: December 31, 2020 FedNat Insurance Company Sunrise, Florida _______________________ Certain identified information has been omitted from this exhibit because it is not material and would be competitively harmful if publicly disclosed. Redactions are indicated by [***].

20\F7V1111 Table of Contents Article Page 1 Classes of Business Reinsured 1 2 Commencement and Termination 1 3 Territory 3 4 Exclusions 3 5 Retention and Limit 4 6 Loss in Excess of Policy Limits/Extra-Contractual Obligations 7 7 Other Reinsurance 7 8 Claims and Loss Adjustment Expenses 8 9 Salvage and Subrogation 8 10 Original Conditions 9 11 Ceding Commission 9 12 Reports and Remittances 9 13 Sanctions 10 14 Late Payments 10 15 Offset 11 16 Access to Records 12 17 Errors and Omissions (BRMA 14F) 12 18 Currency (BRMA 12A) 12 19 Taxes (BRMA 50B) 12 20 Federal Excise Tax (BRMA 17D) 12 21 Unauthorized Reinsurers 13 22 Special Funding 14 23 Insolvency 14 24 Arbitration 15 25 Confidentiality 16 26 Service of Suit (BRMA 49C) 17 27 Governing Law (BRMA 71B) 17 28 Severability (BRMA 72E) 18 29 Assignment and Assumption 18 30 Non-Waiver 18 31 Notices and Contract Execution 18 32 Intermediary 19

20\F7V1111 Page 1 Quota Share Reinsurance Contract Effective: December 31, 2020 entered into by and between FedNat Insurance Company Sunrise, Florida (hereinafter referred to as the "Company") and The Subscribing Reinsurer(s) Executing the Interests and Liabilities Agreement(s) Attached Hereto (hereinafter referred to as the "Reinsurer") Article 1 - Classes of Business Reinsured A. By this Contract the Company obligates itself to cede to the Reinsurer and the Reinsurer obligates itself to accept quota share reinsurance of the Company's Net Liability under policies, contracts, and binders of insurance or reinsurance (hereinafter called "Policies") in force at the effective date hereof or issued or renewed on or after that date, and classified by the Company as Homeowners (Section I and II) and Dwelling Fire (Section I and II) business, located in the State of Florida. B. "Net Liability" as used in this Contract shall mean the Company's gross liability reinsured under this Contract remaining after cessions, if any, to other inuring reinsurance. C. The liability of the Reinsurer with respect to each cession hereunder shall commence obligatorily and simultaneously with that of the Company, subject to the terms, conditions and limitations hereinafter set forth. Article 2 - Commencement and Termination A. This Contract shall become effective at 12:01 a.m., Eastern Standard Time, December 31, 2020, with respect to losses arising out of Occurrences commencing at or after that time and date, and shall remain in force until 12:01 a.m., Eastern Standard Time, December 31, 2021. B. Notwithstanding the provisions of paragraph A above, the Company may terminate a Subscribing Reinsurer's percentage share in this Contract at any time by giving written notice to the Subscribing Reinsurer in the event any of the following circumstances occur: 1. The Subscribing Reinsurer's policyholders' surplus (or its equivalent under the Subscribing Reinsurer's accounting system) at the inception of this Contract has been reduced by [***]% or more of the amount of surplus (or the applicable equivalent) 12 months prior to that date; or

20\F7V1111 Page 2 2. The Subscribing Reinsurer's policyholders' surplus (or its equivalent under the Subscribing Reinsurer's accounting system) at any time during the Term of this Contract has been reduced by [***]% or more of the amount of surplus (or the applicable equivalent) at the date of the Subscribing Reinsurer's most recent financial statement filed with regulatory authorities and available to the public as of the inception of this Contract; or 3. The Subscribing Reinsurer's A.M. Best's rating has been assigned or downgraded below A- and/or Standard & Poor's rating has been assigned or downgraded below BBB+; or 4. The Subscribing Reinsurer has become, or has announced its intention to become, merged with, acquired by or controlled by any other entity or individual(s) not controlling the Subscribing Reinsurer's operations previously; or 5. A State Insurance Department or other legal authority has ordered the Subscribing Reinsurer to cease writing business; or 6. The Subscribing Reinsurer has become insolvent or has been placed into liquidation, receivership, supervision, administration, winding-up or under a scheme of arrangement, or similar proceedings (whether voluntary or involuntary) or proceedings have been instituted against the Subscribing Reinsurer for the appointment of a receiver, liquidator, rehabilitator, supervisor, administrator, conservator or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations; or 7. The Subscribing Reinsurer has reinsured its entire liability under this Contract without the Company's prior written consent; or 8. The Subscribing Reinsurer has ceased assuming new or renewal property or casualty treaty reinsurance business; or 9. The Subscribing Reinsurer has hired an unaffiliated runoff claims manager that is compensated on a contingent basis or is otherwise provided with financial incentives based on the quantum of claims paid; or 10. The Subscribing Reinsurer has failed to comply with the funding requirements set forth in the Unauthorized Reinsurers Article. C. Unless otherwise mutually agreed, reinsurance hereunder on business in force on the effective date of termination shall remain in full force and effect until expiration, cancellation or next premium anniversary of such business, whichever first occurs, but in no event beyond 18 months following the effective date of termination. D. Notwithstanding the provisions of paragraph C above, if the Company is prohibited or precluded by the appropriate regulatory authorities, or by law (in those states where applicable), from arranging mid-term cancellation or non-renewal of any Policies subject to this Contract beyond their natural expiry, the Reinsurer agrees to extend coverage under

20\F7V1111 Page 3 this Contract until such Policies may be terminated or non-renewed by the Company, but in no event beyond 18 months after the effective date of termination or expiration. Article 3 - Territory The territorial limits of this Contract shall be identical with those of the Company's Policies, but is limited to risks located within the State of Florida. Article 4 - Exclusions A. This Contract does not apply to and specifically excludes the following: 1. Reinsurance assumed by the Company under obligatory reinsurance agreements, except business assumed by the Company from Citizens Property Insurance Corporation. 2. Hail damage to growing or standing crops. 3. Business rated, coded or classified as Flood insurance or which should have been rated, coded or classified as such. 4. Business rated, coded or classified as Mortgage Impairment and Difference in Conditions insurance or which should have been rated, coded or classified as such. 5. Title insurance and all forms of Financial Guarantee, Credit and Insolvency. 6. Aviation, Ocean Marine, Boiler and Machinery, Fidelity and Surety, Accident and Health, Animal Mortality and Workers Compensation and Employers Liability. 7. Errors and Omissions, Malpractice and any other type of Professional Liability insurance. 8. Loss and/or damage and/or costs and/or expenses arising from seepage and/or pollution and/or contamination, other than contamination from smoke. Nevertheless, this exclusion does not preclude payment of the cost of removing debris of property damaged by a loss otherwise covered hereunder, subject always to a limit of [***]% of the Company's property loss under the applicable original policy. 9. Loss or liability as excluded under the provisions of the "War Exclusion Clause" attached to and forming part of this Contract. 10. Nuclear risks as defined in the "Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance" and the "Nuclear Incident Exclusion Clause - Liability - Reinsurance" attached to and forming part of this Contract. 11. Loss or liability from any Pool, Association or Syndicate and any assessment or similar demand for payment related to the FHCF or Citizens Property Insurance Corporation.

20\F7V1111 Page 4 12. Loss or liability of the Company arising by contract, operation of law, or otherwise, from its participation or membership, whether voluntary or involuntary, in any insolvency fund. "Insolvency fund" includes any guaranty fund, insolvency fund, plan, pool, association, fund or other arrangement, however denominated, established or governed, which provides for any assessment of or payment or assumption by the Company of part or all of any claim, debt, charge, fee or other obligation of an insurer, or its successors or assigns, which has been declared by any competent authority to be insolvent, or which is otherwise deemed unable to meet any claim, debt, charge, fee or other obligation in whole or in part. 13. Losses in the respect of overhead transmission and distribution lines other than those on or within 150 meters (or 500 feet) of the insured premises. 14. Mold, unless resulting from a peril otherwise covered under the policy involved. 15. Loss or liability as excluded under the provisions of the "Terrorism Exclusion" attached to and forming part of this Contract. 16. Loss or Liability excluded under the Cyber Loss Limited Exclusion Clause (Property Treaty Reinsurance) No. 1 attached to and forming part of this Contract. 17. Losses arising out of the peril of named storm. 18. Loss or Liability excluded under the Communicable Disease Exclusion (Property Treaty Reinsurance) attached to and forming part of this Contract. Article 5 - Retention and Limit A. The Company will cede to the Reinsurer and the Reinsurer will accept as reinsurance of the Company a quota share percentage participation (as set forth in the Reinsurer's Interests and Liabilities Agreement as attached hereto and made a part hereof) of the Company's Net Liability in respect of all Policies subject to this Contract. B. Notwithstanding the provisions above, the liability (excluding Loss in Excess of Policy Limits, Extra-Contractual Obligations and/or Loss Adjustment Expenses) of the Reinsurer shall not exceed the following: 1. $[***] any one risk; 2. $[***] any one Occurrence. C. Notwithstanding the provisions above, as respects Extra-Contractual Obligations and/or Loss in Excess of Policy Limits, the liability of the Reinsurer shall not exceed an additional policy limit. D. "Occurrence" as respects Property business shall mean the sum of all individual losses directly occasioned by any one disaster, accident or loss or series of disasters, accidents or losses arising out of one event which occurs within the area of one state of the United

20\F7V1111 Page 5 States or province of Canada and states or provinces contiguous thereto and to one another. However, the duration and extent of any one "Occurrence" shall be limited to all individual losses sustained by the Company occurring during any period of 168 consecutive hours arising out of and directly occasioned by the same event, except that the term "Occurrence" shall be further defined as follows: 1. As regards a named storm, all individual losses sustained by the Company occurring during any period (a) from and after 12:00 a.m. Eastern Standard Time on the date a watch, warning, advisory, or other bulletin (whether for wind, flood or otherwise) for such named storm is first issued by the National Hurricane Center ("NHC") or its successor or any other division of the National Weather Service ("NWS"), (b) continuing for a time period thereafter during which such named storm continues, regardless of its category rating or lack thereof and regardless of whether the watch, warning, or advisory or other bulletin remains in effect for such named storm and (c) ending 96 hours following the issuance of the last watch, warning or advisory or other bulletin for such named storm or related to such named storm by the NHC or its successor or any other division of the NWS. "Named storm" shall mean any storm or storm system that has been declared by the NHC or its successor or any other division of the NWS to be a named storm at any time, which may include, by way of example and not limitation, hurricane, wind, gusts, typhoon, tropical storm, hail, rain, tornados, cyclones, ensuing flood, storm surge, water damage, fire following, sprinkler leakage, riots, vandalism, and collapse, and all losses and perils (including, by way of example and not limitation, those mentioned previously in this sentence) in each case arising out of, caused by, occurring during, occasioned by or resulting from such storm or storm system, including by way of example and not limitation the merging of one or more separate storm(s) or storm system(s) into a combined storm surge event. However, the named storm need not be limited to one state or province or states or provinces contiguous thereto. 2. As regards storm or storm systems that are not a named storm, including, by way of example and not limitation, ensuing wind, gusts, typhoon, tropical storm, hail, rain, tornados, cyclones, ensuing flood, storm surge, fire following, sprinkler leakage, riots, vandalism, collapse and water damage, all individual losses sustained by the Company occurring during any period of 144 consecutive hours arising out of, caused by, occurring during, occasioned by or resulting from the same event. However, the event need not be limited to one state or province or states or provinces contiguous thereto. 3. As regards riot, riot attending a strike, civil commotion, vandalism and malicious mischief, all individual losses sustained by the Company occurring during any period of 96 consecutive hours within the area of one municipality or county and the municipalities or counties contiguous thereto arising out of and directly occasioned by the same event. The maximum duration of 96 consecutive hours may be extended in respect of individual losses which occur beyond such 96 consecutive hours during the continued occupation of an assured's premises by strikers, provided such occupation commenced during the aforesaid period. 4. As regards earthquake (the epicenter of which need not necessarily be within the territorial confines referred to in the introductory portion of this paragraph A) and fire following directly occasioned by the earthquake, only those individual fire losses which

20\F7V1111 Page 6 commence during the period of 168 consecutive hours may be included in the Company's "Occurrence." 5. As regards "freeze," only individual losses directly occasioned by collapse, breakage of glass and water damage (caused by bursting frozen pipes and tanks) may be included in the Company's "Occurrence." 6. As regards firestorms, brush fires and any other fires or series of fires, irrespective of origin (except as provided in subparagraphs 3 and 4 above), all individual losses sustained by the Company which commence during any period of 168 consecutive hours within the area of one state of the United States or province of Canada and states or provinces contiguous thereto and to one another may be included in the in the Company's "Occurrence." E. For all Property "Occurrences" hereunder, the Company may choose the date and time when any such period of consecutive hours commences, provided that no period commences earlier than the date and time of the occurrence of the first recorded individual loss sustained by the Company arising out of that disaster, accident, or loss or series of disasters, accidents, or losses. Furthermore: 1. For all "Occurrences" other than those referred to in subparagraphs D.1., D.2., and D.3. above, only one such period of 168 consecutive hours shall apply with respect to one event. 2. As regards those "Occurrences" referred to in subparagraphs D.1. and D.2., only one such period of consecutive hours (as set forth therein) shall apply with respect to one event, regardless of the duration of the event. 3. As regards those "Occurrences" referred to in subparagraph D.3. above, if the disaster, accident, or loss or series of disasters, accidents, or losses occasioned by the event is of greater duration than 96 consecutive hours, then the Company may divide that disaster, accident, or loss or series of disasters, accidents, or losses into two or more "Occurrences," provided that no two periods overlap and no individual loss is included in more than one such period. F. It is understood that losses arising from a combination of two or more perils as a result of the same event may be considered as having arisen from one "Occurrence." Notwithstanding the foregoing, the hourly limitations as stated above shall not be exceeded as respects the applicable perils, and no single "Occurrence" shall encompass a time period greater than 168 consecutive hours, except as regards those "Occurrences" referred to in subparagraphs D.1., D.4., and D.6. above. G. "Occurrence" as respects Casualty business shall mean an accident or occurrence or a series of accidents or occurrences arising out of or caused by one event. H. The Company shall be the sole judge of what constitutes one "risk." I. "Term of this Contract" as used in this Contract shall mean the period from 12:01 a.m., Eastern Standard Time, December 31, 2020, to 12:01 a.m., Eastern Standard Time, December 31, 2021. If, however, this Contract is terminated, the "Term of this Contract" as

20\F7V1111 Page 7 used in this Contract shall mean the period from 12:01 a.m., Eastern Standard Time, December 31, 2020, to the effective time and date of the termination. Article 6 - Loss in Excess of Policy Limits/Extra-Contractual Obligations A. In the event that the Company pays or is held liable to pay an amount of Loss in Excess of its Policy Limit, but otherwise within the terms of its Policy (hereinafter called "Loss in Excess of Policy Limits") or any punitive, exemplary, compensatory, or consequential damages or other amounts, including payments pursuant to applicable statutes, other than Loss in Excess of Policy Limits (hereinafter called "Extra-Contractual Obligations") because of alleged or actual bad faith or negligence on its part in rejecting a settlement within Policy limits, or in discharging its duty to defend or prepare the defense in the trial of an action against its policyholder, or in discharging its duty to prepare or prosecute an appeal consequent upon such an action, or in otherwise handling a claim under a Policy subject to this Contract, [***]% of the Loss in Excess of Policy Limits and/or [***]% of the Extra- Contractual Obligations shall be added to the Company's loss, if any, under the Policy involved, and the sum thereof shall be subject to the provisions of the Retention and Limit Article. B. An Extra-Contractual Obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the Policy. C. Notwithstanding anything stated herein, this Contract shall not apply to any Loss in Excess of Policy Limits or any Extra-Contractual Obligation incurred by the Company as a result of any fraudulent and/or criminal act by any Executive Officer or member of the Board of Directors of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense, or settlement of any claim covered hereunder (as determined by the final decision by a court of competent jurisdiction). "Executive Officer" as used herein shall mean any senior executive who performs a policy-making function. D. Recoveries from any form of insurance or reinsurance that protects the Company against claims the subject matter of this Article shall inure to the benefit of this Contract. E. Savings Clause (applicable only if the Subscribing Reinsurer is domiciled in the State of New York): In no event shall coverage be provided to the extent that such coverage is not permitted under New York law. Article 7 - Other Reinsurance The Company shall be permitted to carry other reinsurance, recoveries under which shall inure solely to the benefit of the Company and be entirely disregarded in applying all of the provisions of this Contract.

20\F7V1111 Page 8 Article 8 - Claims and Loss Adjustment Expenses A. Losses shall be reported by the Company in summary form as hereinafter provided, but the Company shall notify the Reinsurer immediately when a specific case involves unusual circumstances or large loss possibilities. The Reinsurer shall have the right to participate, at its own expense, provided that it shall cooperate fully with the Company, in the defense of any claim or suit or proceeding involving this reinsurance. B. All loss settlements made by the Company, whether under strict Policy conditions or by way of compromise, shall be binding upon the Reinsurer, and the Reinsurer agrees to pay or allow, as the case may be, its proportion of each such settlement in accordance with the Reports and Remittances Article. It is agreed, however, that if the Reinsurer's share of any loss is equal to or greater than $[***], the Reinsurer will pay its share of such loss as promptly as possible after receipt of reasonable evidence of the amount paid by the Company. Inadvertent omission in dispatching the aforementioned notices will in no way affect the obligation of the Reinsurer under this Contract, provided that the Company informs the Reinsurer of such omission promptly upon discovery. C. In the event of a claim under a Policy subject hereto, the Reinsurer shall be liable for its proportionate share of Loss Adjustment Expenses (as defined herein) incurred by the Company in connection therewith, and shall be credited with its proportionate share of any recoveries of such expense. D. "Loss Adjustment Expenses" as used in this Contract shall mean expenses assignable to the investigation, appraisal, adjustment, settlement, litigation, defense and/or appeal of claims, regardless of how such expenses are classified for statutory reporting purposes. Loss Adjustment Expenses shall include, but not be limited to, interest on judgments, expenses of outside adjusters, other extraordinary communication expenses incurred as a result of a covered Occurrence, costs of supersedeas and appeal bonds, monitoring counsel expenses, expenses and a pro rata share of salaries of the Company's field employees, and expenses of other employees of the Company who have been temporarily diverted from their normal and customary duties and assigned to the adjustment of losses covered by this Contract, and declaratory judgment expenses or other legal expenses and costs incurred in connection with coverage questions and legal actions connected thereto. Loss Adjustment Expenses shall not include normal office expenses or salaries of the Company's officers. Article 9 - Salvage and Subrogation The Reinsurer shall be credited with its proportionate share of salvage (i.e., reimbursement obtained or recovery made by the Company, less the actual cost, excluding salaries of officers and employees of the Company and sums paid to attorneys as retainer, of obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance hereunder. The Company hereby agrees to enforce its rights to salvage or subrogation relating to any loss, a part of which loss was sustained by the Reinsurer, and to prosecute all claims arising out of such rights if, in the Company's opinion, it is economically reasonable to do so.

20\F7V1111 Page 9 Article 10 - Original Conditions A. All reinsurance under this Contract shall be subject to the same rates, terms, conditions, waivers and interpretations and to the same modifications and alterations, including judicial interpretation, policy reformation and regulatory changes, as the respective Policies of the Company. The Reinsurer shall be credited with its exact proportion of the Company's Net Written Premium. B. Nothing herein shall in any manner create any obligations or establish any rights against the Reinsurer in favor of any third party or any persons not parties to this Contract. C. It is the intent of the parties that the Reinsurer shall follow the fortunes of the Company, provided that the loss(es) within the applicable time period are within the terms, conditions and limits of the original Policies. D. However, in no event shall anything contained in this Article be construed in any way to provide coverage outside the terms, conditions and limitations set forth in this Contract. Article 11 - Ceding Commission A. The Reinsurer shall allow the Company a [***]% commission on the Net Written Premium for the Term of this Contract. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. It is expressly agreed that the ceding commission allowed the Company includes provision for all dividends, commissions, taxes, assessments, and all other expenses of whatever nature, except loss adjustment expense. Article 12 - Reports and Remittances A. Within 30 days after the effective date of this Contract, the Company shall remit the Reinsurer's share of the unearned premium (less commission thereon) applicable to subject business in force at the effective date of this Contract. B. Within 30 days after the end of each month, the Company shall report to the Reinsurer: 1. Ceded Net Written Premium for the month; 2. Commission thereon; 3. Ceded losses and Loss Adjustment Expenses paid during the month (net of any recoveries during the month under the "cash call" provisions of the Claims and Loss Adjustment Expenses Article). The positive balance of (1) less (2) less (3) shall be remitted by the Company with its report. Any balance shown to be due the Company shall be remitted by the Reinsurer as promptly as possible after receipt and verification of the Company's report.

20\F7V1111 Page 10 C. Within 60 days after the end of each calendar quarter, the Company shall report to the Reinsurer the ceded unearned premiums and ceded outstanding loss reserves as of the end of the calendar quarter. D. The Company shall furnish the Reinsurer with such information as the Reinsurer may require to complete its Annual Convention Statement. E. "Net Written Premium" as used in this Contract shall mean Company's gross written premium for the classes of business reinsured hereunder, less cancellations and return premiums, and less premiums, if any, ceded by the Company for reinsurance which inures to the benefit of this Contract and less an allowance for premium ceded by the Company for Catastrophe Excess of Loss Protection, which allowance shall be equal to [***]% of the total gross written premium for the classes of business reinsured hereunder, less cancellations and return premiums, for the Term of this Contract. F. "Catastrophe Excess of Loss Protection" as used herein includes any catastrophe excess of loss reinsurance and/or protection purchased by the Company. Article 13 - Sanctions Neither the Company nor any Subscribing Reinsurer shall be liable for premium or loss under this Contract if it would result in a violation of any mandatory sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America that are applicable to either party. Article 14 - Late Payments A. The provisions of this Article shall not be implemented unless specifically invoked, in writing, by one of the parties to this Contract. B. In the event any premium, loss or other payment due either party is not received by the intermediary named in the Intermediary Article (hereinafter referred to as the "Intermediary") by the payment due date, the party to whom payment is due may, by notifying the Intermediary in writing, require the debtor party to pay, and the debtor party agrees to pay, an interest charge on the amount past due calculated for each such payment on the last business day of each month as follows: 1. The number of full days which have expired since the due date or the last monthly calculation, whichever the lesser; times 2. 1/365ths of the six-month United States Treasury Bill rate as quoted in The Wall Street Journal on the first business day of the month for which the calculation is made; times 3. The amount past due, including accrued interest. It is agreed that interest shall accumulate until payment of the original amount due plus interest charges have been received by the Intermediary.

20\F7V1111 Page 11 C. The establishment of the due date shall, for purposes of this Article, be determined as follows: 1. Any claim or loss payment due the Company hereunder shall be deemed due 10 days after the proof of loss or demand for payment is transmitted to the Reinsurer. If such loss or claim payment is not received within the 10 days, interest will accrue on the payment or amount overdue in accordance with paragraph B above, from the date the proof of loss or demand for payment was transmitted to the Reinsurer. 2. As respects a "cash call" made in accordance with the penultimate sentence of paragraph B of the Claims and Loss Adjustment Expenses Article, payment shall be deemed due thirty days after the proof of loss or demand for payment is transmitted to the Reinsurer. If such loss or claim payment is not received within the 10 days, interest will accrue on the payment or amount overdue in accordance with paragraph B above, from the date on which the proof of loss or demand for payment was transmitted to the Reinsurer. 3. As respects any payment, adjustment or return due either party not otherwise provided for in subparagraphs 1 and 2 of this paragraph C, the due date shall be as provided for in the applicable section of this Contract. In the event a due date is not specifically stated for a given payment, it shall be deemed due 10 days following transmittal of written notification that the provisions of this Article have been invoked. For purposes of interest calculations only, amounts due hereunder shall be deemed paid upon receipt by the Intermediary. D. Nothing herein shall be construed as limiting or prohibiting a Subscribing Reinsurer from contesting the validity of any claim, or from participating in the defense of any claim or suit, or prohibiting either party from contesting the validity of any payment or from initiating any arbitration or other proceeding in accordance with the provisions of this Contract. If the debtor party prevails in an arbitration or other proceeding, then any interest charges due hereunder on the amount in dispute shall be null and void. If the debtor party loses in such proceeding, then the interest charge on the amount determined to be due hereunder shall be calculated in accordance with the provisions set forth above unless otherwise determined by such proceedings. If a debtor party advances payment of any amount it is contesting, and proves to be correct in its contestation, either in whole or in part, the other party shall reimburse the debtor party for any such excess payment made plus interest on the excess amount calculated in accordance with this Article. E. Interest charges arising out of the application of this Article that are $[***] or less from any party shall be waived unless there is a pattern of late payments consisting of three or more items over the course of any 12-month period. Article 15 - Offset The Company and the Reinsurer may offset any balance or amount due from one party to the other under this Contract or any other contract heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or ceding company. The provisions of this Article shall not be affected by the insolvency of either party.

20\F7V1111 Page 12 Article 16 - Access to Records The Reinsurer or its designated representatives shall have access at any reasonable time to all records of the Company which pertain in any way to this reinsurance, provided the Reinsurer gives the Company at least 15 days prior notice of request for such access. However, a Subscribing Reinsurer or its designated representatives shall not have any right of access to the records of the Company if it is not current in all undisputed payments due the Company. "Undisputed" as used herein shall mean any amount that the Subscribing Reinsurer has not contested in writing to the Company specifying the reason(s) why the payments are disputed. Article 17 - Errors and Omissions (BRMA 14F) Inadvertent delays, errors or omissions made in connection with this Contract or any transaction hereunder shall not relieve either party from any liability which would have attached had such delay, error or omission not occurred, provided always that such error or omission is rectified as soon as possible after discovery. Article 18 - Currency (BRMA 12A) A. Whenever the word "Dollars" or the "$" sign appears in this Contract, they shall be construed to mean United States Dollars and all transactions under this Contract shall be in United States Dollars. B. Amounts paid or received by the Company in any other currency shall be converted to United States Dollars at the rate of exchange at the date such transaction is entered on the books of the Company. Article 19 - Taxes (BRMA 50B) In consideration of the terms under which this Contract is issued, the Company will not claim a deduction in respect of the premium hereon when making tax returns, other than income or profits tax returns, to any state or territory of the United States of America or the District of Columbia. Article 20 - Federal Excise Tax (BRMA 17D) A. The Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax the applicable percentage of the premium payable hereon as imposed under Section 4371 of the Internal Revenue Code to the extent such premium is subject to the Federal Excise Tax. B. In the event of any return of premium becoming due hereunder the Reinsurer will deduct the applicable percentage from the return premium payable hereon and the Company or its agent should take steps to recover the tax from the United States Government.

20\F7V1111 Page 13 Article 21 - Unauthorized Reinsurers A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company's United States ceded unearned premium and outstanding loss and Loss Adjustment Expenses reserves (including incurred but not reported loss reserves) by: 1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or 2. Trust accounts for the benefit of the Company; and/or 3. Cash advances; if, without such funding, a penalty or other negative consequence, including without limitation loss of credit for such reinsurance, either as an admitted asset or as a deduction from liability on account of reinsurance ceded, would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its option, may fund in other than cash if its method and form of funding are acceptable to the Company and the insurance regulatory authorities involved. B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an "evergreen clause," which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than thirty days prior to such expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes: 1. To reimburse itself for the Reinsurer's share of unearned premiums returned to insureds on account of Policy cancellations, unless paid in cash by the Reinsurer; 2. To reimburse itself for the Reinsurer's share of losses and/or Loss Adjustment Expenses paid under the terms of Policies reinsured hereunder, unless paid in cash by the Reinsurer; 3. To reimburse itself for the Reinsurer's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer; 4. To fund a cash account in an amount equal to the Reinsurer's share of any ceded unearned premium and/or outstanding loss and Loss Adjustment Expenses reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if such letter of credit has not been renewed or replaced by the Reinsurer ten days or more prior to its expiration date;

20\F7V1111 Page 14 5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer's share of the Company's ceded unearned premium and/or outstanding loss and Loss Adjustment Expenses reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event that the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn. Article 22 - Special Funding (This Article does not apply to any Subscribing Reinsurer (i) with a rating of A+ or higher at the time of inception from A.M. Best Company or Standard & Poor's, (ii) that is an Underwriter at Lloyd's of London, or (iii) that is unauthorized in any state of the United States of America or the District of Columbia or any province or jurisdiction of Canada.) A. If, during the Term of this Contract or thereafter, as respects any outstanding liabilities hereunder, the Subscribing Reinsurer experiences any of the events or circumstances set forth in paragraph B of the Commencement and Termination Article, the Subscribing Reinsurer shall fund known outstanding losses and Loss Adjustment Expenses (including incurred but not reported loss reserves) related thereto and uncollected paid losses and Loss Adjustment Expenses (including incurred but not reported loss reserves) within fifteen business days from the date of written demand by the Company to so fund. B. The Subscribing Reinsurer shall have the option of determining the method of funding referred to in paragraph A above, provided it is acceptable to the Company and the insurance regulatory agency involved. If the Subscribing Reinsurer elects to fund the aforesaid loss by a letter of credit, the procedures set forth in the Unauthorized Reinsurers Article as respects letters of credit shall apply. C. If, during the Term of this Contract or thereafter, the Subscribing Reinsurer subsequently remedies the applicable trigger(s) described in subparagraphs 1 and 2 of paragraph A above which brought rise to the funding, the Company agrees to release those funds within thirty days of the Company receiving proof of said remedy. Article 23 - Insolvency A. In the event of the insolvency of the Company, this reinsurance shall be payable directly to the Company or to its liquidator, receiver, conservator or statutory successor on the basis of the liability of the Company without diminution because of the insolvency of the Company or because the liquidator, receiver, conservator or statutory successor of the Company has failed to pay all or a portion of any claim. It is agreed, however, that the liquidator, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurer of the pendency of a claim against the Company indicating the policy or bond reinsured which claim would involve a possible liability on the part of the Reinsurer within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in

20\F7V1111 Page 15 the receivership, and that during the pendency of such claim, the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to the Company or its liquidator, receiver, conservator or statutory successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to the approval of the Court, against the Company as part of the expense of conservation or liquidation to the extent of a pro rata share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. B. Where two or more Subscribing Reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be apportioned in accordance with the terms of this Contract as though such expense had been incurred by the Company. C. It is further understood and agreed that, in the event of the insolvency of the Company, the reinsurance under this Contract shall be payable directly by the Reinsurer to the Company or to its liquidator, receiver or statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except (1) where this Contract specifically provides another payee of such reinsurance in the event of the insolvency of the Company or (2) where the Reinsurer with the consent of the direct insured or insureds has assumed such policy obligations of the Company as direct obligations of the Reinsurer to the payees under such policies and in substitution for the obligations of the Company to such payees. Article 24 - Arbitration A. As a condition precedent to any right of action hereunder, in the event of any dispute or difference of opinion hereafter arising with respect to this Contract, it is hereby mutually agreed that such dispute or difference of opinion shall be submitted to arbitration. One Arbiter shall be chosen by the Company, the other by the Reinsurer, and an Umpire shall be chosen by the two Arbiters before they enter upon arbitration, all of whom shall be active or retired disinterested executive officers of insurance or reinsurance companies or Lloyd's London Underwriters. In the event that either party should fail to choose an Arbiter within 30 days following a written request by the other party to do so, the requesting party may choose two Arbiters who shall in turn choose an Umpire before entering upon arbitration. If the two Arbiters fail to agree upon the selection of an Umpire within 30 days following their appointment, each Arbiter shall nominate three candidates within 10 days thereafter, two of whom the other shall decline, and the decision shall be made by drawing lots. B. Each party shall present its case to the Arbiters within 30 days following the date of appointment of the Umpire. The Arbiters shall consider this Contract as an honorable engagement rather than merely as a legal obligation and they are relieved of all judicial formalities and may abstain from following the strict rules of law. The decision of the Arbiters shall be final and binding on both parties; but failing to agree, they shall call in the Umpire and the decision of the majority shall be final and binding upon both parties. Judgment upon the final decision of the Arbiters may be entered in any court of competent jurisdiction. C. If more than one Subscribing Reinsurer is involved in the same dispute, all such Subscribing Reinsurers shall, at the option of the Company, constitute and act as one party

20\F7V1111 Page 16 for purposes of this Article and communications shall be made by the Company to each of the Subscribing Reinsurers constituting one party, provided, however, that nothing herein shall impair the rights of such Subscribing Reinsurers to assert several, rather than joint, defenses or claims, nor be construed as changing the liability of the Subscribing Reinsurers participating under the terms of this Contract from several to joint. D. Each party shall bear the expense of its own Arbiter, and shall jointly and equally bear with the other the expense of the Umpire and of the arbitration. In the event that the two Arbiters are chosen by one party, as above provided, the expense of the Arbiters, the Umpire and the arbitration shall be equally divided between the two parties. E. Any arbitration proceedings shall take place at a location mutually agreed upon by the parties to this Contract, but notwithstanding the location of the arbitration, all proceedings pursuant hereto shall be governed by the law of the state in which the Company has its principal office. Article 25 - Confidentiality A. The Reinsurer hereby acknowledges that the documents, information and data provided to it by the Company, whether directly or through an authorized agent, in connection with the placement and execution of this Contract, including all information obtained through any audits and any claims information between the Company and the Reinsurer, and any submission or other materials relating to any renewal (hereinafter referred to as "Confidential Information") are proprietary and confidential to the Company. B. Except as provided for in paragraph C below, the Reinsurer shall not disclose any Confidential Information to any third parties, including but not limited to the Reinsurer's subsidiaries and affiliates, other insurance companies and their subsidiaries and affiliates, underwriting agencies, research organizations, any unaffiliated entity engaged in modeling insurance or reinsurance data, and statistical rating organizations. C. Confidential Information may be used by the Reinsurer only in connection with the performance of its obligations or enforcement of its rights under this Contract and will only be disclosed when required by (1) retrocessionaires subject to the business ceded to this Contract, (2) regulators performing an audit of the Reinsurer's records and/or financial condition, or (3) external auditors performing an audit of the Reinsurer's records in the normal course of business; provided that the Reinsurer advises such parties of the confidential nature of the Confidential Information and their obligation to maintain its confidentiality. The Reinsurer shall be responsible for any breach of this provision by any third-party representatives of the Reinsurer. The Company requires that any third-party representatives of the Reinsurer agree, in writing, to be bound by this Confidentiality Article or by a separate written confidentiality agreement, containing terms no less stringent than those set forth in this Article. D. Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process or any regulatory authority to release or disclose any or all of the Confidential Information, the Reinsurer agrees to provide the Company with written notice of same at least 10 days prior to such release or disclosure and to use its best efforts to assist the Company in maintaining the confidentiality provided for in this Article.

20\F7V1111 Page 17 E. Any disclosure of Non-Public Personally Identifiable Information shall comply with all state and federal statutes and regulations governing the disclosure of Non-Public Personally Identifiable Information. "Non-Public Personally Identifiable Information" shall be defined as this term or a similar term is defined in any applicable state, provincial, territory, or federal law. Disclosing or using this information for any purpose not authorized by applicable law is expressly forbidden without the prior consent of the Company. F. The parties agree that any information subject to privilege, including the attorney-client privilege or attorney work product doctrine (collectively "Privilege") shall not be disclosed to the Reinsurer until, in the Company's opinion, such Privilege is deemed to be waived or otherwise compromised by virtue of its disclosure pursuant to this Contract. Furthermore, the Reinsurer shall not assert that any Privilege otherwise applicable to the Confidential Information has been waived or otherwise compromised by virtue of its disclosure pursuant to this Contract. G. The provisions of this Article shall extend to the officers, directors and employees of the Reinsurer and its affiliates, and shall be binding upon their successors and assigns. Article 26 - Service of Suit (BRMA 49C) (Applicable if the Reinsurer is not domiciled in the United States of America, and/or is not authorized in any State, Territory or District of the United States where authorization is required by insurance regulatory authorities) A. It is agreed that in the event the Reinsurer fails to pay any amount claimed to be due hereunder, the Reinsurer, at the request of the Company, will submit to the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the Reinsurer's rights to commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. B. Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Reinsurer hereby designates the party named in its Interests and Liabilities Agreement, or if no party is named therein, the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Company or any beneficiary hereunder arising out of this Contract. Article 27 - Governing Law (BRMA 71B) This Contract shall be governed by and construed in accordance with the laws of the State of Florida.

20\F7V1111 Page 18 Article 28 - Severability (BRMA 72E) If any provision of this Contract shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other jurisdiction. Article 29 - Assignment and Assumption The obligations and duties of the Reinsurer under this Contract shall not be assigned to or assumed by another reinsurer or other entity without the prior written consent of the Company. Article 30 - Non-Waiver The failure of the Company or Reinsurer to insist on compliance with this Contract or to exercise any right, remedy or option hereunder shall not: (1) constitute a waiver of any rights contained in this Contract, (2) prevent the Company or Reinsurer from thereafter demanding full and complete compliance, (3) prevent the Company or Reinsurer from exercising such remedy in the future, nor (4) affect the validity of this Contract or any part thereof. Article 31 - Notices and Contract Execution A. Whenever a notice, statement, report or any other written communication is required by this Contract, unless otherwise specified, such notice, statement, report or other written communication may be transmitted by certified or registered mail, nationally or internationally recognized express delivery service, personal delivery, electronic mail, or facsimile. With the exception of notices of termination, first class mail is also acceptable. B. The use of any of the following shall constitute a valid execution of this Contract or any amendments thereto: 1. Paper documents with an original ink signature; 2. Facsimile or electronic copies of paper documents showing an original ink signature; and/or 3. Electronic records with an electronic signature made via an electronic agent. For the purposes of this Contract, the terms "electronic record," "electronic signature" and "electronic agent" shall have the meanings set forth in the Electronic Signatures in Global and National Commerce Act of 2000 or any amendments thereto. C. This Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original.

20\F7V1111 Page 19 Article 32 - Intermediary Aon Benfield Inc., or one of its affiliated corporations duly licensed as a reinsurance intermediary, is hereby recognized as the Intermediary negotiating this Contract for all business hereunder. All communications (including but not limited to notices, statements, premiums, return premiums, commissions, taxes, losses, loss adjustment expense, salvages and loss settlements) relating to this Contract will be transmitted to the Company or the Reinsurer through the Intermediary. Payments by the Company to the Intermediary will be deemed payment to the Reinsurer. Payments by the Reinsurer to the Intermediary will be deemed payment to the Company only to the extent that such payments are actually received by the Company. In Witness Whereof, the Company by its duly authorized representative has executed this Contract as of the date specified below: This 24th day of February in the year 2021 . FedNat Insurance Company /s/ Michael Braun

20\F7V1111 War Exclusion Clause As regards interests which at time of loss or damage are on shore, no liability shall attach hereto in respect of any loss or damage which is occasioned by war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority.

20\F7V1111 Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance (U.S.A.) 1. This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks. 2. Without in any way restricting the operation of paragraph (1) of this Clause, this Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any insurance against Physical Damage (including business interruption or consequential loss arising out of such Physical Damage) to: I. Nuclear reactor power plants including all auxiliary property on the site, or II. Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor installations, and "critical facilities" as such, or III. Installations for fabricating complete fuel elements or for processing substantial quantities of "special nuclear material," and for reprocessing, salvaging, chemically separating, storing or disposing of "spent" nuclear fuel or waste materials, or IV. Installations other than those listed in paragraph (2) III above using substantial quantities of radioactive isotopes or other products of nuclear fission. 3. Without in any way restricting the operations of paragraphs (1) and (2) hereof, this Reinsurance does not cover any loss or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear installation and which normally would be insured therewith except that this paragraph (3) shall not operate (a) where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or (b) where said insurance contains a provision excluding coverage for damage to property caused by or resulting from radioactive contamination, however caused. However on and after 1st January 1960 this sub-paragraph (b) shall only apply provided the said radioactive contamination exclusion provision has been approved by the Governmental Authority having jurisdiction thereof. 4. Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this Reinsurance does not cover any loss or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, when such radioactive contamination is a named hazard specifically insured against. 5. It is understood and agreed that this Clause shall not extend to risks using radioactive isotopes in any form where the nuclear exposure is not considered by the Reassured to be the primary hazard. 6. The term "special nuclear material" shall have the meaning given it in the Atomic Energy Act of 1954 or by any law amendatory thereof. 7. Reassured to be sole judge of what constitutes: (a) substantial quantities, and (b) the extent of installation, plant or site. Note.-Without in any way restricting the operation of paragraph (1) hereof, it is understood and agreed that (a) all policies issued by the Reassured on or before 31st December 1957 shall be free from the application of the other provisions of this Clause until expiry date or 31st December 1960 whichever first occurs whereupon all the provisions of this Clause shall apply. (b) with respect to any risk located in Canada policies issued by the Reassured on or before 31st December 1958 shall be free from the application of the other provisions of this Clause until expiry date or 31st December 1960 whichever first occurs whereupon all the provisions of this Clause shall apply. 12/12/57 N.M.A. 1119 BRMA 35B

20\F7V1111 Page 1 of 2 Nuclear Incident Exclusion Clause - Liability - Reinsurance (U.S.A.) (Approved by Lloyd's Underwriters' Fire and Non-Marine Association) (1) This reinsurance does not cover any loss or liability accruing to the Reassured as a member of, or subscriber to, any association of insurers or reinsurers formed for the purpose of covering nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber or association. (2) Without in any way restricting the operation of paragraph (1) of this Clause it is understood and agreed that for all purposes of this reinsurance all the original policies of the Reassured (new, renewal and replacement) of the classes specified in Clause II of this paragraph (2) from the time specified in Clause III in this paragraph (2) shall be deemed to include the following provision (specified as the Limited Exclusion Provision): Limited Exclusion Provision.* I. It is agreed that the policy does not apply under any liability coverage, to (injury, sickness, disease, death or destruction (bodily injury or property damage with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability. II. Family Automobile Policies (liability only), Special Automobile Policies (private passenger automobiles, liability only), Farmers Comprehensive Personal Liability Policies (liability only), Comprehensive Personal Liability Policies (liability only) or policies of a similar nature; and the liability portion of combination forms related to the four classes of policies stated above, such as the Comprehensive Dwelling Policy and the applicable types of Homeowners Policies. III. The inception dates and thereafter of all original policies as described in II above, whether new, renewal or replacement, being policies which either (a) become effective on or after 1st May, 1960, or (b) become effective before that date and contain the Limited Exclusion Provision set out above; provided this paragraph (2) shall not be applicable to Family Automobile Policies, Special Automobile Policies, or policies or combination policies of a similar nature, issued by the Reassured on New York risks, until 90 days following approval of the Limited Exclusion Provision by the Governmental Authority having jurisdiction thereof. (3) Except for those classes of policies specified in Clause II of paragraph (2) and without in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that for all purposes of this reinsurance the original liability policies of the Reassured (new, renewal and replacement) affording the following coverages: Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners or Contractors (including railroad) Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability (including Massachusetts Motor Vehicle or Garage Liability) shall be deemed to include, with respect to such coverages, from the time specified in Clause V of this paragraph (3), the following provision (specified as the Broad Exclusion Provision): Broad Exclusion Provision.* It is agreed that the policy does not apply: I. Under any Liability Coverage to (injury, sickness, disease, death or destruction (bodily injury or property damage (a) with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (b) resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization.

20\F7V1111 Page 2 of 2 II. Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating to (immediate medical or surgical relief (first aid, to expenses incurred with respect to (bodily injury, sickness, disease or death (bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. III. Under any Liability Coverage to (injury, sickness, disease, death or destruction (bodily injury or property damage resulting from the hazardous properties of nuclear material, if (a) the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been discharged or dispersed therefrom; (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or (c) the (injury, sickness, disease, death or destruction (bodily injury or property damage arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories, or possessions or Canada, this exclusion (c) applies only to (injury to or destruction of property at such nuclear facility (property damage to such nuclear facility and any property thereat. IV. As used in this endorsement: "hazardous properties" include radioactive, toxic or explosive properties; "nuclear material" means source material, special nuclear material or byproduct material; "source material", "special nuclear material", and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; "waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (a) or (b) thereof; "nuclear facility" means (a) any nuclear reactor, (b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling processing or packaging waste, (c) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, (d) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; (With respect to injury to or destruction of property, the word "injury" or "destruction," ("property damage" includes all forms of radioactive contamination of property, (includes all forms of radioactive contamination of property. V. The inception dates and thereafter of all original policies affording coverages specified in this paragraph (3), whether new, renewal or replacement, being policies which become effective on or after 1st May, 1960, provided this paragraph (3) shall not be applicable to (i) Garage and Automobile Policies issued by the Reassured on New York risks, or (ii) statutory liability insurance required under Chapter 90, General Laws of Massachusetts, until 90 days following approval of the Broad Exclusion Provision by the Governmental Authority having jurisdiction thereof. (4) Without in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that paragraphs (2) and (3) above are not applicable to original liability policies of the Reassured in Canada and that with respect to such policies this Clause shall be deemed to include the Nuclear Energy Liability Exclusion Provisions adopted by the Canadian Underwriters' Association or the Independent Insurance Conference of Canada. *NOTE. The words printed in italics in the Limited Exclusion Provision and in the Broad Exclusion Provision shall apply only in relation to original liability policies which include a Limited Exclusion Provision or a Broad Exclusion Provision containing those words. 21/9/67 N.M.A. 1590

20\F7V1111 Terrorism Exclusion (Property Treaty Reinsurance) Notwithstanding any provision to the contrary within this Contract or any amendment thereto, it is agreed that this Contract excludes loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with any act of terrorism, as defined herein, regardless of any other cause or event contributing concurrently or in any other sequence to the loss. An act of terrorism includes any act, or preparation in respect of action, or threat of action designed to influence the government de jure or de facto of any nation or any political division thereof, or in pursuit of political, religious, ideological or similar purposes to intimidate the public or a section of the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organization(s) or government(s) de jure or de facto, and which: 1. Involves violence against one or more persons, or 2. Involves damage to property; or 3. Endangers life other than the person committing the action; or 4. Creates a risk to health or safety of the public or a section of the public; or 5. Is designed to interfere with or disrupt an electronic system. This Contract also excludes loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with any action in controlling, preventing, suppressing, retaliating against or responding to any act of terrorism. Notwithstanding the above and subject otherwise to the terms, conditions, and limitations of this Contract, in respect only of personal lines, this Contract will pay actual loss or damage (but not related cost and expense) caused by any act of terrorism provided such act is not directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with radiological, biological, chemical, or nuclear explosion, pollution or contamination. However, as respects explosion, this exclusion shall not apply to any loss, cost, damage or expense resulting from chemicals that are contained in a device or weapon solely to effect an explosion (as opposed to those intended to cause contamination). "Device or weapon" as used herein shall mean an object whose sole purpose is to cause harm or destruction. Nevertheless, under no circumstances shall this Contract cover any biological, chemical, nuclear or radioactive pollution or contamination arising directly or indirectly from such explosion nor shall it extend to cover a nuclear explosion howsoever caused.

20\F7V1111 CYBER LOSS LIMITED EXCLUSION CLAUSE (PROPERTY TREATY REINSURANCE) No. 1 1 Notwithstanding any provision to the contrary within this Contract or any endorsement thereto, this Contract excludes all loss, damage, liability, cost or expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with: 1.1 any loss of, alteration of, or damage to or a reduction in the functionality, availability or operation of a Computer System, unless subject to the provisions of paragraph 2; 1.2 any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any Data, including any amount pertaining to the value of such Data. 2 Subject to the other terms, conditions and exclusions contained in this Contract, this Contract will cover physical damage to property insured under the original policies and any Time Element Loss directly resulting therefrom where such physical damage is directly occasioned by any of the following perils: fire, lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, hail, tornado, cyclone, hurricane, earthquake, volcano, tsunami, flood, freeze or weight of snow Definitions 3 Computer System means any computer, hardware, software, communications system, electronic device (including, but not limited to, smart phone, laptop, tablet, wearable device), server, cloud or microcontroller including any similar system or any configuration of the aforementioned and including any associated input, output, data storage device, networking equipment or back up facility. 4 Data means information, facts, concepts, code or any other information of any kind that is recorded or transmitted in a form to be used, accessed, processed, transmitted or stored by a Computer System. 5 Time Element Loss means business interruption, contingent business interruption or any other consequential losses. LMA5410 06 March 2020

20\F7V1111 COMMUNICABLE DISEASE EXCLUSION (PROPERTY TREATY REINSURANCE) 1. Notwithstanding any provision to the contrary within this Contract, this Contract excludes any loss, damage, liability, claim, cost or expense of whatsoever nature, directly or indirectly caused by, contributed to by, resulting from, arising out of, or in connection with a Communicable Disease or the fear or threat (whether actual or perceived) of a Communicable Disease regardless of any other cause or event contributing concurrently or in any other sequence thereto. 2. As used herein, a Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where: 2.1. the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not, and 2.2. the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and 2.3. the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or threaten damage to, deterioration of, loss of value of, marketability of or loss of use of property. LMA5394 27 March 2020

Page 1 The Interests and Liabilities Agreements, constituting 5 pages in total, have been omitted from this exhibit because such agreements are not material and would be competitively harmful if publicly disclosed.


Florida						65-0248866
(State or Other Jurisdiction of Incorporation or Organization)						(IRS Employer Identification Number)

14050 N.W. 14th Street, Suite 180, Sunrise, FL						33323
(Address of principal executive offices)						(Zip Code)


	Registrant’s telephone number, including area code: 800-293-2532
	Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	FNHC	NASDAQ Global Market


Large accelerated filer ☐			Accelerated filer ☑
Non-accelerated filer ☐			Smaller reporting company ☐
			Emerging growth company ☐


PART I

ITEM 1	BUSINESS	2

ITEM 1A	RISK FACTORS	11

ITEM 1B	UNRESOLVED STAFF COMMENTS	25

ITEM 2	PROPERTIES	25

ITEM 3	LEGAL PROCEEDINGS	25

ITEM 4	MINE SAFETY DISCLOSURES	25

PART II

ITEM 5	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	25

ITEM 6	SELECTED FINANCIAL DATA	27

ITEM 7	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	29

ITEM 7A	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	49

ITEM 8	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	50

ITEM 9	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	102

ITEM 9A	CONTROLS AND PROCEDURES	102

ITEM 9B	OTHER INFORMATION	103

PART III

ITEM 10	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	103

ITEM 11	EXECUTIVE COMPENSATION	103

ITEM 12	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	103

ITEM 13	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	103

ITEM 14	PRINCIPAL ACCOUNTING FEES AND SERVICES	103

PART IV

ITEM 15	EXHIBITS, FINANCIAL STATEMENT SCHEDULES	104

ITEM 16	FORM 10-K SUMMARY	111

SIGNATURES


	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Gross Premiums Written
Homeowners:
Florida	$	444,576	$	451,856	$	458,652
Louisiana	93,331		45,043		36,063
Texas	127,005		66,429		22,492
South Carolina	35,261		25,172		17,592
Alabama	7,676		5,841		4,890
Mississippi	261		—		—
Total homeowners	708,110		594,341		539,689

Personal automobile:
Texas	—		—		5,141
Georgia	—		(1)		3,078
Florida	—		—		384
Total personal automobile	—		(1)		8,603

Commercial general liability	(247)		(145)		5,384

Federal flood	19,022		16,413		14,088
Gross premiums written total	$	726,885	$	610,608	$	567,764


	Period Ending
	12/31/2015	12/31/2016	12/31/2017	12/31/2018	12/31/2019	12/31/2020
Index
FedNat Holding Company	100.00	63.85	57.72	70.56	60.23	22.24
NASDAQ Composite	100.00	108.87	141.13	137.12	187.44	271.64
SNL Insurance P&C	100.00	118.02	134.93	129.73	152.23	154.96


	December 31,
	2020		2019		2018		2017		2016
	(In thousands, except per share data)
Balance Sheet Data
Cash and invested assets	$	593,734	$	684,002	$	515,948	$	530,249	$	484,275
Total assets	1,428,537		1,179,016		925,371		904,873		815,390
Loss and loss adjustment expense reserves	540,367		324,362		296,230		230,515		158,110
Total liabilities	1,270,377		930,323		710,112		677,414		580,925
Total shareholders' equity	158,160		248,693		215,259		227,459		234,465
Book value per share, excluding non-controlling interest	11.53		17.25		16.84		16.29		16.01


	Year Ended December 31,
	2020			% Change		2019
	(Dollars in thousands)
Revenues:
Gross premiums written	$	726,885		19.0	%	$	610,608
Gross premiums earned	720,967			23.8	%	582,334
Ceded premiums	(356,833)			63.2	%	(218,682)
Net premiums earned	364,134			0.1	%	363,652
Net investment income	11,786			(25.9)	%	15,901
Net realized and unrealized investment gains (losses)	18,032			154.5	%	7,084
Direct written policy fees	13,970			37.0	%	10,200
Other income	23,941			32.1	%	18,124
Total revenues	431,863			4.1	%	414,961

Costs and expenses:
Losses and loss adjustment expenses	376,449			37.9	%	273,080
Commissions and other underwriting expenses	124,288			16.0	%	107,189
General and administrative expenses	23,420			0.9	%	23,203
Interest expense	7,661			(28.9)	%	10,776
Impairment of intangibles	11,699			NCM		—
Total costs and expenses	543,517			31.2	%	414,248

Income (loss) before income taxes	(111,654)			NCM		713
Income tax expense (benefit)	(33,496)			NCM		(298)
Net income (loss)	$	(78,158)		NCM		$	1,011



Ratios to net premiums earned:
Net loss ratio	103.4		%			75.1		%
Net expense ratio	40.5		%			35.9		%
Combined ratio	143.9		%			111.0		%


	Payments Due By Period
			Less						More
			than		1 - 3		3 - 5		than
	Total		1 Year		Years		Years		5 Years
	(In thousands)
Loss and loss adjustment expense reserves (1)	$	540,367	$	318,817	$	162,110	$	32,422	$	27,018
Long-term debt (2)	100,000		—		—		—		100,000
Operating leases	8,892		1,066		2,229		2,279		3,318
Total long-term contractual obligations	$	649,259	$	319,883	$	164,339	$	34,701	$	130,336


																						Carrying
	2021			2022			2023			2024			2025			Thereafter			Total			Amount
	(Dollars in thousands)
Principal amount by expected maturity:
United States government obligations and authorities	$	9,473		$	13,345		$	6,100		$	200		$	3,850		$	4,155		$	37,123		$	38,512
Obligations of states and political subdivisions	755			3,525			1,135			995			3,605			10,940			20,955			22,264
Corporate	15,039			38,604			21,554			16,783			27,876			91,018			210,874			228,717
International	2,098			8,764			1,465			6,099			300			7,122			25,848			27,643
Collateralized mortgage obligations	3,746			7,025			46,706			32,259			30,721			39,936			160,393			171,074
Total investments	$	31,111		$	71,263		$	76,960		$	56,336		$	66,352		$	153,171		$	455,193		$	488,210

Weighted average interest rate by expected maturity:
United States government obligations and authorities	2.67		%	1.58		%	2.47		%	2.50		%	1.45		%	0.77		%	1.90		%
Obligations of states and political subdivisions	2.08		%	3.57		%	2.98		%	3.10		%	2.02		%	2.69		%	2.74		%
Corporate securities	2.54		%	2.82		%	3.32		%	3.34		%	2.82		%	3.34		%	3.11		%
International securities	2.08		%	2.07		%	4.04		%	2.25		%	2.85		%	4.07		%	2.79		%
Collateralized mortgage obligations	3.47		%	3.14		%	3.33		%	3.77		%	2.68		%	2.62		%	3.11		%
Total investments	2.65		%	2.56		%	3.26		%	3.46		%	2.63		%	3.07		%	2.98		%



			PAGE

Report of Independent Registered Public Accounting Firm			51
Consolidated Balance Sheets as of December 31, 20 20 and 2019			53
Consolidated Statements of Operations For the Years Ended December 31, 20 20 , 20 1 9 and 2018			54
Consolidated Statements of Comprehensive Income (Loss) For the Years Ended December 31, 20 20 , 201 9 and 2018			55
Consolidated Statements of Changes in Shareholders’ Equity For the Years Ended December 31, 20 20 , 201 9 and 2018			56
Consolidated Statements of Cash Flows For the Years Ended December 31, 20 20 , 201 9 and 2018			57
Notes to Consolidated Financial Statements			59


						Valuation of incurred but not reported reserves
Description of the Matter						At December 31, 2020, the Company’s reserve for losses and loss adjustment expense ("LAE") balance was $540.4 million of which a significant portion is incurred but not reported reserves (“IBNR”). The carrying amount represents management’s best estimate of the ultimate liability, which in turn is composed of the Company’s assessment of claims pending and the development of prior years’ loss liability, including liabilities based upon individual case estimates for reported losses and LAE and estimates of IBNR. As described in Note 9 of the consolidated financial statements, the establishment of loss reserves is an inherently uncertain process and there is significant uncertainty in determining management’s best estimate of the ultimate liability which is used to determine the IBNR reserves. In particular, the estimate is subject to a number of variables including loss frequency and severity, payment patterns, expected loss ratios and the weighting of the four actuarial methods used for each accident year and line of business. Auditing management’s best estimate of IBNR was complex due to the judgmental nature of the significant assumptions used in the valuation of the estimate. The significant judgment was primarily due to the sensitivity of management’s estimate to the actuarial methods applied and the assumptions used in the determination of the loss factors and ultimate costs.


How We Addressed the Matter in Our Audit						We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the process to estimate the IBNR reserves. This included, among others, controls over the review and approval processes that management has in place for the methods and assumptions used in estimating the IBNR reserves. To test the IBNR reserves, our procedures included among others, the involvement of our actuarial specialists to assess the selection and the weighting of actuarial methods used by management with those methods and weightings used in prior periods and those used in the industry. Additionally, to evaluate the significant assumptions used in the actuarial methods, we compared the significant assumptions, including severity, frequency, payment patterns and expected loss ratios to factors historically used. We performed a review of historical results of the development of the loss and loss adjustment expense reserves related to prior years. We also independently calculated a range of reasonable reserve estimates and compared the range of reasonable reserve estimates to management’s recorded best estimate and performed a review of the historical results of the development of the estimate
						Reinsurance
Description of the Matter						At December 31, 2020, the Company’s reinsurance recoverable, net of allowance, was $413.0 million. As discussed in Note 6 to the consolidated financial statements, during 2020 the Company expanded its reinsurance program that provides quota share and excess of loss coverage for the risks inherent in the business written and the concentration of the Company’s exposure in certain geographies. Certain of these reinsurance arrangements are complex as they contain risk limiting provisions. To qualify as reinsurance for accounting purposes, a contract must embody substantive risk transfer, which is defined as the reasonable possibility that the reinsurer could experience a significant loss on the treaty. Auditing the reinsurance arrangements was complex due to contractual provisions in certain of the reinsurance arrangements that limit the extent or timing of the net loss that the reinsurers can experience and the judgmental nature of the significant assumptions included in the assessment to determine risk transfer.
How We Addressed the Matter in Our Audit						We obtained an understanding, evaluated the design, and tested the operating effectiveness of the controls over the reinsurance process including, among others and controls related to assessing risk transfer.
						Our audit procedures included, among others, gaining an understanding of the terms of the reinsurance agreements with the counterparties and evaluating management’s risk transfer assessment.


												Total
												Shareholders'
												Equity
								Accumulated				Attributable to
			Common Stock			Additional		Other		Retained		FedNat Holding		Non-		Total
	Preferred		Issued			Paid-in		Comprehensive		Earnings		Company		Controlling		Shareholders'
	Stock		Shares	Amount		Capital		Income (Loss)		(Deficit)		Shareholders		Interest		Equity
Balance as of January 1, 2018	$	—	12,988,247	$	130	$	139,728	$	1,770	$	70,009	$	211,637	15,822		$	227,459
Cumulative effect of new accounting standards	—		—	—		—		(994)		994		—		—		—
Net income (loss)	—		—	—		—		—		14,928		14,928		(218)		14,710
Other comprehensive income (loss)	—		—	—		—		(4,221)		—		(4,221)		(229)		(4,450)
Dividends declared	—		—	—		—		—		(3,120)		(3,120)		—		(3,120)
Acquisition of non-controlling interest	—		—	—		(1,005)		(305)		—		(1,310)		(15,375)		(16,685)
Shares issued under share-based compensation plans	—		122,905	1		38		—		—		39		—		39
Repurchases of common stock	—		(326,708)	(3)		—		—		(5,058)		(5,061)		—		(5,061)
Share-based compensation	—		—	—		2,367		—		—		2,367		—		2,367
Balance as of December 31, 2018	—		12,784,444	128		141,128		(3,750)		77,753		215,259		—		215,259

Net income (loss)	—		—	—		—		—		1,011		1,011		—		1,011
Other comprehensive income (loss)	—		—	—		—		14,031		—		14,031		—		14,031
Dividends declared	—		—	—		—		—		(4,309)		(4,309)		—		(4,309)
Shares issued for acquisition	—		1,773,102	18		24,373		—		—		24,391		—		24,391
Shares issued under share-based compensation plans	—		94,922	1		—		—		—		1		—		1
Repurchases of common stock	—		(237,647)	(3)		—		—		(3,864)		(3,867)		—		(3,867)
Share-based compensation	—		—	—		2,176		—		—		2,176		—		2,176
Balance as of December 31, 2019	—		14,414,821	144		167,677		10,281		70,591		248,693		—		248,693
Net income (loss)	—		—	—		—		—		(78,158)		(78,158)		—		(78,158)
Other comprehensive income (loss)	—		—	—		—		1,105		—		1,105		—		1,105
Dividends declared	—		—	—		—		—		(5,077)		(5,077)		—		(5,077)

Cumulative effect of new accounting standards	—		—	—		—		—		(25)		(25)		—		(25)
Shares issued under share-based compensation plans	—		103,322	1		41		—		—		42		—		42
Repurchases of common stock	—		(800,235)	(8)		—		—		(9,992)		(10,000)		—		(10,000)
Share-based compensation	—		—	—		1,580		—		—		1,580		—		1,580
Balance as of December 31, 2020	—		13,717,908	$	137	$	169,298	$	11,386	$	(22,661)	$	158,160	$	—	$	158,160


	Fair
	Value
Assets:
Debt securities, available-for-sale	$	56,929
Cash and cash equivalents	35,968
Prepaid reinsurance premium	25,279
Premiums receivable	2,977
Reinsurance recoverable	7,603
Deferred acquisition costs and value of business acquired, net	8,721
Other assets	3,507
Total assets acquired	140,984

Liabilities:
Loss and adjustment expense reserves	16,660
Unearned premiums	50,513
Reinsurance payable	24,071
Income taxes, net	1,778
Deferred revenue	1,515
Other liabilities	7,487
Total liabilities assumed	102,024

Net specifically identifiable assets acquired	38,960
Goodwill	10,997
Net assets acquired	$	49,957


	Year Ended December 31,
	2020					2019
			Net Loss					Net Loss
	Amount		Ratio			Amount		Ratio
	(In thousands)
Current accident year, excluding catastrophes:
Homeowners	$	230,602	63.3	%		$	207,808	57.1	%
Non-core (1)	—		—	%		1,601		0.4	%
Total current accident year, excluding catastrophes	230,602		63.3	%		209,409		57.5	%
Current year catastrophes (2):
Florida	55,533		15.3	%	0	26,250		7.4	%
Texas	26,204		7.2	%		12,400		3.4	%
Louisiana	44,174		12.1	%		8,900		2.4	%
Other states	2,386		0.7	%		5,150		1.4	%
Total current year catastrophes	128,297		35.3	%		52,700		14.6	%
Prior year loss development (redundancy):
Homeowners	(655)		(0.2)	%		615		0.2	%
Non-core (1)	19,022		5.2	%		12,845		3.5	%
Ceded losses subject to offsetting experience account adjustments (3)	(816)		(0.2)	%		(2,489)		(0.7)	%
Total prior year loss development (redundancy)	17,551		4.8	%		10,971		3.0	%
Total net losses and LAE	$	376,449	103.4	%		$	273,080	75.1	%


	Year Ended December 31,
	2019				2018
			Net Loss				Net Loss
	Amount		Ratio		Amount		Ratio
	(In thousands)
Current accident year, excluding catastrophes:
Homeowners	$	207,808	57.1	%	$	189,567	53.4	%
Non-core (1)	1,601		0.4	%	10,066		2.8	%
Total current accident year, excluding catastrophes	209,409		57.5	%	199,633		56.2	%
Current year catastrophes (2):
Florida	26,250		7.4	%	27,500		7.8	%
Texas	12,400		3.4	%	—		—	%
Louisiana	8,900		2.4	%	—		—	%
Other states	5,150		1.4	%	4,000		1.1	%
Total current year catastrophes	52,700		14.6	%	31,500		8.9	%
Prior year loss development (redundancy):
Homeowners	615		0.2	%	(7,576)		(2.1)	%
Non-core (1)	12,845		3.5	%	9,742		2.7	%
Ceded losses subject to offsetting experience account adjustments (3)	(2,489)		(0.7)	%	(4,883)		(1.4)	%
Total prior year loss development (redundancy)	10,971		3.0	%	(2,717)		(0.8)	%
Total net losses and LAE	$	273,080	75.1	%	$	228,416	64.3	%


	December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In thousands)
Debt securities - available-for-sale, at fair value:
United States government obligations and authorities	$	38,511	$	133,264	$	—	$	171,775
Obligations of states and political subdivisions	—		22,264		—		22,264
Corporate securities	—		266,528		—		266,528
International securities	—		27,643		—		27,643
Debt securities, at fair value	38,511		449,699		—		488,210

Equity securities, at fair value	1,881		1,276		—		3,157

Total investments, at fair value	$	40,392	$	450,975	$	—	$	491,367


	December 31, 2019
	Level 1		Level 2		Level 3		Total
	(In thousands)
Debt securities - available-for-sale, at fair value:
United States government obligations and authorities	$	83,764	$	110,429	$	—	$	194,193
Obligations of states and political subdivisions	—		24,020		—		24,020
Corporate securities	—		278,302		—		278,302
International securities	—		29,750		—		29,750
Debt securities, at fair value	83,764		442,501		—		526,265

Equity securities, at fair value	17,361		2,678		—		20,039

Total investments, at fair value	$	101,125	$	445,179	$	—	$	546,304


	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized
	or Cost		Gains		Losses		Fair Value
	(In thousands)
December 31, 2020
Debt securities - available-for-sale:
United States government obligations and authorities	$	169,947	$	1,866	$	38	$	171,775
Obligations of states and political subdivisions	21,560		704		—		22,264
Corporate	254,618		11,989		79		266,528
International	27,001		659		17		27,643
	$	473,126	$	15,218	$	134	$	488,210


	Less than 12 months				12 months or longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
					(In thousands)
December 31, 2020
Debt securities - available-for-sale:
United States government obligations and authorities	$	25,521	$	38	$	—	$	—	$	25,521	$	38

Corporate	7,989		79		—		—		7,989		79
International	2,175		16		132		1		2,307		17
	$	35,685	$	133	$	132	$	1	$	35,817	$	134


	Debt
	Securities				Reinsurance
	Held-to-		Premiums		Recoverable,
	Maturity		Receivable		Net		Total
	(In thousands)
Balance as of December 31, 2019	$	—	$	159	$	—	$	159
Cumulative effect of new accounting standard (1)	1		—		32		33
Credit loss expense (recovery) (2)	(1)		74		33		106
Balance as of December 31, 2020	$	—	$	233	$	65	$	298


			Days Past Due
	Current		1-29		30-59		60-89		90 plus		Total
	(In thousands)
Amortized cost	$	46,376	$	4,253	$	159	$	94	$	154	$	51,036
Allowance for credit loss	—		(43)		(8)		(28)		(154)		(233)
Net	$	46,376	$	4,210	$	151	$	66	$	—	$	50,803



	December 31, 2020				December 31, 2019				Weighted-
	Gross				Gross				Average-
	Carrying		Accumulated		Carrying		Accumulated		Amortization
	Amount		Amortization		Amount		Amortization		Period
	(In thousands)
Trade name (1)	$	1,100	$	—	$	1,800	$	—	0
Non-compete agreements (2)	300		162		300		13		2
Insurance licenses (3)	180		—		182		—		0
Total	$	1,580	$	162	$	2,282	$	13


																					IBNR & Expected		Cumulative
	Homeowners Incurred Losses and ALAE, Net of Reinsurance																				Development on		Number of
	For the Years Ended December 31,																				Reported Claims		Reported Claims (1)
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	20,492	$	21,344	$	23,007	$	23,932	$	24,582	$	25,957	$	26,143	$	26,394	$	26,394	$	26,375	$	12	2,428
2012			23,032		23,301		24,186		24,468		25,889		26,356		26,836		26,951		26,984		85		2,694
2013					43,807		42,021		35,834		35,859		37,185		37,880		37,978		38,088		15		3,431
2014							64,312		63,300		61,770		62,206		61,817		62,043		62,535		378		7,606
2015									99,497		92,411		95,129		94,760		94,703		96,144		1,522		13,038
2016											171,264		162,043		158,764		157,880		156,316		1,394		22,614
2017													202,844		192,769		188,548		179,327		47,728		67,165
2018															210,158		213,128		216,570		20,849		35,817
2019																	257,644		261,541		23,909		19,661
2020																			342,119		236,080		35,117
																	Total		$	1,405,999



	Homeowners Cumulative Paid Losses and ALAE, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	11,119	$	19,250	$	21,323	$	22,723	$	24,047	$	25,580	$	25,982	$	26,287	$	26,340	$	26,342
2012			13,693		20,728		23,120		23,923		25,186		26,113		26,777		26,861		26,901
2013					19,986		31,606		33,867		35,123		35,803		37,473		37,688		37,915
2014							37,033		53,831		57,891		59,722		60,555		61,441		61,692
2015									52,214		79,359		86,647		90,415		92,327		93,405
2016											102,556		142,716		148,274		152,258		153,997
2017													135,589		176,580		179,327		178,013
2018															141,173		194,160		206,133
2019																	157,768		236,090
2020																			236,197
																			$	1,256,685


All outstanding liabilities for unpaid claims and ALAE prior to 2011, net of reinsurance																			—
Total outstanding liabilities for unpaid claims and ALAE, net of reinsurance																			$	149,314


	Average Annual Payout of Losses and ALAE, Net of Reinsurance
	(Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Homeowners	62.0	%	25.6	%	4.6	%	1.9	%	1.8	%	2.3	%	1.0	%	0.6	%	0.2	%	—	%


																					IBNR & Expected		Cumulative
	Commercial General Liability Incurred Losses and ALAE, Net of Reinsurance																				Development on		Number of
	For the Years Ended December 31,																				Reported Claims		Reported Claims
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	6,436	$	5,854	$	4,749	$	4,603	$	4,760	$	5,409	$	6,254	$	6,828	$	7,817	$	9,394	$	1,572	1,367
2012			5,279		4,952		4,801		4,700		4,658		4,346		4,509		5,109		6,431		1,209		817
2013					7,095		5,069		5,221		5,502		5,704		5,580		5,984		7,588		1,245		759
2014							7,475		7,709		6,384		6,620		6,348		6,697		9,028		1,549		1,016
2015									8,082		7,008		6,020		5,377		7,947		9,141		2,043		877
2016											10,727		5,809		6,561		8,502		12,267		3,086		845
2017													8,289		7,853		6,558		8,519		3,369		639
2018															6,553		6,233		7,280		4,281		420
2019																	1,604		2,535		1,826		114
2020																			37		—		6
																	Total		$	72,220


	Commercial General Liability Cumulative Paid Losses and ALAE, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	764	$	2,763	$	3,366	$	3,673	$	4,246	$	4,866	$	5,831	$	6,349	$	7,365	$	7,693
2012			871		1,714		2,632		3,342		3,686		3,841		4,098		4,521		4,790
2013					882		2,233		3,366		3,867		4,606		5,033		5,467		5,847
2014							717		2,593		3,855		4,375		5,130		6,270		6,901
2015									798		2,296		3,249		3,827		5,866		6,566
2016											1,515		3,657		5,088		6,606		8,382
2017													1,592		2,478		3,293		4,225
2018															963		1,554		2,604
2019																	147		424
2020																			5
																	Total		$	47,437

All outstanding liabilities for unpaid claims and ALAE prior to 2011, net of reinsurance																			3,545
Total outstanding liabilities for unpaid claims and ALAE, net of reinsurance																			$	28,328


																					IBNR & Expected		Cumulative
	Automobile Incurred Losses and ALAE, Net of Reinsurance																				Development on		Number of
	For the Years Ended December 31,																				Reported Claims		Reported Claims
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	3,580	$	3,350	$	2,954	$	2,912	$	2,762	$	2,848	$	2,796	$	2,756	$	2,762	$	2,760	$	—	789
2012			1,735		1,741		1,717		1,424		1,455		1,491		1,448		1,444		1,448		4		824
2013					1,517		1,863		1,826		1,829		2,161		2,123		2,127		2,127		6		3,471
2014							2,038		3,213		3,551		4,315		4,379		4,417		4,413		4		6,019
2015									3,045		2,882		2,781		2,878		2,915		2,944		14		6,553
2016											13,414		20,205		24,346		25,918		25,923		251		67,655
2017													20,411		22,472		24,579		24,669		740		52,885
2018															3,513		4,623		4,439		887		9,604
2019																	(3)		—		2		101
2020																			—		—		1
																	Total		$	68,723



	Automobile Cumulative Paid Losses and ALAE, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	1,417	$	2,381	$	2,562	$	2,644	$	2,726	$	2,755	$	2,755	$	2,755	$	2,755	$	2,755
2012			867		1,293		1,333		1,384		1,393		1,430		1,444		1,447		1,449
2013					907		1,609		1,906		2,069		2,109		2,112		2,116		2,116
2014							1,455		3,120		3,678		4,122		4,291		4,383		4,396
2015									1,393		2,293		2,670		2,807		2,890		2,897
2016											8,084		17,258		23,053		25,582		26,132
2017													12,821		20,762		23,860		24,468
2018															2,331		3,626		3,137
2019																	(5)		—
2020																			—
																	Total		$	67,350

All outstanding liabilities for unpaid claims and ALAE prior to 2011, net of reinsurance																			15
Total outstanding liabilities for unpaid claims and ALAE, net of reinsurance																			$	1,388


	Aggregate
	Debt
For the Years Ending December 31,	Maturities
	(In thousands)
2021	$	—
2022	—
2023	—
2024	—
2025	—
Thereafter	100,000
Total debt maturities	100,000
Less: deferred financing costs	1,317
Total debt maturities, net	$	98,683


	As of December 31,
	2020		2019
	(In thousands)
Deferred income tax assets:
Unearned premiums	$	5,611	$	10,232
Unpaid losses and loss adjustment expenses	581		1,596
Accrued expenses	236		216
Net operating loss carryforwards	5,350		2,095

Share-based compensation	232		161

Depreciation and amortization	412		—
Lease liability	1,783		1,655
Other	69		23
Gross deferred income tax assets	14,274		15,978
Valuation allowance	(2,968)		—
Total deferred income tax assets	11,306		15,978

Deferred income tax liabilities:
Deferred acquisition costs and other	(6,387)		(12,703)
Depreciation and amortization	—		(1,679)
Unrealized gains on investment securities	(2,865)		(3,270)
Lease asset	(1,783)		(1,655)
Other	(213)		(257)
Total deferred income tax liabilities	(11,248)		(19,564)

Deferred income tax asset (liability), net	$	58	$	(3,586)


	Aggregate
	Minimum
Year Ended December 31,	Lease Payments
	(In thousands)
2021	$	1,066
2022	1,098
2023	1,131
2024	1,164
2025	1,115
Thereafter	3,318
Total	$	8,892


		Weighted
		Average
	Number of	Option
	Shares	Exercise Price
Outstanding at January 1, 2018	50,351	$	3.72
Granted	—	—
Exercised	(10,834)	3.47
Cancelled	(500)	2.45
Outstanding at December 31, 2018	39,017	3.80
Granted	—	—
Exercised	(167)	2.45
Cancelled	—	—
Outstanding at December 31, 2019	38,850	3.80
Granted	—	—
Exercised	(13,433)	3.16
Cancelled	—	—
Outstanding at December 31, 2020	25,417	$	4.01



			(a)			The following documents are filed as part of this report.



						The following consolidated financial statements of the Company and the reports of independent auditors thereon are filed with this report: