Question-and-Answer Session
Operator
(Operator Instructions) Your first quarter comes from the line of [James Reed with Horsham Capital].
James Reed - Horsham Capital
Hi, guys. I think this question is for Bart. Bart you talked about the formation of a number of entities that help align kind of your insurers with the agent and the insurers. Is that specifically verdant which is referenced in their Q? And if it is could you talk about, could you kind of expand on the idea behind that and how specifically the formation of that entity served to further align your insurance with the insurers and agents?
Bart Hedges
Sure James. Think about the strategy for these types of investments as an extension of our underwriting philosophy, which we liked to align ourselves with some niche specialty underwriters. We like to compete in ways other than that in price. And we want to try to find ways to generate above the average risk adjust to returns for investors. So, by locking in these kinds of relationships over time, we think we do that by hopefully of winning competition in the future.
So, when I think about the philosophy it's really just an expansion of the same kinds of fundamentals that we apply in the underwriting. The types of opportunities that come from current clients as well as spotting opportunities in the market and this Florida opportunity was an opportunity that we sort of seized upon and saw and decide it was better to be in the seat of the producer than to be in the seat of a reinsurer currently. And verdant the formation of verdant it was simply a vehicle that help us achieve these types of transaction in the most effective ways for our shareholders.
James Reed - Horsham Capital
Okay, okay, thank you.
Operator
Your next question comes from the line of [Mary Lomoco] with UBS.
Mary Lomoco - UBS
Good morning and thank you for taking my question. It's about the strategic investments to, if you could tell us how do you earn the fees on these investments and how these fees are recurring?
Len Goldberg
Mary this is Len Goldberg. Some of the fees will be recurring on particularly on the NGA investment, that’s going to take a while for those fees to be, to start to generate. We don’t expect significant fees from that operation for maybe a year or two. And the fees that we earned in the first quarter of this year are not recurring.
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