Benzinga | Nov 24, 2020 08:42AM EST

1347 Property Insurance Holdings Reports First Reinsurance Contract By Its Reinsurance Subsidiary, Fundamental Global Reinsurance; No Terms Disclosed

1347 Property Insurance Holdings, Inc. (NASDAQ:PIH) (the "Company"), a holding company which is implementing business plans to operate as a diversified holding company of reinsurance and investment management businesses, today announced the first reinsurance contract entered into by its reinsurance subsidiary Fundamental Global Reinsurance, Ltd. ("FGRe").

Led by CEO Tom Heise, FGRe was formed in June 2020 pursuant to the Company's diversified investment management and reinsurance strategy. Pontus Re is serving as FGRe's advisor/manager. Pontus Re was founded by seasoned reinsurance professionals Steve Baker and Pete Mattox, each of whom have over 30 years of successful industry underwriting and leadership experience. As noted in its recent 10Q filing and Q3 2020 earnings press release, the Company has begun deploying the capital received following the sale of its Maison insurance operations earlier in the year. Management believes that favorable supply/demand dynamics exist as pricing is improving substantially in the reinsurance market.

Mr. Heise noted, "I am excited to have taken the reigns at FGRe and, in particular, look forward to working with Steve Baker and Pete Mattox at Pontus Re as our external advisors/managers. The reinsurance market is in a good spot right now and we think there are ample opportunities for us to deploy capital in pursuit of our return goals."

1347 Property Insurance Holdings CEO Mr. Larry Swets commented, "Following the sale of our Maison operations early in the year, we have been patient in selecting opportunities to put that capital to work where we believe we can earn the best risk-adjusted returns. We think the current reinsurance environment represents such an opportunity and look forward to working with Tom and his team to deliver value for our shareholders."