FedNat Holding (FNHCQ) 10-Q 8 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 04, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	FEDERATED NATIONAL HOLDING CO
Entity Central Index Key	1,069,996
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Trading Symbol	fnhc
Amendment Flag	false
Entity Common Stock, Shares Outstanding		12,719,777

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments:
Debt securities, available-for-sale, at fair value (amortized cost of $434,667 and $422,300, respectively)	$ 429,457	$ 423,238
Debt securities, held-to-maturity, at amortized cost	5,298	5,349
Equity securities, at fair value	16,515	15,434
Total investments (including $0 and $26,284 related to the VIE, respectively)	451,270	444,021
Cash and cash equivalents (including $0 and $14,211 related to the VIE, respectively)	55,591	86,228
Prepaid reinsurance premiums	87,201	135,492
Premiums receivable, net of allowance of $72 and $70, respectively (including $0 and $1,184 related to the VIE, respectively)	45,667	46,393
Reinsurance recoverable, net	146,091	124,601
Deferred acquisition costs	39,401	40,893
Income taxes receivable, net	4,699	9,510
Deferred income taxes, net	4,368	307
Property and equipment, net	3,797	4,025
Other assets (including $0 and $2,322 related to the VIE, respectively)	10,130	13,403
TOTAL ASSETS	848,215	904,873
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:	236,214	230,515
Loss and loss adjustment expense reserves	282,397	294,423
Unearned premiums	38,489	71,944
Reinsurance payable	44,328	49,251
Deferred Revenue	5,924	6,222
Deferred Revenue	32,783	25,059
Deferred income taxes, net	640,135	677,414
Other liabilities
Total liabilities	0	0
SHAREHOLDERS’ EQUITY:	127	130
Preferred stock, $0.01 par value: 1,000,000 shares authorized	139,388	139,728
Common stock, $0.01 par value: 25,000,000 shares authorized; 12,718,953 and 12,988,247 shares issued and outstanding, respectively	(3,861)	1,770
Additional paid-in capital	72,426	70,009
Accumulated other comprehensive (loss) income	208,080	211,637
Retained earnings	0	15,822
Total shareholders’ equity attributable to Federated National Holding Company shareholders	208,080	227,459
Non-controlling interest	$ 848,215	$ 904,873

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments:
Debt securities, available-for-sale, at amortized cost	$ 434,667	$ 422,300
Total investments (including $0,000 and $26,284 related to the VIE, respectively)	451,270	444,021
Cash and cash equivalents (including $0 and $14,211 related to the VIE, respectively)	55,591	86,228
Premiums Receivable, Allowance for Doubtful Accounts	72	70
Premiums receivable, net of allowance of $72 and $70, respectively (including $0 and $1,184 related to the VIE, respectively)	45,667	46,393
Other assets (including $0 and $2,322 related to the VIE, respectively)	10,130	13,403
Debt Issuance Costs, Net	$ 672	$ 749
Other liabilities
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	25,000,000	25,000,000
Common stock, shares issued (in shares)	12,719,000	12,988,000
Common Stock, Shares, Outstanding	12,718,953	12,988,247
Monarch Delaware - Variable Interest Entity
Investments:
Total investments (including $0,000 and $26,284 related to the VIE, respectively)	$ 0	$ 26,284
Cash and cash equivalents (including $0 and $14,211 related to the VIE, respectively)	0	14,211
Premiums receivable, net of allowance of $72 and $70, respectively (including $0 and $1,184 related to the VIE, respectively)	0	1,184
Allowance for doubtful accounts, premiums and other receivables	0	1,184
Other assets (including $0 and $2,322 related to the VIE, respectively)	$ 0	$ 2,322

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Net premiums earned	$ 82,109	$ 81,660
Net investment income	2,943	2,318
Net realized and unrealized investment losses	(1,052)	(105)
Direct written policy fees	3,576	4,712
Other income	5,501	4,469
Total revenue	93,077	93,054
Costs and expenses:
Losses and loss adjustment expenses	46,071	56,899
Commissions and other underwriting expenses	30,221	27,568
General and administrative expenses	6,085	4,619
Interest expense	1,084	84
Total costs and expenses	83,461	89,170
Income before income taxes	9,616	3,884
Income taxes	2,371	1,435
Net income	7,245	2,449
Net (loss) income attributable to noncontrolling interest	(218)	27
Net income attributable to Federated National Holding Company shareholders	$ 7,463	$ 2,422
Net (loss) income per share attributable to Federated National Holding Company shareholders:
Basic (in dollars per share)	$ 0.58	$ 0.18
Diluted (in dollars per share)	$ 0.58	$ 0.18
Weighted average number of shares of common stock outstanding:
Basic (in shares)	12,850	13,432
Diluted (in shares)	12,945	13,559
Dividends declared per share of common stock (in dollars per share)	$ 0.08	$ 0.08

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 7,245	$ 2,449
Change in net unrealized (losses) gains on investments, available-for-sale	(6,148)	3,710
Comprehensive income before income taxes	1,097	6,159
Income tax benefit (expense) related to items of other comprehensive income	1,587	(1,445)
Comprehensive income	2,684	4,714
Less: comprehensive (loss) income attributable to noncontrolling interest	(447)	7
Comprehensive income attributable to Federated National Holding Company shareholders	$ 3,131	$ 4,707

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Other Comprehensive Income (Loss)	Earnings (Deficit)	Total Shareholders' Equity Attributable to Federated National Holding Company Shareholders	Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of new accounting standards				$ (994)	$ 994
Balance (in shares) at Dec. 31, 2017		12,988,247
Balance, beginning of period at Dec. 31, 2017	$ 227,459	$ 130	$ 139,728	1,770	70,009	$ 211,637	$ 15,822
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	7,245				7,463	7,463	(218)
Other comprehensive loss	(4,561)			(4,332)		(4,332)	(229)
Dividends declared	(1,043)				(1,043)	(1,043)
Acquisition of non-controlling interest	$ (16,685)		(1,005)	(305)		(1,310)	(15,375)
Shares issued under share-based compensation plans (in shares)		53,571
Repurchases of common stock (in shares)	(322,865.035)	(322,865)
Repurchases of common stock	$ (5,000)	$ (3)			(4,997)	(5,000)
Share-based compensation	665		665			665
Balance (in shares) at Mar. 31, 2018		12,718,953
Balance, end of period at Mar. 31, 2018	$ 208,080	$ 127	$ 139,388	$ (3,861)	$ 72,426	$ 208,080	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flow from operating activities:
Net income (loss)	$ 7,245	$ 2,449
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized and unrealized investment gains	1,052	105
Amortization of investment premium or discount, net	683	1,209
Depreciation and amortization	371	270
Share-based compensation	665	667
Tax impact related to share-based compensation	(77)	(50)
Changes in operating assets and liabilities:
Prepaid reinsurance premiums	48,291	44,475
Premiums receivable, net	726	(4,262)
Reinsurance recoverable, net	(21,490)	(1,181)
Deferred acquisition costs	1,492	(691)
Income taxes receivable, net	4,811	8,123
Deferred revenue	(298)	831
Loss and loss adjustment expense reserves	5,699	(3,773)
Unearned premiums	(12,026)	(1,927)
Reinsurance payable	(33,455)	(24,723)
Deferred income taxes, net of other comprehensive income	(2,290)	1,359
Other, net	11,019	864
Net cash provided by operating activities	12,418	23,745
Cash flow from investing activities:
Proceeds from sales of equity securities	4,262	3,704
Proceeds from sales of debt securities	73,830	124,863
Purchases of equity securities	(5,177)	(16,875)
Purchases of debt securities	(138,738)	(139,861)
Maturities and redemptions of debt securities	50,584	13,565
Purchases of property and equipment	(66)	(314)
Net cash used in investing activities	(15,305)	(14,918)
Cash flow from financing activities:
Payment of long-term debt	(5,000)	0
Purchase of non-controlling interest	(16,685)	0
Purchases of Federated National Holding Company common stock	(5,000)	(1,876)
Issuance of common stock for share-based awards	0	1
Dividends paid	(1,065)	(1,050)
Net cash used in financing activities	(27,750)	(2,925)
Net (decrease) increase in cash and cash equivalents	(30,637)	5,902
Cash and cash equivalents at beginning of period	86,228	74,593
Cash and cash equivalents at end of period	55,591	80,495
Cash paid (received) during the period for:
Income taxes	$ 70	$ (6,675)

ORGANIZATION, CONSOLIDATION AND

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION	1. ORGANIZATION, CONSOLIDATION AND BASIS OF PREPARATION Organization Federated National Holding Company (“FNHC,” the “Company,” “we,” “us,” or "our") is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and contractual relationships with independent agents and general agents. We, through our wholly owned subsidiaries, are authorized to underwrite, and/or place homeowners multi-peril (“homeowners”), personal automobile, commercial general liability, federal flood and other lines of insurance in Florida and other states. We market, distribute and service our own and third-party insurers’ products and other services through a network of independent and general agents. Federated National Insurance Company (“FNIC”), one of our wholly owned insurance subsidiaries, is licensed as an admitted carrier, to write specific lines of insurance by the state’s insurance departments, in Florida, Louisiana, Texas, Georgia, South Carolina and Alabama. Monarch National Insurance Company (“MNIC”), our other insurance subsidiary, is licensed as an admitted carrier in Florida. Admitted carriers are bound by rate and form regulations, and are strictly regulated to protect policyholders from a variety of illegal and unethical practices. Admitted carriers are also required to financially contribute to the state guarantee fund used to pay for losses if an insurance carrier becomes insolvent or unable to pay loss amounts due to their policyholders. Monarch National Insurance Company The Company organized MNIC to write homeowners property and casualty insurance in Florida and obtained its certificate of authority from the Florida Office of Insurance Regulation (the “Florida OIR”) in March 2015. The Company’s joint venture partners were Crosswinds Investor Monarch LP (“Crosswinds Investor”), a wholly-owned subsidiary of Crosswinds Holdings Inc. (“Crosswinds Holdings”), a private equity firm and asset manager, and Transatlantic Reinsurance Company (“TransRe”), an international property and casualty reinsurance company. The Company and Crosswinds Investor each invested $14.0 million for a 42.4% interest in Monarch Delaware Holdings LLC ("Monarch Delaware") (each holding 50% of the voting interests in Monarch Delaware). TransRe invested $5.0 million for a 15.2% non-voting interest in Monarch Delaware and loaned an additional $5.0 million in debt evidenced by a promissory note bearing 6% annual interest payable by Monarch National Holding Company (“Monarch Holding”). On February 21, 2018, FNIC closed its acquisition of the interests in Monarch Delaware held by Crosswinds Investor and TransRe pursuant to the purchase and sale agreement with Crosswinds Investor and TransRe dated November 27, 2017. FNIC purchased Crosswinds Investor’s 42.4% Class A membership interest and 50% voting interest for $12.3 million , and TransRe’s 15.2% non-voting membership interest in Monarch Delaware for $4.4 million . The outstanding principal balance and interest due on the $5.0 million promissory note to TransRe was paid in full. Following the closing, Monarch Delaware and Monarch Holdings were merged into MNIC. With the completion of these transactions, FNIC owns 100% of MNIC. Also in connection with the Company’s purchase of the Monarch Delaware interests, Crosswinds AUM LLC (“Crosswinds AUM”), a subsidiary of Crosswinds Holdings, will continue to serve as a investment consultant to FNHC for a quarterly fee of $75,000 through December 31, 2018. In addition, subsidiaries of Crosswinds Holdings and TransRe will each have a right of first refusal through December 31, 2018 to participate in FNIC’s catastrophe excess of loss reinsurance program, at market rates and terms, up to a placement of $10.0 million in reinsurance limit in the aggregate from Crosswinds Holdings and to a placement of $10.0 million in reinsurance limit in excess of its placement on FNIC’s current catastrophe excess of loss reinsurance program from TransRe. Material Distribution Relationships Ivantage Select Agency, Inc. The Company is a party to an insurance agency master agreement with Ivantage Select Agency, Inc. (“ISA”), an affiliate of Allstate Insurance Company (“Allstate”), pursuant to which the Company has been authorized by ISA to appoint Allstate agents to offer the Company’s homeowners and commercial general liability insurance products to consumers in Florida. As a percentage of the total homeowners premiums we underwrote, 22.8% and 23.8% , were from Allstate’s network of Florida agents, for the three months ended March 31, 2018 and 2017 , respectively. SageSure Insurance Managers, LLC The Company is a party to a managing general underwriting agreement with SageSure Insurance Managers, LLC (“SageSure”) to facilitate growth in our FNIC homeowners business outside of Florida. As a percentage of the total homeowners premiums, 11.8% and 8.6% , respectively, of the Company’s premiums were underwritten by SageSure, for the three months ended March 31, 2018 and 2017 , respectively. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of FNHC and its wholly-owned subsidiaries and all entities in which the Company has a controlling financial interest and any variable interest entity (“VIE”) of which the Company is the primary beneficiary. The Company’s management believes the consolidated financial statements reflect all material adjustments, including normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows of the Company for the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company identifies a VIE as an entity that does not have sufficient equity to finance its own activities without additional financial support or where the equity investors lack certain characteristics of a controlling financial interest. The Company assesses its contractual, ownership or other interests in a VIE to determine if the Company’s interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. The Company performs an ongoing qualitative assessment of its variable interests in a VIE to determine whether the Company has a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If the Company determines it is the primary beneficiary of a VIE, the Company consolidates the assets and liabilities of the VIE in its consolidated financial statements. As of December 31, 2017, in connection with the investment in Monarch Delaware, the Company had determined that the Company possessed the power to direct the activities of the VIE that most significantly impact its economic performance and the Company was the primary beneficiary of the VIE. As such, the Company consolidated Monarch Delaware in its consolidated financial statements. Refer to Monarch National Insurance Company above, related to our 100% ownership of Monarch Delaware that became effective on February 21, 2018. In accordance with the accounting standard on consolidation, a primary beneficiary that acquires additional ownership of the previously controlled and consolidated subsidiaries is accounted for as an equity transaction and re-measurement of assets and liabilities of previously controlled and consolidated subsidiaries is not permitted. As a result, we accounted for this transaction by eliminating the carrying value of the non-controlling interest to reflect our 100% ownership interest in MNIC as of February 21, 2018. The difference between the consideration paid and the amount by which the non-controlling interest was eliminated has been recognized in additional paid-in capital. Revisions of Previously Issued Financial Statements Revisions to the three months ended March 31, 2017, were described in Note 1 and Note 16 to our Consolidated Financial Statements set forth in Part II, Item 8, "Financial Statements and Supplementary Data" included in our most recent Annual Report on Form 10-K for the year ended December 31, 2017 (the "2017 Form 10-K").

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
SIGNIFICANT OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES Our significant accounting policies were described in Note 2 to our Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of the 2017 Form 10-K. Other than the changes noted in "Recently Issued Accounting Pronouncements, Adopted" below, there have been no significant changes in our significant accounting policies for the three months ended March 31, 2018 . Accounting Estimates and Assumptions The Company prepares the accompanying consolidated financial statements in accordance with U.S. GAAP, which requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results may materially differ from those estimates. Similar to other property and casualty insurers, the Company’s liability for loss and loss adjustment expenses ("LAE") reserves, although supported by actuarial projections and other data, is ultimately based on management’s reasoned expectations of future events. Although considerable variability is inherent in these estimates, the Company believes that the liability and LAE reserve is adequate. The Company reviews and evaluates its estimates and assumptions regularly and makes adjustments, reflected in current operations, as necessary, on an on-going basis. Recently Issued Accounting Pronouncements, Adopted In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) , which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Most notably, the combined new guidance required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Company adopted the guidance effective January 1, 2018, by reflecting a cumulative effect adjustment, which increased retained earnings and decreased accumulated other comprehensive income by $1.0 million. This adjustment represented the level of net unrealized gains and losses associated with our equity investments with readily determinable market values as of January 1, 2018. The adoption also resulted in the recognition of less than $0.1 million in our statement income and comprehensive income, which represented the change in net unrealized gains and losses on our equity securities for the first three months of 2018. Although the amount of change in net unrealized gains and losses on our equity securities for the first quarter of 2018 was not significant, we believe this new guidance could significantly increase our earnings volatility going forward. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The update allowed a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Guidance had previously required the effect of a change in tax laws or rates on deferred tax balances to be reported in income from continuing operations in the accounting period that includes the period of enactment, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income. The Company adopted the guidance effective January 1, 2018, by reflecting a cumulative effect adjustment to retained earnings with an off-setting adjustment to accumulated other comprehensive income for less than $0.1 million. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The update replaces all general and most industry specific revenue recognition guidance (excluding insurance) currently prescribed by U.S. GAAP. The core principle is that an entity recognizes revenue to reflect the transfer of a promised good or service to customers in an amount that reflects that consideration to which the entity expects to be entitled in exchange for that good or service. The Company adopted this update and the other related revenue standard clarifications and technical guidance effective January 1, 2018, using the modified retrospective approach. The Company completed the analysis of its non-insurance revenues and has concluded that the implementation did not have any impact on the Company’s consolidated financial condition or results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments a consensus of the Emerging Issues Task Force) to improve the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update provides guidance on specific cash flow classification issues including the following: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. Previous GAAP did not include specific guidance on these eight cash flow classification issues. The Company adopted the guidance effective January 1, 2018, and the provisions of this update did not have an impact on our consolidated statements of cash flows or results of operations. Recently Issued Accounting Pronouncements, Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The update will supersede the current lease guidance in Topic 840, Leases and lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The update is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. All of the Company’s leases are classified as operating leases under current lease accounting guidance. The Company expects to elect all of the standard’s available practical expedients upon adoption. The update requires the Company to add the operating leases to the Company’s consolidated balance sheets. The Company does not expect this standard will have a material impact on the Company’s consolidated financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which significantly changes the measurement of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update requires entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as currently performed under the OTTI model. The update also require enhanced disclosures for financial assets measured at amortized cost and available-for-sale debt securities to help the financial statement users better understand significant judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The update is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is in the early stage of evaluating the impact that the update will have on the Company’s consolidated financial position or results of operations.

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE	3. FAIR VALUE Fair Value Disclosures of Financial Instruments The Company accounts for financial instruments at fair value or the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are generally based upon observable and unobservable inputs. Observable inputs are based on market data from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. All assets and liabilities that are recorded at fair value are classified and disclosed in one of the following three categories: • Level 1 - Quoted market prices (unadjusted) for identical assets or liabilities in active markets is defined as a market where transactions for the financial statement occur with sufficient frequency and volume to provide pricing information on an ongoing basis, or observable inputs. • Level 2 - Quoted market prices for similar assets or liabilities and valuations, using models or other valuation techniques using observable market data. Significant other observable that can be corroborated by observable market data; and, • Level 3 - Instruments that use non-binding broker quotes or model driven valuations that do not have observable market data or those that are estimated based on an ownership interest to which a proportionate share of net assets is attributed. The classification of assets and liabilities in the fair value hierarchy is based upon the lowest level input that is significant to the fair value. The Company’s financial instruments measured at fair value on a recurring basis and the level of the fair value hierarchy of inputs used consisted of the following:  March 31, 2018  Level 1 Level 2 Level 3 Total  (In thousands) Debt securities - available-for-sale, at fair value: United States government obligations and authorities $ 77,109 $ 52,601 $ — $ 129,710 Obligations of states and political subdivisions — 23,302 — 23,302 Corporate securities — 258,518 — 258,518 International securities — 17,927 — 17,927 Debt securities, at fair value 77,109 352,348 — 429,457 Equity securities, at fair value 16,515 — — 16,515  Total investments, at fair value $ 93,624 $ 352,348 $ — $ 445,972 ໿  December 31, 2017  Level 1 Level 2 Level 3 Total  (In thousands) Debt securities - available-for-sale, at fair value: United States government obligations and authorities $ 51,219 $ 46,918 $ — $ 98,137 Obligations of states and political subdivisions — 66,266 — 66,266 Corporate securities — 240,919 — 240,919 International securities — 17,916 — 17,916 Debt securities, at fair value 51,219 372,019 — 423,238  Equity securities, at fair value 15,434 — — 15,434  Total investments, at fair value $ 66,653 $ 372,019 $ — $ 438,672 The Company’s held-to-maturity debt securities are reported on the consolidated balance sheets at amortized cost and disclosed at fair value in Note 4 . Investments in these notes to consolidated financial statements. The fair values of these securities are classified within Level 1 and Level 2 of the fair value hierarchy and consist of United States government obligations and authorities, corporate securities and international securities. The fair value of the securities classified as Level 1 was $3.9 million and $4.0 million as of March 31, 2018 and December 31, 2017 , respectively. The fair value of the securities classified as Level 2 was $1.3 million as of March 31, 2018 and December 31, 2017 . The Company has engaged a nationally recognized third party pricing service to provide the fair values of securities in Level 2. The Company reviews the third party pricing methodologies on a quarterly basis and tests for significant differences between the market price used to value the securities and the recent sales activities. A summary of the significant valuation techniques and market inputs for each financial instrument carried at fair value includes the following: • United States Government Obligations and Authorities: In determining the fair value for United States government securities in Level 1, the Company uses quoted prices (unadjusted) in active markets for identical or similar assets. In determining the fair value for United States government securities in Level 2, the Company uses the market approach utilizing primary valuation inputs including reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events. • Obligations of States and Political Subdivisions: In determining the fair value for state and municipal securities, the Company uses the market approach utilizing primary valuation inputs including reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events. • Corporate and International Securities: In determining the fair value for corporate securities the Company uses the market approach utilizing primary valuation inputs including reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads (for investment grade securities), observations of equity and credit default swap curves (for high-yield corporates), reference data and industry and economic events. • Equity Securities: In determining the fair value for equity securities in Level 1, the Company uses quoted prices (unadjusted) in active markets for identical or similar assets. In determining the fair value for equity securities in Level 2, the Company uses the market approach utilizing primary valuation inputs including reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events. There were no changes to the Company’s valuation methodology and the Company is not aware of any events or circumstances that would have a significant adverse effect on the carrying value of its assets and liabilities measured at fair value as of March 31, 2018 and December 31, 2017 . There were no transfers between the fair value hierarchy levels during the three months ended March 31, 2018 and 2017 .

INVESTMENTS

INVESTMENTS	3 Months Ended
	Mar. 31, 2018
Investments [Abstract]
INVESTMENTS	4. INVESTMENTS Unrealized Gains and Losses The difference between amortized cost or cost and estimated fair value and gross unrealized gains and losses, by major investment category, consisted of the following: ໿  Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (In thousands) March 31, 2018 Debt securities - available-for-sale: United States government obligations and authorities $ 131,292 $ 231 $ 1,813 $ 129,710 Obligations of states and political subdivisions 23,535 54 287 23,302 Corporate 261,772 553 3,807 258,518 International 18,068 11 152 17,927 434,667 849 6,059 429,457 Debt securities - held-to-maturity: United States government obligations and authorities 4,161 3 139 4,025 Corporate 1,072 6 4 1,074 International 65 — — 65 5,298 9 143 5,164 Total investments (1) $ 439,965 $ 858 $ 6,202 $ 434,621 ໿ (1) As a result of the adoption of ASU 2016-01 on January 1, 2018 (see additional details in Note 2) our equity securities no longer have unrealized gains or losses, therefore they are not included as of March 31, 2018.  Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (In thousands) December 31, 2017 Debt securities - available-for-sale: United States government obligations and authorities $ 98,739 $ 244 $ 846 $ 98,137 Obligations of states and political subdivisions 66,319 325 378 66,266 Corporate 239,435 2,233 749 240,919 International 17,807 136 27 17,916 422,300 2,938 2,000 423,238 Debt securities - held-to-maturity: United States government obligations and authorities 4,160 9 106 4,063 Corporate 1,123 21 — 1,144 International 66 1 — 67 5,349 31 106 5,274 Equity securities 14,085 1,628 279 15,434 Total investments $ 441,734 $ 4,597 $ 2,385 $ 443,946 Net Realized and Unrealized Gains and Losses The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or amortized cost of the security sold. Net realized gains and losses on investments are determined in accordance with the specific identification method. Net realized and unrealized gains, by major investment category, consisted of the following: ໿    Three Months Ended  March 31,  2018 2017 (In thousands) Gross realized and unrealized gains: Debt securities $ 223 $ 570 Equity securities 1,153 560 Total gross realized and unrealized gains 1,376 1,130 Gross realized and unrealized losses: Debt securities (1,441 ) (1,092 ) Equity securities (987 ) (143 ) Total gross realized and unrealized losses (2,428 ) (1,235 ) Net realized and unrealized gains on investments $ (1,052 ) $ (105 ) Proceeds from sale of investment securities were $78.1 million an d $128.6 million for the three months ended March 31, 2018 and 2017 , respectively. The portion of unrealized gains and losses for equity securities that was recognized in the line item, net realized and unrealized gains on investments securities for the three months ended March 31, 2018 was less than $0.1 million . Contractual Maturity Expected maturities and contractual maturities may differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized cost and estimated fair value of debt securities, by contractual maturity, consisted of the following: ໿  March 31, 2018  Amortized  Cost Fair Value Securities with maturity dates: (In thousands) Debt securities, available-for-sale: One year or less $ 50,526 $ 50,394 Over one through five years 207,292 205,249 Over five through ten years 175,529 172,538 Over ten years 1,320 1,276  434,667 429,457 Debt securities, held-to-maturity: One year or less 730 732 Over one through five years 3,940 3,812 Over five through ten years 628 620  5,298 5,164 Total $ 439,965 $ 434,621 Net Investment Income Net investment income consisted of the following: ໿  Three Months Ended  March 31,  2018 2017  (In thousands) Interest income $ 2,887 $ 2,169 Dividends income 56 149 Net investment income $ 2,943 $ 2,318 Aging of Gross Unrealized Losses Gross unrealized losses and related fair values for debt securities (and equity securities as of December 31, 2017), grouped by duration of time in a continuous unrealized loss position, consisted of the following: ໿  Less than 12 months 12 months or longer Total  Gross Gross Gross  Fair Unrealized Fair Unrealized Fair Unrealized  Value Losses Value Losses Value Losses March 31, 2018 (In thousands) Debt securities - available-for-sale: United States government obligations and authorities $ 61,093 $ 1,284 $ 18,399 $ 529 $ 79,492 $ 1,813 Obligations of states and political subdivisions 15,762 203 1,821 84 17,583 287 Corporate 198,468 3,547 5,022 260 203,490 3,807 International 14,682 152 — — 14,682 152  $ 290,005 $ 5,186 $ 25,242 $ 873 $ 315,247 $ 6,059  Less than 12 months 12 months or longer Total  Gross Gross Gross  Fair Unrealized Fair Unrealized Fair Unrealized  Value Losses Value Losses Value Losses December 31, 2017 (In thousands) Debt securities - available-for-sale: United States government obligations and authorities $ 52,368 $ 517 $ 19,287 $ 329 $ 71,655 $ 846 Obligations of states and political subdivisions 32,030 221 5,676 157 37,706 378 Corporate 109,780 625 6,452 124 116,232 749 International 8,935 27 25 — 8,960 27  203,113 1,390 31,440 610 234,553 2,000  Equity securities 4,312 279 — — 4,312 279  Total investments $ 207,425 $ 1,669 $ 31,440 $ 610 $ 238,865 $ 2,279 As of March 31, 2018 , the Company held a total of 1,346 debt securities that were in an unrealized loss position, of which 52 securities were in an unrealized loss position continuously for 12 months or more. As of December 31, 2017 , the Company held a total of 866 debt and equity securities that were in an unrealized loss position, of which 73 securities were in an unrealized loss position continuously for 12 months or more. The unrealized losses associated with these securities consisted primarily of losses related to corporate securities. The Company holds some of its debt securities as available-for-sale and as such, these securities are recorded at fair value. The Company continually monitors the difference between cost and the estimated fair value of its investments, which involves uncertainty as to whether declines in value are temporary in nature. If the decline of a particular investment is deemed temporary, the Company records the decline as an unrealized loss in shareholders’ equity. If the decline is deemed to be other than temporary, the Company will write the security’s cost-basis or amortized cost-basis down to the fair value of the investment and recognizes an OTTI loss in the Company’s consolidated statement of operations. Additionally, any portion of such decline related to debt securities that is believed to arise from factors other than credit will be recorded as a component of other comprehensive income rather than charged against income. The company did not have any OTTI losses on its available-for-sale debt securities for the first three months of 2018 and 2017. As discussed in Note 2 above, beginning January 1, 2018, the Company’s equity investments are measured at fair value through net income. See Note 4 of 2017 Form 10-K for information on how the Company assessed and determined whether unrealized losses on our equity securities were other-than-temporary, which was primarily based on the duration of the decline in the fair value of such securities relative to their cost as of the balance sheet date. The company did not have any OTTI losses on its equity securities for the first three months of 2017. Collateral Deposits Investments, the majority of which were debt securities, with fair values of approximately $12.8 million and $12.9 million , were deposited with governmental authorities and into custodial bank accounts as required by law or contractual obligations as of March 31, 2018 and December 31, 2017 , respectively.

REINSURANCE

REINSURANCE	3 Months Ended
	Mar. 31, 2018
Reinsurance Disclosures [Abstract]
REINSURANCE	5. REINSURANCE Overview Reinsurance is used to mitigate the exposure to losses, manage capacity and protect capital resources. The Company reinsures (cedes) a portion of written premiums on an excess of loss or a quota share basis in order to limit the Company’s loss exposure. To the extent that reinsuring companies are unable to meet their obligations assumed under these reinsurance agreements, the Company remain primarily liable to its policyholders. The Company is selective in choosing reinsurers and consider numerous factors, the most important of which is the financial stability of the reinsurer or capital specifically pledged to uphold the contract, its history of responding to claims and its overall reputation. In an effort to minimize the Company’s exposure to the insolvency of a reinsurer, the Company evaluates the acceptability and review the financial condition of the reinsurer at least annually with the assistance of the Company’s reinsurance broker. Significant Reinsurance Contracts 2016-2017 Reinsurance Programs FNIC’s 2016-2017 reinsurance programs, which cost $179.5 million , included $125.6 million for the private reinsurance for FNIC’s Florida exposure, with prepaid automatic premium reinstatement protection on all layers, along with $53.9 million payable to the Florida Hurricane Catastrophe Fund (“FHCF”). The combination of private and FHCF reinsurance treaties afforded FNIC with $2.2 billion of aggregate coverage with a maximum single event coverage totaled $1.6 billion , exclusive of retentions. FNIC maintained its FHCF participation at 75% for the 2016 hurricane season. FNIC’s single event pre-tax retention for a catastrophic event in Florida was $18.5 million . In addition, FNIC purchases separate underlying reinsurance layers in Louisiana, Texas, South Carolina and Alabama to cover losses and LAE outside of Florida for each catastrophic event from $8.0 million to $18.5 million . Depending on the characteristics of the catastrophic event, and the states involved, FNIC’s single event pre-tax retention could have been as low as $8.0 million . The maximum pre-tax retention was $18.5 million . Additionally, the Company’s private market excess of loss treaties became effective June 1, 2016 and July 1, 2016, and all private layers, except the FHCF supplemental layer reinsurance contract, have prepaid automatic reinstatement protection, which afforded us additional coverage against multiple catastrophic events in the same hurricane season. The Company obtained multiple year protection for a portion of its program; as a result, some of the coverage expired on June 30, 2017, and a portion of the coverage will remain in-force one additional treaty year until June 30, 2018. These private market excess of loss treaties structure coverage into layers, with a cascading feature such that substantially all private layers attach after $18.5 million in losses for FNIC’s Florida exposure. If the aggregate limit of the preceding layer is exhausted, the next layer drops down (cascades) in its place. Additionally, any unused layer protection drops down for subsequent events until exhausted. MNIC’s 2016-2017 catastrophe reinsurance program, which ran from either June 1 to May 31 or June 1 to June 30 (13 months), consisted of the FHCF and private market excess of loss treaties. All private layers had prepaid automatic reinstatement protection, which afforded MNIC additional coverage, and had a cascading feature such that substantially all layers attached at $3.4 million for MNIC’s Florida exposure. 2017-2018 Reinsurance Programs FNIC’s 2017-2018 reinsurance programs, which currently costs $174.4 million , including $124.0 million for the private reinsurance for FNIC’s Florida exposure, with prepaid automatic premium reinstatement protection on all layers, along with approximately $50.4 million payable to the FHCF. The combination of private and FHCF reinsurance treaties will afford FNIC with $2.2 billion of aggregate coverage with a maximum single event coverage totaling approximately $1.5 billion , exclusive of retentions. FNIC maintained its FHCF participation at 75% for the 2017 hurricane season. FNIC’s single event pre-tax retention for a catastrophic event in Florida is $18.0 million , down slightly from the 2016-2017 reinsurance programs. FNIC’s private market excess of loss treaties, covering both Florida and non-Florida exposures, became effective June 1, 2017 and July 1, 2017. All private layers have prepaid automatic reinstatement protection, except the FHCF supplemental layer reinsurance contract, which affords FNIC additional coverage for subsequent events. The reinsurance program includes multiple year protection with $89.0 million of new multiple year protection this year and $156.0 million of renewing multiple year protection from last year. These private market excess of loss treaties structure coverage into layers, with a cascading feature such that substantially all layers attach after $25.1 million in losses for FNIC’s exposure. FNIC purchased an underlying limit of protection for $7.1 million excess of $18.0 million with prepaid automatic reinstatement protection. These treaties are with reinsurers that currently have an A.M. Best Company (“A.M. Best”) or Standard & Poor’s rating of “A-” or better, or have fully collateralized their maximum potential obligations in dedicated trusts. FNIC’s non-Florida excess of loss reinsurance treaties affords us up to an additional $21.0 million of aggregate coverage with first event coverage totaling $5.0 million and second event coverage up to $16.0 million . The Non-Florida retention is lowered to $13.0 million for the first event and $2.0 million for the second event (for hurricane losses only) on a gross basis though it is reduced to $6.5 million and $1.0 million on a net basis after taking into account the profit share agreement that FNIC has with our non-affiliated managing general underwriter that writes our Non-Florida property business. FNIC’s Non-Florida reinsurance program cost includes $1.7 million for this private reinsurance, including prepaid automatic premium reinstatement protection. MNIC’s 2017-2018 reinsurance program costing $5.0 million , including $3.2 million for the private reinsurance for MNIC’s Florida exposure including prepaid automatic premium reinstatement protection on all layers, along with $1.8 million payable to FHCF. The combination of private and FHCF reinsurance treaties affords MNIC with $109.0 million of aggregate coverage with a maximum single event coverage totaling approximately $68.1 million , exclusive of retentions. MNIC maintained its FHCF participation at 75% for the 2017 hurricane season. MNIC’s private market excess of loss treaties are effective July 1, 2017, and all private layers have prepaid automatic reinstatement protection, which affords MNIC additional coverage for subsequent events, and have a cascading feature such that substantially all layers attach at $3.4 million for MNIC’s Florida exposure. These treaties are with reinsurers that currently have an A.M. Best or Standard & Poor’s rating of “A-” or better, or have fully collateralized their maximum potential obligations in dedicated trusts. In addition to the excess of loss coverages described above, our reinsurance program also includes property quota-share treaties. One such treaty for 30% became effective July 1, 2014, and another for 10% became effective on July 1, 2015 with each running for two years. The combined treaties provided up to a 40% quota-share reinsurance on covered losses for the homeowners’ property insurance program in Florida. The treaties are accounted for as retrospectively rated contracts whereby the estimated ultimate premium or commission is recognized over the period of the contracts. On July 1, 2017, FNIC bound a new 10% quota-share on its Florida homeowners book of business, which excludes named storms. This treaty is not subject to accounting as a retrospectively rated contract. On July 1, 2016, the 30% property quota-share treaty expired on a cut-off basis, which means as of that date the Company retained an incremental 30% of its unearned premiums and losses. On July 1, 2017, the 10% property quota-share treaty expired on a cut-off basis, which means as of that date we retained an incremental 10% of the underlying unearned premiums and losses. The reinsurers remain liable for 30% and 10% of the paid losses occurring during the terms of the treaties, until each treaty is commuted. The Company’s private passenger automobile quota share treaties are typically one year programs which become effective at different points in the year and cover auto policies across several states. These automobile quota share treaties cede approximately 75% of all written premiums entered into by the Company, subject to certain limitations including but not limited to premium and other caps. Certain reinsurance agreements require FNIC and MNIC to secure the credit, regulatory and business risk. Fully funded trust agreements securing these risks for FNIC totaled $2.7 million and $2.6 million as of March 31, 2018 and December 31, 2017 , respectively. Reinsurance Recoverables Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the consolidated balance sheet as reinsurance recoverables. Reinsurance recoverable, net consisted of the following: ໿  March 31, December 31,  2018 2017  (in thousands) Reinsurance recoverable on paid losses $ 34,664 $ 26,256 Reinsurance recoverable on unpaid losses 111,427 98,345 Reinsurance recoverable, net $ 146,091 $ 124,601 As of March 31, 2018 , the Company had $107.6 million million in reinsurance recoverables as a result of Hurricane Irma. Hurricane Irma made landfall in the United States as a Category 4 hurricane on September 10, 2017. Additionally, all reinsurers in our excess-of-loss reinsurance programs have an A.M. Best or Standard & Poor’s rating of “A-“ or better, or have fully collateralized their maximum potential obligations in dedicated trusts. Net Premiums Written and Net Premiums Earned Net premiums written and net premiums earned consisted of the following: ໿ ໿  Three Months Ended  March 31,  2018 2017  (in thousands) Net premiums written: Direct $ 134,395 $ 146,051 Ceded (20,107 ) (24,137 )  $ 114,288 $ 121,914 Net premiums earned: Direct $ 146,442 $ 147,978 Ceded (64,333 ) (66,318 )  $ 82,109 $ 81,660

LOSS AND LOSS ADJUSTMENT RESERV

LOSS AND LOSS ADJUSTMENT RESERVES	3 Months Ended
	Mar. 31, 2018
Liability for Future Policy Benefits [Abstract]
LOSS AND LOSS ADJUSTMENT RESERVES	6. LOSS AND LOSS ADJUSTMENT RESERVES The liability for loss and LAE reserves is determined on an individual-case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and IBNR. Activity in the liability for loss and LAE reserves is summarized as follows:  Three Months Ended  March 31,  2018 2017  (In thousands) Gross reserves, beginning of period $ 230,515 $ 158,110 Less: reinsurance recoverable (1) (98,345 ) (40,412 ) Net reserves, beginning of period 132,170 117,698  Incurred loss, net of reinsurance, related to: Current year 48,459 60,277 Prior year loss development (2) (653 ) 2,905 Ceded losses subject to offsetting experience account adjustments (3) (1,735 ) (6,283 ) Prior years (2,388 ) (3,378 ) Total incurred loss and LAE, net of reinsurance 46,071 56,899  Paid loss, net of reinsurance, related to: Current year 22,543 18,416 Prior years 30,911 36,316 Total paid loss and LAE, net of reinsurance 53,454 54,732  Net reserves, end of period 124,787 119,865 Plus: reinsurance recoverable (1) 111,427 34,472 Gross reserves, end of period $ 236,214 $ 154,337 (1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves. (2) Reflects loss development from prior accident years impacting pre-tax net income. Excludes losses ceded under retrospective reinsurance treaties to the extent there is an offsetting experience account adjustment. (3) Reflects losses ceded under retrospective reinsurance treaties to the extent there is an offsetting experience account adjustment, such that there is no impact on pre-tax net income. The establishment of loss reserves is an inherently uncertain process and changes in loss reserve estimates are expected as such estimates are subject to the outcome of future events. The factors influencing changes in claim costs are often difficult to isolate or quantify and developments in paid and incurred losses from historical trends are frequently subject to multiple interpretations. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are made. During the three months ended March 31, 2018 , the Company experienced $0.7 million of favorable loss and LAE reserve redundancy in accident year 2017. The redundancy was the result of additional ceded losses to reinsurers associated with Hurricane Irma. During the three months ended March 31, 2017, the Company experienced $2.9 million of unfavorable loss and LAE reserve development on prior accident years primarily in its personal automobile line of business, which was driven by adjustments to cession percentages in certain auto reinsurance treaties. As previously disclosed, the Company entered into 30% and 10% retrospectively-rated Florida-only property quota share treaties, which ended on July 1, 2016 and 2017, respectively. These agreements included a profit share (experience account) provision, under which the Company will receive ceded premium adjustments at the end of the treaty to the extent there is a positive balance in the experience account. This experience account is based on paid losses rather than incurred losses. Due to the retrospectively-rated nature of this treaty, when the experience account is positive we cede losses under these treaties as the claims are paid with an equal and offsetting adjustment to ceded premiums (in recognition of the related change to the experience account receivable), with no impact on net income. Conversely, when the experience account is negative, the Company cedes losses on an incurred basis with no offsetting adjustment to ceded premiums, which impacts net income. Loss development can be either favorable or unfavorable regardless of whether the experience account is in a positive or negative position.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
LONG-TERM DEBT	7. LONG-TERM DEBT See Note 7 of our 2017 Form 10-K for information regarding our long-term debt. As discussed in Note 1, the outstanding principal balance and interest due on the $5.0 million promissory note to TransRe was paid in full in February 2018. The associated deferred financing costs for this debt of less than $0.1 million were recognized as interest expense in our consolidated statements of operations for the three months ended March 31, 2018.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	8. INCOME TAXES The provision for income tax expense for the three and three months ended March 31, 2018 and 2017 is as follows: ໿  Three Months Ended  March 31,  2018 2017  (in thousands) Federal: Current $ 3,878 $ 658 Deferred (2,076 ) 527 Federal income tax expense 1,802 1,185 State: Current 1,002 172 Deferred (433 ) 78 State income tax expense 569 250 Total income tax expense $ 2,371 $ 1,435 The actual income tax expense differs from the “expected” income tax expense (computed by applying the combined applicable effective federal and state tax rates to income before income tax expense) as follows: ໿  Three Months Ended  March 31,  2018 2017  (in thousands) Computed expected tax expense provision, at federal rate $ 2,020 $ 1,360 State tax, net of federal tax benefit 401 53 Other (50 ) 22 Total income tax expense $ 2,371 $ 1,435 The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 35% to 21%. SAB No. 118 provides guidance on accounting for the tax effects of the Tax Act and a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under the FASB’s Accounting Standard Codification (“ASC”) 740 - Income Taxes (“ASC 740”). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. We did not record any adjustments to our provisional estimate during the first three months of 2018 and continue to evaluate the Tax Act. The Company had an uncertain tax position of $0.6 million as of March 31, 2018 and December 31, 2017 . The Company does not have a valuation allowance as of March 31, 2018 and December 31, 2017 . The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations and statements of comprehensive income (loss). For the three months ended March 31, 2018 and 2017 , the Company did not recognize any expense for accrued interest and penalties related to unrecognized tax benefits. For the three months ended March 31, 2018 , the Company recognized no income tax expense related to an uncertain tax position. For the three months ended March 31, 2017 , the Company recognized less than $0.1 million income tax expense related to an uncertain tax position.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Litigation and Legal Proceedings In the ordinary course of business, the Company is involved in various legal proceedings, specifically claims litigation. The Company’s insurance subsidiaries participate in most of these proceedings by either defending third-party claims brought against insureds or litigating first-party coverage claims. The Company accounts for such activity through the establishment of loss and LAE reserves. The Company’s management believes that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, is immaterial to the Company’s consolidated financial statements. The Company is also occasionally involved in other legal and regulatory proceedings, some of which may assert claims for substantial amounts, making the Company party to individual actions in which extra contractual damages, punitive damages or penalties, such as claims alleging bad faith in the handling of insurance claims, are sought. The Company reviews the outstanding matters, if any, on a quarterly basis. The Company accrues for estimated losses and contingent obligations in the consolidated financial statements if and when the obligation or potential loss from any litigation, legal proceeding or claim is considered probable and the amount of the potential exposure is reasonably estimable. The Company records such probable and estimable losses, through the establishment of legal expense reserves. As events evolve, facts concerning litigation and contingencies become know and as additional information becomes available, the Company’s management reassesses its potential liabilities related to pending claims and litigation and may revise its previous estimates and make appropriate adjustment to the financial statements. Estimates that require judgment are subject to change and are based on management’s assessment, including the advice of legal counsel, the expected outcome of litigation and legal proceedings or other dispute resolution proceedings or the expected resolution of contingencies. The Company’s management believes that the Company’s accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on the Company’s consolidated financial statements. The Company is a party to a Co-Existence Agreement effective as of August 30, 2013 (the “Co-Existence Agreement”) with Federated Mutual Insurance Company (“Mutual”) pursuant to which we agreed to certain restrictions on its use of the word “FEDERATED” without the word “NATIONAL” when referring to the Company and FNIC. In response to Mutual’s allegations that our use of the word “FED” as part of our federally registered “FEDNAT” trademark infringes on Mutual’s federal and common law trademark rights, in July 2016 we filed a declaratory judgment action for non-infringement of trademark in the U.S. District Court for the Southern District of Florida seeking a declaration that our federally registered trademark “FEDNAT” does not infringe any alleged trademark rights of Mutual and that Mutual does not own any trademark rights to the name or mark “FED” in connection with insurance services outside of Owatonna, Minnesota. In response to Mutual’s demand for arbitration against us alleging a breach of the Co-Existence Agreement, on February 16, 2018 the arbitrator agreed that our “FEDNAT” trademark does not infringe on Mutual’s federal or common law trademark rights. As a result, we have begun the process of re-branding the Company and certain of its subsidiaries to use the “FEDNAT” name. The arbitrator also required us to cease using the Federated National name within 90 days. The Company was unable to reach agreement with Mutual as to the timing of the name change ordered by the arbitrator and therefore two proceedings have been filed as a result. Mutual has filed a petition to confirm the award in federal court in the District of Minnesota. The Company has moved to dismiss that action on the bases that the Minnesota court does not have subject matter jurisdiction and may not exercise personal jurisdiction over FNHC. A hearing is set for June 6, 2018. The Company has also filed a motion to confirm the arbitration award in part and to vacate it in part in federal court in the Northern District of Illinois, which is where the arbitrator is located, to confirm that part of the award ruling that the Company’s “FEDNAT” trademark does not violate Mutual’s trademarks or the Co-Existence Agreement, and seeks to vacate that portion of the award that requires the Company to cease using the “Federated” in its name within 90 days on the basis that arbitrator exceeded his authority by requiring the Company to change its name in 90 days. There can be no assurances as to the outcome of this matter. On March 2, 2017, the Company filed a complaint in Broward County, Florida court to enforce the terms of the restrictive covenants set forth in the Amended and Restated Non-Competition, Non-Disclosure and Non-Solicitation Agreement dated August 5, 2013, as amended, entered into between Peter J. Prygelski, III and our company during Mr. Prygelski’s employment with us and set forth in the separation agreement he entered into in connection with his separation from our company. We believe that he accepted employment with a competitor in contravention of these restrictive covenants and therefore the Company is seeking injunctive relief, declaratory relief and damages. Mr. Prygelski has also filed an arbitration seeking declaratory relief as to his obligations under the above-referenced agreements and to recover the remainder of his severance and health insurance premium reimbursements. Because the Company is seeking monetary relief, the Company filed a counterclaim in the arbitration seeking damages and recovery of separation payments. The litigation seeking injunctive relief and the companion arbitration related to damages are ongoing. The final hearing on the arbitration is scheduled for May 14, 2018. There can be no assurances as to the outcome of this matter. Assessment Related Activity The Company operates in a regulatory environment where certain entities and organizations have the authority to require us to participate in assessments. Currently these entities and organizations include: Florida Insurance Guaranty Association (“FIGA”), Citizens Property Insurance Corporation (“Citizens”), FHCF, Florida Joint Underwriters Insurance Association (“JUA”), Georgia Insurers Insolvency Pool (“GIIP”), Special Insurance Fraud Fund (“SIIF”), Fair Access to Insurance Requirements Plan (“FAIRP”), Georgia Automobile Insurance Plan (“GAIP”), Property Insurance Association of Louisiana (“PIAL”), Louisiana Automobile Insurance Plan (“LAIP”), South Carolina Property & Casualty Insurance Guaranty Association (“SCPCIGA”), Texas Property and Casualty Insurance Guaranty Association (“TPCIGA”), Texas Windstorm Insurance Association (“TWIA”), Texas Automobile Insurance Plan Association (“TAIPA”), Alabama Insurance Guaranty Association (“AIGA”), and Alabama Insurance Underwriters Association (“AIUA”). As a direct premium writer in Florida, we are required to participate in certain insurer solvency associations under Florida law, administered by FIGA. FNIC is also required to participate in an insurance apportionment plan under Florida law, which is referred to as a JUA Plan. The JUA Plan provides for the equitable apportionment of any profits realized, or losses and expenses incurred, among participating automobile insurers. In the event of an underwriting deficit incurred by the JUA Plan, which is not recovered through the policyholders in the JUA Plan, such deficit shall be recovered from the companies participating in the JUA Plan in the proportion that the net direct written premiums of each such member during the preceding calendar year bear to the aggregate net direct premiums written in this state by all members of the JUA Plan. There were no material assessments by the JUA Plan as of December 31, 2017. Future assessments by the JUA and the JUA Plan are indeterminable at this time. Leases The Company is committed under various operating lease agreements for office space. FNHC and its subsidiaries lease certain facilities, furniture and equipment under long-term lease agreements. Additional information about leases can be found in Note 9 to our Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data,” of the 2017 Form 10-K.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
SHAREHOLDERS' EQUITY	10. SHAREHOLDERS' EQUITY Common Stock Repurchases The Company may repurchase shares in open market transaction or under Rule 10b5-1 trading plans from time to time in its discretion, based on ongoing assessments of the Company’s capital needs, the market price of its common stock and general market conditions. The amount and timing of all repurchase transactions are contingent upon market conditions, applicable legal requirements and other factors. In March 2017, the Company’s Board of Directors authorized a program to repurchase shares of common stock of FNHC, at such times and at prices as management determined advisable, up to an aggregate of $10.0 million of common stock through March 31, 2018. This authorization was fully expended as of March 31, 2018. In December 2017, the Company’s Board of Directors authorized an additional share repurchase program under which the Company may repurchase up to $10.0 million (plus $0.8 million remaining from previous authorization) of its outstanding shares of common stock through December 31, 2018. During the three months ended March 31, 2018 , the Company repurchased 322,865 shares of its common stock at a total cost of $5.0 million , which is an average price per share of $15.49 . As of March 31, 2018 , the remaining availability for future repurchases of our common stock under this program was $5.8 million . Stock Compensation Plan In April 2012, the Company’s Board of Directors adopted, and in September 2012 the Company’s shareholders approved, the Company’s 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan permits the issuance of up to 1,000,000 shares of the Company’s common stock, subject to adjustment as provided for in the 2012 Plan, in connection with the grant of a variety of equity incentive awards, such as stock options and restricted stocks. Officers, directors, executive management and all other employees of the Company and its subsidiaries are eligible to participate in the 2012 Plan. Awards may be granted singly, in combination, or in tandem. The 2012 Plan will expire on April 5, 2022. Share-Based Compensation Expense Share-based compensation arrangements include the following: ໿  Three Months Ended  March 31,  2018 2017  (in thousands) Restricted stock $ 665 $ 667 Stock options — — Total share-based compensation expense $ 665 $ 667  Intrinsic value of options exercised $ — $ 7 Fair value of restricted stock vested $ 1,187 $ 1,350 The intrinsic value of options exercised represents the difference between the stock option exercise price and the weighted average closing stock price of FNHC common stock on the exercise dates, as reported on the NASDAQ Global Market. Stock Option Awards A summary of the Company’s stock option activity includes the following: ໿  Number of Shares Weighted Average Option Exercise Price Outstanding at January 1, 2018 50,351 $ 3.72 Granted — — Exercised — — Cancelled — — Outstanding at March 31, 2018 50,351 $ 3.72 Restricted Stock Awards The Company recognizes share-based compensation expense for all restricted stock awards (“RSAs”) held by the Company’s directors, executives and other key employees. For all RSA awards, excluding relative total shareholder return ("TSR"), the accounting charge is measured at the grant date as the fair value of FNHC common stock and expensed as non-cash compensation over the vesting term using the straight-line basis for service awards and over successive one-year requisite service periods for performance‑based awards. Our expense for our performance awards depends on achievement of specified results, therefore the ultimate expense can range from 0% to 250% of target. Our TSR cliff vesting awards contain performance criteria which are tied to the achievement of certain market conditions. The TSR grant date fair value was determined using a Monte Carlo simulation and unlike the performance condition awards, the expense is not reversed if the performance condition is not met. This value is recognized as expense over the requisite service period using the straight‑line recognition method. During the three months ended March 31, 2018 and 2017 , the Board of Directors granted 130,458 and 96,454 RSAs, respectively, vesting over three or five years , to the Company’s directors, executives and other key employees. RSA activity includes the following:  Number of Shares Weighted Average Outstanding at January 1, 2018 297,543 $ 20.57 Granted 130,458 $ 16.25 Vested (53,571 ) $ 22.15 Cancelled (16,539 ) $ 18.25 Outstanding at March 31, 2018 357,891 $ 18.86 The weighted average grant date fair value is measured using the closing price of FNHC common stock on the grant date, as reported on the NASDAQ Global Market. Accumulated Other Comprehensive Income Accumulated other comprehensive income consisted of the following: ໿  Three Months Ended March 31,  2018 2017  Before Tax Income Tax Net Before Tax Income Tax Net  (in thousands) Accumulated other comprehensive income, beginning of period $ 2,287 $ (593 ) $ 1,694 $ 3,324 $ (1,201 ) $ 2,123 Cumulative effect of new accounting standards (1,349 ) 355 (994 ) — — — Other comprehensive (loss) income before reclassification (7,200 ) 1,825 (5,375 ) 3,605 (1,404 ) 2,201 Reclassification adjustment for realized and unrealized losses (gains) included in net income 1,052 (238 ) 814 105 (41 ) 64  (6,148 ) 1,587 (4,561 ) 3,710 (1,445 ) 2,265 Accumulated other comprehensive (loss) income, end of period $ (5,210 ) $ 1,349 $ (3,861 ) $ 7,034 $ (2,646 ) $ 4,388

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	11. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested restricted stock awards during the period. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options and unvested restricted stock awards. Dilutive securities are common stock equivalents that are freely exercisable into common stock at less than market prices or otherwise dilute earnings if converted. The net effect of common stock equivalents is based on the incremental common stock that would be issued upon the assumed exercise of common stock options and the vesting of RSAs using the treasury stock method. Common stock equivalents are not included in diluted earnings per share when their inclusion is antidilutive. The following table presents the calculation of basic and diluted EPS:  Three Months Ended  March 31,  2018 2017  (in thousands, except per share data) Net income attributable to Federated National Holding Company shareholders $ 7,463 $ 2,422 Weighted average number of common shares outstanding - basic 12,850 13,432 Net income per share - basic $ 0.58 $ 0.18  Weighted average number of common shares outstanding - basic 12,850 13,432 Dilutive effect of stock compensation plans 95 127 Weighted average number of common shares outstanding - diluted 12,945 13,559 Net income per share - diluted $ 0.58 $ 0.18  Dividends per share $ 0.08 $ 0.08 Dividends Declared In February 2018, our Board of Directors declared a $0.08 per common share dividend, payable in June 2018, to shareholders of record on May 1, 2018 , amounting to $1.0 million .

VARIABLE INTEREST ENTITY

VARIABLE INTEREST ENTITY	3 Months Ended
	Mar. 31, 2018
Variable Interest Entity [Abstract]
Variable Interest Entity	12. VARIABLE INTEREST ENTITY Refer to Monarch National Insurance Company in Note 1 above, for information about how we acquired 100% of Monarch Delaware; therefore, as of February 21, 2018, Monarch Delaware became a wholly-owned subsidiary instead of a VIE. Prior to February 21, 2018, FNU through the Monarch MGA Agreement, directed the activities which most significantly impact the Monarch Entities’ insurance operating company, MNIC. MNIC’s activities directed by FNU through the Monarch MGA Agreement included underwriting and claims. As a result, MNIC was a VIE prior to February 21, 2018, because the equity holders (i.e., FNHC, Crosswinds Holdings and TransRe owned 42.4% , 42.4% , and 15.2% , respectively, of Monarch Delaware), as a group, lacked the characteristics of a controlling financial interest. In addition to having power to direct the activities which most significantly impacted MNIC, FNHC had the obligation to absorb the losses and/or the right to receive benefits that potentially could be significant through its 42.4% indirect equity interests in MNIC through Monarch Delaware and Monarch Holding. As a result, FNHC was the primary beneficiary of MNIC, resulting in Monarch Delaware, MNIC’s indirect parent company, consolidating into our financial statements. The carrying amounts of Monarch Delaware, which could only be used to settle obligations of Monarch Delaware, and liabilities of Monarch Delaware for which creditors did not have recourse included the following: ໿  December 31,  2017  ASSETS Investments Debt securities, available-for-sale, at fair value $ 25,111 Equity securities, available-for-sale, at fair value 1,173 Total investments 26,284 Cash and cash equivalents 14,211 Reinsurance recoverable 3,323 Prepaid reinsurance premiums 2,481 Premiums receivable, net 1,184 Deferred acquisition costs 1,722 Other assets 2,322 Total assets $ 51,527  LIABILITIES Loss and loss adjustment expense reserves $ 6,356 Unearned premiums 8,752 Reinsurance payable 1,802 Debt , net of deferred financing costs 4,930 Other liabilities 1,825 Total liabilities $ 23,665 Earned premiums and loss and LAE, attributable to Monarch Delaware, from January 1, 2018 to February 21, 2018, were $2.3 million and $2.3 million , respectively. Earned premiums and loss and LAE, attributable to Monarch Delaware for the three months ended March 31, 2017 were $2.7 million and $1.8 million , respectively.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policy)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Material Distribution Relationships	Material Distribution Relationships Ivantage Select Agency, Inc. The Company is a party to an insurance agency master agreement with Ivantage Select Agency, Inc. (“ISA”), an affiliate of Allstate Insurance Company (“Allstate”), pursuant to which the Company has been authorized by ISA to appoint Allstate agents to offer the Company’s homeowners and commercial general liability insurance products to consumers in Florida. As a percentage of the total homeowners premiums we underwrote, 22.8% and 23.8% , were from Allstate’s network of Florida agents, for the three months ended March 31, 2018 and 2017 , respectively. SageSure Insurance Managers, LLC The Company is a party to a managing general underwriting agreement with SageSure Insurance Managers, LLC (“SageSure”) to facilitate growth in our FNIC homeowners business outside of Florida. As a percentage of the total homeowners premiums, 11.8% and 8.6% , respectively, of the Company’s premiums were underwritten by SageSure, for the three months ended March 31, 2018 and 2017 , respectively.
Basis of Presentation	Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of FNHC and its wholly-owned subsidiaries and all entities in which the Company has a controlling financial interest and any variable interest entity (“VIE”) of which the Company is the primary beneficiary. The Company’s management believes the consolidated financial statements reflect all material adjustments, including normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows of the Company for the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company identifies a VIE as an entity that does not have sufficient equity to finance its own activities without additional financial support or where the equity investors lack certain characteristics of a controlling financial interest. The Company assesses its contractual, ownership or other interests in a VIE to determine if the Company’s interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. The Company performs an ongoing qualitative assessment of its variable interests in a VIE to determine whether the Company has a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If the Company determines it is the primary beneficiary of a VIE, the Company consolidates the assets and liabilities of the VIE in its consolidated financial statements. As of December 31, 2017, in connection with the investment in Monarch Delaware, the Company had determined that the Company possessed the power to direct the activities of the VIE that most significantly impact its economic performance and the Company was the primary beneficiary of the VIE. As such, the Company consolidated Monarch Delaware in its consolidated financial statements.
Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of FNHC and its wholly-owned subsidiaries and all entities in which the Company has a controlling financial interest and any variable interest entity (“VIE”) of which the Company is the primary beneficiary. The Company’s management believes the consolidated financial statements reflect all material adjustments, including normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows of the Company for the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company identifies a VIE as an entity that does not have sufficient equity to finance its own activities without additional financial support or where the equity investors lack certain characteristics of a controlling financial interest. The Company assesses its contractual, ownership or other interests in a VIE to determine if the Company’s interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. The Company performs an ongoing qualitative assessment of its variable interests in a VIE to determine whether the Company has a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If the Company determines it is the primary beneficiary of a VIE, the Company consolidates the assets and liabilities of the VIE in its consolidated financial statements. As of December 31, 2017, in connection with the investment in Monarch Delaware, the Company had determined that the Company possessed the power to direct the activities of the VIE that most significantly impact its economic performance and the Company was the primary beneficiary of the VIE. As such, the Company consolidated Monarch Delaware in its consolidated financial statements.
Revisions of Previously Issued Financial Statements	Revisions of Previously Issued Financial Statements Revisions to the three months ended March 31, 2017, were described in Note 1 and Note 16 to our Consolidated Financial Statements set forth in Part II, Item 8, "Financial Statements and Supplementary Data" included in our most recent Annual Report on Form 10-K for the year ended December 31, 2017 (the "2017 Form 10-K").
Accounting Estimates and Assumptions	Accounting Estimates and Assumptions The Company prepares the accompanying consolidated financial statements in accordance with U.S. GAAP, which requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results may materially differ from those estimates. Similar to other property and casualty insurers, the Company’s liability for loss and loss adjustment expenses ("LAE") reserves, although supported by actuarial projections and other data, is ultimately based on management’s reasoned expectations of future events. Although considerable variability is inherent in these estimates, the Company believes that the liability and LAE reserve is adequate. The Company reviews and evaluates its estimates and assumptions regularly and makes adjustments, reflected in current operations, as necessary, on an on-going basis.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements, Adopted In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) , which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Most notably, the combined new guidance required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Company adopted the guidance effective January 1, 2018, by reflecting a cumulative effect adjustment, which increased retained earnings and decreased accumulated other comprehensive income by $1.0 million. This adjustment represented the level of net unrealized gains and losses associated with our equity investments with readily determinable market values as of January 1, 2018. The adoption also resulted in the recognition of less than $0.1 million in our statement income and comprehensive income, which represented the change in net unrealized gains and losses on our equity securities for the first three months of 2018. Although the amount of change in net unrealized gains and losses on our equity securities for the first quarter of 2018 was not significant, we believe this new guidance could significantly increase our earnings volatility going forward. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The update allowed a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Guidance had previously required the effect of a change in tax laws or rates on deferred tax balances to be reported in income from continuing operations in the accounting period that includes the period of enactment, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income. The Company adopted the guidance effective January 1, 2018, by reflecting a cumulative effect adjustment to retained earnings with an off-setting adjustment to accumulated other comprehensive income for less than $0.1 million. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The update replaces all general and most industry specific revenue recognition guidance (excluding insurance) currently prescribed by U.S. GAAP. The core principle is that an entity recognizes revenue to reflect the transfer of a promised good or service to customers in an amount that reflects that consideration to which the entity expects to be entitled in exchange for that good or service. The Company adopted this update and the other related revenue standard clarifications and technical guidance effective January 1, 2018, using the modified retrospective approach. The Company completed the analysis of its non-insurance revenues and has concluded that the implementation did not have any impact on the Company’s consolidated financial condition or results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments a consensus of the Emerging Issues Task Force) to improve the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update provides guidance on specific cash flow classification issues including the following: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. Previous GAAP did not include specific guidance on these eight cash flow classification issues. The Company adopted the guidance effective January 1, 2018, and the provisions of this update did not have an impact on our consolidated statements of cash flows or results of operations. Recently Issued Accounting Pronouncements, Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The update will supersede the current lease guidance in Topic 840, Leases and lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The update is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. All of the Company’s leases are classified as operating leases under current lease accounting guidance. The Company expects to elect all of the standard’s available practical expedients upon adoption. The update requires the Company to add the operating leases to the Company’s consolidated balance sheets. The Company does not expect this standard will have a material impact on the Company’s consolidated financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which significantly changes the measurement of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update requires entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as currently performed under the OTTI model. The update also require enhanced disclosures for financial assets measured at amortized cost and available-for-sale debt securities to help the financial statement users better understand significant judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The update is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is in the early stage of evaluating the impact that the update will have on the Company’s consolidated financial position or results of operations.

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The Company’s financial instruments measured at fair value on a recurring basis and the level of the fair value hierarchy of inputs used consisted of the following:  March 31, 2018  Level 1 Level 2 Level 3 Total  (In thousands) Debt securities - available-for-sale, at fair value: United States government obligations and authorities $ 77,109 $ 52,601 $ — $ 129,710 Obligations of states and political subdivisions — 23,302 — 23,302 Corporate securities — 258,518 — 258,518 International securities — 17,927 — 17,927 Debt securities, at fair value 77,109 352,348 — 429,457 Equity securities, at fair value 16,515 — — 16,515  Total investments, at fair value $ 93,624 $ 352,348 $ — $ 445,972 ໿  December 31, 2017  Level 1 Level 2 Level 3 Total  (In thousands) Debt securities - available-for-sale, at fair value: United States government obligations and authorities $ 51,219 $ 46,918 $ — $ 98,137 Obligations of states and political subdivisions — 66,266 — 66,266 Corporate securities — 240,919 — 240,919 International securities — 17,916 — 17,916 Debt securities, at fair value 51,219 372,019 — 423,238  Equity securities, at fair value 15,434 — — 15,434  Total investments, at fair value $ 66,653 $ 372,019 $ — $ 438,672

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
Investments [Abstract]
Unrealized Gain (Loss) on Investments	The difference between amortized cost or cost and estimated fair value and gross unrealized gains and losses, by major investment category, consisted of the following: ໿  Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (In thousands) March 31, 2018 Debt securities - available-for-sale: United States government obligations and authorities $ 131,292 $ 231 $ 1,813 $ 129,710 Obligations of states and political subdivisions 23,535 54 287 23,302 Corporate 261,772 553 3,807 258,518 International 18,068 11 152 17,927 434,667 849 6,059 429,457 Debt securities - held-to-maturity: United States government obligations and authorities 4,161 3 139 4,025 Corporate 1,072 6 4 1,074 International 65 — — 65 5,298 9 143 5,164 Total investments (1) $ 439,965 $ 858 $ 6,202 $ 434,621 ໿ (1) As a result of the adoption of ASU 2016-01 on January 1, 2018 (see additional details in Note 2) our equity securities no longer have unrealized gains or losses, therefore they are not included as of March 31, 2018.  Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (In thousands) December 31, 2017 Debt securities - available-for-sale: United States government obligations and authorities $ 98,739 $ 244 $ 846 $ 98,137 Obligations of states and political subdivisions 66,319 325 378 66,266 Corporate 239,435 2,233 749 240,919 International 17,807 136 27 17,916 422,300 2,938 2,000 423,238 Debt securities - held-to-maturity: United States government obligations and authorities 4,160 9 106 4,063 Corporate 1,123 21 — 1,144 International 66 1 — 67 5,349 31 106 5,274 Equity securities 14,085 1,628 279 15,434 Total investments $ 441,734 $ 4,597 $ 2,385 $ 443,946
Net Realized Gains (Losses) by Major Investment Category	Net realized and unrealized gains, by major investment category, consisted of the following: ໿    Three Months Ended  March 31,  2018 2017 (In thousands) Gross realized and unrealized gains: Debt securities $ 223 $ 570 Equity securities 1,153 560 Total gross realized and unrealized gains 1,376 1,130 Gross realized and unrealized losses: Debt securities (1,441 ) (1,092 ) Equity securities (987 ) (143 ) Total gross realized and unrealized losses (2,428 ) (1,235 ) Net realized and unrealized gains on investments $ (1,052 ) $ (105 )
Investments Classified by Contractual Maturity Date	Amortized cost and estimated fair value of debt securities, by contractual maturity, consisted of the following: ໿  March 31, 2018  Amortized  Cost Fair Value Securities with maturity dates: (In thousands) Debt securities, available-for-sale: One year or less $ 50,526 $ 50,394 Over one through five years 207,292 205,249 Over five through ten years 175,529 172,538 Over ten years 1,320 1,276  434,667 429,457 Debt securities, held-to-maturity: One year or less 730 732 Over one through five years 3,940 3,812 Over five through ten years 628 620  5,298 5,164 Total $ 439,965 $ 434,621
Summary of Net Investment Income	Net investment income consisted of the following: ໿  Three Months Ended  March 31,  2018 2017  (In thousands) Interest income $ 2,887 $ 2,169 Dividends income 56 149 Net investment income $ 2,943 $ 2,318
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	Gross unrealized losses and related fair values for debt securities (and equity securities as of December 31, 2017), grouped by duration of time in a continuous unrealized loss position, consisted of the following: ໿  Less than 12 months 12 months or longer Total  Gross Gross Gross  Fair Unrealized Fair Unrealized Fair Unrealized  Value Losses Value Losses Value Losses March 31, 2018 (In thousands) Debt securities - available-for-sale: United States government obligations and authorities $ 61,093 $ 1,284 $ 18,399 $ 529 $ 79,492 $ 1,813 Obligations of states and political subdivisions 15,762 203 1,821 84 17,583 287 Corporate 198,468 3,547 5,022 260 203,490 3,807 International 14,682 152 — — 14,682 152  $ 290,005 $ 5,186 $ 25,242 $ 873 $ 315,247 $ 6,059  Less than 12 months 12 months or longer Total  Gross Gross Gross  Fair Unrealized Fair Unrealized Fair Unrealized  Value Losses Value Losses Value Losses December 31, 2017 (In thousands) Debt securities - available-for-sale: United States government obligations and authorities $ 52,368 $ 517 $ 19,287 $ 329 $ 71,655 $ 846 Obligations of states and political subdivisions 32,030 221 5,676 157 37,706 378 Corporate 109,780 625 6,452 124 116,232 749 International 8,935 27 25 — 8,960 27  203,113 1,390 31,440 610 234,553 2,000  Equity securities 4,312 279 — — 4,312 279  Total investments $ 207,425 $ 1,669 $ 31,440 $ 610 $ 238,865 $ 2,279

REINSURANCE (Tables)

REINSURANCE (Tables)	3 Months Ended
	Mar. 31, 2018
Reinsurance Disclosures [Abstract]
Reinsurance Recoverables	Reinsurance recoverable, net consisted of the following: ໿  March 31, December 31,  2018 2017  (in thousands) Reinsurance recoverable on paid losses $ 34,664 $ 26,256 Reinsurance recoverable on unpaid losses 111,427 98,345 Reinsurance recoverable, net $ 146,091 $ 124,601
Premiums Written and Earned	Net premiums written and net premiums earned consisted of the following: ໿ ໿  Three Months Ended  March 31,  2018 2017  (in thousands) Net premiums written: Direct $ 134,395 $ 146,051 Ceded (20,107 ) (24,137 )  $ 114,288 $ 121,914 Net premiums earned: Direct $ 146,442 $ 147,978 Ceded (64,333 ) (66,318 )  $ 82,109 $ 81,660

LOSS AND LOSS ADJUSTMENT RESE24

LOSS AND LOSS ADJUSTMENT RESERVES (Tables)	3 Months Ended
	Mar. 31, 2018
Liability for Future Policy Benefits [Abstract]
Activity in Liability for Loss and LAE Reserves	Activity in the liability for loss and LAE reserves is summarized as follows:  Three Months Ended  March 31,  2018 2017  (In thousands) Gross reserves, beginning of period $ 230,515 $ 158,110 Less: reinsurance recoverable (1) (98,345 ) (40,412 ) Net reserves, beginning of period 132,170 117,698  Incurred loss, net of reinsurance, related to: Current year 48,459 60,277 Prior year loss development (2) (653 ) 2,905 Ceded losses subject to offsetting experience account adjustments (3) (1,735 ) (6,283 ) Prior years (2,388 ) (3,378 ) Total incurred loss and LAE, net of reinsurance 46,071 56,899  Paid loss, net of reinsurance, related to: Current year 22,543 18,416 Prior years 30,911 36,316 Total paid loss and LAE, net of reinsurance 53,454 54,732  Net reserves, end of period 124,787 119,865 Plus: reinsurance recoverable (1) 111,427 34,472 Gross reserves, end of period $ 236,214 $ 154,337 (1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves. (2) Reflects loss development from prior accident years impacting pre-tax net income. Excludes losses ceded under retrospective reinsurance treaties to the extent there is an offsetting experience account adjustment. (3) Reflects losses ceded under retrospective reinsurance treaties to the extent there is an offsetting experience account adjustment, such that there is no impact on pre-tax net income.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The provision for income tax expense for the three and three months ended March 31, 2018 and 2017 is as follows: ໿  Three Months Ended  March 31,  2018 2017  (in thousands) Federal: Current $ 3,878 $ 658 Deferred (2,076 ) 527 Federal income tax expense 1,802 1,185 State: Current 1,002 172 Deferred (433 ) 78 State income tax expense 569 250 Total income tax expense $ 2,371 $ 1,435
Schedule of Effective Income Tax Rate Reconciliation	The actual income tax expense differs from the “expected” income tax expense (computed by applying the combined applicable effective federal and state tax rates to income before income tax expense) as follows: ໿  Three Months Ended  March 31,  2018 2017  (in thousands) Computed expected tax expense provision, at federal rate $ 2,020 $ 1,360 State tax, net of federal tax benefit 401 53 Other (50 ) 22 Total income tax expense $ 2,371 $ 1,435

(Tables)

(Tables)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	໿  Three Months Ended  March 31,  2018 2017  (in thousands) Restricted stock $ 665 $ 667 Stock options — — Total share-based compensation expense $ 665 $ 667  Intrinsic value of options exercised $ — $ 7 Fair value of restricted stock vested $ 1,187 $ 1,350
Schedule of Stock Options Roll Forward	A summary of the Company’s stock option activity includes the following: ໿  Number of Shares Weighted Average Option Exercise Price Outstanding at January 1, 2018 50,351 $ 3.72 Granted — — Exercised — — Cancelled — — Outstanding at March 31, 2018 50,351 $ 3.72
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	RSA activity includes the following:  Number of Shares Weighted Average Outstanding at January 1, 2018 297,543 $ 20.57 Granted 130,458 $ 16.25 Vested (53,571 ) $ 22.15 Cancelled (16,539 ) $ 18.25 Outstanding at March 31, 2018 357,891 $ 18.86
Schedule of Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income consisted of the following: ໿  Three Months Ended March 31,  2018 2017  Before Tax Income Tax Net Before Tax Income Tax Net  (in thousands) Accumulated other comprehensive income, beginning of period $ 2,287 $ (593 ) $ 1,694 $ 3,324 $ (1,201 ) $ 2,123 Cumulative effect of new accounting standards (1,349 ) 355 (994 ) — — — Other comprehensive (loss) income before reclassification (7,200 ) 1,825 (5,375 ) 3,605 (1,404 ) 2,201 Reclassification adjustment for realized and unrealized losses (gains) included in net income 1,052 (238 ) 814 105 (41 ) 64  (6,148 ) 1,587 (4,561 ) 3,710 (1,445 ) 2,265 Accumulated other comprehensive (loss) income, end of period $ (5,210 ) $ 1,349 $ (3,861 ) $ 7,034 $ (2,646 ) $ 4,388

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the calculation of basic and diluted EPS:  Three Months Ended  March 31,  2018 2017  (in thousands, except per share data) Net income attributable to Federated National Holding Company shareholders $ 7,463 $ 2,422 Weighted average number of common shares outstanding - basic 12,850 13,432 Net income per share - basic $ 0.58 $ 0.18  Weighted average number of common shares outstanding - basic 12,850 13,432 Dilutive effect of stock compensation plans 95 127 Weighted average number of common shares outstanding - diluted 12,945 13,559 Net income per share - diluted $ 0.58 $ 0.18  Dividends per share $ 0.08 $ 0.08

VARIABLE INTEREST ENTITY (Table

VARIABLE INTEREST ENTITY (Tables)	3 Months Ended
	Mar. 31, 2018
Variable Interest Entity [Abstract]
Schedule of Variable Interest Entities	The carrying amounts of Monarch Delaware, which could only be used to settle obligations of Monarch Delaware, and liabilities of Monarch Delaware for which creditors did not have recourse included the following: ໿  December 31,  2017  ASSETS Investments Debt securities, available-for-sale, at fair value $ 25,111 Equity securities, available-for-sale, at fair value 1,173 Total investments 26,284 Cash and cash equivalents 14,211 Reinsurance recoverable 3,323 Prepaid reinsurance premiums 2,481 Premiums receivable, net 1,184 Deferred acquisition costs 1,722 Other assets 2,322 Total assets $ 51,527  LIABILITIES Loss and loss adjustment expense reserves $ 6,356 Unearned premiums 8,752 Reinsurance payable 1,802 Debt , net of deferred financing costs 4,930 Other liabilities 1,825 Total liabilities $ 23,665

ORGANIZATION, CONSOLIDATION A29

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION (Narrative) (Details) - USD ($)	Feb. 21, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Document Period End Date		Mar. 31, 2018
Monarch Delaware Holdings LLC [Member]
Capital contribution for voting interests		$ 14,000,000
Ownership percentage	42.40%	42.40%			100.00%
Percentage of voting interest held		50.00%
Business Acquisition, Percentage of Voting Interests Acquired	50.00%
Transatlantic Reinsurance Company [Member] | Monarch Delaware Holdings LLC [Member]
Capital contribution for voting interests		$ 5,000,000
Ownership percentage		15.20%
Long-term debt		$ 5,000,000
Interest rate percentage		6.00%
Business Acquisition, Percentage of Voting Interests Acquired	15.20%
Scenario, Forecast [Member] | Transatlantic Reinsurance Company [Member]
Quarterly consulting fee, minimum				$ 10,000,000
Scenario, Forecast [Member] | Crosswinds [Member]
Quarterly consulting fee, minimum				75,000
Purchase and sell agreement, right of first refusal, catastrophe excess of loss reinsurance program limit				$ 10,000,000
Homeowners Multiperil Insurance Product Line [Member] | Customer Concentration Risk [Member] | Ivantage Select Agency Inc [Member] | Premiums Written Net [Member]
Concentration risk, percentage		22.80%	23.80%
Homeowners Multiperil Insurance Product Line [Member] | Customer Concentration Risk [Member] | SageSure Insurance Managers LLC [Member] | Premiums Written Net [Member]
Concentration risk, percentage		11.80%	8.60%
Common Class A [Member] | Monarch Delaware Holdings LLC [Member]
Business Acquisition, Percentage of Voting Interests Acquired	42.40%
Monarch National Insurance Company [Member]
Percentage of voting interest held	100.00%
Monarch National Insurance Company [Member] | TransRe [Member]
Business Combination, Consideration Transferred	$ 4,400,000
Business Combination, Consideration Transferred, Liabilities Incurred	5,000,000
Monarch National Insurance Company [Member] | Crosswinds [Member]
Business Combination, Consideration Transferred	$ 12,300,000

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Narrative) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Diluted (in shares)	12,945	13,559

FAIR VALUE (Financial Instrumen

FAIR VALUE (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	$ 429,457	$ 423,238
Equity securities, at fair value	16,515	15,434
Total investments, at fair value	445,972	438,672
United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	129,710	98,137
Total investments, at fair value	129,710	98,137
Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	23,302	66,266
Total investments, at fair value	23,302	66,266
Corporate Securities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	258,518	240,919
Total investments, at fair value	258,518	240,919
International Securities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	17,927	17,916
Total investments, at fair value	17,927	17,916
Level 1 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	77,109	51,219
Equity securities, at fair value	16,515	15,434
Total investments, at fair value	93,624	66,653
Level 1 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	77,109	51,219
Level 1 [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	0
Level 1 [Member] | Corporate Securities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	0
Level 1 [Member] | International Securities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	0
Level 2 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	352,348	372,019
Equity securities, at fair value		0
Total investments, at fair value	352,348	372,019
Level 2 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	52,601	46,918
Level 2 [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	23,302	66,266
Level 2 [Member] | Corporate Securities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	258,518	240,919
Level 2 [Member] | International Securities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	$ 17,927	$ 17,916

FAIR VALUE (Narrative) (Details

FAIR VALUE (Narrative) (Details) - US Government Obligations and Authorities, Corporate and International Securities [Member] $ in Millions	Mar. 31, 2018USD ($)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value	$ 3.9
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value	$ 1.3

INVESTMENTS (Narrative) (Detail

INVESTMENTS (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)security	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)security
Investments [Abstract]
Proceeds from sale of investment securities	$ 78.1	$ 128.6
Unrealized gains and losses for equity securities (Less Than)	$ 0.1
Debt and equity securities held in an unrealized loss position | security	1,346		866
Debt securities and equity securities held in an unrealized loss position 12 months or more | security	52		73
Fair value of investments deposited with governmental authorities required by law	$ 12.8		$ 12.9

INVESTMENTS (Summary of Amortiz

INVESTMENTS (Summary of Amortized Cost and Fair Value of Debt and Equity Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Investments [Line Items]
Available-for-sale securities, Fair Value	$ 445,972	$ 438,672
Held-to-maturity securities, Amortized Cost or Cost	5,298	5,349
Total investments, Amortized Cost or Cost	439,965	441,734
Total investments, Fair Value	434,621	443,946
Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	434,667	422,300
Available-for-sale securities, Gross Unrealized Gain	849	2,938
Available-for-sale securities, Gross Unrealized Losses	6,059	2,000
Available-for-sale securities, Fair Value	429,457	423,238
Held-to-maturity securities, Amortized Cost or Cost	5,298	5,349
Held-to-maturity securities, Gross Unrealized Gains	9	31
Held-to-maturity securities, Gross Unrealized Losses	143	106
Held-to-maturity Securities, Fair Value	5,164	5,274
Total investments, Gross Unrealized Gain	858	4,597
Total investments, Gross Unrealized Loss	6,202	2,385
United States Government Obligations and Authorities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	131,292	98,739
Available-for-sale securities, Gross Unrealized Gain	231	244
Available-for-sale securities, Gross Unrealized Losses	1,813	846
Available-for-sale securities, Fair Value	129,710	98,137
Held-to-maturity securities, Amortized Cost or Cost	4,161	4,160
Held-to-maturity securities, Gross Unrealized Gains	3	9
Held-to-maturity securities, Gross Unrealized Losses	139	106
Held-to-maturity Securities, Fair Value	4,025	4,063
Obligations of States and Political Subdivisions [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	23,535	66,319
Available-for-sale securities, Gross Unrealized Gain	54	325
Available-for-sale securities, Gross Unrealized Losses	287	378
Available-for-sale securities, Fair Value	23,302	66,266
Corporate [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	261,772	239,435
Available-for-sale securities, Gross Unrealized Gain	553	2,233
Available-for-sale securities, Gross Unrealized Losses	3,807	749
Available-for-sale securities, Fair Value	258,518	240,919
Held-to-maturity securities, Amortized Cost or Cost	1,072	1,123
Held-to-maturity securities, Gross Unrealized Gains	6	21
Held-to-maturity securities, Gross Unrealized Losses	4	0
Held-to-maturity Securities, Fair Value	1,074	1,144
International [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	18,068	17,807
Available-for-sale securities, Gross Unrealized Gain	11	136
Available-for-sale securities, Gross Unrealized Losses	152	27
Available-for-sale securities, Fair Value	17,927	17,916
Held-to-maturity securities, Amortized Cost or Cost	65	66
Held-to-maturity securities, Gross Unrealized Gains	0	1
Held-to-maturity securities, Gross Unrealized Losses	0	0
Held-to-maturity Securities, Fair Value	$ 65	67
Equity Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost		14,085
Available-for-sale securities, Gross Unrealized Gain		1,628
Available-for-sale securities, Gross Unrealized Losses		279
Available-for-sale securities, Fair Value		$ 15,434

INVESTMENTS (Net Realized Gains

INVESTMENTS (Net Realized Gains (Losses) by Major Investment Category (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross realized and unrealized gains:	$ 1,376	$ 1,130
Gross realized and unrealized losses:	(2,428)	(1,235)
Net realized and unrealized gains on investments	(1,052)	(105)
Debt Securities [Member]
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross realized and unrealized gains:	223	570
Gross realized and unrealized losses:	(1,441)	(1,092)
Equity Securities [Member]
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross realized and unrealized gains:	1,153	560
Gross realized and unrealized losses:	$ (987)	$ (143)

INVESTMENTS (Amortized Cost and

INVESTMENTS (Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity) (Details) $ in Thousands	Mar. 31, 2018USD ($)
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	$ 50,526
Over one through five years	207,292
Over five through ten years	175,529
Over ten years	1,320
Amortized cost	434,667
Available-for-sale Securities, Debt maturities, Fair value:
One year or less	50,394
Over one through five years	205,249
Over five through ten years	172,538
Over ten years	1,276
Fair value	429,457
Held-to-maturity Securities, Debt maturities, Amortized cost [Abstract]
One year or less	730
Over one through five years	3,940
Over five through ten years	628
Amortized cost	5,298
Held-to-maturity Securities, Debt Maturities, Fair value:
One year or less	732
Over one through five years	3,812
Over five through ten years	620
Fair value	5,164
Total Investments [Abstract]
Amortized cost	439,965
Fair value	$ 434,621

INVESTMENTS (Summary of Net Inv

INVESTMENTS (Summary of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Investment Income, Interest and Dividend [Abstract]
Interest income	$ 2,887	$ 2,169
Dividends income	56	149
Net investment income	$ 2,943	$ 2,318

INVESTMENTS (Gross Unrealized L

INVESTMENTS (Gross Unrealized Losses and Related Fair Values for Debt and Equity Securities, Grouped by Duration of Time in Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair value [Abstract]
Less than 12 months		$ 207,425
12 months or longer		31,440
Total		238,865
Gross unrealized losses [Abstract]
Less than 12 months		1,669
12 months or longer		610
Total		2,279
Debt Securities [Member]
Fair value [Abstract]
Less than 12 months	$ 290,005	203,113
12 months or longer	25,242	31,440
Total	315,247	234,553
Gross unrealized losses [Abstract]
Less than 12 months	5,186	1,390
12 months or longer	873	610
Total	6,059	2,000
United States Government Obligations and Authorities [Member]
Fair value [Abstract]
Less than 12 months	61,093	52,368
12 months or longer	18,399	19,287
Total	79,492	71,655
Gross unrealized losses [Abstract]
Less than 12 months	1,284	517
12 months or longer	529	329
Total	1,813	846
Obligations of States and Political Subdivisions [Member]
Fair value [Abstract]
Less than 12 months	15,762	32,030
12 months or longer	1,821	5,676
Total	17,583	37,706
Gross unrealized losses [Abstract]
Less than 12 months	203	221
12 months or longer	84	157
Total	287	378
Corporate [Member]
Fair value [Abstract]
Less than 12 months	198,468	109,780
12 months or longer	5,022	6,452
Total	203,490	116,232
Gross unrealized losses [Abstract]
Less than 12 months	3,547	625
12 months or longer	260	124
Total	3,807	749
International [Member]
Fair value [Abstract]
Less than 12 months	14,682	8,935
12 months or longer	0	25
Total	14,682	8,960
Gross unrealized losses [Abstract]
Less than 12 months	152	27
12 months or longer	0	0
Total	$ 152	27
Equity Securities [Member]
Fair value [Abstract]
Less than 12 months		4,312
12 months or longer		0
Total		4,312
Gross unrealized losses [Abstract]
Less than 12 months		279
12 months or longer		0
Total		$ 279

REINSURANCE (Narrative) (Detail

REINSURANCE (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jul. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Jul. 01, 2017	Jul. 01, 2016
Liability for Catastrophe Claims [Line Items]
Unearned premiums		$ 38,489		$ 71,944
Reinsurance recoverable, net		146,091		$ 124,601
Hurricane Irma [Member]
Liability for Catastrophe Claims [Line Items]
Reinsurance recoverable, net		107,600
FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		179,500
FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		174,400
MNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		$ 5,000
Quota Share Treaties [Member] | Private Passenger Automobile Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty		75.00%
Period of property quota share reinsurance treaty		1 year
FNIC Non-Florida Reinsurance Program [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		$ 1,700
FNIC Non-Florida Reinsurance Program [Member] | First Event Coverage [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount		5,000
Reinsurance retention amount		13,000
Reinsurance amount retained on net basis with profit share agreement		6,500
FNIC Non-Florida Reinsurance Program [Member] | Second Event Coverage [Member]
Liability for Catastrophe Claims [Line Items]
Reinsurance retention amount		2,000
Reinsurance amount retained on net basis with profit share agreement		1,000
FNIC Non-Florida Reinsurance Program [Member] | Maximum [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount		21,000
FNIC Non-Florida Reinsurance Program [Member] | Maximum [Member] | Second Event Coverage [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount		16,000
Federated National's Florida Exposure [Member] | FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		124,000
Amount of private market excess of loss treaties		25,100
Florida And Non-Florida Exposures [Member] | Private Market Excess of Loss Treaties [Member] | New Multiple Year Protection This Year [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount		89,000
Florida And Non-Florida Exposures [Member] | Private Market Excess of Loss Treaties [Member] | Renewing Multiple Year Protection From Last Year [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount		156,000
MNIC's Florida [Member] | MNIC’s 2016-2017 Catastrophe Reinsurance Program [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		3,200
MNIC's Florida [Member] | Private Market Excess of Loss Treaties [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount		3,400
FHCF [Member] | FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		$ 50,400
Percentage of property quota share reinsurance treaty		75.00%
FHCF [Member] | MNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		$ 1,800
FNIC [Member]
Liability for Catastrophe Claims [Line Items]
Trust agreement for loss exposure		2,700
FNIC [Member] | FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Excess retention, amount reinsured		$ 18,000
FNIC [Member] | Quota Share Treaties [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share expired on cut off basis					10.00%
FNIC [Member] | Quota Share Treaties [Member] | Florida Homeowners Book of Business [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty		10.00%
FNIC [Member] | Private Market Excess of Loss Treaties [Member] | Minimum [Member]
Liability for Catastrophe Claims [Line Items]
Payment made to purchase an underlying limit of protection		$ 7,100
Reinsurance prepaid automatic reinstatement protection amount acquired		18,000
Private and FHCF Reinsurance [Member] | FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Liability for catastrophe claims		2,200,000
Maximum single event coverage		1,500,000
Private and FHCF Reinsurance [Member] | MNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Liability for catastrophe claims		109,000
Maximum single event coverage		$ 68,100
Percentage of property quota share reinsurance treaty		75.00%
Florida [Member] | Quota Share Treaties [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty	30.00%	10.00%
Florida [Member] | Quota Share One [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share expired on cut off basis						30.00%
Percentage of unearned premiums and losses retained						30.00%
Florida [Member] | Federated National's Florida Exposure [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		$ 125,600
Florida [Member] | FHCF [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Unearned premiums		$ 53,900
Percentage of property quota share reinsurance treaty		75.00%
Florida [Member] | FNIC [Member] | Quota Share Treaties [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty		40.00%
Number of property quota share treaties		2 years
Florida [Member] | FNIC [Member] | Quota Share Two [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty			30.00%
Florida [Member] | Private and FHCF Reinsurance [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Liability for catastrophe claims		$ 2,200,000
Maximum single event coverage		1,600,000
Louisiana, Texas, Alabama And South Carolina [Member] | FNIC's 2016-2017 Reinsurance Programs [Member] | Minimum [Member]
Liability for Catastrophe Claims [Line Items]
Excess retention, amount reinsured		8,000
Louisiana, Texas, Alabama And South Carolina [Member] | FNIC's 2016-2017 Reinsurance Programs [Member] | Maximum [Member]
Liability for Catastrophe Claims [Line Items]
Excess retention, amount reinsured		$ 18,500

REINSURANCE (Reinsurance Recove

REINSURANCE (Reinsurance Recoverables) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Reinsurance Disclosures [Abstract]
Reinsurance recoverable on paid losses	$ 34,664	$ 26,256
Reinsurance recoverable on unpaid losses	111,427	98,345	$ 34,472	$ 40,412
Reinsurance recoverable, net	$ 146,091	$ 124,601

REINSURANCE (Premiums Written a

REINSURANCE (Premiums Written and Earned) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net premiums written:
Direct	$ 134,395	$ 146,051
Ceded	(20,107)	(24,137)
Total premiums written	114,288	121,914
Net premiums earned:
Direct	146,442	147,978
Ceded	(64,333)	(66,318)
Total premiums earned	$ 82,109	$ 81,660

LOSS AND LOSS ADJUSTMENT RESE42

LOSS AND LOSS ADJUSTMENT RESERVES (Activity in Liability for Loss and LAE Reserves) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Liability for Future Policy Benefits [Abstract]
Gross reserves, beginning of period	$ 230,515	$ 158,110
Less: reinsurance recoverable	(98,345)	(40,412)
Net reserves, beginning of period	132,170	117,698
Incurred loss, net of reinsurance, related to:
Current year	48,459	60,277
Prior year loss development	(653)	2,905
Ceded losses subject to offsetting experience account adjustments	(1,735)	(6,283)
Prior years	(2,388)	(3,378)
Total incurred loss and LAE, net of reinsurance	46,071	56,899
Paid loss, net of reinsurance, related to:
Current year	22,543	18,416
Prior years	30,911	36,316
Total paid loss and LAE, net of reinsurance	53,454	54,732
Net reserves, end of period	124,787	119,865
Plus: reinsurance recoverable	(111,427)	(34,472)
Gross reserves, end of period	$ 236,214	$ 154,337

LOSS AND LOSS ADJUSTMENT RESE43

LOSS AND LOSS ADJUSTMENT RESERVES (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jul. 31, 2016	Mar. 31, 2018	Mar. 31, 2017
Claim and claim adjustment expenses incurred related to prior year		$ (2,388)	$ (3,378)
Claim and claim adjustment expenses incurred related to current year		$ 48,459	$ 60,277
Quota Share Treaties [Member] | Property Insurance Product Line [Member] | Florida [Member]
Percentage of property quota share reinsurance treaty	30.00%	10.00%

LONG-TERM DEBT (Narrative) (Det

LONG-TERM DEBT (Narrative) (Details) - USD ($) $ in Thousands	Feb. 22, 2018	Mar. 31, 2018	Mar. 31, 2017
Debt Instrument [Line Items]
Repayments of promissory note		$ 5,000	$ 0
TransRe [Member] | Monarch National Insurance Company [Member]
Debt Instrument [Line Items]
Repayments of promissory note	$ 5,000

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 600,000		$ 600
Income tax expense from uncertain tax position	$ 0	$ 100,000

INCOME TAXES (Summary of Provis

INCOME TAXES (Summary of Provision for Income Tax Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Federal:
Current	$ 3,878	$ 658
Deferred	(2,076)	527
Federal income tax expense	1,802	1,185
State:
Current	1,002	172
Deferred	(433)	78
State income tax expense	569	250
Total income tax expense	$ 2,371	$ 1,435

INCOME TAXES (Effective Federal

INCOME TAXES (Effective Federal and State Tax Rates to Income before Income Tax Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Computed expected tax expense provision, at federal rate	$ 2,020	$ 1,360
State tax, net of federal tax benefit	401	53
Other	(50)	22
Total income tax expense	$ 2,371	$ 1,435

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount		$ 10,000,000
Repurchases of common stock (in shares)	322,865.035
Repurchases of common stock	$ 5,000,000
Average cost per share	$ 15.49
Remaining authorized repurchase amount	$ 5,800,000		$ 800,000
Granted (in shares)	130,458	96,454
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	130,458
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount			$ 10,000,000
Award vesting period	5 years
Twenty Twelve Stock Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized			1,000,000

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule of Share-based Compensation Arrangements) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 665	$ 667
Intrinsic value of options exercised	0	7
Fair value of restricted stock vested	1,187	1,350
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	665	667
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 0	$ 0

SHAREHOLDERS' EQUITY (Summary o

SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning of period (in shares) | shares	50,351,000
Granted (in shares) | shares	0
Exercised (in shares) | shares	0
Canceled (in shares) | shares	0
Outstanding, end of period (in shares) | shares	50,351,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 3.72
Granted, Weighted Average Options Exercise Price (in dollars per share) | $ / shares	0
Exercised, Weighted Average Options Exercise Price (in dollars per share) | $ / shares	0
Canceled, Weighted Average Options Exercise Price (in dollars per share) | $ / shares	0
Outstanding, end of period (in dollars per share) | $ / shares	$ 3.72

SHAREHOLDERS' EQUITY (Summary51

SHAREHOLDERS' EQUITY (Summary of Restricted Stock Activity) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	130,458	96,454
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, beginning of period (in shares)	297,543
Granted (in shares)	130,458
Vested (in shares)	(53,571)
Cancelled (in shares)	(16,539)
Outstanding, end of period (in shares)	357,891
Restricted Shares, Weighted Average Option Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 20.57
Granted (in dollars per share)	16.25
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	22.15
Cancelled (in dollars per share)	18.25
Outstanding, end of period (in dollars per share)	$ 18.86

SHAREHOLDERS' EQUITY (Reconcili

SHAREHOLDERS' EQUITY (Reconciliation of Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Before Tax
Comprehensive income before income taxes	$ 1,097	$ 6,159
Income Tax
Other comprehensive income after reclassifications	1,587	(1,445)
Net
Accumulated other comprehensive income, beginning of period	1,770
Accumulated other comprehensive (loss) income, end of period	(3,861)
AOCI Attributable to Parent
Before Tax
Accumulated other comprehensive income, beginning of period	2,287	3,324
Cumulative effect of new accounting standards	(1,349)	0
Other comprehensive (loss) income before reclassification	(7,200)	3,605
Reclassification adjustment for realized and unrealized losses (gains) included in net income	1,052	105
Comprehensive income before income taxes	(6,148)	3,710
Accumulated other comprehensive (loss) income, end of period	(5,210)	7,034
Income Tax
Accumulated other comprehensive income, beginning of period	(593)	(1,201)
Cumulative effect of new accounting standards	355	0
Other comprehensive (loss) income before reclassification	1,825	(1,404)
Reclassification adjustment for realized and unrealized losses (gains) included in net income	(238)	(41)
Other comprehensive income after reclassifications	1,587	(1,445)
Accumulated other comprehensive (loss) income, end of period	1,349	(2,646)
Net
Accumulated other comprehensive income, beginning of period	1,694	2,123
Cumulative effect of new accounting standards	(994)	0
Other comprehensive (loss) income before reclassification	(5,375)	2,201
Reclassification adjustment for realized and unrealized losses (gains) included in net income	814	64
Other comprehensive income after reclassifications	(4,561)	2,265
Accumulated other comprehensive (loss) income, end of period	$ (3,861)	$ 4,388

EARNINGS PER SHARE (Schedule of

EARNINGS PER SHARE (Schedule of Calculation of Basic and Diluted Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income attributable to Federated National Holding Company shareholders		$ 7,463	$ 2,422
Weighted average number of common shares outstanding - basic		12,850	13,432
Net (loss) income per share - basic (in dollars per share)		$ 0.58	$ 0.18
Dilutive effect of stock compensation plans		95	127
Weighted average number of common shares outstanding - diluted		12,945	13,559
Net (loss) income per share - diluted (in dollars per share)		$ 0.58	$ 0.18
Dividends declared per share (in dollars per share)	$ 0.08	$ 0.08	$ 0.08

EARNINGS PER SHARE (Dividends D

EARNINGS PER SHARE (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Millions	Mar. 31, 2017	Jun. 30, 2017	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Dividends declared per share (in dollars per share)	$ 0.08		$ 0.08	$ 0.08
Payments of ordinary dividends, amount		$ 1

VARIABLE INTEREST ENTITY (Narra

VARIABLE INTEREST ENTITY (Narrative) (Details) - Monarch Delaware Holdings LLC [Member] - USD ($) $ in Millions	2 Months Ended	3 Months Ended
	Feb. 21, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Ownership percentage	42.40%		42.40%	100.00%
Premiums earned, net	$ 2.3	$ 2.7
Loss and LAE	$ 2.3	$ 1.8
FNHC [Member]
Variable Interest Entity [Line Items]
Ownership percentage	42.40%
Crosswinds Holdings [Member]
Variable Interest Entity [Line Items]
Ownership percentage	42.40%
TransRe [Member]
Variable Interest Entity [Line Items]
Ownership percentage	15.20%

VARIABLE INTEREST ENTITY (Carry

VARIABLE INTEREST ENTITY (Carrying Amount of VIE Consolidated Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Investments
Debt securities - available-for-sale, at fair value:	$ 429,457	$ 423,238
Equity securities, at fair value	16,515	15,434
Total investments (including $0 and $26,284 related to the VIE, respectively)	451,270	444,021
Cash and cash equivalents (including $0 and $14,211 related to the VIE, respectively)	55,591	86,228	$ 80,495	$ 74,593
Reinsurance recoverable	146,091	124,601
Prepaid reinsurance premiums	87,201	135,492
Premiums receivable, net of allowance of $72 and $70, respectively (including $0 and $1,184 related to the VIE, respectively)	45,667	46,393
Deferred acquisition costs	39,401	40,893
Other assets (including $0 and $2,322 related to the VIE, respectively)	10,130	13,403
TOTAL ASSETS	848,215	904,873
LIABILITIES
LIABILITIES:	236,214	230,515	$ 154,337	$ 158,110
Loss and loss adjustment expense reserves	282,397	294,423
Unearned premiums	38,489	71,944
Debt, net of deferred financing costs	44,328	49,251
Deferred Revenue	32,783	25,059
Deferred income taxes, net	640,135	677,414
Monarch Delaware - Variable Interest Entity
Investments
Debt securities - available-for-sale, at fair value:		25,111
Equity securities, at fair value		1,173
Total investments (including $0 and $26,284 related to the VIE, respectively)	0	26,284
Cash and cash equivalents (including $0 and $14,211 related to the VIE, respectively)	0	14,211
Reinsurance recoverable		3,323
Prepaid reinsurance premiums		2,481
Premiums receivable, net of allowance of $72 and $70, respectively (including $0 and $1,184 related to the VIE, respectively)	0	1,184
Deferred acquisition costs		1,722
Other assets (including $0 and $2,322 related to the VIE, respectively)	$ 0	2,322
TOTAL ASSETS		51,527
LIABILITIES
LIABILITIES:		6,356
Loss and loss adjustment expense reserves		8,752
Unearned premiums		1,802
Debt, net of deferred financing costs		4,930
Deferred Revenue		1,825
Deferred income taxes, net		$ 23,665