Fundamental Global Inc. Sells Subsidiary for $5.6 Million

Fundamental Global Inc. (NASDAQ:FGF), a company specializing in fire, marine, and casualty insurance, with a current market capitalization of $23.4 million, has completed the sale of one of its subsidiaries, FG RE Corporate Member Limited, for $5.6 million. The transaction took place on Thursday, March 14, 2025, and was announced in a recent 8-K filing with the Securities and Exchange Commission.

The subsidiary, incorporated in England and Wales, was sold by FG Reinsurance Holdings, LLC, an indirect wholly-owned subsidiary of Fundamental Global Inc. The sale includes the commutation of three reinsurance treaties with Lloyds (LON:LLOY) of London, identified as UHA 251 22, B1868HT2300259, and B1868HT2400259. The buyer will replace the $5.3 million funds held at Lloyds of London supporting the commuted treaties, with an additional $0.3 million paid for the purchase of the corporate member.

As part of the sale, Fundamental Global Inc., which currently shows a weak financial health score according to InvestingPro analysis, expects to report an impairment of assets held for sale, amounting to approximately $2.1 million. This impairment primarily represents a non-cash write-off of deferred acquisition cost intangible assets.

The closing of the transaction is contingent upon receiving customary approvals and consents. This strategic move is part of the company’s broader business operations and financial management.

Fundamental Global Inc., formerly known as FG Financial Group, Inc., and prior to that, 1347 Property Insurance Holdings, Inc., is headquartered in Mooresville, North Carolina. The company’s common voting shares and 8.00% cumulative preferred stock, series A, are both listed on The Nasdaq Stock Market under the symbols FGF and FGFPP, respectively. The stock has experienced significant volatility, with a -46.37% return over the past year and is currently trading at $18.50, down -15.14% year-to-date. InvestingPro subscribers can access additional insights and analysis about FGF’s financial health and market performance.

This news is based on a press release statement.

In other recent news, Fundamental Global Inc. held its Annual Meeting, where shareholders made several key decisions. The election results confirmed all seven board nominees, including D. Kyle Cerminara and Ndamukong Suh, who will serve until the 2025 annual meeting. Shareholders also approved an amendment to the company’s 2021 Equity Incentive Plan, with a significant majority voting in favor. Additionally, Haskell & White LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2024. The company’s Named Executive Officers’ compensation received advisory approval from the shareholders. Approximately 67.4% of the outstanding common stock was represented at the meeting, indicating active shareholder participation. Fundamental Global Inc. has its principal executive offices in Mooresville, NC.

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