FedNat Holding (FNHCQ) 10-Q 8 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 01, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	FEDNAT HOLDING Co
Entity Central Index Key	0001069996
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Trading Symbol	fnhc
Amendment Flag	false
Entity Common Stock, Shares Outstanding		12,836,401

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments:
Debt securities, available-for-sale, at fair value (amortized cost of $439,254 and $433,664, respectively)	$ 443,458	$ 428,641
Debt securities, held-to-maturity, at amortized cost	4,552	5,126
Equity securities, at fair value	20,824	17,758
Total investments	468,834	451,525
Cash and cash equivalents	100,589	64,423
Prepaid reinsurance premiums	69,858	108,577
Premiums receivable, net of allowance of $67 and $77, respectively	22,684	29,791
Reinsurance recoverable, net	301,922	211,424
Deferred acquisition costs, net	40,232	39,436
Income taxes, net	4,027	5,220
Other assets	27,441	14,975
Total assets	1,035,587	925,371
LIABILITIES AND SHAREHOLDERS’ EQUITY
Loss and loss adjustment expense reserves	374,124	296,230
Unearned premiums	275,860	281,992
Reinsurance payable	31,399	63,599
Long-term debt, net of deferred financing costs of $1,599 and $596, respectively	98,401	44,404
Deferred revenue	4,567	4,585
Other liabilities	33,320	19,302
Total liabilities	817,671	710,112
Shareholders' Equity
Preferred stock, $0.01 par value: 1,000,000 shares authorized	0	0
Common stock, $0.01 par value: 25,000,000 shares authorized; 12,836,401 and 12,784,444 shares issued and outstanding, respectively	128	128
Additional paid-in capital	141,803	141,128
Accumulated other comprehensive income (loss)	3,138	(3,750)
Retained earnings	72,847	77,753
Total shareholders’ equity	217,916	215,259
Total liabilities and shareholders' equity	$ 1,035,587	$ 925,371

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments:
Debt securities, available-for-sale, at amortized cost	$ 439,254	$ 433,664
Total investments (including $0,000 and $26,284 related to the VIE, respectively)	468,834	451,525
Premiums receivable, allowance for doubtful accounts	67	77
Deferred financing costs	$ 1,599	$ 596
Shareholders' Equity
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)	12,836,401	12,784,444
Common Stock, Shares, Outstanding	12,836,401	12,784,444

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Net premiums earned	$ 88,784	$ 82,109
Net investment income	3,710	2,943
Net realized and unrealized investment gains (losses)	2,301	(1,052)
Direct written policy fees	2,391	3,576
Other income	4,011	5,501
Total revenues	101,197	93,077
Costs and expenses:
Losses and loss adjustment expenses	66,839	46,071
Commissions and other underwriting expenses	28,234	30,221
General and administrative expenses	6,311	6,085
Interest expense	5,051	1,084
Total costs and expenses	106,435	83,461
Income (loss) before income taxes	(5,238)	9,616
Income tax expense (benefit)	(1,373)	2,371
Net income (loss)	(3,865)	7,245
Net income (loss) attributable to non-controlling interest	0	(218)
Net income (loss) attributable to FedNat Holding Company shareholders	$ (3,865)	$ 7,463
Net Income (Loss) Per Common Share
Basic (in dollars per share)	$ (0.30)	$ 0.58
Diluted (in dollars per share)	$ (0.30)	$ 0.58
Weighted Average Number of Shares of Common Stock Outstanding
Basic (in shares)	12,795	12,850
Diluted (in shares)	12,795	12,945
Dividends declared per share of common stock (in dollars per share)	$ 0.08	$ 0.08

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (3,865)	$ 7,245
Change in net unrealized gains (losses) on investments, available-for-sale, net of tax	6,888	(4,561)
Comprehensive income (loss)	3,023	2,684
Less: comprehensive income (loss) attributable to non-controlling interest, net of tax	0	(447)
Comprehensive income (loss) attributable to FedNat Holding Company shareholders	$ 3,023	$ 3,131

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - 3 months ended Mar. 31, 2019 - USD ($) $ in Thousands	Total	Total Shareholders' Equity Attributable to Federated National Holding Company Shareholders	Preferred Stock	Common Stock	Additional Paid-in Capital	Other Comprehensive Income (Loss)	Retained Earnings	Noncontrolling Interest
Balance at Dec. 31, 2018	$ 215,259
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Noncontrolling Interest, Increase from Business Combination	(16,685)	$ (1,310)			$ (1,005)	$ (305)		$ (15,375)
Net income (loss)	(3,865)	(3,865)					$ (3,865)
Other comprehensive income (loss)	6,888	6,888				6,888
Dividends declared	(1,041)	(1,041)					(1,041)
Shares issued under share-based compensation plans (in shares)				51,957
Share-based compensation	675	675			675
Balance (in shares) at Mar. 31, 2019			0	12,836,401
Balance at Mar. 31, 2019	$ 217,916	$ 217,916		$ 128	$ 141,803	$ 3,138	$ 72,847	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flow from operating activities:
Net income (loss)	$ (3,865)	$ 7,245
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net realized and unrealized investment (gains) losses	(2,301)	1,052
Loss (gain) on early extinguishment of debt	3,575	67
Amortization of investment premium or discount, net	197	616
Depreciation and amortization	355	371
Share-based compensation	675	665
Tax impact related to share-based compensation	(10)	(77)
Changes in operating assets and liabilities:
Prepaid reinsurance premiums	38,719	48,291
Premiums receivable, net	7,107	726
Reinsurance recoverable, net	(90,498)	(21,490)
Deferred acquisition costs	(796)	1,492
Income taxes, net	(1,136)	2,521
Deferred revenue	(18)	(298)
Loss and loss adjustment expense reserves	77,894	5,699
Unearned premiums	(6,132)	(12,026)
Reinsurance payable	(32,200)	(33,455)
Other	1,639	11,019
Net cash provided by (used in) operating activities	(6,795)	12,418
Cash flow from investing activities:
Proceeds from sales of equity securities	1,506	4,262
Proceeds from sales of debt securities	49,174	73,830
Purchases of equity securities	(2,188)	(5,177)
Purchases of debt securities	(62,741)	(138,738)
Maturities and redemptions of debt securities	8,271	50,584
Purchases of property and equipment	(486)	(66)
Net cash provided by (used in) investing activities	(6,464)	(15,305)
Cash flow from financing activities:
Issuance of long-term debt, net of issuance costs	98,464	0
Payment of long-term debt and prepayment penalties	(48,000)	(5,000)
Purchase of non-controlling interest	0	(16,685)
Purchases of FedNat Holding Company common stock	0	(5,000)
Dividends paid	(1,039)	(1,065)
Net cash provided by (used in) financing activities	49,425	(27,750)
Net increase (decrease) in cash and cash equivalents	36,166	(30,637)
Cash and cash equivalents at beginning-of-period	64,423	86,228
Cash and cash equivalents at end-of-period	100,589	55,591
Supplemental disclosure of cash flow information:
Cash paid (received) during the period for interest	902	977
Cash paid (received) during the period for income taxes	(277)	$ 70
Right-of-use asset	(8,103)
Lease liability	$ 8,103

ORGANIZATION, CONSOLIDATION AND

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION	1. ORGANIZATION, CONSOLIDATION AND BASIS OF PREPARATION Organization FedNat 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. The Company, through its wholly owned subsidiaries, is authorized to underwrite and/or place homeowners multi-peril ("homeowners"), federal flood and other lines of insurance in Florida and other states. The Company markets, distributes and services its own and third-party insurers’ products and other services through a network of independent and general agents. FedNat Insurance Company (“FNIC”), our largest wholly owned insurance subsidiary, 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. Maison Acquisition On February 25, 2019, the Company executed a definitive agreement for the acquisition of the insurance operations of 1347 Property Insurance Holdings, Inc. ("PIH"). Specifically, the Company will purchase Maison Insurance Company, Maison Managers, Inc., and ClaimCor LLC (collectively, the "Maison Companies"). The purchase price is $51.0 million , which includes $25.5 million in cash and $25.5 million in shares of the Company’s common stock. The resale of the shares to be issued will be subsequently registered and will be subject to a five -year standstill agreement. Additionally, in connection with the pending acquisition, on March 5, 2019, the Company closed on an offering of $100 million of Senior Unsecured Notes due 2029, which bear interest at the annual rate of 7.5% . A portion of the cash from the offering was used to retire the full $45.0 million of outstanding debt (thereby lowering our overall cost of borrowing) and the remainder will be used to purchase the Maison Companies and for other general corporate purposes. In addition to the purchase price, PIH will receive five -year rights of first refusal to provide reinsurance of up to 7.5% of any layer in FedNat’s catastrophe reinsurance program and a five -year agreement for PIH to provide investment advisory services to FedNat. PIH has also agreed to a non-compete for five years following the closing with respect to residential property insurance in Alabama, Florida, Georgia, Louisiana, South Carolina and Texas. The transaction, which is subject to the Maison Companies having consolidated GAAP net book value of at least $42 million as of closing and satisfaction of other customary closing conditions, including insurance regulatory approvals in Louisiana and Florida, is expected to close in the latter part of the second quarter of 2019. Refer to Basis of Presentation and Principles of Consolidation and below. 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 insurance products to consumers in Florida. As a percentage of the total homeowners premiums we underwrote, 22.8% and 22.8% were from Allstate’s network of Florida agents, for the three months ended March 31, 2019 and 2018 , 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, 19.6% and 11.8% , respectively, of the Company’s premiums were underwritten by SageSure, for the three months ended March 31, 2019 and 2018 , 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 (“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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES	3 Months Ended
	Mar. 31, 2019
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 of our 2018 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, 2019 . Accounting Estimates and Assumptions The Company prepares the accompanying consolidated financial statements in accordance with 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 ongoing basis. Recently Issued Accounting Pronouncements, Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . The update superseded the prior lease guidance in Topic 840, Leases and lessees are 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. Additionally, lessees are 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 Company adopted the guidance effective January 1, 2019, by reflecting a $6.1 million right-of-use asset, after-tax, and $6.1 million lease liability, after-tax, on our consolidated balance sheets for our leases in existence as of that date. All of the Company's leases were classified as operating leases and we elected the practical expedient, therefore no adjustment to comparative prior periods presented have been made. The provisions of this ASU did not have an impact on our pattern of lease expense recognition on our consolidated statements of operations. Refer to Note 9 below for additional information regarding leases. Recently Issued Accounting Pronouncements, Not Yet Adopted 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 other-than-temporary impairment ("OTTI") model. The update also requires 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. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. 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, 2019
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. If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. 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, 2019 Level 1 Level 2 Level 3 Total (In thousands) Debt securities - available-for-sale, at fair value: United States government obligations and authorities $ 43,412 $ 102,550 $ — $ 145,962 Obligations of states and political subdivisions — 11,519 — 11,519 Corporate securities — 263,385 — 263,385 International securities — 22,592 — 22,592 Debt securities, at fair value 43,412 400,046 — 443,458 Equity securities, at fair value 18,907 1,917 — 20,824 Total investments, at fair value $ 62,319 $ 401,963 $ — $ 464,282 ໿ December 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 $ 43,918 $ 83,950 $ — $ 127,868 Obligations of states and political subdivisions — 9,767 — 9,767 Corporate securities — 268,731 — 268,731 International securities — 22,275 — 22,275 Debt securities, at fair value 43,918 384,723 — 428,641 Equity securities, at fair value 16,037 1,721 — 17,758 Total investments, at fair value $ 59,955 $ 386,444 $ — $ 446,399 Held-to-maturity debt securities reported on the consolidated balance sheets at amortized cost and disclosed at fair value below (and in Note 4) and the level of fair value hierarchy of inputs used consisted of the following: Level 1 Level 2 Level 3 Total (In thousands) March 31, 2019 $ 3,360 $ 1,109 $ — $ 4,469 December 31, 2018 3,809 1,155 — 4,964 We measure the fair value of our securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. We review the third party pricing methodologies on a quarterly basis and validate the fair value prices to a separate independent data service and ensure there are no material differences. Additionally, market indicators, industry and economic events are monitored. 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, 2019 and December 31, 2018 . There were no transfers between the fair value hierarchy levels during the three months ended March 31, 2019 and 2018 .

INVESTMENTS

INVESTMENTS	3 Months Ended
	Mar. 31, 2019
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, 2019 Debt securities - available-for-sale: United States government obligations and authorities $ 144,450 $ 2,037 $ 525 $ 145,962 Obligations of states and political subdivisions 11,502 88 71 11,519 Corporate 260,844 3,693 1,152 263,385 International 22,458 213 79 22,592 439,254 6,031 1,827 443,458 Debt securities - held-to-maturity: United States government obligations and authorities 3,567 2 91 3,478 Corporate 930 8 2 936 International 55 — — 55 4,552 10 93 4,469 Total investments, excluding equity securities $ 443,806 $ 6,041 $ 1,920 $ 447,927 ໿ Amortized Gross Gross Cost Unrealized Unrealized or Cost Gains Losses Fair Value (In thousands) December 31, 2018 Debt securities - available-for-sale: United States government obligations and authorities $ 127,928 $ 1,091 $ 1,151 $ 127,868 Obligations of states and political subdivisions 9,870 27 130 9,767 Corporate 273,192 510 4,971 268,731 International 22,674 12 411 22,275 433,664 1,640 6,663 428,641 Debt securities - held-to-maturity: United States government obligations and authorities 4,085 1 158 3,928 Corporate 986 2 6 982 International 55 — 1 54 5,126 3 165 4,964 Total investments, excluding equity securities $ 438,790 $ 1,643 $ 6,828 $ 433,605 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 (losses), by major investment category, consisted of the following: ໿ Three Months Ended March 31, 2019 2018 (In thousands) Gross realized and unrealized gains: Debt securities $ 317 $ 223 Equity securities 2,830 1,153 Total gross realized and unrealized gains 3,147 1,376 Gross realized and unrealized losses: Debt securities (400 ) (1,441 ) Equity securities (446 ) (987 ) Total gross realized and unrealized losses (846 ) (2,428 ) Net realized and unrealized gains (losses) on investments $ 2,301 $ (1,052 ) The above line item, net realized and unrealized gains (losses) on investments, includes $2.3 million and less than $0.1 million of recognized net unrealized gains (losses) on equity securities for the three months ended March 31, 2019 and 2018, respectively. Contractual Maturity Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. Amortized cost and estimated fair value of debt securities, by contractual maturity, consisted of the following: ໿ March 31, 2019 Amortized Cost Fair Value Securities with Maturity Dates (In thousands) Debt securities, available-for-sale: One year or less $ 17,108 $ 17,094 Over one through five years 198,410 199,858 Over five through ten years 218,177 220,854 Over ten years 5,559 5,652 439,254 443,458 Debt securities, held-to-maturity: One year or less 135 135 Over one through five years 4,042 3,963 Over five through ten years 375 371 4,552 4,469 Total $ 443,806 $ 447,927 Net Investment Income Net investment income consisted of the following: ໿ Three Months Ended March 31, 2019 2018 (In thousands) Interest income $ 3,657 $ 2,887 Dividends income 53 56 Net investment income $ 3,710 $ 2,943 Aging of Gross Unrealized Losses Gross unrealized losses and related fair values for debt securities, 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 (In thousands) March 31, 2019 Debt securities - available-for-sale: United States government obligations and authorities $ 10,279 $ 8 $ 32,169 $ 517 $ 42,448 $ 525 Obligations of states and political subdivisions 790 21 5,339 50 6,129 71 Corporate 26,723 311 57,096 841 83,819 1,152 International 2,711 6 5,877 73 8,588 79 40,503 346 100,481 1,481 140,984 1,827 Debt securities, held-to-maturity: United States government obligations and authorities 114 — 3,161 91 3,275 91 Corporate 80 — 173 2 253 2 International — — 29 — 29 — 194 — 3,363 93 3,557 93 Total investments, excluding equity securities $ 40,697 $ 346 $ 103,844 $ 1,574 $ 144,541 $ 1,920 Less than 12 months 12 months or longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) December 31, 2018 Debt securities - available-for-sale: United States government obligations and authorities $ 22,673 $ 246 $ 29,727 $ 905 $ 52,400 $ 1,151 Obligations of states and political subdivisions 3,254 18 4,786 112 8,040 130 Corporate 160,361 3,058 53,232 1,913 213,593 4,971 International 15,608 217 4,678 194 20,286 411 201,896 3,539 92,423 3,124 294,319 6,663 Debt securities, held-to-maturity: United States government obligations and authorities 229 1 3,113 157 3,342 158 Corporate 591 6 90 — 681 6 International 54 1 — — 54 1 874 8 3,203 157 4,077 165 Total investments, excluding equity securities $ 202,770 $ 3,547 $ 95,626 $ 3,281 $ 298,396 $ 6,828 As of March 31, 2019 , the Company held a total of 592 debt securities that were in an unrealized loss position, of which 475 securities were in an unrealized loss position continuously for 12 months or more. As of December 31, 2018 , the Company held a total of 1,222 debt and equity securities that were in an unrealized loss position, of which 371 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 2019 and 2018. The Company's equity investments are measured at fair value through net income (loss). Collateral Deposits Cash and cash equivalents and investments, the majority of which were debt securities, with fair values of $10.6 million and $10.3 million , were deposited with governmental authorities and into custodial bank accounts as required by law or contractual obligations as of March 31, 2019 and December 31, 2018 , respectively.

REINSURANCE

REINSURANCE	3 Months Ended
	Mar. 31, 2019
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 remains primarily liable to its policyholders. The Company is selective in choosing reinsurers and considers 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 2017-2018 Excess of Loss Reinsurance Programs FNIC’s 2017-2018 reinsurance programs, which cost $174.4 million , included $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 Florida Hurricane Catastrophe Fund (“FHCF”). The combination of private and FHCF reinsurance treaties affords 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 was $18.0 million . 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 afforded FNIC additional coverage for subsequent events. The reinsurance program included multiple year protection with $89.0 million of new multiple year protection this year and $156.0 million of renewed 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 had 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 afford 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, which cost $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 became 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 had an A.M. Best or Standard & Poor’s rating of “A-” or better, or have fully collateralized their maximum potential obligations in dedicated trusts. 2018-2019 Excess of Loss Reinsurance Programs With the February 21, 2018 acquisition of the minority interests of MNIC, the Company has combined both FNIC and MNIC under a single program allowing the Company to capitalize on efficiencies and scale. FNIC and MNIC’s combined 2018-2019 reinsurance programs is estimated to cost $148.8 million . This amount includes approximately $102.7 million for the private reinsurance for the Company’s exposure, including prepaid automatic premium reinstatement protection, along with approximately $46.1 million payable to the FHCF. The combination of private and FHCF reinsurance treaties affords FNIC and MNIC approximately $1.8 billion of aggregate coverage with a maximum single event coverage totaling approximately $1.3 billion , exclusive of retentions. Both FNIC and MNIC maintained their FHCF participation at 75% for the 2018 hurricane season. FNIC’s single event pre-tax retention for a catastrophic event in Florida is $20.0 million , up slightly from the 2017-2018 reinsurance program and MNIC’s single event pre-tax retention for a catastrophic event is $3.0 million , down slightly from the 2017-2018 reinsurance program. The combined FNIC and MNIC private market excess of loss treaties, covering both Florida and non-Florida exposures, became effective July 1, 2018 and all private layers have prepaid automatic reinstatement protection, which affords the Company additional coverage for subsequent events. These private market excess of loss treaties structure coverage into layers, with a cascading feature such that substantially all layers attach after $20.0 million in losses for FNIC and after $3.0 million in losses for MNIC. 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. Given current market conditions, FNIC has elected not to purchase any multiple year protection and terminated the second year of the $89.0 million of multiple year protection that FNIC purchased last year on a two-year basis. FNIC also had $ 156.0 million of multiple year protection that expired on June 30, 2018. The overall reinsurance programs 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. FNIC’s non-Florida excess of loss reinsurance treaties afford us an additional $23.0 million of aggregate coverage with first event coverage totaling $5.0 million and second event coverage totaling $18.0 million , with the incremental $13.0 million of second event coverage applying to hurricane losses only. The end result is a non-Florida retention of $15.0 million for the first event and $2.0 million for the second event though these retentions are reduced to $7.5 million and $1.0 million after taking into account the profit sharing agreement that FNIC has with the nonaffiliated managing general underwriter that writes our non-Florida property business. FNIC’s non-Florida reinsurance program cost will approximate $2.0 million for this private reinsurance, including prepaid automatic premium reinstatement protection. The Company’s cost and amounts of reinsurance are based on management’s current analysis of exposure to catastrophic risk. The data will be subjected to exposure level analysis at various dates during the period ending December 31, 2018. This analysis of the Company’s exposure level in relation to the total exposures to the FHCF and excess of loss treaties may produce changes in retentions, limits and reinsurance premiums as a result of increases or decreases in the Company’s exposure level. Quota-Share Reinsurance Programs FNIC's reinsurance programs also include 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 and liability 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, 2016, the 30% 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% 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 the paid losses occurring during the terms of the treaties, until each treaty is commuted. On July 1, 2017, FNIC bound a 10% quota-share on its Florida homeowners book of business, which excluded named storms, subject to certain limitations including, but not limited to caps on losses associated with occurrences. This treaty is not subject to accounting as a retrospectively rated contract. This treaty expired on July 1, 2018 on a cut-off basis, meaning that the reinsurer will not be liable (under this agreement) for losses as a result of occurrences taking place after the date of termination, and the unearned premium previously ceded will be returned to FNIC. FNIC’s quota-share reinsurance program for 2018-2019, is a treaty on FNIC’s Florida homeowners book of business, which became effective on July 1, 2018 on an in-force, new and renewal basis, excluding named storms, and was initially set at 2% , which is subject to certain limitations including, but not limited to caps on losses associated with occurrences. In addition, this quota-share allows FNIC the flexibility to prospectively increase or decrease the cession percentage up to three times during the term of the agreement. Effective October 1, 2018, FNIC elected to increase the cession percentage from 2% to 10% on an in-force, new and renewal basis. The Company’s private passenger automobile quota-share treaties are typically programs which become effective at different points in the year and cover auto policies across several states. The 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. Associated Trust Agreements 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 less than $0.1 million as of March 31, 2019 and December 31, 2018 . Reinsurance Recoverable, Net 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 recoverable. Reinsurance recoverable, net consisted of the following: ໿ March 31, December 31, 2019 2018 (In thousands) Reinsurance recoverable on paid losses $ 67,629 $ 45,028 Reinsurance recoverable on unpaid losses 234,293 166,396 Reinsurance recoverable, net $ 301,922 $ 211,424 As of March 31, 2019 and December 31, 2018 , the Company had reinsurance recoverable of $272.9 million and $183.5 million , respectively as a result of Hurricane Michael and Irma. 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, 2019 2018 (In thousands) Net Premiums Written Direct $ 132,233 $ 134,395 Ceded (11,793 ) (20,107 ) $ 120,440 $ 114,288 Net Premiums Earned Direct $ 138,367 $ 146,442 Ceded (49,583 ) (64,333 ) $ 88,784 $ 82,109

LOSS AND LOSS ADJUSTMENT RESERV

LOSS AND LOSS ADJUSTMENT RESERVES	3 Months Ended
	Mar. 31, 2019
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 incurred but not reported ("IBNR"). Activity in the liability for loss and LAE reserves is summarized as follows: Three Months Ended March 31, 2019 2018 (In thousands) Gross reserves, beginning-of-period $ 296,230 $ 230,515 Less: reinsurance recoverable (1) (166,396 ) (98,345 ) Net reserves, beginning-of-period 129,834 132,170 Incurred loss, net of reinsurance, related to: Current year 67,048 48,459 Prior year loss development (re dundancy) (2) 721 (653 ) Ceded losses subject to offsetting experience account adjustments (3) (930 ) (1,735 ) Prior years (209 ) (2,388 ) Total incurred loss and LAE, net of reinsurance 66,839 46,071 Paid loss, net of reinsurance, related to: Current year 14,868 22,543 Prior years 41,974 30,911 Total paid loss and LAE, net of reinsurance 56,842 53,454 Net reserves, end-of-period 139,831 124,787 Plus: reinsurance recoverable (1) 234,293 111,427 Gross reserves, end-of-period $ 374,124 $ 236,214 (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 (loss). 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, 2019 , the Company experienced $0.7 million of unfavorable loss and LAE reserve development on prior accident years in its commercial general liability and personal automobile lines of business, offset by redundancy in the homeowners line of business as a result of lower LAE expenses associated primarily with Hurricane Irma. 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 lower LAE expenses associated primarily with Hurricane Irma. 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, 2019
Debt Disclosure [Abstract]
LONG-TERM DEBT	7. LONG-TERM DEBT As discussed in Note 1 above, the net proceeds of the offering discussed in Senior Unsecured Notes below, were in part used to redeem all $45 million of the Company's Senior Unsecured Fixed Rate Notes Due 2022 and the Company's Senior Notes Due 2027. We recognized $3.6 million as interest expense in our consolidated statements of operations for the three months ended March 31, 2019, for prepayment fees, including the write-off unamortized debt issuance costs on the repayment. Senior Unsecured Notes On March 5, 2019, the Company completed a private placement offering and issued $100.0 million in principal amount of Senior Unsecured Fixed Rate Notes due 2029 (the "Notes”), pursuant to an indenture dated as of March 5, 2019 (the “Indenture”). The Notes mature on March 15, 2029 and bear interest at a fixed rate of 7.5% per year, payable semi-annually in arrears, subject to increases in the interest rate payable in the event of a downgrade in the credit rating assigned to the Notes. The Notes are not convertible or exchangeable for any equity securities, other securities or assets of the Company or any subsidiary. The Company may redeem the Notes under certain circumstances as set forth in the Indenture. Prior to March 15, 2024, the Company may redeem the Notes, in whole or in part, at a redemption price equal to 100.00% of the principal amount of the Notes to be redeemed, plus the “Applicable Premium,” plus accrued and unpaid interest on such Notes, if any, on the Notes redeemed, to the applicable redemption date. The “Applicable Premium” is defined in the Indenture to mean, with respect to any Note on any applicable redemption date, the greater of (1) 1.0% of the then-outstanding principal amount of such Note and (2) the excess (if any) of: (A) the present value at such redemption date of (i) the applicable redemption price of such Note at March 15, 2024 (excluding any accrued but unpaid interest), plus (ii) all required interest payments due on such Note through March 15, 2024 (excluding accrued but unpaid interest), computed using a discount rate equal to the Treasury Rate (as defined in the Indenture) on such redemption date plus 50 basis points; over (B) the then-outstanding principal amount of such Note. On and after March 15, 2024, the Company may redeem the Notes, in whole or in part, at 103.750% in 2024, 101.875% in 2025, and 100% in 2026 and thereafter, together with any accrued and unpaid interest on the Notes being redeemed to but excluding the date of redemption. If a change in control of the Company, as defined in the Indenture, occurs, the holders of the Notes will have the right to require the Company to purchase all or a portion of their Notes at a price in cash equal to 101% of the principal amount thereof, plus any accrued but unpaid interest. The Notes are senior unsecured obligations of the Company and will rank equally with all of the Company’s other future senior unsecured indebtedness. The Indenture includes customary covenants and events of default. Among other things, the covenants restrict the ability of the Company and its subsidiaries to incur additional indebtedness or make restricted payments, including dividends, under certain circumstances, require the Company to maintain certain levels of reinsurance coverage while the Notes remain outstanding, and maintain certain financial covenants. These covenants are subject to important exceptions and qualifications set forth in the Indenture. Principal and interest on the Notes are subject to acceleration in the event of certain events of default, including automatic acceleration upon certain bankruptcy-related events. Long-term debt consisted of the following: March 31, December 31, 2019 2018 (In thousands) Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively $ 98,401 $ — Senior unsecured floating rate notes, due December 31, 2027, net of deferred financing costs of $0 and $348, respectively — 24,652 Senior unsecured fixed rate notes, due December 31, 2022, net of deferred financing costs of $0 and $248, respectively — 19,752 Total long-term debt, net $ 98,401 $ 44,404 As of March 31, 2019 , the Company's estimated annual aggregate amount of debt maturities includes the following: Aggregate Debt For the Years Ending December 31, Maturities (In thousands) 2019 $ — 2020 — 2021 — 2022 — 2023 — Thereafter 100,000 Total debt maturities 100,000 Less: deferred financing costs 1,599 Total debt maturities, net $ 98,401

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	8. INCOME TAXES Our effective income tax rate is the ratio of income tax expense (benefit) over our income (loss) before income taxes. The effective income tax rate was 26.2% and 24.7% for the three months ended March 31, 2019 and 2018 , respectively. Differences in the effective tax and the statutory Federal income tax rate of 21% are driven by state income taxes and anticipated annual permanent differences, including estimates for tax-exempt interest, dividends received deduction, executive compensation and other items. The Company had an uncertain tax position of $0.6 million as of March 31, 2019 and December 31, 2018 . The Company does not have a valuation allowance as of March 31, 2019 and December 31, 2018 . We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense (benefit) in the consolidated statements of operations and statements of comprehensive income (loss). For the three months ended March 31, 2019 and 2018 , the Company did not recognize any expenses related to an uncertain tax position and our associated accrued interest and penalties was less than $0.1 million .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
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 known 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. Our significant litigation and legal proceedings were discussed in Note 9 of our 2018 Form 10-K. 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 Automobile Joint Underwriters 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, 2018. Future assessments by the JUA and the JUA Plan are indeterminable at this time. Leases The Company is committed under an operating lease agreement for office space with a nine-and-a-half-year term remaining. The right-of-use asset is reflected in other assets and the lease liability is reflected in other liabilities on our Consolidated Balance Sheets. Lease expense, net of sublease income is reflected in general and administrative expenses on our Consolidated Statements of Operations. Additional information related to our operating lease agreement for office space consisted of the following: March 31, 2019 (In thousands) Right-of-use asset $ 8,103 Accrued rent (140 ) Right-of-use asset, net $ 7,963 Lease liability $ 8,103 Weighted-average discount rate 4.71 % Three Months Ended March 31, 2019 (In thousands) Lease expense $ 260 Sublease income — Lease expense, net $ 260 Net cash provided by (used in) operating activities $ (137 ) The interest rate implicit in our lease was not known, therefore the weighted-average discount rate above was determined by what FedNat would have had to pay to borrow the lease payments in a similar economic environment that existed at inception of our lease while considering our general credit and the theoretical collateral of the office space. In the event of a change to lease term, the Company would re-evaluate all inputs and assumptions, including the discount rate. Refer to Note 2 above for additional information regarding the implementation of new lease accounting rules on January 1, 2019.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
SHAREHOLDERS' EQUITY	10. SHAREHOLDERS' EQUITY Common Stock Repurchases The Company may repurchase shares in open market transactions in accordance with Rule 10b-18 or under Rule 10b5-1 of the Exchange Act 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 December 2018, the Company’s Board of Directors authorized an additional share repurchase program under which the Company may repurchase up to $10.0 million of its outstanding shares of common stock through December 31, 2019. As of March 31, 2019 , the remaining availability for future repurchases of our common stock under this program was $10.0 million . The Company may repurchase shares in open market transactions in accordance with Rule 10b-18 or under Rule 10b5-1 of the Exchange Act 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. Securities Offerings In June 2018, the Company filed with the Securities and Exchange Commission (“SEC”) on Form S-3, a shelf registration statement enabling the Company to offer and sell, from time to time, up to an aggregate of $150.0 million of securities. No securities have been offered or sold under this registration statement. Stock Compensation Plan In June 2018, the Company filed with the SEC on Form S-8, a registration statement registering 800,000 shares of common stock reserved for issuance under the Company’s 2018 Omnibus Incentive Compensation Plan (the “2018 Plan”). The 2018 Plan, which was approved by the Company’s shareholders at the 2018 annual meeting, is an equity compensation plan that may be used for our employees, non-employee directors, consultants and advisors. Share-Based Compensation Expense Share-based compensation arrangements include the following: ໿ Three Months Ended March 31, 2019 2018 (In thousands) Restricted stock $ 494 $ 623 Performance stock 181 42 Total share-based compensation expense $ 675 $ 665 Recognized tax benefit $ 171 $ 169 Intrinsic value of options exercised — — Fair value of restricted stock vested $ 927 $ 1,187 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, 2019 39,017 $ 3.80 Granted — — Exercised — — Cancelled — — Outstanding at March 31, 2019 39,017 $ 3.80 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, 2019 and 2018 , the Board of Directors granted 140,156 and 130,458 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 Grant Date Fair Value Outstanding at January 1, 2019 262,334 $ 18.78 Granted 140,156 18.03 Vested (51,957 ) 17.85 Cancelled (10,990 ) 18.27 Outstanding at March 31, 2019 339,543 $ 18.64 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 (Loss) Accumulated other comprehensive income (loss) associated with debt securities - available-for-sale consisted of the following: ໿ Three Months Ended March 31, 2019 2018 Before Tax Income Tax Net Before Tax Income Tax Net (In thousands) Accumulated other comprehensive income (loss), beginning-of-period $ (5,023 ) $ 1,273 $ (3,750 ) $ 2,287 $ (593 ) $ 1,694 Cumulative effect of new accounting standards — — — (1,349 ) 355 (994 ) Other comprehensive income (loss) before reclassification 11,528 (2,922 ) 8,606 (7,200 ) 1,825 (5,375 ) Reclassification adjustment for realized losses (gains) included in net income (2,301 ) 583 (1,718 ) 1,052 (238 ) 814 9,227 (2,339 ) 6,888 (6,148 ) 1,587 (4,561 ) Accumulated other comprehensive income (loss), end-of-period $ 4,204 $ (1,066 ) $ 3,138 $ (5,210 ) $ 1,349 $ (3,861 )

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
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, 2019 2018 (In thousands, except per share data) Net income (loss) attributable to FedNat Holding Company shareholders $ (3,865 ) $ 7,463 Weighted average number of common shares outstanding - basic 12,795 12,850 Net income (loss) per common share - basic $ (0.30 ) $ 0.58 Weighted average number of common shares outstanding - basic 12,795 12,850 Dilutive effect of stock compensation plans — 95 Weighted average number of common shares outstanding - diluted 12,795 12,945 Net income (loss) per common share - diluted $ (0.30 ) $ 0.58 Dividends per share $ 0.08 $ 0.08 Dividends Declared In January 2019, our Board of Directors declared a $0.08 per common share dividend, payable in March 2019, to shareholders of record on February 14, 2019, amounting to $1.0 million . In May 2019, our Board of Directors declared a $0.08 per common share dividend, payable in June 2019, to shareholders of record on May 14, 2019, amounting to $1.0 million .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	12. SUBSEQUENT EVENTS Dividends Declared Refer to Note 11 above for information related to our dividend declared in May 2019.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policies)	3 Months Ended
	Mar. 31, 2019
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 insurance products to consumers in Florida. As a percentage of the total homeowners premiums we underwrote, 22.8% and 22.8% were from Allstate’s network of Florida agents, for the three months ended March 31, 2019 and 2018 , 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, 19.6% and 11.8% , respectively, of the Company’s premiums were underwritten by SageSure, for the three months ended March 31, 2019 and 2018 , 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 (“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.
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 (“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.
Accounting Estimates and Assumptions	Accounting Estimates and Assumptions The Company prepares the accompanying consolidated financial statements in accordance with 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 ongoing basis.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements, Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . The update superseded the prior lease guidance in Topic 840, Leases and lessees are 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. Additionally, lessees are 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 Company adopted the guidance effective January 1, 2019, by reflecting a $6.1 million right-of-use asset, after-tax, and $6.1 million lease liability, after-tax, on our consolidated balance sheets for our leases in existence as of that date. All of the Company's leases were classified as operating leases and we elected the practical expedient, therefore no adjustment to comparative prior periods presented have been made. The provisions of this ASU did not have an impact on our pattern of lease expense recognition on our consolidated statements of operations. Refer to Note 9 below for additional information regarding leases. Recently Issued Accounting Pronouncements, Not Yet Adopted 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 other-than-temporary impairment ("OTTI") model. The update also requires 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. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. 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, 2019
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	Held-to-maturity debt securities reported on the consolidated balance sheets at amortized cost and disclosed at fair value below (and in Note 4) and the level of fair value hierarchy of inputs used consisted of the following: Level 1 Level 2 Level 3 Total (In thousands) March 31, 2019 $ 3,360 $ 1,109 $ — $ 4,469 December 31, 2018 3,809 1,155 — 4,964 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, 2019 Level 1 Level 2 Level 3 Total (In thousands) Debt securities - available-for-sale, at fair value: United States government obligations and authorities $ 43,412 $ 102,550 $ — $ 145,962 Obligations of states and political subdivisions — 11,519 — 11,519 Corporate securities — 263,385 — 263,385 International securities — 22,592 — 22,592 Debt securities, at fair value 43,412 400,046 — 443,458 Equity securities, at fair value 18,907 1,917 — 20,824 Total investments, at fair value $ 62,319 $ 401,963 $ — $ 464,282 ໿ December 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 $ 43,918 $ 83,950 $ — $ 127,868 Obligations of states and political subdivisions — 9,767 — 9,767 Corporate securities — 268,731 — 268,731 International securities — 22,275 — 22,275 Debt securities, at fair value 43,918 384,723 — 428,641 Equity securities, at fair value 16,037 1,721 — 17,758 Total investments, at fair value $ 59,955 $ 386,444 $ — $ 446,399

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 Debt securities - available-for-sale: United States government obligations and authorities $ 144,450 $ 2,037 $ 525 $ 145,962 Obligations of states and political subdivisions 11,502 88 71 11,519 Corporate 260,844 3,693 1,152 263,385 International 22,458 213 79 22,592 439,254 6,031 1,827 443,458 Debt securities - held-to-maturity: United States government obligations and authorities 3,567 2 91 3,478 Corporate 930 8 2 936 International 55 — — 55 4,552 10 93 4,469 Total investments, excluding equity securities $ 443,806 $ 6,041 $ 1,920 $ 447,927 ໿ Amortized Gross Gross Cost Unrealized Unrealized or Cost Gains Losses Fair Value (In thousands) December 31, 2018 Debt securities - available-for-sale: United States government obligations and authorities $ 127,928 $ 1,091 $ 1,151 $ 127,868 Obligations of states and political subdivisions 9,870 27 130 9,767 Corporate 273,192 510 4,971 268,731 International 22,674 12 411 22,275 433,664 1,640 6,663 428,641 Debt securities - held-to-maturity: United States government obligations and authorities 4,085 1 158 3,928 Corporate 986 2 6 982 International 55 — 1 54 5,126 3 165 4,964 Total investments, excluding equity securities $ 438,790 $ 1,643 $ 6,828 $ 433,605
Net Realized Gains (Losses) by Major Investment Category	Net realized and unrealized gains (losses), by major investment category, consisted of the following: ໿ Three Months Ended March 31, 2019 2018 (In thousands) Gross realized and unrealized gains: Debt securities $ 317 $ 223 Equity securities 2,830 1,153 Total gross realized and unrealized gains 3,147 1,376 Gross realized and unrealized losses: Debt securities (400 ) (1,441 ) Equity securities (446 ) (987 ) Total gross realized and unrealized losses (846 ) (2,428 ) Net realized and unrealized gains (losses) on investments $ 2,301 $ (1,052 )
Investments Classified by Contractual Maturity Date	Amortized cost and estimated fair value of debt securities, by contractual maturity, consisted of the following: ໿ March 31, 2019 Amortized Cost Fair Value Securities with Maturity Dates (In thousands) Debt securities, available-for-sale: One year or less $ 17,108 $ 17,094 Over one through five years 198,410 199,858 Over five through ten years 218,177 220,854 Over ten years 5,559 5,652 439,254 443,458 Debt securities, held-to-maturity: One year or less 135 135 Over one through five years 4,042 3,963 Over five through ten years 375 371 4,552 4,469 Total $ 443,806 $ 447,927
Summary of Net Investment Income	Net investment income consisted of the following: ໿ Three Months Ended March 31, 2019 2018 (In thousands) Interest income $ 3,657 $ 2,887 Dividends income 53 56 Net investment income $ 3,710 $ 2,943
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	Gross unrealized losses and related fair values for debt securities, 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 (In thousands) March 31, 2019 Debt securities - available-for-sale: United States government obligations and authorities $ 10,279 $ 8 $ 32,169 $ 517 $ 42,448 $ 525 Obligations of states and political subdivisions 790 21 5,339 50 6,129 71 Corporate 26,723 311 57,096 841 83,819 1,152 International 2,711 6 5,877 73 8,588 79 40,503 346 100,481 1,481 140,984 1,827 Debt securities, held-to-maturity: United States government obligations and authorities 114 — 3,161 91 3,275 91 Corporate 80 — 173 2 253 2 International — — 29 — 29 — 194 — 3,363 93 3,557 93 Total investments, excluding equity securities $ 40,697 $ 346 $ 103,844 $ 1,574 $ 144,541 $ 1,920 Less than 12 months 12 months or longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) December 31, 2018 Debt securities - available-for-sale: United States government obligations and authorities $ 22,673 $ 246 $ 29,727 $ 905 $ 52,400 $ 1,151 Obligations of states and political subdivisions 3,254 18 4,786 112 8,040 130 Corporate 160,361 3,058 53,232 1,913 213,593 4,971 International 15,608 217 4,678 194 20,286 411 201,896 3,539 92,423 3,124 294,319 6,663 Debt securities, held-to-maturity: United States government obligations and authorities 229 1 3,113 157 3,342 158 Corporate 591 6 90 — 681 6 International 54 1 — — 54 1 874 8 3,203 157 4,077 165 Total investments, excluding equity securities $ 202,770 $ 3,547 $ 95,626 $ 3,281 $ 298,396 $ 6,828

REINSURANCE (Tables)

REINSURANCE (Tables)	3 Months Ended
	Mar. 31, 2019
Reinsurance Disclosures [Abstract]
Reinsurance Recoverables	Reinsurance recoverable, net consisted of the following: ໿ March 31, December 31, 2019 2018 (In thousands) Reinsurance recoverable on paid losses $ 67,629 $ 45,028 Reinsurance recoverable on unpaid losses 234,293 166,396 Reinsurance recoverable, net $ 301,922 $ 211,424
Premiums Written and Earned	Net premiums written and net premiums earned consisted of the following: ໿ ໿ Three Months Ended March 31, 2019 2018 (In thousands) Net Premiums Written Direct $ 132,233 $ 134,395 Ceded (11,793 ) (20,107 ) $ 120,440 $ 114,288 Net Premiums Earned Direct $ 138,367 $ 146,442 Ceded (49,583 ) (64,333 ) $ 88,784 $ 82,109

LOSS AND LOSS ADJUSTMENT RESE_2

LOSS AND LOSS ADJUSTMENT RESERVES (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 2018 (In thousands) Gross reserves, beginning-of-period $ 296,230 $ 230,515 Less: reinsurance recoverable (1) (166,396 ) (98,345 ) Net reserves, beginning-of-period 129,834 132,170 Incurred loss, net of reinsurance, related to: Current year 67,048 48,459 Prior year loss development (re dundancy) (2) 721 (653 ) Ceded losses subject to offsetting experience account adjustments (3) (930 ) (1,735 ) Prior years (209 ) (2,388 ) Total incurred loss and LAE, net of reinsurance 66,839 46,071 Paid loss, net of reinsurance, related to: Current year 14,868 22,543 Prior years 41,974 30,911 Total paid loss and LAE, net of reinsurance 56,842 53,454 Net reserves, end-of-period 139,831 124,787 Plus: reinsurance recoverable (1) 234,293 111,427 Gross reserves, end-of-period $ 374,124 $ 236,214 (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 (loss).

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt consisted of the following: March 31, December 31, 2019 2018 (In thousands) Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively $ 98,401 $ — Senior unsecured floating rate notes, due December 31, 2027, net of deferred financing costs of $0 and $348, respectively — 24,652 Senior unsecured fixed rate notes, due December 31, 2022, net of deferred financing costs of $0 and $248, respectively — 19,752 Total long-term debt, net $ 98,401 $ 44,404
Schedule of Maturities of Long-term Debt	As of March 31, 2019 , the Company's estimated annual aggregate amount of debt maturities includes the following: Aggregate Debt For the Years Ending December 31, Maturities (In thousands) 2019 $ — 2020 — 2021 — 2022 — 2023 — Thereafter 100,000 Total debt maturities 100,000 Less: deferred financing costs 1,599 Total debt maturities, net $ 98,401

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Assets And Liabilities, Lessee	Additional information related to our operating lease agreement for office space consisted of the following: March 31, 2019 (In thousands) Right-of-use asset $ 8,103 Accrued rent (140 ) Right-of-use asset, net $ 7,963 Lease liability $ 8,103 Weighted-average discount rate 4.71 %
Additional Lease Cost Information	Three Months Ended March 31, 2019 (In thousands) Lease expense $ 260 Sublease income — Lease expense, net $ 260 Net cash provided by (used in) operating activities $ (137 )

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	Share-based compensation arrangements include the following: ໿ Three Months Ended March 31, 2019 2018 (In thousands) Restricted stock $ 494 $ 623 Performance stock 181 42 Total share-based compensation expense $ 675 $ 665 Recognized tax benefit $ 171 $ 169 Intrinsic value of options exercised — — Fair value of restricted stock vested $ 927 $ 1,187
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, 2019 39,017 $ 3.80 Granted — — Exercised — — Cancelled — — Outstanding at March 31, 2019 39,017 $ 3.80
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	RSA activity includes the following: Number of Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 262,334 $ 18.78 Granted 140,156 18.03 Vested (51,957 ) 17.85 Cancelled (10,990 ) 18.27 Outstanding at March 31, 2019 339,543 $ 18.64
Schedule of Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income (loss) associated with debt securities - available-for-sale consisted of the following: ໿ Three Months Ended March 31, 2019 2018 Before Tax Income Tax Net Before Tax Income Tax Net (In thousands) Accumulated other comprehensive income (loss), beginning-of-period $ (5,023 ) $ 1,273 $ (3,750 ) $ 2,287 $ (593 ) $ 1,694 Cumulative effect of new accounting standards — — — (1,349 ) 355 (994 ) Other comprehensive income (loss) before reclassification 11,528 (2,922 ) 8,606 (7,200 ) 1,825 (5,375 ) Reclassification adjustment for realized losses (gains) included in net income (2,301 ) 583 (1,718 ) 1,052 (238 ) 814 9,227 (2,339 ) 6,888 (6,148 ) 1,587 (4,561 ) Accumulated other comprehensive income (loss), end-of-period $ 4,204 $ (1,066 ) $ 3,138 $ (5,210 ) $ 1,349 $ (3,861 )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 2018 (In thousands, except per share data) Net income (loss) attributable to FedNat Holding Company shareholders $ (3,865 ) $ 7,463 Weighted average number of common shares outstanding - basic 12,795 12,850 Net income (loss) per common share - basic $ (0.30 ) $ 0.58 Weighted average number of common shares outstanding - basic 12,795 12,850 Dilutive effect of stock compensation plans — 95 Weighted average number of common shares outstanding - diluted 12,795 12,945 Net income (loss) per common share - diluted $ (0.30 ) $ 0.58 Dividends per share $ 0.08 $ 0.08

ORGANIZATION, CONSOLIDATION A_2

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION (Narrative) (Details) - USD ($)	Feb. 25, 2019	Mar. 31, 2019	Mar. 31, 2018	Mar. 05, 2019
Organization, Consolidation, And Basis of Preparation [Line Items]
Repayments of promissory note		$ 48,000,000	$ 5,000,000
Premiums Written Net | Homeowners Multiperil Insurance Product Line | Customer Concentration Risk | Ivantage Select Agency Inc
Organization, Consolidation, And Basis of Preparation [Line Items]
Concentration risk, percentage		22.80%	22.80%
Premiums Written Net | Homeowners Multiperil Insurance Product Line | Customer Concentration Risk | SageSure Insurance Managers LLC
Organization, Consolidation, And Basis of Preparation [Line Items]
Concentration risk, percentage		19.60%	11.80%
1347 Property Insurance Holdings, Inc
Organization, Consolidation, And Basis of Preparation [Line Items]
Consideration transferred	$ 51,000,000
Cash consideration	25,500,000
Equity issued	$ 25,500,000
Weighted average maturity of agreements	5 years
Repayments of promissory note	$ 45,000,000
Reinsurance right of first refusal agreement, term	5 years
Reinsurance right of first refusal, threshold percent	7.50%
Investment advisory services agreement, term	5 years
Minimum net book value	$ 42,000,000
Unsecured Debt | Senior Unsecured Fixed Rate Notes, Due 2029
Organization, Consolidation, And Basis of Preparation [Line Items]
Debt instrument face amount				$ 100,000,000
Stated interest rate				7.50%

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset	$ 8,103
Lease liability	$ 8,103
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset		$ 6,100
Lease liability		$ 6,100

FAIR VALUE (Available-for-Sale

FAIR VALUE (Available-for-Sale Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	$ 443,458	$ 428,641
Equity securities, at fair value	20,824	17,758
Total investments, at fair value	464,282	446,399
United States Government Obligations and Authorities
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	145,962	127,868
Obligations of States and Political Subdivisions
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	11,519	9,767
Corporate Securities
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	263,385	268,731
International
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	22,592	22,275
Level 1
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	43,412	43,918
Equity securities, at fair value	18,907	16,037
Total investments, at fair value	62,319	59,955
Level 1 | United States Government Obligations and Authorities
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	43,412	43,918
Level 1 | Obligations of States and Political Subdivisions
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	0
Level 1 | Corporate Securities
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	0
Level 1 | International
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	0
Level 2
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	400,046	384,723
Equity securities, at fair value	1,917	1,721
Total investments, at fair value	401,963	386,444
Level 2 | United States Government Obligations and Authorities
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	102,550	83,950
Level 2 | Obligations of States and Political Subdivisions
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	11,519	9,767
Level 2 | Corporate Securities
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	263,385	268,731
Level 2 | International
Investments, Debt and Equity Securities [Abstract]
Debt securities - available-for-sale, at fair value:	$ 22,592	$ 22,275

FAIR VALUE (Held-to-Maturity Fi

FAIR VALUE (Held-to-Maturity Financial Instruments Measured at Fair Value) (Details) - US Government Obligations and Authorities, Corporate and International Securities - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities, fair value	$ 4,469	$ 4,964
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities, fair value	3,360	3,809
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities, fair value	$ 1,109	$ 1,155

INVESTMENTS (Narrative) (Detail

INVESTMENTS (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)security	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)security
Investments [Abstract]
Unrealized gains and losses for equity securities (Less Than) | $	$ 2.3	$ 0.1
Debt and equity securities held in an unrealized loss position | security	592		1,222
Debt securities and equity securities held in an unrealized loss position 12 months or more | security	475		371
Fair value of investments deposited with governmental authorities required by law | $	$ 10.6		$ 10.3

INVESTMENTS (Summary of Amortiz

INVESTMENTS (Summary of Amortized Cost and Fair Value of Debt and Equity Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Schedule of Investments [Line Items]
Debt securities, available-for-sale, at amortized cost	$ 439,254	$ 433,664
Debt securities - available-for-sale, at fair value:	443,458	428,641
Held-to-maturity securities, Amortized Cost or Cost	4,552	5,126
Total investments, Amortized Cost or Cost	443,806	438,790
Total investments, Gross Unrealized Gain	6,041	1,643
Total investments, Gross Unrealized Loss	1,920	6,828
Total investments, Fair Value	447,927	433,605
Debt Securities
Schedule of Investments [Line Items]
Debt securities, available-for-sale, at amortized cost	439,254	433,664
Debt securities, available-for-sale securities, Gross Unrealized Gain	6,031	1,640
Debt securities, available-for-sale securities, Gross Unrealized Losses	1,827	6,663
Debt securities - available-for-sale, at fair value:	443,458	428,641
Held-to-maturity securities, Amortized Cost or Cost	4,552	5,126
Held-to-maturity securities, Gross Unrealized Gains	10	3
Held-to-maturity securities, Gross Unrealized Losses	93	165
Held-to-maturity securities, fair value	4,469	4,964
United States Government Obligations and Authorities
Schedule of Investments [Line Items]
Debt securities, available-for-sale, at amortized cost	144,450	127,928
Debt securities, available-for-sale securities, Gross Unrealized Gain	2,037	1,091
Debt securities, available-for-sale securities, Gross Unrealized Losses	525	1,151
Debt securities - available-for-sale, at fair value:	145,962	127,868
Held-to-maturity securities, Amortized Cost or Cost	3,567	4,085
Held-to-maturity securities, Gross Unrealized Gains	2	1
Held-to-maturity securities, Gross Unrealized Losses	91	158
Held-to-maturity securities, fair value	3,478	3,928
Obligations of States and Political Subdivisions
Schedule of Investments [Line Items]
Debt securities, available-for-sale, at amortized cost	11,502	9,870
Debt securities, available-for-sale securities, Gross Unrealized Gain	88	27
Debt securities, available-for-sale securities, Gross Unrealized Losses	71	130
Debt securities - available-for-sale, at fair value:	11,519	9,767
Corporate
Schedule of Investments [Line Items]
Debt securities, available-for-sale, at amortized cost	260,844	273,192
Debt securities, available-for-sale securities, Gross Unrealized Gain	3,693	510
Debt securities, available-for-sale securities, Gross Unrealized Losses	1,152	4,971
Debt securities - available-for-sale, at fair value:	263,385	268,731
Held-to-maturity securities, Amortized Cost or Cost	930	986
Held-to-maturity securities, Gross Unrealized Gains	8	2
Held-to-maturity securities, Gross Unrealized Losses	2	6
Held-to-maturity securities, fair value	936	982
International
Schedule of Investments [Line Items]
Debt securities, available-for-sale, at amortized cost	22,458	22,674
Debt securities, available-for-sale securities, Gross Unrealized Gain	213	12
Debt securities, available-for-sale securities, Gross Unrealized Losses	79	411
Debt securities - available-for-sale, at fair value:	22,592	22,275
Held-to-maturity securities, Amortized Cost or Cost	55	55
Held-to-maturity securities, Gross Unrealized Gains	0	0
Held-to-maturity securities, Gross Unrealized Losses	0	1
Held-to-maturity securities, fair value	$ 55	$ 54

INVESTMENTS (Net Realized Gains

INVESTMENTS (Net Realized Gains (Losses) by Major Investment Category (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross realized and unrealized gains:	$ 3,147	$ 1,376
Gross realized and unrealized losses:	(846)	(2,428)
Net realized and unrealized gains (losses) on investments	2,301	(1,052)
Debt Securities
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross realized and unrealized gains:	317	223
Gross realized and unrealized losses:	(400)	(1,441)
Equity Securities
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross realized and unrealized gains:	2,830	1,153
Gross realized and unrealized losses:	$ (446)	$ (987)

INVESTMENTS (Amortized Cost and

INVESTMENTS (Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity) (Details) $ in Thousands	Mar. 31, 2019USD ($)
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	$ 17,108
Over one through five years	198,410
Over five through ten years	218,177
Over ten years	5,559
Amortized cost	439,254
Available-for-sale Securities, Debt maturities, Fair value:
One year or less	17,094
Over one through five years	199,858
Over five through ten years	220,854
Over ten years	5,652
Fair value	443,458
Held-to-maturity Securities, Debt maturities, Amortized cost [Abstract]
One year or less	135
Over one through five years	4,042
Over five through ten years	375
Amortized cost	4,552
Held-to-maturity Securities, Debt Maturities, Fair value:
One year or less	135
Over one through five years	3,963
Over five through ten years	371
Fair value	4,469
Total Investments
Amortized cost	443,806
Fair value	$ 447,927

INVESTMENTS (Summary of Net Inv

INVESTMENTS (Summary of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Investment Income, Interest and Dividend [Abstract]
Interest income	$ 3,657	$ 2,887
Dividends income	53	56
Net investment income	$ 3,710	$ 2,943

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, 2019	Dec. 31, 2018
Gross unrealized losses [Abstract]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 194	$ 874
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	8
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	3,363	3,203
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	93	157
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	3,557	4,077
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss	93	165
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	40,697	202,770
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	346	3,547
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	103,844	95,626
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,574	3,281
Debt Securities, Unrealized Loss Position, Fair Value	144,541	298,396
Debt Securities, Unrealized Loss Position, Accumulated Loss	1,920	6,828
Debt Securities
Fair value [Abstract]
Less than 12 months	40,503	201,896
12 months or longer	100,481	92,423
Total	140,984	294,319
Gross unrealized losses [Abstract]
Less than 12 months	346	3,539
12 months or longer	1,481	3,124
Total	1,827	6,663
United States Government Obligations and Authorities
Fair value [Abstract]
Less than 12 months	10,279	22,673
12 months or longer	32,169	29,727
Total	42,448	52,400
Gross unrealized losses [Abstract]
Less than 12 months	8	246
12 months or longer	517	905
Total	525	1,151
Obligations of States and Political Subdivisions
Fair value [Abstract]
Less than 12 months	790	3,254
12 months or longer	5,339	4,786
Total	6,129	8,040
Gross unrealized losses [Abstract]
Less than 12 months	21	18
12 months or longer	50	112
Total	71	130
Corporate
Fair value [Abstract]
Less than 12 months	26,723	160,361
12 months or longer	57,096	53,232
Total	83,819	213,593
Gross unrealized losses [Abstract]
Less than 12 months	311	3,058
12 months or longer	841	1,913
Total	1,152	4,971
International
Fair value [Abstract]
Less than 12 months	2,711	15,608
12 months or longer	5,877	4,678
Total	8,588	20,286
Gross unrealized losses [Abstract]
Less than 12 months	6	217
12 months or longer	73	194
Total	79	411
United States Government Obligations and Authorities
Gross unrealized losses [Abstract]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	114	229
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	1
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	3,161	3,113
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	91	157
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	3,275	3,342
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss	91	158
Corporate
Gross unrealized losses [Abstract]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	80	591
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	6
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	173	90
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2	0
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	253	681
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss	2	6
International
Gross unrealized losses [Abstract]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	54
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	1
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	29	0
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	29	54
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss	$ 0	$ 1

REINSURANCE (Narrative) (Detail

REINSURANCE (Narrative) (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Jul. 01, 2017	Jul. 31, 2016	Mar. 31, 2019	Dec. 31, 2018	Jul. 01, 2016
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				$ 31,399	$ 63,599
Reinsurance recoverable, net				301,922	$ 211,424
Maximum | Hurricane Irma
Liability for Catastrophe Claims [Line Items]
Reinsurance recoverable, net				272,900
FNIC's 2017-2018 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				174,400
MNIC's 2017-2018 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				5,000
Federated National 2018-2019 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				148,800
Federated National 2018-2019 Reinsurance Programs | First Event Coverage
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				3,000
Federated National 2018-2019 Reinsurance Programs | Maximum
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				20,000
Multiple Year Protection Terminated | Maximum
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				89,000
Multiple Year Protection Plan Expired | Maximum
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				156,000
Federated Nationals Insurance Company Non Florida Reinsurance Program 2018-2019
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				2,000
Federated Nationals Insurance Company Non Florida Reinsurance Program 2018-2019 | First Event Coverage
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				5,000
Reinsurance retention amount				15,000
Reinsurance amount retained on net basis with profit share agreement				7,500
Federated Nationals Insurance Company Non Florida Reinsurance Program 2018-2019 | Second Event Coverage
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				13,000
Reinsurance retention amount				2,000
Reinsurance amount retained on net basis with profit share agreement				1,000
Federated Nationals Insurance Company Non Florida Reinsurance Program 2018-2019 | Maximum
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				23,000
Federated Nationals Insurance Company Non Florida Reinsurance Program 2018-2019 | Maximum | Second Event Coverage
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				18,000
Federated Nationals Insurance Company Non Florida Reinsurance Program 2017-2018
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				1,700
Federated Nationals Insurance Company Non Florida Reinsurance Program 2017-2018 | First Event Coverage
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
Federated Nationals Insurance Company Non Florida Reinsurance Program 2017-2018 | Second Event Coverage
Liability for Catastrophe Claims [Line Items]
Reinsurance retention amount				2,000
Reinsurance amount retained on net basis with profit share agreement				1,000
Federated Nationals Insurance Company Non Florida Reinsurance Program 2017-2018 | Maximum
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				21,000
Federated Nationals Insurance Company Non Florida Reinsurance Program 2017-2018 | Maximum | Second Event Coverage
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				$ 16,000
Quota Share Treaties | Private Passenger Automobile Insurance Product Line
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty				75.00%
Federated National's Florida Exposure | FNIC's 2017-2018 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				$ 124,000
Amount of private market excess of loss treaties				25,100
Florida And Non-Florida Exposures | Private Market Excess of Loss Treaties | New Multiple Year Protection This Year
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				89,000
Florida And Non-Florida Exposures | Private Market Excess of Loss Treaties | Renewing Multiple Year Protection From Last Year
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				156,000
FHCF | FNIC's 2017-2018 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				$ 50,400
Percentage of property quota share reinsurance treaty				75.00%
FHCF | MNIC's 2017-2018 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				$ 1,800
FNIC
Liability for Catastrophe Claims [Line Items]
Trust agreement for loss exposure (Less than for September 30, 2018)				100
FNIC | FNIC's 2017-2018 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Excess retention, amount reinsured				$ 18,000
FNIC | Quota Share One | Property Insurance Product Line
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share expired on cut off basis		10.00%
FNIC | Quota Share One | Florida Homeowners Book of Business
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty	2.00%			30.00%
FNIC | Quota Share Two | Florida Homeowners Book of Business
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty				10.00%
FNIC | Private Market Excess of Loss Treaties | Minimum
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 | FNIC's 2017-2018 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Liability for catastrophe claims				2,200,000
Maximum single event coverage				1,500,000
Private and FHCF Reinsurance | MNIC's 2017-2018 Reinsurance Programs
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%
Monarch National S Florida | MNIC’s 2016-2017 Catastrophe Reinsurance Program
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				$ 3,200
Monarch National S Florida | Private Market Excess of Loss Treaties
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				3,400
Florida | Quota Share Treaties | Property Insurance Product Line
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty		10.00%	30.00%
Florida | Quota Share One | Property Insurance Product Line
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 | Federated National's Florida Exposure | Federated National 2018-2019 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				102,700
Florida | FHCF | Federated National 2018-2019 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Reinsurance payable				$ 46,100
Percentage of property quota share reinsurance treaty				75.00%
Florida | FNIC | Quota Share Treaties | Property Insurance Product Line
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty				40.00%
Number of property quota share treaties				2 years
Florida | Private and FHCF Reinsurance | Federated National 2018-2019 Reinsurance Programs
Liability for Catastrophe Claims [Line Items]
Liability for catastrophe claims				$ 1,800,000
Maximum single event coverage				$ 1,300,000

REINSURANCE (Reinsurance Recove

REINSURANCE (Reinsurance Recoverables) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Reinsurance Disclosures [Abstract]
Reinsurance recoverable on paid losses	$ 67,629	$ 45,028
Reinsurance recoverable on unpaid losses	234,293	166,396	$ 111,427	$ 98,345
Reinsurance recoverable, net	$ 301,922	$ 211,424

REINSURANCE (Premiums Written a

REINSURANCE (Premiums Written and Earned) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net Premiums Written
Direct	$ 132,233	$ 134,395
Ceded	(11,793)	(20,107)
Total premiums written	120,440	114,288
Net Premiums Earned
Direct	138,367	146,442
Ceded	(49,583)	(64,333)
Total premiums earned	$ 88,784	$ 82,109

LOSS AND LOSS ADJUSTMENT RESE_3

LOSS AND LOSS ADJUSTMENT RESERVES (Activity in Liability for Loss and LAE Reserves) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Liability for Future Policy Benefits [Abstract]
Gross reserves, beginning-of-period	$ 296,230	$ 230,515
Less: reinsurance recoverable	(166,396)	(98,345)
Net reserves, beginning-of-period	129,834	132,170
Incurred loss, net of reinsurance, related to:
Current year	67,048	48,459
Prior year loss development	721	(653)
Ceded losses subject to offsetting experience account adjustments	(930)	(1,735)
Prior years	(209)	(2,388)
Total incurred loss and LAE, net of reinsurance	66,839	46,071
Paid loss, net of reinsurance, related to:
Current year	14,868	22,543
Prior years	41,974	30,911
Total paid loss and LAE, net of reinsurance	56,842	53,454
Net reserves, end-of-period	139,831	124,787
Plus: reinsurance recoverable	(234,293)	(111,427)
Gross reserves, end-of-period	$ 374,124	$ 236,214

LOSS AND LOSS ADJUSTMENT RESE_4

LOSS AND LOSS ADJUSTMENT RESERVES (Narrative) (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Jul. 31, 2016	Mar. 31, 2019	Mar. 31, 2018
Liability for Future Policy Benefit, by Product Segment [Line Items]
Claim and claim adjustment expenses incurred related to current year			$ 67,048	$ 48,459
Claim and claim adjustment expenses incurred related to prior year			(209)	(2,388)
Reinsurance Programs | Florida
Liability for Future Policy Benefit, by Product Segment [Line Items]
Claim and claim adjustment expenses incurred related to current year			$ 700	$ (700)
Quota Share Treaties | Florida | Property Insurance Product Line
Liability for Future Policy Benefit, by Product Segment [Line Items]
Percentage of property quota share reinsurance treaty	10.00%	30.00%

LONG-TERM DEBT - (Narrative) (D

LONG-TERM DEBT - (Narrative) (Details) - USD ($)	Feb. 25, 2019	Mar. 31, 2019	Mar. 31, 2018	Mar. 05, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Repayments of promissory note		$ 48,000,000	$ 5,000,000
Senior unsecured fixed rate notes, due December 31, 2022, net of deferred financing costs of $0 and $248, respectively
Debt Instrument [Line Items]
Interest expense, debt		3,600,000
Deferred financing costs (less than)		0			$ 248,000
Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively
Debt Instrument [Line Items]
Deferred financing costs (less than)		$ 1,599,000			$ 0
Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively | Unsecured Debt
Debt Instrument [Line Items]
Debt instrument face amount				$ 100,000,000
Stated interest rate				7.50%
Redemption price, percentage		100.00%
Default rate, increase in fixed rate		0.50%
Redemption premium, percent		1.00%
Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively | Unsecured Debt | After March 15, 2024
Debt Instrument [Line Items]
Redemption price, percentage		103.75%
Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively | Unsecured Debt | March 15, 2025 through March 14, 2026
Debt Instrument [Line Items]
Redemption price, percentage		101.875%
Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively | Unsecured Debt | March 15, 2026 and thereafter
Debt Instrument [Line Items]
Redemption price, percentage		100.00%
Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively | Unsecured Debt | Change in Control
Debt Instrument [Line Items]
Redemption price, percentage		101.00%
1347 Property Insurance Holdings, Inc
Debt Instrument [Line Items]
Repayments of promissory note	$ 45,000,000
1347 Property Insurance Holdings, Inc | Senior unsecured fixed rate notes, due December 31, 2022, net of deferred financing costs of $0 and $248, respectively
Debt Instrument [Line Items]
Repayments of promissory note	$ 45,000,000

LONG-TERM DEBT - (Schedule of D

LONG-TERM DEBT - (Schedule of Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total debt maturities	$ 98,401	$ 44,404
Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively
Debt Instrument [Line Items]
Deferred financing costs	1,599	0
Senior unsecured floating rate notes, due December 31, 2027, net of deferred financing costs of $0 and $348, respectively
Debt Instrument [Line Items]
Deferred financing costs	0	348
Senior unsecured fixed rate notes, due December 31, 2022, net of deferred financing costs of $0 and $248, respectively
Debt Instrument [Line Items]
Deferred financing costs	0	248
Unsecured Debt | Senior unsecured fixed rate notes, due March 15, 2029, net of deferred financing costs of $1,599 and $0, respectively
Debt Instrument [Line Items]
Total debt maturities	98,401	0
Unsecured Debt | Senior unsecured floating rate notes, due December 31, 2027, net of deferred financing costs of $0 and $348, respectively
Debt Instrument [Line Items]
Total debt maturities	0	24,652
Unsecured Debt | Senior unsecured fixed rate notes, due December 31, 2022, net of deferred financing costs of $0 and $248, respectively
Debt Instrument [Line Items]
Total debt maturities	$ 0	$ 19,752

LONG-TERM DEBT - (Schedule of M

LONG-TERM DEBT - (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
2019	$ 0
2020	0
2021	0
2022	0
2023	0
Thereafter	100,000
Total debt maturities	100,000
Less: deferred financing costs	1,599	$ 596
Total debt maturities, net	$ 98,401	$ 44,404

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	26.20%	24.70%
Unrecognized Tax Benefits	$ 0.6		$ 0.6
Income tax expense from uncertain tax position (less than)	$ 0.1	$ 0.1

COMMITMENTS AND CONTINGENCIES C

COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Leases) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating lease, term	9 years 6 months
Balance Sheet Related Disclosures [Abstract]
Right-of-use asset	$ 8,103
Accrued rent	(140)
Right-of-use asset, net	7,963
Lease liability	$ 8,103
Weighted-average discount rate	4.71%
Income Statement Related Disclosures [Abstract]
Lease expense	$ 260
Sublease income	0
Lease expense, net	260
Net cash provided by (used in) operating activities	$ (137)

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Document Period End Date	Mar. 31, 2019
Repurchases of common stock		$ 5,000,000
Remaining authorized repurchase amount	$ 10,000,000
Securities Offerings, reserved for future issuance				$ 150,000,000
Granted (in shares)	140,156	130,458
Reserved for future issuance (in shares)				800,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	1 year
Granted (in shares)	140,156
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Minimum | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payments by Share-based Payment Awards, Ultimate Expense Range, Percent of Target	0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock repurchases authorized amount			$ 10,000,000
Award vesting period	5 years
Maximum | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payments by Share-based Payment Awards, Ultimate Expense Range, Percent of Target	250.00%

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule of Share-based Compensation Arrangements) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 675	$ 665
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	171	169
Intrinsic value of options exercised	0	0
Fair value of restricted stock vested	927	1,187
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	494	623
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 181	$ 42

SHAREHOLDERS' EQUITY (Summary o

SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning of period (in shares) | shares	39,017,000
Granted (in shares) | shares	0
Exercised (in shares) | shares	0
Canceled (in shares) | shares	0
Outstanding, end of period (in shares) | shares	39,017,000
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	$ 3.80
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	$ 3.80

SHAREHOLDERS' EQUITY (Summary_2

SHAREHOLDERS' EQUITY (Summary of Restricted Stock Activity) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	140,156	130,458
Restricted Stock
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)	262,334
Granted (in shares)	140,156
Vested (in shares)	(51,957)
Cancelled (in shares)	(10,990)
Outstanding, end of period (in shares)	339,543
Restricted Shares, Weighted Average Option Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 18.78
Granted (in dollars per share)	18.03
Vested (in dollars per share)	17.85
Cancelled (in dollars per share)	18.27
Outstanding, end of period (in dollars per share)	$ 18.64

SHAREHOLDERS' EQUITY (Reconcili

SHAREHOLDERS' EQUITY (Reconciliation of Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 01, 2018	Mar. 31, 2019	Mar. 31, 2018
Net
Accumulated other comprehensive income (loss), beginning-of-period	$ (3,750)		$ (3,750)
Accumulated other comprehensive income (loss), end-of-period			3,138
AOCI Attributable to Parent
Before Tax
Accumulated other comprehensive income (loss), beginning-of-period	(5,023)	$ 2,287	(5,023)	$ 2,287
Cumulative effect of new accounting standards	0	(1,349)
Other comprehensive income (loss) before reclassification			11,528	(7,200)
Reclassification adjustment for realized losses (gains) included in net income			(2,301)	1,052
Comprehensive income (loss)			9,227	(6,148)
Accumulated other comprehensive income (loss), end-of-period			4,204	(5,210)
Income Tax
Accumulated other comprehensive income (loss), beginning-of-period	1,273	(593)	1,273	(593)
Cumulative effect of new accounting standards	0	355
Other comprehensive income (loss) before reclassification			(2,922)	1,825
Reclassification adjustment for realized losses (gains) included in net income			583	(238)
Other Comprehensive Income (Loss), Tax			(2,339)	1,587
Accumulated other comprehensive income (loss), end-of-period			(1,066)	1,349
Net
Accumulated other comprehensive income (loss), beginning-of-period	(3,750)	1,694	(3,750)	1,694
Cumulative effect of new accounting standards	$ 0	$ (994)
Other comprehensive income (loss) before reclassification			8,606	(5,375)
Reclassification adjustment for realized losses (gains) included in net income			(1,718)	814
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent			6,888	(4,561)
Accumulated other comprehensive income (loss), end-of-period			$ 3,138	$ (3,861)

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	1 Months Ended	3 Months Ended
	Jan. 31, 2019	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income (loss) attributable to FedNat Holding Company shareholders		$ (3,865)	$ 7,463
Weighted average number of common shares outstanding - basic		12,795	12,850
Net (loss) income per share - basic (in dollars per share)		$ (0.30)	$ 0.58
Dilutive effect of stock compensation plans		0	95
Weighted average number of common shares outstanding - diluted		12,795	12,945
Net (loss) income per share - diluted (in dollars per share)		$ (0.30)	$ 0.58
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	May 08, 2019	Jan. 31, 2019	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dividends declared per share (in dollars per share)		$ 0.08	$ 0.08	$ 0.08
Payments of ordinary dividends, amount		$ 1
Subsequent Event
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dividends declared per share (in dollars per share)	$ 0.08
Payments of ordinary dividends, amount	$ 1

VARIABLE INTEREST ENTITY (Carry

VARIABLE INTEREST ENTITY (Carrying Amount of VIE Consolidated Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Investments
Debt securities - available-for-sale, at fair value:	$ 443,458	$ 428,641
Equity securities, at fair value	20,824	17,758
Total investments	468,834	451,525
Cash and cash equivalents	100,589	64,423
Reinsurance recoverable	301,922	211,424
Prepaid reinsurance premiums	69,858	108,577
Premiums receivable, net	22,684	29,791
Deferred acquisition costs, net	40,232	39,436
Other assets	27,441	14,975
Total assets	1,035,587	925,371
Liabilities
Loss and loss adjustment expense reserves	374,124	296,230	$ 236,214	$ 230,515
Unearned premiums	275,860	281,992
Reinsurance payable	31,399	63,599
Debt, net of deferred financing costs	98,401	44,404
Other liabilities	33,320	19,302
Total liabilities	$ 817,671	$ 710,112

Uncategorized Items - fnhc-2019

Label	Element	Value
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	$ 1,043,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	665,000
AOCI Attributable to Parent [Member]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax	(4,332,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(994,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	1,770,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(3,861,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(3,750,000)
Noncontrolling Interest [Member]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax	(229,000)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	(218,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	15,822,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	0
Parent [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	1,043,000
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax	(4,332,000)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	7,463,000
Stock Repurchased During Period, Value	us-gaap_StockRepurchasedDuringPeriodValue	5,000,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	211,637,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	208,080,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	215,259,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	665,000
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	139,728,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	139,388,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	141,128,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	$ 665,000
Common Stock [Member]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation	53,571
Stock Repurchased During Period, Value	us-gaap_StockRepurchasedDuringPeriodValue	$ 3,000
Stock Repurchased During Period, Shares	us-gaap_StockRepurchasedDuringPeriodShares	322,865
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ 130,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	127,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ 128,000
Shares, Outstanding	us-gaap_SharesOutstanding	12,988,247
Shares, Outstanding	us-gaap_SharesOutstanding	12,718,953
Shares, Outstanding	us-gaap_SharesOutstanding	12,784,444
Retained Earnings [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	$ 1,043,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	7,463,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	994,000
Stock Repurchased During Period, Value	us-gaap_StockRepurchasedDuringPeriodValue	4,997,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	70,009,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	72,426,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ 77,753,000
Preferred Stock [Member]
Shares, Outstanding	us-gaap_SharesOutstanding	0
Shares, Outstanding	us-gaap_SharesOutstanding	0
Shares, Outstanding	us-gaap_SharesOutstanding	0