secwatch.observer — SEC 8-K summary
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Issuer:     HG Holdings, Inc. (STLY)
CIK:        0000797465
Form:       8-K
Filed at:   2022-07-07T23:59:59+00:00
Accession:  0001437749-22-016831
Event type: other_material
Sentiment:  neutral
Materiality: 0.60
Item codes: 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

HG Holdings subsidiary enters advisory and reinsurance deals with FedNat entities
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- HGMA to assist FedNat Underwriters in restructuring non-statutory entities; fee = 1.5% of gross earned premium of Monarch and Maison (TX) per annum.
- Term of advisory agreement through July 2025; requires OIR approval.
- Protected Cell formed; $7.8M excess cat reinsurance for Maison on ~7,650 TX policies, $6.63M premium, $1.17M capital at risk.
- Reinsurance contract effective July 1 to Dec 31, 2022; retention $5M, limit $7.8M.
- Monarch (83k policies) is 60% owned by HPCM, 40% by FNHC after $15M investment.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/797465/000143774922016831/0001437749-22-016831-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/797465/000143774922016831/stly20220707_8k.htm
  HTML page:      https://secwatch.observer/filing/0001437749-22-016831

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