completed a joint venture with

Headwaters MB Advised C.A. Bancorp on a Joint Venture With Federated National Holding Company to Form Monarch National Holding Company

March 2015

GREENWICH, CT - Headwaters advised C.A. Bancorp (TSX: BKP) on its agreement to form a new joint venture to be named Monarch National Holding Company with Federated National Holding Company (NASDAQ: FNHC). Monarch will be a Florida-based property and casualty insurance carrier. Transatlantic Reinsurance Company (TransRe) is taking a minority position in the new venture. The launch of the joint venture is subject to the receipt of regulatory approvals and other customary conditions.

FNHC and C.A. Bancorp worked cooperatively to bring a new entrant to the Florida property and casualty market targeting the standard homeowners market. The business will offer a product complementary to Federated National Insurance Company’s preferred market insurance offerings. Monarch is designed to capture additional quality business that FNHC is not able to secure with FNHC’s current product offering.

Jack Maier, Head of Investment Banking at Headwaters MB, stated, “This joint venture creates an exciting new entrant in the fragmented Florida P&C insurance industry. The three partners have very complementary skill sets which will enable Monarch to embark on a course of profitable growth. The homeowner’s market opportunity here with Monarch is significant.”

Headwaters MB acted as exclusive financial advisor to C.A. Bancorp in the transaction. Terms of the transaction were not disclosed.

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