FedNat Holding (FNHCQ) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	FEDERATED NATIONAL HOLDING CO
Entity Central Index Key	1,069,996
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,230,890
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Investments
Debt maturities, available for sale, at fair value	$ 341,915	$ 284,099
Debt maturities, held to maturity, at amortized cost	6,387	7,417
Equity securities, available for sale, at fair value	38,086	39,247
Total investments	386,388	330,763
Cash and short term investments	76,161	40,157
Prepaid reinsurance premiums	95,470	54,502
Premiums receivable, net of allowance for credit losses of $312 and $148, respectively	34,928	27,275
Reinsurance recoverable, net	8,349	12,534
Deferred policy acquisition costs	13,522	13,610
Income taxes receivable	5,763	1,810
Property, plant and equipment, net	2,753	1,749
Other assets	10,973	7,231
Contingent quota-share profit sharing	0	14,000
Total assets	634,307	503,631
LIABILITIES AND SHAREHOLDERS' EQUITY
Unpaid losses and LAE	91,673	78,330
Unearned premiums	250,397	192,424
Debt	5,000	0
Premiums deposits and customer credit balances	11,265	7,381
Deferred income taxes, net	4,815	1,341
Claims payments outstanding	13,272	10,152
Accounts payable and accrued expenses	16,403	10,924
Deferred quota-share profit sharing	0	10,500
Total liabilities	392,825	311,052
Shareholders' equity:
Common stock, $0.01 par value. Authorized 25,000,000 shares; issued and outstanding 13,773,130 and 13,632,414, respectively	138	136
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; none issued or outstanding	0	0
Additional paid-in capital	131,203	127,302
Accumulated other comprehensive income
Unrealized net gains on investments, available for sale	4,838	7,718
Total accumulated other comprehensive income	4,838	7,718
Retained earnings	87,188	57,423
Total Federated National Holding Company equity	223,367	192,579
Non-controlling interest	18,115	0
Total shareholders' equity	241,482	192,579
Total liabilities and shareholders' equity	$ 634,307	$ 503,631

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Premiums receivable, allowance for credit losses	$ 312	$ 148
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	13,773,130	13,632,414
Common stock, shares outstanding (in shares)	13,773,130	13,632,414
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Gross premiums written	$ 129,840	$ 92,032	$ 368,561	$ 280,487
Gross premiums ceded	(119,985)	(129,298)	(231,046)	(179,137)
Net premiums written	9,855	(37,266)	137,515	101,350
Increase in prepaid reinsurance premiums	70,018	80,013	76,756	86,900
Increase in unearned premiums	(17,587)	(8,229)	(57,973)	(58,295)
Net change in prepaid reinsurance premiums and unearned premiums	52,431	71,784	18,783	28,605
Net premiums earned	62,286	34,518	156,298	129,955
Commission income	1,863	1,173	4,296	3,350
Finance revenue	425	392	1,322	1,051
Direct written policy fees	2,782	2,238	7,887	6,417
Net investment income	1,907	1,450	5,154	3,758
Net realized investment gains	1,126	659	3,743	4,047
Other income	2,210	970	4,548	1,540
Quota-share profit sharing, net	0	1,750	3,077	1,750
Total revenue	72,599	43,150	186,325	151,868
Expenses:
Losses and LAE	28,412	15,126	75,510	60,476
Operating and underwriting expenses	11,769	6,732	24,887	14,600
Salaries and wages	7,940	4,022	18,091	10,520
Policy acquisition costs	6,788	5,815	16,938	23,095
Interest expense	65	0	152	0
Total expenses	54,974	31,695	135,578	108,691
Income before provision for income tax expense	17,625	11,455	50,747	43,177
Provision for income tax expense	7,054	4,228	19,519	15,973
Income before non-controlling interest	10,571	7,227	31,228	27,204
Non-controlling interest	(22)	0	(383)	0
Net income attributable to Federated National Holding Company common stockholders	$ 10,593	$ 7,227	$ 31,611	$ 27,204
Net income per share - basic (in dollars per share)	$ 0.77	$ 0.57	$ 2.31	$ 2.35
Net income per share - diluted (in dollars per share)	$ 0.76	$ 0.56	$ 2.26	$ 2.28
Weighted average number of common shares outstanding - basic (in shares)	13,749,394	12,624,746	13,709,605	11,562,709
Weighted average number of common shares outstanding - diluted (in shares)	13,976,709	12,956,407	13,978,381	11,934,057
Dividends paid per share (in dollars per share)	$ 0.05	$ 0.03	$ 0.13	$ 0.09

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Income before non-controlling interest	$ 10,571	$ 7,227	$ 31,228	$ 27,204
Change in net unrealized (losses) gains on investments available for sale	(2,671)	(1,883)	(4,681)	359
Comprehensive income before tax	7,900	5,344	26,547	27,563
Income tax benefit (expense) related to items of other comprehensive income	1,083	615	1,734	(229)
Comprehensive income	8,983	5,959	28,281	27,334
Less: Comprehensive income attributable to NCI	(17)	0	(494)	0
Comprehensive income attributable to FNHC	$ 8,966	$ 5,959	$ 27,787	$ 27,334

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flow from operating activities:
Income before non-controlling interest	$ 31,228	$ 27,204
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of investment premium or discount, net	3,795	2,909
Depreciation and amortization of property plant and equipment, net	495	334
Net realized investment gains	(3,743)	(4,047)
Non-cash compensation	2,903	72
Changes in operating assets and liabilities:
Premiums receivable, net	(7,653)	(5,698)
Prepaid reinsurance premiums	(40,967)	(31,610)
Reinsurance recoverable, net	4,186	(6,494)
Income taxes recoverable	(3,953)	(2,130)
Deferred income tax expense, net of other comprehensive income	5,277	2,741
Policy acquisition costs, net of amortization	88	5,728
Other assets	(3,742)	(1,941)
Contingent quota-share profit sharing	3,500	(1,750)
Unpaid losses and LAE	13,343	12,093
Unearned premiums	57,973	58,295
Cash received from other entitie's debt instrument	5,000	0
Premium deposits and customer credit balances	3,884	3,261
Income taxes payable	0	(2,379)
Claims payments outstanding	3,120	979
Accounts payable and accrued expenses	5,480	1,158
Net cash provided by operating activities	80,214	58,725
Cash flow used by investing activities:
Proceeds from sale of investment securities	134,918	65,869
Purchases of investment securities available for sale	(195,278)	(162,864)
Purchases of property and equipment	(1,500)	(1,074)
Net cash used by investing activities	(61,860)	(98,069)
Cash flow provided by financing activities:
Exercised stock options	130	1,433
Dividends paid	(1,847)	(1,038)
Non-controlling interest investment in affiliate	18,498	0
Issuance of common stock	0	43,116
Tax benefit related to non-cash compensation	869	313
Net cash provided by financing activities	17,650	43,824
Net increase in cash and short term investments	36,004	4,480
Cash and short term investments at beginning of period	40,157	41,446
Cash and short term investments at end of period	76,161	45,926
Cash paid during the period for:
Income taxes	15,662	18,185
Non-cash investing and finance activities:
Accrued dividends payable	$ 712	$ 350

Organization and Business

Organization and Business	9 Months Ended
	Sep. 30, 2015
Organization and Business [Abstract]
Organization and Business	(1) Organization and Business In this Quarterly Report on Form 10-Q, “FNHC” and the terms “Company”, “we”, “us” and “our” refer to Federated National Holding Company and its subsidiaries, unless the context indicates otherwise. FNHC is an insurance holding company that controls substantially all steps in the insurance underwriting, distribution and claims processes through our subsidiaries and our contractual relationships with our independent agents and general agents. We are authorized to underwrite, and/or place through our wholly owned subsidiaries, homeowners’ multi-peril (“homeowners”), commercial general liability, federal flood, personal auto and various other lines of insurance in Florida and various other states. We market and distribute our own and third-party insurers’ products and our other services through a network of independent agents. Our wholly owned insurance subsidiary is Federated National Insurance Company (“FNIC”) and is licensed as an admitted carrier in Florida. An admitted carrier is an insurance company that has received a license from the state department of insurance giving the company the authority to write specific lines of insurance in that state. These companies are also bound by rate and form regulations, and are strictly regulated to protect policyholders from a variety of illegal and unethical practices, including fraud. Admitted carriers are also required to financially contribute to the state guarantee fund, which is used to pay for losses if an insurance carrier becomes insolvent or unable to pay the losses due their policyholders. Through contractual relationships with a network of approximately 3,900 independent agents, of which approximately 2,500 actively sell and service our products. FNIC operates in several states authorized to write various lines of business. The table below reflects the states and lines of business that FNIC operates in as of September 30, 2015. Fire Allied Lines Private Passenger Automobile Homeowners' Multiperil Commercial General Liability Florida (Domestic) a a a a a Alabama d d d a c Georgia - - a - c Louisiana - - - a c South Carolina - - - b - Texas - - a b c a Ongoing operations for more than one year b Ongoing operations for less than one year c Working with state to discontinue line of authority d Licensed, but no current operations Non-Florida commercial general liability operations have not been material to the Company’s overall operations. Although FNIC has underwritten commercial general liability insurance in those states, the Company has decided to wind-down its commercial general liability operations in Alabama, Georgia, Louisiana and Texas, resulting in no new premium for this particular line of business. FNIC continues to underwrite commercial general liability operations in Florida. FNIC is licensed as a non-admitted carrier in Missouri and Nevada and can underwrite commercial general liability insurance in these states. Currently, we do not have any operations in these states. A non-admitted carrier, sometimes referred to as an “excess and surplus lines” carrier, is permitted to do business in a state and, although it is strictly regulated to protect policyholders from a variety of illegal and unethical practices, including fraud, non-admitted carriers are subject to considerably less regulation with respect to policy rates and forms. Non-admitted carriers are not required to financially contribute to and benefit from the state guarantee fund, which is used to pay for losses if an insurance carrier becomes insolvent or unable to pay the losses due their policyholders. The Company has entered into a joint venture to organize Monarch National Insurance Company (“MNIC”), which received its certificate of authority to write homeowners’ property and casualty insurance in Florida from the Florida Office of Insurance Regulation (the “Florida OIR”) on March 19, 2015. The Company’s joint venture partners are a majority-owned limited partnership of Crosswinds Holdings Inc., f/k/a C.A. Bancorp Inc., a publicly traded Canadian private equity firm and asset manager (“Crosswinds”); and Transatlantic Reinsurance Company (“TransRe”). The Company and Crosswinds have each invested $14.0 million in Monarch Delaware Holdings LLC (“Monarch Delaware”), the indirect parent company of MNIC, for a 42.4% interest in Monarch Delaware (each holding 50% of the voting interests in Monarch Delaware). TransRe has invested $5.0 million for a 15.2% non-voting interest in Monarch Delaware and has advanced an additional $5.0 million in debt evidenced by a six-year promissory note bearing 6% annual interest payable by Monarch National Holding Company (“MNHC”), a wholly owned subsidiary of Monarch Delaware and the direct parent company of MNIC. In connection with the organization of MNIC, the parties entered into a Managing General Agent and Claims Administration Agreement (the “Monarch MGA Agreement”) dated March 17, 2015, with FedNat Underwriters, Inc. (“FNU”), a wholly owned subsidiary of the Company, pursuant to which FNU provides underwriting, accounting, reinsurance placement and claims administration services to Monarch. For its services under the Monarch MGA Agreement, FNU will receive 4% of MNIC’s total written annual premium, excluding acquisition expenses payable to agents, for FNU’s managing general agent services; 3.6% of MNIC’s total earned annual premium for FNU’s claims administration services; and a per-policy administrative fee of $25 for each policy underwritten for MNIC. The Company will also receive an annual expense reimbursement for accounting and related services. On October 20, 2015, the Florida OIR approved the filing made by FNIC to comply with the cease and desist order dated May 19, 2015 to enable the Florida OIR to review and approve FNIC’s analytic models. On October 21, 2015, the Florida OIR rescinded the cease and desist order based upon its approval of the Company’s filing. Pending approval of its underwriting analytics, FNIC used its current filed and approved rule-based underwriting to manage all new and existing business since early June 2015. Prior to this change, the average weekly new premium written was approximately $3.3 million. Since discontinuing the use of the underwriting analytics, the average weekly new premium written during the next seven weeks increased to $4.9 million, a 48% increase. Since that peak, the average written premium returned to an anticipated $3.3 million level. The Company does not believe that the additional written premium will have a material impact on the Company's results of operations. We previously entered into a Coexistence Agreement effective August 30, 2013 (the “Coexistence Agreement”) with Federated Mutual Insurance Company (“Federated Mutual”) pursuant to which, among other things, we may continue to use “Federated” until at least August 30, 2020, after which time we have agreed to either cease using “Federated” in commerce or otherwise adopt and use trade names that are not confusingly similar to Federated Mutual’s trademarks. We continue to develop our brand under the “FedNat” name, which is the name by which agents generally know us. As of September 30, 2014, we had satisfied all applicable conditions of the Consent Order we entered into in January 2011 (the “Consent Order”) with the Florida OIR in connection with the merger of FNIC into American Vehicle Insurance Company (“American Vehicle”). As of the date of this Report, the only operational restriction that remains in effect is a requirement to obtain Florida OIR approval prior to writing commercial multi-peril business or any new commercial property business, including condo associations, under any other line of business for which FNIC is authorized. During the three months ended September 30, 2015, 91.6%, 2.6%, 3.8% and 2.0% of the premiums we underwrote were for homeowners', commercial general liability, automobile insurance, and federal flood, respectively. During the three months ended September 30, 2015, $28.6 million or 24.1% of the $118.9 million of the homeowners' premiums we underwrote were produced under Ivantage Select Agency, Inc. ("ISA"), an affiliate of Allstate Insurance Company, that grants Allstate agents the authority to offer certain FNIC products. The $9.6 million increased homeowners' premiums we underwrote under ISA represents 27.0% of the $35.6 million increased total homeowners' premiums we underwrote during the three months ended September 30, 2015. During the three months ended September 30, 2014, $19.0 million or 22.8% of the $83.3 million of the homeowners' premiums we underwrote were produced under ISA. This network of agents began writing for FNIC in March 2013. During the three months ended September 30, 2014, 90.5%, 3.4%, 2.5% and 3.6% of the premiums we underwrote were for homeowners', commercial general liability, federal flood, and automobile insurance, respectively. During the nine months ended September 30, 2015, 92.3%, 3.0%, 2.9% and 1.8% of the premiums we underwrote were for homeowners’, commercial general liability, automobile insurance, and federal flood, respectively. During the nine months ended September 30, 2015, $75.7 million or 22.2% of the $340.2 million of the homeowners’ premiums we underwrote were produced under ISA. The $26.3 million increased homeowners’ premiums we underwrote under ISA represents 31.2% of the $84.3 million increased total homeowners’ premiums we underwrote during the nine months ended September 30, 2015. During the nine months ended September 30, 2014, $49.4 million or 19.3% of the $255.9 million of the homeowners’ premiums we underwrote were produced under ISA. This network of agents began writing for FNIC in March 2013. During the nine months ended September 30, 2014, 91.2%, 3.4%, 2.2% and 3.2% of the premiums we underwrote were for homeowners’, commercial general liability, federal flood, and automobile insurance, respectively. Our business, results of operations and financial condition are subject to fluctuations due to a variety of factors. Abnormally high severity or frequency of claims in any period could have a material adverse effect on us. When our estimated liabilities for unpaid losses and loss adjustment expenses (“LAE”) are less than the actuarially determined amounts, we increase the expense in the current period. Conversely, when our estimated liabilities for unpaid losses and LAE are greater than the actuarially determined amounts, we decrease the expense in the current period. We are focusing our marketing efforts on continuing to expand our distribution network while maintaining our commitment to long-term relationships. We market our products and services throughout Florida and in other states by establishing relationships with additional independent agents and general agents. There can be no assurance, however, that we will be able to obtain the required regulatory approvals to offer additional insurance products or expand into other states. FNU, a wholly owned subsidiary of the Company, acts as FNIC’s and MNIC’s exclusive managing general agent and is also licensed as a managing general agent in the States of Florida, Alabama, Georgia, Louisiana, Mississippi, Nevada, South Carolina and Texas. FNU is an appointed Lloyds of London coverholder to write homeowners’ multi peril insurance in Florida on an excess and surplus lines basis and has contracted with other unaffiliated insurance companies to sell personal umbrella coverage through FNU’s existing network of agents. Operations for Lloyds of London commenced in the third quarter of this year. FNU earns commissions and fees for providing policy administration, marketing, accounting and analytical services, and for participating in the negotiation of reinsurance contracts. FNU earns a per policy fee which ranges from $25 to $55 and a commission fee from its affiliate, FNIC and MNIC, which totaled 4% during the three months ended September 30, 2015. The Florida OIR periodically reviews our managing general agent’s fee structure to ensure that it is neither excessive nor inadequate to operate. We internally process claims made by our insureds through our wholly owned claims adjusting company, Federated National Adjusting, Inc. (“FNA”). Our agents have no authority to settle claims or otherwise exercise control over the claims process. Furthermore, we believe that the retention of independent adjusters, in addition to the employment of salaried claims personnel, results in reduced ultimate loss payments, lower LAE and improved customer service for our claimants and policyholders. We also employ an in-house litigation management team to cost effectively manage claims-related litigation and to monitor our claims handling practices for efficiency and regulatory compliance. During 2014, the Florida OIR approved an application to allow the claims administration operations of FNA to be assumed by FNU. Under the amended managing general agency agreement between FNU and FNIC, FNU will provide the same claims administration services. The combination of these services in FNU had no effect on consolidated net income. Insure-Link, Inc. (“Insure-Link”) is our independent insurance agency. The insurance agency markets direct to the public to provide a variety of insurance products and services to individual clients, as well as business clients, by offering a full line of insurance products including, but not limited to, homeowners’, flood, personal and commercial automobile, commercial general liability, workers’ compensation, boat and recreational vehicle and personal articles and jewelry insurance through their agency appointments with over one hundred different carrier relationships.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis of Presentation [Abstract]
Basis of Presentation	(2) Basis of Presentation The accompanying unaudited condensed consolidated financial statements for the Company and its majority-owned subsidiaries and its consolidated variable interest entity (“VIE”) have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of September 30, 2015 and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2015. The accompanying unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014 included in the Company’s Form 10-K, which was filed with the SEC on March 16, 2015. In preparing the interim unaudited condensed consolidated financial statements, management was required to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. All significant intercompany balances and transactions have been eliminated.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Practices	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies and Practices [Abstract]
Summary of Significant Accounting Policies and Practices	( 3) Summary of Significant Accounting Policies and Practices (A) Critical Accounting Policies The preparation of financial statements in conformity with GAAP 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 inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of our financial statements include estimates associated with management’s evaluation of the determination of (i) liability for unpaid losses and LAE, (ii) the amount and recoverability of amortization of DPAC, and (iii) estimates for our reserves with respect to finance contracts, premiums receivable and deferred income taxes. Various assumptions and other factors underlie the determination of these significant estimates, which are described in greater detail in Footnote 2 of the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2014, which we included in the Company’s Annual Report on Form 10-K which was filed with the SEC on March 16, 2015. We believe that there were no significant changes in those critical accounting policies and estimates during the nine months ended September 30, 2015. Senior management has reviewed the development and selection of our critical accounting policies and estimates and their disclosure in this Form 10-Q with the Audit Committee of our Board of Directors. The process of determining significant estimates is fact-specific and takes into account factors such as historical experience, current and expected economic conditions, and in the case of unpaid losses and LAE, an actuarial valuation. Management regularly reevaluates these significant factors and makes adjustments where facts and circumstances dictate. In selecting the best estimate, we utilize various actuarial methodologies. Each of these methodologies is designed to forecast the number of claims we will be called upon to pay and the amounts we will pay on average to settle those claims. In arriving at our best estimate, our actuaries consider the likely predictive value of the various loss development methodologies employed in light of underwriting practices, premium rate changes and claim settlement practices that may have occurred, and weight the credibility of each methodology. Our actuarial methodologies take into account various factors, including, but not limited to, paid losses, liability estimates for reported losses, paid allocated LAE, salvage and other recoveries received, reported claim counts, open claim counts and counts for claims closed with and without payment for loss. We are required to review the contractual terms of all our reinsurance purchases to ensure compliance with U.S. GAAP, which establishes the conditions required for a contract with a reinsurer to be accounted for as reinsurance and prescribes accounting and reporting standards for those contracts. Contracts that do not result in the reasonable possibility that the reinsurer may realize a significant loss from the insurance risk assumed generally do not meet the conditions for reinsurance accounting and must be accounted for as deposits. The guidance also requires us to disclose the nature, purpose and effect of reinsurance transactions, including the premium amounts associated with reinsurance assumed and ceded. It also requires disclosure of concentrations of credit risk associated with reinsurance receivables and prepaid reinsurance premiums. Investments classified as held-to-maturity include debt securities wherein the Company’s intent and ability are to hold the investment until maturity and are carried at amortized cost without consideration to unrealized gains or losses. Investments classified as trading securities include debt and equity securities bought and held primarily for sale in the near term and are carried at fair value with unrealized holding gains and losses included in current period operations. Investments classified as available-for-sale include debt and equity securities that are not classified as held-to-maturity or as trading security investments and are carried at fair value with unrealized holding gains and losses excluded from earnings and reported as a separate component of shareholders’ equity, namely “Other Comprehensive Income”. A decline in the fair value of an available-for-sale security below cost that is deemed other-than-temporary results in a charge to income, resulting in the establishment of a new cost basis for the security. Premiums and discounts are amortized or accreted, respectively, over the life of the related debt security as an adjustment to yield using a method that approximates the effective interest method. Dividends and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific-identification method for determining the cost of securities sold. Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of investments, premiums receivable, amounts due from reinsurers on paid and unpaid losses and finance contracts. We have not experienced significant losses related to premiums receivable from individual policyholders or groups of policyholders in a particular industry or geographic area. We believe no credit risk beyond the amounts provided for collection losses is inherent in our premiums receivable or finance contracts. In order to reduce credit risk for amounts due from reinsurers, we seek to do business with financially sound reinsurance companies and regularly review the financial strength of all reinsurers used. Additionally, our credit risk in connection with our reinsurers is frequently mitigated by the establishment of irrevocable clean letters of credit in favor of FNIC. The fair value of our investments is estimated based on prices published by financial services or quotations received from securities dealers and is reflective of the interest rate environment that existed as of the close of business on September 30, 2015 and December 31, 2014. Changes in interest rates subsequent to September 30, 2015 and December 31, 2014 may affect the fair value of our investments. The carrying amounts for the following financial instrument categories approximate their fair values at September 30, 2015 and December 31, 2014 because of their short-term nature: cash and short-term investments, premiums receivable, finance contracts, due from reinsurers, revolving credit outstanding, claims payments outstanding, accounts payable and accrued expenses. (B) Impact of New Accounting Pronouncements In May 2015, the FASB issued Accounting Standard Update (“ASU”) 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration-Contracts. The amendments in this ASU apply to all insurance entities that issue short-duration contracts as defined in Topic 944, Financial Services—Insurance. The amendments require insurance entities to disclose for annual reporting periods the following information about the liability for unpaid claims and claim adjustment expenses: (1) Incurred and paid claims development information by accident year, on a net basis after risk mitigation through reinsurance, for the number of years for which claims incurred typically remain outstanding (that need not exceed 10 years, including the most recent reporting period presented in the statement of financial position). Each period presented in the disclosure about claims development that precedes the current reporting period is considered to be supplementary information. (2) A reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid claims and claim adjustment expenses, with separate disclosure of reinsurance recoverable on unpaid claims for each period presented in the statement of financial position. (3) For each accident year presented of incurred claims development information, the total of incurred-but-not-reported liabilities plus expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses, accompanied by a description of reserving methodologies (as well as any changes to those methodologies). (4) For each accident year presented of incurred claims development information, quantitative information about claim frequency (unless it is impracticable to do so) accompanied by a qualitative description of methodologies used for determining claim frequency information (as well as any changes to these methodologies). (5) For all claims except health insurance claims, the average annual percentage payout of incurred claims by age (that is, history of claims duration) for the same number of accident years as presented in (3) and (4) above. The amendments in this ASU are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Because the new guidance does not affect the existing recognition or measurement guidance, the adoption is not expected to have any effect on our financial position, results of operations or cash flows. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 amends the consolidation requirements and significantly changes the consolidation analysis required. The amendments in this ASU affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (i) modify the evaluation of whether limited partnership and similar legal entities are VIEs ,(ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with VIEs particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Act of 1940 for registered money market funds. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and, earlier adoption is permitted. The adoption of the amendments in this ASU will not have a material impact on our financial position, results of operations or cash flows. Other recent accounting pronouncements issued by FASB, the American Institute of Certified Public Accountants (“AICPA”), and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements. ( C) Stock Options Pursuant to FASB issued guidance, compensation cost recognized during the nine months ended September 30, 2015 includes compensation cost for all share-based payments granted subsequent to January 1, 2006, based on the grant date fair value estimated in accordance with the guidance. (D) Earnings per Share Basic earnings per share (“Basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period presented. Diluted earnings per share (“Diluted EPS”) is computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding during the period presented. (E) Adjustments In conjunction with our third quarter 2015 analysis of actual experience to date under the July 1, 2014 quota share reinsurance contract, we re-evaluated the accounting treatment for quota share reinsurance contracts with retrospective rating provisions. As a result of this re-evaluation, we have concluded reinsurance contracts which have retrospective rating provisions should be accounted for under Accounting Standards Codification 944, Financial Services — Insurance (a) We eliminated recording of future estimated quota share profits in one line item, “Quota Share Profit Sharing,” in the financial statements. (b) Amounts due to (from) the assuming companies have been accrued based on actual contract experience to date as though the contracts were terminated. These accruals impacted the following income statement line items: gross ceded premiums, loss and loss adjustment expenses, and deferred policy acquisition costs. The adjustments to our accounting for the July 1, 2014 quota share reinsurance treaty, inclusive of other adjustments, are not material in any prior quarter or annual period based on an analysis of quantitative and qualitative factors in accordance with SEC Guidance. As a result, we recorded these adjustments during the third quarter of 2015. These adjustments increased net income by $2.2 million for the three and nine month periods ended on September 30, 2015. Additionally, the quota share reinsurance accounting adjustments impacted the following income statement line items for the three and nine month periods ended on September 30, 2015: · Gross ceded premiums decreased by $10.9 million, · Loss and loss adjustment expenses increased by $4.5 million, and · Deferred acquisition costs increased by $1.5 million. Finally, the quota share reinsurance accounting adjustments impacted the following balance sheet line items for the three and nine months periods ended on September 30, 2015: · Prepaid reinsurance premiums increased by $10.9 million, · Reinsurance recoverable, net decreased by $4.5 million, and · Deferred policy acquisition costs decreased by $1.5 million. · The $14 million balance previously reported under Contingent quota-share profit sharing has been reclassed to the prepaid reinsurance premiums line item · The $7 million balance previously reported under Deferred quota-share profit sharing has been reclassed to the reinsurance recoverable, net line item

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(4) Commitments and Contingencies Management has a responsibility to continually measure and monitor its commitments and its contingencies. The nature of the Company’s commitments and contingencies can be grouped into three major categories: insured claim activity, assessment related activities and operational matters. (A) Insured Claim Activity We are involved in claims and legal actions arising in the ordinary course of business. The amount of liability for these claims and lawsuits is uncertain. Revisions to our estimates are based on our analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) legislative enactments, judicial decisions, legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation. Management revises its estimates based on the results of its analysis. This process assumes that experience, adjusted for the effects of current developments and anticipated trends, is an appropriate basis for estimating the ultimate settlement of all claims. There is no precise method for subsequently evaluating the impact of any specific factor on the adequacy of the reserves, because the eventual redundancy or deficiency is affected by multiple factors. In the opinion of management, the ultimate disposition of these matters may have a material adverse effect on our consolidated financial position, results of operations, or liquidity. The Company’s subsidiaries are, from time to time, named as defendants in various lawsuits incidental to their insurance operations. Legal actions relating to claims made in the ordinary course of seeking indemnification for a loss covered by the insurance policy are considered by the Company in establishing loss and LAE reserves. The Company also faces, in the ordinary course of business, lawsuits that seek damages beyond policy limits. The Company continually evaluates potential liabilities and reserves for litigation of these types. Reserves for a loss are recorded if the likelihood of occurrence is probable and the amount can be reasonably estimated. If a loss, while not probable, is judged to be reasonably possible, management will make an estimate of a possible range of loss or state that an estimate cannot be made. Management considers each legal action using this guidance and records reserves for losses as warranted. (B) Assessment Related Activity We operate 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, but are not limited to, Florida Insurance Guaranty Association (“FIGA”), Citizens Property Insurance Corporation (“Citizens”), Florida Hurricane Catastrophe Fund (“FHCF”) and Florida Joint Underwriters Insurance Association (“JUA”). As a direct premium writer in the state of Florida, we are required to participate in certain insurer solvency associations under Florida Statutes Section 631.57(3) (a), administered by FIGA. FNIC is also required to participate in an insurance apportionment plan under Florida Statutes Section 627.351, 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. FNIC was not assessed by the JUA Plan during 2015 or 2014. Future assessments by this association are undeterminable at this time. (C) Operational Matters The Company files federal income tax returns as well as multiple state and local tax returns. The Company’s consolidated federal and state income tax returns for 2012 - 2014 are open for review by the Internal Revenue Service (“IRS”) and the various state taxing authorities. The Company’s 2011 federal tax return was reviewed by the IRS and a “no change” report was issued indicating that the IRS is in agreement with the tax positions presented on the 2011 return. The 2014 federal and state income tax returns were timely filed by the extended filing deadline of September 15, 2015. The Company does not have any known uncertain tax positions and all tax positions are evaluated in accordance with FIN 48. Any change to or resolution of tax reserves could be material to the Company’s results of operations for any period, but is not expected to be material to the Company’s financial position. The Company has recorded a net deferred tax liability of $4.8 million as of September 30, 2015 compared with $1.3 million as of December 31, 2014. The calculation of current and deferred income taxes presents management’s assessment of the amount of current and future taxes to be paid. The calculation of deferred tax assets and liabilities is in accordance with ASC 740. These assets and liabilities may be impacted if new information not previously available is considered in future analysis and calculations. Because of the unpredictability and complexity of these future uncertainties the ultimate resolution of the tax payment may be an amount that is materially different from the current estimate of the tax liabilities. As of September 30, 2015 the Company has recorded a net deferred tax liability of $4.8 million. The primary reason for the change in deferred tax liabilities include the tax impact of the appreciation in the market value of the available-for-sale securities. Any change in circumstances leading to a change in the tax liability would be recorded in the period that the change in circumstances occurs. The Company is not currently involved in any material legal actions arising from the ordinary course of business that are not related to the insured claims activity.

Variable Interest Entity

Variable Interest Entity	9 Months Ended
	Sep. 30, 2015
Variable Interest Entity [Abstract]
Variable Interest Entity	(5) Variable Interest Entity Our consolidated financial statements include Monarch Delaware because we have determined Monarch Delaware is a VIE, we have a variable interest in Monarch Delaware and we are the primary beneficiary. When we are the primary beneficiary, we are required to consolidate the entity in our financial statements. The primary beneficiary of a VIE is defined as the enterprise with (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. On an ongoing basis, we assess whether we are the primary beneficiary of VIEs in which we have a relationship. The carrying amount of our VIE consolidated assets and liabilities are as follows. September 30, 2015 December 31, 2014 ASSETS (Dollars in Thousands) Investments Debt maturities, held to maturity, at amortized cost $ 21,877 $ - Equity securities, available for sale, at fair value 1,350 - Total investments 23,227 - Cash and short term investments 13,492 - Premiums receivable, net 326 - Deferred policy acquisition costs 168 - Deferred income taxes, net 665 - Other assets 178 - Total assets $ 38,056 $ - LIABILITIES AND SHAREHOLDERS' EQUITY Unpaid losses and LAE $ 112 $ - Unearned premiums 1,072 - Income taxes payable 110 - Accounts payable and accrued expenses 249 - Debt 5,000 - Total liabilities $ 6,543 $ - Shareholders' equity: Common stock, $0.01 par value. Issued and outstanding 100 shares - - Additional paid-in capital 32,413 - Accumulated other comprehensive income Unrealized net gains on investments, available for sale (234 ) - Total accumulated other comprehensive income (234 ) - Retained earnings (666 ) - Total shareholders' equity 31,513 - Total liabilities and shareholders' equity $ 38,056 $ -

Investments

Investments	9 Months Ended
	Sep. 30, 2015
Investments [Abstract]
Investments	(6) Investments We account for our investment securities consistent with FASB issued guidance that requires our securities to be classified into one of three categories: (i) held-to-maturity, (ii) trading securities or (iii) available-for-sale. Investments classified as held-to-maturity include debt securities wherein the Company’s intent and ability are to hold the investment until maturity and are carried at amortized cost without consideration to unrealized gains or losses. Investments classified as trading securities include debt and equity securities bought and held primarily for sale in the near term and are carried at fair value with unrealized holding gains and losses included in current period operations. Investments classified as available-for-sale include debt and equity securities that are not classified as held-to-maturity or as trading security investments and are carried at fair value with unrealized holding gains and losses excluded from earnings and reported as a separate component of shareholders’ equity, namely “Other Comprehensive Income”. The following table summarizes, by type, our investments as of September 30, 2015 and December 31, 2014. September 30, 2015 December 31, 2014 Carrying Amount Percent of Total Carrying Amount Percent of Total (Dollars in Thousands) Debt securities, at fair value: United States government obligations and authorities $ 65,994 17.08 % $ 62,323 18.84 % Obligations of states and political subdivisions 108,597 28.11 % 91,614 27.70 % Corporate 155,324 40.20 % 119,024 35.99 % International 12,000 3.11 % 11,138 3.37 % 341,915 88.50 % 284,099 85.90 % Debt securities, at amortized cost: United States government obligations and authorities 4,221 1.09 % 4,490 1.36 % Corporate 2,101 0.54 % 2,681 0.81 % International 65 0.02 % 246 0.07 % 6,387 1.65 % 7,417 2.24 % Total debt securities 348,302 90.15 % 291,516 88.14 % Equity securities, at fair value: 38,086 9.85 % 39,247 11.86 % Total investments $ 386,388 100.00 % $ 330,763 100.00 % The following table shows the realized gains (losses) for debt and equity securities for the three months ended September 30, 2015 and 2014. Three Months Ended September 30, 2015 2014 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (Dollars in Thousands) Debt securities $ 226 $ 21,843 $ 241 $ 16,413 Equity securities 1,847 4,226 453 1,642 Total realized gains 2,073 26,069 694 18,055 Debt securities (178 ) 9,744 (20 ) 1,627 Equity securities (769 ) 3,306 (15 ) 118 Total realized losses (947 ) 13,050 (35 ) 1,745 Net realized gains on investments $ 1,126 $ 39,119 $ 659 $ 19,800 Net realized investment gains totaled $1.1 million for the three months ended September 30, 2015, compared with $0.7 million during the three months ended September 30, 2014. From time to time, our asset managers, at their discretion, make periodic sales from the portfolio and during the three months ended September 30, 2015, the majority of the realized gains were from equity sales. Total investments increased $55.6 million, or 16.8%, to $386.4 million as of September 30, 2015, compared with $330.8 million as of December 31, 2014. The debt and equity securities that are available-for-sale and carried at fair value represent 98% of total investments as of September 30, 2015 and December 31, 2014. We did not hold any trading investment securities during the nine months ended September 30, 2015. The Company’s policy for the valuation of temporarily impaired securities is to determine impairment based on the analysis of the following factors. · rating downgrade or other credit event (eg., failure to pay interest when due); · length of time and the extent to which the fair value has been less than amortized cost; · financial condition and near term prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology or discontinuance of a business segment; · prospects for the issuer’s industry segment; · intent and ability of the Company to retain the investment for a period of time sufficient to allow for anticipated recovery in market value; · historical volatility of the fair value of the security; · intent to sale the security. · Whether it is more likely than not that there would be a requirement to sell the security before its anticipated recovery. During the nine months ended September 30, 2015, we have charged to operations, realized investment losses of less than $0.1 million. The charges relate to common stock held in diverse industries. During the nine months ended September 30, 2014, in connection with the process, we have not charged operations with investment losses. As of September 30, 2015 and December 31, 2014, respectively, all of our securities are in good standing and not impaired as defined by FASB issued guidance except as noted above. As of September 30, 2015 and December 31, 2014, our investments consisted primarily of corporate bonds held in various industries, municipal bonds and United States government bonds. As of September 30, 2015, 80% of our debt portfolio was in diverse industries and 20% was in United States government bonds. As of September 30, 2015, approximately 86% of our equity holdings were in equities related to diverse industries and 14% were in mutual funds. As of December 31, 2014, 77% of our debt portfolio was in diverse industries and 23% is in United States government bonds. As of December 31, 2014, approximately 88% of our equity holdings were in equities related to diverse industries and 12% were in mutual funds As of September 30, 2015 and December 31, 2014, we have classified $6.4 million and $7.4 million, respectively, of our bond portfolio as held-to-maturity. We classify bonds as held-to-maturity to support securitization of credit requirements. The following table shows the realized gains (losses) for debt and equity securities for the nine months ended September 30, 2015 and 2014. Nine Months Ended September 30, 2015 2014 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (Dollars in Thousands) Debt securities $ 973 $ 71,869 $ 533 $ 38,657 Equity securities 4,189 9,985 4,013 12,595 Total realized gains 5,162 81,854 4,546 51,252 Debt securities (504 ) 39,926 (118 ) 8,333 Equity securities (915 ) 3,959 (381 ) 1,639 Total realized losses (1,419 ) 43,885 (499 ) 9,972 Net realized gains on investments $ 3,743 $ 125,739 $ 4,047 $ 61,224 Net realized investment gains totaled $3.7 million for the nine months ended September 30, 2015, compared with $4.0 million during the nine months ended September 30, 2014. During the nine months ended September 30, 2015, the investment committee decided to increase the fixed income asset allocation by directing new invested dollars and reducing our exposure to equities. A summary of the amortized cost, estimated fair value and gross unrealized gains and losses of debt and equity securities at September 30, 2015 and December 31, 2014 is as follows. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in Thousands) September 30, 2015 Debt Securities - Available-For-Sale: United States government obligations and authorities $ 64,876 $ 1,233 $ 115 $ 65,994 Obligations of states and political subdivisions 107,211 1,428 42 108,597 Corporate 154,469 1,625 770 155,324 International 12,104 55 159 12,000 $ 338,660 $ 4,341 $ 1,086 $ 341,915 Debt Securities - Held-To-Maturity: United States government obligations and authorities $ 4,221 $ 51 $ 184 $ 4,088 Corporate 2,101 25 6 2,120 International 65 - - 65 $ 6,387 $ 76 $ 190 $ 6,273 Equity securities - common stocks $ 33,605 $ 6,391 $ 1,910 $ 38,086 December 31, 2014 Debt Securities - Available-For-Sale: United States government obligations and authorities $ 61,376 $ 1,022 $ 75 $ 62,323 Obligations of states and political subdivisions 90,728 956 70 91,614 Corporate 117,778 1,578 332 119,024 International 11,139 53 54 11,138 $ 281,021 $ 3,609 $ 531 $ 284,099 Debt Securities - Held-To-Maturity: United States government obligations and authorities $ 4,490 $ 41 $ 225 $ 4,306 Corporate 2,681 31 5 2,707 International 246 1 1 246 $ 7,417 $ 73 $ 231 $ 7,259 Equity securities - common stocks $ 29,908 $ 9,836 $ 497 $ 39,247 The table below reflects our unrealized investment losses by investment class, aged for length of time in a continuous unrealized loss position as of September 30, 2015. Unrealized Losses Less than 12 months 12 months or longer (Dollars in Thousands) Debt securities: United States government obligations and authorities $ 115 $ 95 $ 20 Obligations of states and political subdivisions 42 42 - Corporate 770 740 30 International 159 159 - 1,086 1,036 50 Equity securities: Common stocks 1,910 1,881 29 Total debt and equity securities $ 2,996 $ 2,917 $ 79 The table below reflects our unrealized investment losses by investment class, aged for length of time in a continuous unrealized loss position as of December 31, 2014. Unrealized Losses Less than 12 months 12 months or longer (Dollars in Thousands) Debt securities: United States government obligations and authorities $ 75 $ 22 $ 53 Obligations of states and political subdivisions 70 66 4 Corporate 332 260 72 International 54 54 - 531 402 129 Equity securities: Common stocks 497 461 36 Total debt and equity securities $ 1,028 $ 863 $ 165 Below is a summary of debt securities at September 30, 2015 and December 31, 2014, by contractual or expected maturity periods. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2015 December 31, 2014 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (Dollars in Thousands) Due in one year or less $ 19,635 $ 19,659 $ 16,777 $ 16,797 Due after one through five years 188,397 190,047 173,236 174,273 Due after five through ten years 136,989 138,449 98,404 100,259 Due after ten years 26 33 26 33 Total $ 345,047 $ 348,188 $ 288,443 $ 291,362 United States Treasury notes with a book value of $60,674 and $2,204,798, maturing in 2016 and 2022, and a statutory deposit held in trust with a book value of $0.3 million, were on deposit with the Florida OIR as of September 30, 2015, as required by law for FNIC and MNIC, respectively, and are included with other investments held until maturity. United States Treasury notes with a book value of $61,465 and $2,208,588, maturing in 2016 and 2022, respectively, were on deposit with the Florida OIR as of December 31, 2014, as required by law for FNIC, and are included with other investments held until maturity. The table below sets forth investment results for the three months ended September 30, 2015 and 2014. Three Months Ended September 30, 2015 2014 (Dollars in Thousands) Interest on debt securities $ 1,755 $ 1,328 Dividends on equity securities 147 121 Interest on cash and cash equivalents 5 1 Total investment income $ 1,907 $ 1,450 Proceeds from sales, pay downs and maturities of debt securities and proceeds from sales of equity securities during the three months ended September 30, 2015 and 2014, were approximately $42.5 million and $21.8 million, respectively. The table below sets forth investment results for the nine months ended September 30, 2015 and 2014. Nine Months Ended September 30, 2015 2014 (Dollars in Thousands) Interest on debt securities $ 4,713 $ 3,432 Dividends on equity securities 381 324 Interest on cash and cash equivalents 60 2 Total investment income $ 5,154 $ 3,758 Proceeds from sales, pay downs and maturities of debt securities and proceeds from sales of equity securities during the nine months ended September 30, 2015 and 2014, were approximately $134.9 million and $65.9 million, respectively. The table below sets forth a summary of net realized investment gains during the three months ended September 30, 2015 and 2014. Three Months Ended September 30, 2015 2014 (Dollars in Thousands) Net realized gains Debt securities $ 48 $ 221 Equity securities 1,078 438 Total $ 1,126 $ 659 The table below sets forth a summary of net realized investment gains during the nine months ended September 30, 2015 and 2014. Nine Months Ended September 30, 2015 2014 (Dollars in Thousands) Net realized gains Debt securities $ 469 $ 415 Equity securities 3,274 3,632 Total $ 3,743 $ 4,047 The table below sets forth a summary of net unrealized investment gains as of September 30, 2015 and December 31, 2014. Unrealized Gains September 30, 2015 December 31, 2014 (Dollars in Thousands) Net unrealized gains Debt securities $ 3,255 $ 3,078 Equity securities 4,481 9,339 Total $ 7,736 $ 12,417

Fair Value Disclosure

Fair Value Disclosure	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosure [Abstract]
Fair Value Disclosure	(7) Fair Value Disclosure Fair value is the price that would be received upon the sale of 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 carried at fair value are classified and disclosed in one of the following categories: Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price for an identical asset or liability in an active market provides the most reliable fair value measurement because it is directly observable to the market. Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs are observable for an asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement. Securities available-for-sale Assets measured at fair value on a recurring basis as of September 30, 2015, presented in accordance with this guidance, are as follows. As of September 30, 2015 Level 1 Level 2 Level 3 Total (Dollars in Thousands) Debt securities: United States government obligations and authorities $ 40,833 $ 25,161 $ - $ 65,994 Obligations of states and political subdivisions - 108,597 - 108,597 Corporate - 155,324 - 155,324 International - 12,000 - 12,000 40,833 301,082 - 341,915 Equity securities: Common stocks 38,086 - - 38,086 38,086 - - 38,086 Total debt and equity securities $ 78,919 $ 301,082 $ - $ 380,001 Assets measured at fair value on a recurring basis as of December 31, 2014, presented in accordance with this guidance, are as follows. As of December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in Thousands) Debt securities: United States government obligations and authorities $ 46,002 $ 16,321 $ - $ 62,323 Obligations of states and political subdivisions - 91,614 - 91,614 Corporate - 119,024 - 119,024 International - 11,138 - 11,138 46,002 238,097 - 284,099 Equity securities: Common stocks 39,247 - - 39,247 39,247 - - 39,247 Total debt and equity securities $ 85,249 $ 238,097 $ - $ 323,346

Reinsurance Agreements

Reinsurance Agreements	9 Months Ended
	Sep. 30, 2015
Reinsurance Agreements [Abstract]
Reinsurance Agreements	(8) Reinsurance Agreements Financing risk generally involves a combination of risk retention and risk transfer techniques. “Retention”, similar to a deductible, involves financing losses by funds internally generated. “Transfer” involves the existence of a contractual arrangement designed to shift financial responsibility to another party in exchange for premium. Secondary to the primary risk-transfer agreements, we use reinsurance agreements to transfer a portion of the risks insured under our policies to other companies through the purchase of reinsurance. We utilize reinsurance to reduce exposure to catastrophic and non-catastrophic risks and to help manage the cost of capital. Reinsurance techniques are designed to lessen earnings volatility, improve shareholder return, and to support the required statutory surplus requirements. We also use reinsurance to realize an arbitrage of premium rates, benefit from the availability of our reinsurers’ expertise, and benefit from the management of a profitable portfolio of insureds by way of enhanced analytical capacities. Our primary property line that is subject to catastrophic reinsurance is Homeowners’ Multiple Peril. FNIC cedes these risks to domestic and foreign reinsurance participants around the world as well as to the FHCF. Quota share reinsurance is a pro rata agreement among the primary insurer and one or more reinsurers where each party shares a fixed and predetermined percentage of the program’s premiums and losses. Excess of loss risk transfer agreements involve the transfer of premium in exchange for reimbursement for claims, if they occur, as a result of specific events such as severe catastrophic weather. For quota share and excess of loss reinsurance, coverage is generally afforded based on meeting predetermined risk characteristics. In contrast, facultative reinsurance is negotiated between the primary insurer and the reinsurer(s) on a case-by-case basis with no obligation on either part to cede or assume share of the risk. Generally, there are three separate kinds of reinsurance structures – quota share, excess of loss, and facultative, each considered either proportional or non-proportional. Our reinsurance structures are maintained to protect our insurance subsidiary against the severity of losses on individual claims or unusually serious occurrences in which the frequency and or the severity of claims produce an aggregate extraordinary loss from catastrophic events. In addition to reinsurance agreements, we also from time to time enter into retro-cessionary reinsurance agreements; each designed to shift financial responsibility based on predefined conditions. Although reinsurance does not discharge us from our primary obligation to pay for losses insured under the policies we issue, reinsurance does make the assuming reinsurer liable to the insurance subsidiary for the reinsured portion of the risk. A credit risk exposure exists with respect to ceded losses to the extent that any reinsurer is unable or unwilling to meet the obligations assumed under the reinsurance contracts. The collectability of reinsurance is subject to the solvency of the reinsurers, interpretation of contract language and other factors. A reinsurer's insolvency or inability to make payments under the terms of a reinsurance contract could have a material adverse effect on our results of operations and financial condition. Our reinsurance structure has significant risks, including the fact that the FHCF may not be able to raise sufficient money to pay its claims or impair its ability to pay its claims in a timely manner. This could result in significant financial, legal and operational challenges to all property and casualty companies associated with FHCF, including our company. The availability and costs associated with the acquisition of reinsurance will vary year to year. These fluctuations, which can be significant, are not subject to our control and may limit our ability to purchase adequate coverage. For example, FHCF continues to restrict its reinsurance capacity and is expected to continue constricting capacity for future seasons. This gradual restriction is requiring us to replace that capacity with private market reinsurance. Our reinsurance program is subject to approval by the Florida OIR and review by Demotech, Inc. (“Demotech”). The recovery of increased reinsurance costs through rate action is not immediate and cannot be presumed and is subject to Florida OIR approval. For the 2015–2016 hurricane season, the excess of loss and FHCF treaties insured the property lines for approximately $1.82 billion of aggregate catastrophic losses and LAE with a maximum single event coverage totaling approximately $1.26 billion, with the Company retaining the first $12.9 million in Florida and $5.0 million in Louisiana, Alabama and South Carolina for losses and LAE from each event. The reinstatement treaty will provide for 50% of the covered losses between $15.0 million and $100 million. The Company retains 10% or up to $2.5 million of a covered loss in excess of $21.5 million resulting in the Company’s maximum retention of $15.4 million for losses incurred both in and out of Florida. Florida risks represent 95.5%, or $1.74 billion of the $1.82 billion of total aggregate catastrophic losses and LAE. The reinsurance program includes coverage purchased from the private market, which is prepaid and affords reinstatement premium protection that provides coverage beyond the first event, along with any remaining coverage from the FHCF. The FHCF only affords coverage for losses sustained in Florida. Coverage afforded by the FHCF totals approximately $581.2 million, or 33.4% of Florida’s $1.74 billion of aggregate catastrophic losses and LAE. The FHCF affords coverage for the entire season, subject to maximum payouts, without regard to any particular insurable event. The estimated cost to the Company for the excess of loss reinsurance products for the 2015–2016 hurricane season, inclusive of approximately $44.83 million payable to the FHCF and the prepaid automatic premium reinstatement protection, is approximately $149.37 million. Included in this year’s program are two quota share treaties that are similar in terms; one for 30% entered into in 2014, and one for 10% which became effective July 1, 2015. This is the second year of a two-year term for the 30% quota share treaty and the first year of a two-year term for the new 10% quota share treaty. For the 2015 – 2016 Catastrophic wind season only, both treaties combined provide a 40% quota share reinsurance treaty on the first $100 million of covered losses for the Company’s in-force new and renewal homeowners’ insurance program in the State of Florida. The original two-year quota share reinsurance treaty provides 30% of $200 million of aggregate catastrophe coverage per year with maximum single event coverage of 30% of $100 million per year. The new two-year quota share reinsurance treaty provides 10% of $200 million of aggregate catastrophe coverage per year with maximum single event coverage of 10% of $100 million per year. The projected cost of the quota share treaties are $8.5 million for the 30% treaty and $2.8 million for the 10% treaty, both of which are included in the $149.4 million amount referenced above. The 2015-2016 private reinsurance companies and their respective A.M. Best Company (“A.M. Best”) and S&P ratings are listed in the table as follows. Reinsurer A.M. Best Rating S&P Rating UNITED STATES American Agricultural Insurance Company A- NR American Standard Insurance Company of Wisconsin A NR Everest Reinsurance Company A+ A+ Odyssey Reinsurance Company A A- Partner Reinsurance Company of the US A+ A+ QBE Reinsurance Corporation A A+ RLI Insurance Company A+ A+ Transatlantic Reinsurance Company A A+ BERMUDA ACE Tempest Reinsurance Ltd. A++ AA Allianz Risk Transfer AG, Bermuda Branch (obo Nephila) A+ AA- Allied World Assurance Company, Limited A A Arch Reinsurance Limited A+ A+ Argo Re Ltd A NR Ariel Reinsurance Bermuda Ltd for and on Behalf of Ariel Syndicate 1910 (ARE) A- A+ Ascot Underwriting (Bermuda) Limited/AIG per AIRCO agreement A NR Aspen Bermuda Limited A A AXIS Specialty Limited A+ A+ BGS Services (Bermuda) Limited/Lloyds Syndicate 2987 A A+ Collateralised Re Ltd - LGT Capital NR * ** NR DaVinci Reinsurance Ltd. A AA- Endurance Specialty Insurance Ltd. A A Hamilton Re, Ltd. A- NR Hiscox Insurance Company (Bermuda) Limited A NR Horseshoe Re (obo Coriolis) NR * ** NR Markel Bermuda Limited A A Partner Reinsurance Company Limited A+ A+ Renaissance Reinsurance, Ltd. A+ AA- Securis Re II Ltd. Bermuda NR * ** NR Securis Re IV Ltd. Bermuda NR * ** NR Securis Re V Ltd. Bermuda NR * ** NR Tokio Millennium Re AG, Bermuda Branch A++ AA- XL RE Limited A A+ UNITED KINGDOM A.F. Beazley Syndicate No. 623 (AFB) A A+ A.F. Beazley Syndicate No. 2623 (AFB) A A+ Amlin Syndicate No. 2001 (AML) A A+ Antares Syndicate No. 1274 (AUL) A A+ Ariel Syndicate No. 1910 (ARE) A A+ ARK Syndicate No. 4020 (ARK) A A+ Ascot Syndicate No. 1414 (ASC) A A+ Barbican Syndication No. 1955 (BAR) A A+ Canopius Syndicate No. 958 (CNP) A A+ Canopius Syndicate No. 4444 (CNP) A A+ Cathederal Syndicate No. 2010 (MMX) A A+ China Re Syndicate No. 2088 (CNR) A A+ Dale Underwriting Syndicate No. 1729 (DUW) A A+ Faraday Syndicate No. 435 (FDY) A A+ Hiscox Syndicate No. 0033 (HIS) A A+ Liberty Syndicates Services Limited, Paris for and on behalf of Lloyd's Syndicate No. 4472 (LIB) A A+ MAP Underwriting Syndicate No. 2791 (MAP) A A+ MAP Underwriting Syndicate No. 2791 (Parallel) (MAP) A A+ Novae Syndicate No. 2007 (NVA) A A+ Renaissance Re Syndicate No. 1458 (RNR) A A+ S.J.O, Catlin & Others No. 2003 (SJC) A A+ Vibe Syndicate No. 5678 (VSM) A A+ EUROPE Amlin AG, Switzerland, Bermuda Branch A A Hannover Rueck SE (obo Pillar Capital Management) NR * ** NR Lansforsakringar Sak Forsakringsaktiebolag (publ) NR A SCOR Global P&C SE, Paris, Zurich Branch A A ASIA China Reinsurance (Group) Corporation A NR Fubon Insurance Co., Ltd. A A- General Insurance Corporation of India, trading as GIC Re A- NR Peak Re A- NR Pioneer CAT (obo Peak Re) A- NR Pioneer CAT (obo Taiping) A- NR Qatar Reinsurance Company LLC A A * Reinstatement Premium Protection Program Participants ** Participant will fund a trust agreement for their exposure with cash and U.S. Government obligations of American institutions at fair market value. For the 2014–2015 hurricane season, the excess of loss and FHCF treaties insured the property lines for approximately $1.49 billion of aggregate catastrophic losses and LAE with a maximum single event coverage totaling approximately $1.01 billion, with the Company retaining the first $11.20 million in Florida and $3.0 million in Louisiana for losses and LAE from each event. Florida risks represent 98.5%, or $1.46 billion of the $1.49 billion of total aggregate catastrophic losses and LAE. The reinsurance program includes coverage purchased from the private market, which affords optional reinstatement premium protection that provides coverage beyond the first event, along with any remaining coverage from the FHCF. The FHCF only affords coverage for losses sustained in Florida. Coverage afforded by the FHCF totals approximately $546.3 million, or 37.4% of Florida’s $1.46 billion of aggregate catastrophic losses and LAE. The FHCF affords coverage for the entire season, subject to maximum payouts, without regard to any particular insurable event. The actual cost to the Company for the excess of loss reinsurance products for the 2014–2015 hurricane season, inclusive of approximately $40.20 million payable to the FHCF and the prepaid automatic premium reinstatement protection, is approximately $117.0 million. Included in the 2014–2015 hurricane season program was a 30% quota share reinsurance treaty for the Company’s in-force new and renewal homeowners’ insurance program in the State of Florida. This two-year quota share reinsurance treaty continues to provide 30% of $200 million of aggregate catastrophe coverage per year with maximum single event coverage of 30% of $100 million per year. The cost of this quota share was $6.7 million, net of ceding commissions, and it was included in the $117.0 million amount referenced above. The 2014-2015 private reinsurance companies and their respective A.M. Best and S&P ratings are listed in the table as follows. Reinsurer A.M. Best Rating S&P Rating UNITED STATES American Agricultural Insurance Company A- NR American Standard Insurance Company of Wisconsin A NR AIG (National Union Fire Insurance Company of Pittsburgh, PA) A A+ Everest Reinsurance Company A+ A+ Odyssey Reinsurance Company A A- QBE Reinsurance Corporation A A+ RLI Insurance Company A+ A+ Transatlantic Reinsurance Company A A+ BERMUDA ACE Tempest Reinsurance Limited A++ AA- Allied World Assurance Company, Limited A A Arch Reinsurance Limited A+ A+ Argo Reinsurance Limited A NR Ariel Reinsurance Bermuda Ltd for and on Behalf of Ariel Syndicate 1910 (ARE) A- A+ Aspen Bermuda Limited A A AXIS Specialty Limited A+ A+ BGS Services (Bermuda) Limited/Lloyds Syndicate 2987 A A+ DaVinci Reinsurance Ltd A AA- Endurance Specialty Insurance Limited A A Hamilton Re, Limited A- NR Hiscox Insurance Company (Bermuda) Limited A NR Partner Reinsurance Company Limited A+ A+ Platinum Underwriters Bermuda Limited A A- Renaissance Reinsurance, Limited A+ AA- Securis Re III Limited Bermuda NR * ** NR Securis Re IV Limited Bermuda NR * ** NR Tokio Millennium Re AG, Bermuda Branch A++ AA- XL RE Limited A A+ UNITED KINGDOM A.F. Beazley Syndicate No. 623 (AFB) A A+ A.F. Beazley Syndicate No. 2623 (AFB) A A+ Amlin Syndicate No. 2001 (AML) A A+ Antares Syndicate No. 1274 (AUL) A A+ Ariel Syndicate No. 1910 (ARE) A A+ ARK Syndicate No. 4020 (ARK) A A+ Ascot Syndicate No. 1414 (ASC) A A+ Barbican Syndication No. 1955 (BAR) A A+ Canopius Syndicate No. 958 (CNP) A A+ Canopius Syndicate No. 4444 (CNP) A A+ Cathederal Syndicate No. 2010 (MMX) A A+ Chaucer Syndicate No. 1084 (CSL) A A+ Dale Underwriting Syndicate No. 1729 (DUW) A A+ Faraday Syndicate No. 435 (FDY) A A+ Hiscox Syndicate No. 0033 (HIS) A A+ Kiln Syndicate No. 510 (KLN) A A+ Liberty Syndicates Services Limited, Paris for and on behalf of Lloyd's Syndicate No. 4472 (LIB) A A+ MAP Underwriting Syndicate No. 2791 (MAP) A A+ MAP Underwriting Syndicate No. 2791 (Parallel) (MAP) A A+ Novae Syndicate No. 2007 (NVA) A A+ S.J.O, Catlin & Others No. 2003 (SJC) A A+ EUROPE Amlin AG, Switzerland, Bermuda Branch A A Hannover Rueck SE (obo Pillar Capital Management) NR * ** NR Lansforsakringar Sak Forsakringsaktiebolag (publ) NR A SCOR Global P&C SE, Paris, Zurich Branch A A ASIA China Reinsurance (Group) Corporation A NR Qatar Reinsurance Company LLC A A * Reinstatement Premium Protection Program Participants ** Participant will fund a trust agreement for their exposure with cash and U.S. Government obligations of American institutions at fair market value. Annually, the cost and amounts of reinsurance are based on management's analysis of FNIC's exposure to catastrophic risk as of June 30 and estimated to September 30. Our data is then subjected to actual exposure level analysis as of September 30. This analysis of our exposure level in relation to the total exposures to the FHCF and excess of loss treaties may produce changes in limits and reinsurance premiums as a result of the reconciliation of estimated to actual exposure level. The September 30, 2015 change to total insured value and reinsurance premiums was zero. To date, we have made no claims asserted against our reinsurers in connection with the 2015–2016 and 2014–2015 excess of loss and FHCF treaties. The quota share retrocessionaire reinsurance agreements require FNIC to secure the credit, regulatory and business risk. Fully funded trust agreements securing these risks totaled $4.0 million and $4.9 million, respectively, as of September 30, 2015 and December 31, 2014. We are selective in choosing reinsurers and consider numerous factors, the most important of which are the financial stability of the reinsurer, its history of responding to claims and its overall reputation. In an effort to minimize our exposure to the insolvency of a reinsurer, we evaluate the acceptability and review the financial condition of the reinsurer at least annually.

Unpaid losses and LAE

Unpaid losses and LAE	9 Months Ended
	Sep. 30, 2015
Unpaid losses and LAE [Abstract]
Unpaid losses and LAE	(9) Unpaid losses and LAE The liability for unpaid losses and LAE is determined on an individual-case basis for all incidents reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and Incurred but Not Yet Reported (“IBNR”). Activity in the liability for unpaid losses and LAE is summarized as follows. Period Ending September 30, 2015 December 31, 2014 (Dollars in Thousands) Balance at January 1 $ 78,330 $ 61,016 Less reinsurance recoverables (12,534 ) (2,742 ) Net balance at January 1 $ 65,796 $ 58,274 Incurred related to Current year $ 73,895 $ 79,932 Prior years 1,615 1,104 Total incurred $ 75,510 $ 81,036 Paid related to Current year $ 30,739 $ 42,391 Prior years 27,243 31,123 Total paid $ 57,982 $ 73,514 Net balance at period end $ 83,324 $ 65,796 Plus reinsurance recoverables 8,349 12,534 Balance as of period end $ 91,673 $ 78,330 We believe that the liability for unpaid losses and LAE is adequate to cover all claims and related expenses that may arise from incidents reported. Our review of the liability for losses and LAE includes a re-evaluation of the adequacy of reserve levels for prior year’s claims. We increased the liability for losses and LAE for claims occurring in prior years by $1.6 million during the nine months ended September 30, 2015. We increased the liability for losses and LAE for claims occurring in prior years by $1.1 million during the year ended December 31, 2014. We continue to revise our estimates of the ultimate financial impact of claims made resulting from past storms. The revisions to our estimates are based on our analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) Company and industry historical loss experience; (iii) legislative enactments, judicial decisions, legal developments in the awarding of damages, and (iv) trends in general economic conditions, including the effects of inflation.

Stock Compensation Plans

Stock Compensation Plans	9 Months Ended
	Sep. 30, 2015
Stock Compensation Plans [Abstract]
Stock Compensation Plans	(10) Stock Compensation Plans We implemented a stock option plan in 2002 (the “2002 Plan”), which expired in April 2012. Under this plan, we were authorized to grant options to purchase up to 1,800,000 common shares, and as of September 30, 2015 and December 31, 2014, we had outstanding exercisable options to purchase 185,150 and 219,285 shares, respectively. In April 2012, our Board of Directors adopted, and in September 2012 our shareholders approved, the Company’s 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan permits the issuance of up to 1,000,000 shares of our common stock, subject to adjustment as provided for in the 2012 Plan, in connection with the grant of a variety of equity incentive awards, such as incentive stock options, non-qualified stock options, stock appreciation rights, dividend equivalent rights, restricted stock, restricted stock units, and performance shares. Officers, directors and executive, managerial, administrative and professional employees of the Company and its subsidiaries are eligible to participate in the 2012 Plan. Awards may be granted singly, in combination, or in tandem. The 2012 Plan was amended and restated in March 2013 to clarify the plan administrator’s authority to permit the vesting of unvested restricted shares in the event of the death of the grantee. The 2012 Plan will expire on April 5, 2022. On March 4, 2013, a total of 100,000 restricted shares from the 2012 Plan were granted pursuant to the vesting requirements and other terms and conditions set forth in restricted stock agreements. Of the total, 25,000 shares were granted to the Company's Chief Executive Officer and President and 15,000 shares were granted to the Company's Chief Financial Officer. An aggregate of 20,000 shares were granted to the Company's directors and the remaining 40,000 shares were granted to other employees of the Company. On August 5, 2013, a total of 150,000 restricted shares from the 2012 Plan were granted pursuant to the vesting requirements and other terms and conditions set forth in restricted stock agreements. Of the total, 100,000 shares were granted to the Company's Chief Executive Officer and President and 50,000 shares were granted to the Company's Chief Financial Officer. On March 4, 2014, a total of 88,648 restricted shares from the 2012 Plan were granted pursuant to the vesting requirements and other terms and conditions set forth in restricted stock agreements. Of the total, 43,997 shares were granted to the Company's Chief Executive Officer and President and 16,341 shares were granted to the Company's Chief Financial Officer. An aggregate of 15,710 shares were granted to the Company's directors and the remaining 12,600 shares were granted to other employees of the Company. On September 9, 2014, a total of 130,000 restricted shares from the 2012 Plan were granted pursuant to the vesting requirements and other terms and conditions set forth in restricted stock agreements. Of the total, 45,000 shares were granted to the Company's Chief Executive Officer and President and 15,000 shares were granted to the Company's Chief Financial Officer. An aggregate of 50,000 shares were granted to the Company's directors and the remaining 20,000 shares were granted to other employees of the Company. On December 9, 2014, a total of 50,000 restricted shares from the 2012 Plan were granted to the Company’s Chief Executive Officer and President pursuant to the vesting requirements and other terms and conditions set forth in the restricted stock agreement. On March 10, 2015, a total of 66,140 restricted shares from the 2012 Plan were granted pursuant to the vesting requirements and other terms and conditions set forth in restricted stock agreements. Of the total, 32,997 shares were granted to the Company's Chief Executive Officer and President and 9,551 shares were granted to the Company's Chief Financial Officer. An aggregate of 6,252 shares were granted to the Company's directors and the remaining 17,340 shares were granted to other employees of the Company. On May 5, 2015, a total of 50,000 restricted shares from the 2012 Plan were granted to the Company’s Chief Executive Officer and President pursuant to the vesting requirements and other terms and conditions set forth in the restricted stock agreement. Activity in our stock option and incentive plans for the period from January 1, 2013 to September 30, 2015 is as follows. 1998 Plan 2002 Plan 2012 Plan Number of Shares Weighted Average Option Exercise Price Number of Shares Weighted Average Option Exercise Price Number of Shares Fair Market Value at Grant Outstanding at January 1, 2013 78,500 $ 12.73 702,597 $ 5.17 - $ - Granted - $ - - $ - 250,000 $ 5.54 Exercised (500 ) $ 8.67 (165,577 ) $ 7.15 - $ - Cancelled (75,000 ) $ 12.92 (13,499 ) $ 5.41 (500 ) $ 5.54 Outstanding at January 1, 2014 3,000 $ 8.67 523,521 $ 4.54 249,500 $ 5.54 Granted - $ - - $ - 268,648 $ 5.54 Exercised (3,000 ) $ 8.67 (299,735 ) $ 5.10 (68,988 ) $ - Cancelled - $ - (4,501 ) $ 3.49 (1,359 ) $ 5.54 Outstanding at January 1, 2015 - $ 8.67 219,285 $ 3.79 447,801 $ 5.54 Granted - $ - - $ - 116,140 $ 26.81 Exercised - $ - (34,135 ) $ 3.81 (135,134 ) $ 16.03 Cancelled - $ - - $ - - $ - Outstanding at September 30, 2015 - $ - 185,150 $ 3.79 428,807 $ 14.57 Options outstanding as of September 30, 2015 are exercisable as follows. 2002 Plan Options Exercisable at: Number of Shares Weighted Average Option Exercise Price September 30, 2015 184,150 $ 3.79 December 31, 2015 1,000 $ 3.79 December 31, 2016 - $ 3.79 December 31, 2017 - $ 3.79 December 31, 2018 - $ 3.79 December 31, 2019 - $ 3.79 Thereafter - $ 3.79 Total options exercisable 185,150 Upon the exercise of options, the Company issues authorized shares. Summary information about the Company’s stock option plans at September 30, 2015 is as follows. Range of Exercise Price Outstanding at September 30, 2015 Weighted Average Contractual Periods in Years Weighted Average Exercise Price Exercisable at September 30, 2015 2002 Plan $ 2.45 - $4.40 185,150 5.86 $ 3.79 184,150

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2015
Earnings per Share [Abstract]
Earnings per Share	(11) Earnings per Share Basic EPS is computed by dividing net income attributable to Federated National Holding Company common stockholders by the weighted average number of common shares outstanding during the period presented. Diluted EPS is computed by dividing net income attributable to Federated National Holding Company common stockholders by the weighted average number of shares of common stock and common stock equivalents outstanding during the period presented. The following table illustrates our computations of basic and diluted net income per common share. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in Thousands, Except Per Share Figures) Net income attributable to Federated National Holding Company common stockholders $ 10,593 $ 7,227 $ 31,611 $ 27,204 Weighted average number of common shares outstanding - basic 13,749 12,625 13,710 11,563 Net income per share - basic $ 0.77 $ 0.57 $ 2.31 $ 2.35 Weighted average number of common shares outstanding - basic 13,749 12,625 13,710 11,563 Dilutive effect of stock compensation plans 228 332 268 371 Weighted average number of common shares outstanding - diluted 13,977 12,957 13,978 11,934 Net income per share - diluted $ 0.76 $ 0.56 $ 2.26 $ 2.28

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	(12) Stockholders’ Equity Capital Stock The Company’s authorized capital consists of 1,000,000 shares of preferred stock, par value $0.01 per share, and 25,000,000 shares of common stock, par value $0.01 per share. As of September 30, 2015, there were no preferred shares issued or outstanding and there were 13,773,130 shares of common stock outstanding.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	(13) Subsequent Events We have evaluated all subsequent events or transactions for potential recognition or disclosure that occurred after the balance sheet date through the date on which the financial statement were issued.

Summary of Significant Accoun20

Summary of Significant Accounting Policies and Practices (Policies)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies and Practices [Abstract]
Critical Accounting Policies	(A) Critical Accounting Policies The preparation of financial statements in conformity with GAAP 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 inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of our financial statements include estimates associated with management’s evaluation of the determination of (i) liability for unpaid losses and LAE, (ii) the amount and recoverability of amortization of DPAC, and (iii) estimates for our reserves with respect to finance contracts, premiums receivable and deferred income taxes. Various assumptions and other factors underlie the determination of these significant estimates, which are described in greater detail in Footnote 2 of the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2014, which we included in the Company’s Annual Report on Form 10-K which was filed with the SEC on March 16, 2015. We believe that there were no significant changes in those critical accounting policies and estimates during the nine months ended September 30, 2015. Senior management has reviewed the development and selection of our critical accounting policies and estimates and their disclosure in this Form 10-Q with the Audit Committee of our Board of Directors. The process of determining significant estimates is fact-specific and takes into account factors such as historical experience, current and expected economic conditions, and in the case of unpaid losses and LAE, an actuarial valuation. Management regularly reevaluates these significant factors and makes adjustments where facts and circumstances dictate. In selecting the best estimate, we utilize various actuarial methodologies. Each of these methodologies is designed to forecast the number of claims we will be called upon to pay and the amounts we will pay on average to settle those claims. In arriving at our best estimate, our actuaries consider the likely predictive value of the various loss development methodologies employed in light of underwriting practices, premium rate changes and claim settlement practices that may have occurred, and weight the credibility of each methodology. Our actuarial methodologies take into account various factors, including, but not limited to, paid losses, liability estimates for reported losses, paid allocated LAE, salvage and other recoveries received, reported claim counts, open claim counts and counts for claims closed with and without payment for loss. We are required to review the contractual terms of all our reinsurance purchases to ensure compliance with U.S. GAAP, which establishes the conditions required for a contract with a reinsurer to be accounted for as reinsurance and prescribes accounting and reporting standards for those contracts. Contracts that do not result in the reasonable possibility that the reinsurer may realize a significant loss from the insurance risk assumed generally do not meet the conditions for reinsurance accounting and must be accounted for as deposits. The guidance also requires us to disclose the nature, purpose and effect of reinsurance transactions, including the premium amounts associated with reinsurance assumed and ceded. It also requires disclosure of concentrations of credit risk associated with reinsurance receivables and prepaid reinsurance premiums. Investments classified as held-to-maturity include debt securities wherein the Company’s intent and ability are to hold the investment until maturity and are carried at amortized cost without consideration to unrealized gains or losses. Investments classified as trading securities include debt and equity securities bought and held primarily for sale in the near term and are carried at fair value with unrealized holding gains and losses included in current period operations. Investments classified as available-for-sale include debt and equity securities that are not classified as held-to-maturity or as trading security investments and are carried at fair value with unrealized holding gains and losses excluded from earnings and reported as a separate component of shareholders’ equity, namely “Other Comprehensive Income”. A decline in the fair value of an available-for-sale security below cost that is deemed other-than-temporary results in a charge to income, resulting in the establishment of a new cost basis for the security. Premiums and discounts are amortized or accreted, respectively, over the life of the related debt security as an adjustment to yield using a method that approximates the effective interest method. Dividends and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific-identification method for determining the cost of securities sold. Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of investments, premiums receivable, amounts due from reinsurers on paid and unpaid losses and finance contracts. We have not experienced significant losses related to premiums receivable from individual policyholders or groups of policyholders in a particular industry or geographic area. We believe no credit risk beyond the amounts provided for collection losses is inherent in our premiums receivable or finance contracts. In order to reduce credit risk for amounts due from reinsurers, we seek to do business with financially sound reinsurance companies and regularly review the financial strength of all reinsurers used. Additionally, our credit risk in connection with our reinsurers is frequently mitigated by the establishment of irrevocable clean letters of credit in favor of FNIC. The fair value of our investments is estimated based on prices published by financial services or quotations received from securities dealers and is reflective of the interest rate environment that existed as of the close of business on September 30, 2015 and December 31, 2014. Changes in interest rates subsequent to September 30, 2015 and December 31, 2014 may affect the fair value of our investments. The carrying amounts for the following financial instrument categories approximate their fair values at September 30, 2015 and December 31, 2014 because of their short-term nature: cash and short-term investments, premiums receivable, finance contracts, due from reinsurers, revolving credit outstanding, claims payments outstanding, accounts payable and accrued expenses.
Impact of New Accounting Pronouncements	(B) Impact of New Accounting Pronouncements In May 2015, the FASB issued Accounting Standard Update (“ASU”) 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration-Contracts. The amendments in this ASU apply to all insurance entities that issue short-duration contracts as defined in Topic 944, Financial Services—Insurance. The amendments require insurance entities to disclose for annual reporting periods the following information about the liability for unpaid claims and claim adjustment expenses: (1) Incurred and paid claims development information by accident year, on a net basis after risk mitigation through reinsurance, for the number of years for which claims incurred typically remain outstanding (that need not exceed 10 years, including the most recent reporting period presented in the statement of financial position). Each period presented in the disclosure about claims development that precedes the current reporting period is considered to be supplementary information. (2) A reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid claims and claim adjustment expenses, with separate disclosure of reinsurance recoverable on unpaid claims for each period presented in the statement of financial position. (3) For each accident year presented of incurred claims development information, the total of incurred-but-not-reported liabilities plus expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses, accompanied by a description of reserving methodologies (as well as any changes to those methodologies). (4) For each accident year presented of incurred claims development information, quantitative information about claim frequency (unless it is impracticable to do so) accompanied by a qualitative description of methodologies used for determining claim frequency information (as well as any changes to these methodologies). (5) For all claims except health insurance claims, the average annual percentage payout of incurred claims by age (that is, history of claims duration) for the same number of accident years as presented in (3) and (4) above. The amendments in this ASU are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Because the new guidance does not affect the existing recognition or measurement guidance, the adoption is not expected to have any effect on our financial position, results of operations or cash flows. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 amends the consolidation requirements and significantly changes the consolidation analysis required. The amendments in this ASU affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (i) modify the evaluation of whether limited partnership and similar legal entities are VIEs ,(ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with VIEs particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Act of 1940 for registered money market funds. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and, earlier adoption is permitted. The adoption of the amendments in this ASU will not have a material impact on our financial position, results of operations or cash flows. Other recent accounting pronouncements issued by FASB, the American Institute of Certified Public Accountants (“AICPA”), and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements.
Stock Options	( C) Stock Options Pursuant to FASB issued guidance, compensation cost recognized during the nine months ended September 30, 2015 includes compensation cost for all share-based payments granted subsequent to January 1, 2006, based on the grant date fair value estimated in accordance with the guidance.
Earnings per Share	(D) Earnings per Share Basic earnings per share (“Basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period presented. Diluted earnings per share (“Diluted EPS”) is computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding during the period presented.
Adjustments	(E) Adjustments In conjunction with our third quarter 2015 analysis of actual experience to date under the July 1, 2014 quota share reinsurance contract, we re-evaluated the accounting treatment for quota share reinsurance contracts with retrospective rating provisions. As a result of this re-evaluation, we have concluded reinsurance contracts which have retrospective rating provisions should be accounted for under Accounting Standards Codification 944, Financial Services — Insurance (a) We eliminated recording of future estimated quota share profits in one line item, “Quota Share Profit Sharing,” in the financial statements. (b) Amounts due to (from) the assuming companies have been accrued based on actual contract experience to date as though the contracts were terminated. These accruals impacted the following income statement line items: gross ceded premiums, loss and loss adjustment expenses, and deferred policy acquisition costs. The adjustments to our accounting for the July 1, 2014 quota share reinsurance treaty, inclusive of other adjustments, are not material in any prior quarter or annual period based on an analysis of quantitative and qualitative factors in accordance with SEC Guidance. As a result, we recorded these adjustments during the third quarter of 2015. These adjustments increased net income by $2.2 million for the three and nine month periods ended on September 30, 2015. Additionally, the quota share reinsurance accounting adjustments impacted the following income statement line items for the three and nine month periods ended on September 30, 2015: · Gross ceded premiums decreased by $10.9 million, · Loss and loss adjustment expenses increased by $4.5 million, and · Deferred acquisition costs increased by $1.5 million. Finally, the quota share reinsurance accounting adjustments impacted the following balance sheet line items for the three and nine months periods ended on September 30, 2015: · Prepaid reinsurance premiums increased by $10.9 million, · Reinsurance recoverable, net decreased by $4.5 million, and · Deferred policy acquisition costs decreased by $1.5 million. · The $14 million balance previously reported under Contingent quota-share profit sharing has been reclassed to the prepaid reinsurance premiums line item · The $7 million balance previously reported under Deferred quota-share profit sharing has been reclassed to the reinsurance recoverable, net line item

Organization and Business (Tabl

Organization and Business (Tables)	9 Months Ended
	Sep. 30, 2015
Organization and Business [Abstract]
States and Lines of Business that FNIC Operates in	The table below reflects the states and lines of business that FNIC operates in as of September 30, 2015. Fire Allied Lines Private Passenger Automobile Homeowners' Multiperil Commercial General Liability Florida (Domestic) a a a a a Alabama d d d a c Georgia - - a - c Louisiana - - - a c South Carolina - - - b - Texas - - a b c a Ongoing operations for more than one year b Ongoing operations for less than one year c Working with state to discontinue line of authority d Licensed, but no current operations

Variable Interest Entity (Table

Variable Interest Entity (Tables)	9 Months Ended
	Sep. 30, 2015
Variable Interest Entity [Abstract]
Carrying Amount of VIE Consolidated Assets and Liabilities	The carrying amount of our VIE consolidated assets and liabilities are as follows. September 30, 2015 December 31, 2014 ASSETS (Dollars in Thousands) Investments Debt maturities, held to maturity, at amortized cost $ 21,877 $ - Equity securities, available for sale, at fair value 1,350 - Total investments 23,227 - Cash and short term investments 13,492 - Premiums receivable, net 326 - Deferred policy acquisition costs 168 - Deferred income taxes, net 665 - Other assets 178 - Total assets $ 38,056 $ - LIABILITIES AND SHAREHOLDERS' EQUITY Unpaid losses and LAE $ 112 $ - Unearned premiums 1,072 - Income taxes payable 110 - Accounts payable and accrued expenses 249 - Debt 5,000 - Total liabilities $ 6,543 $ - Shareholders' equity: Common stock, $0.01 par value. Issued and outstanding 100 shares - - Additional paid-in capital 32,413 - Accumulated other comprehensive income Unrealized net gains on investments, available for sale (234 ) - Total accumulated other comprehensive income (234 ) - Retained earnings (666 ) - Total shareholders' equity 31,513 - Total liabilities and shareholders' equity $ 38,056 $ -

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2015
Investments [Abstract]
Summary of Investments by Type	The following table summarizes, by type, our investments as of September 30, 2015 and December 31, 2014. September 30, 2015 December 31, 2014 Carrying Amount Percent of Total Carrying Amount Percent of Total (Dollars in Thousands) Debt securities, at fair value: United States government obligations and authorities $ 65,994 17.08 % $ 62,323 18.84 % Obligations of states and political subdivisions 108,597 28.11 % 91,614 27.70 % Corporate 155,324 40.20 % 119,024 35.99 % International 12,000 3.11 % 11,138 3.37 % 341,915 88.50 % 284,099 85.90 % Debt securities, at amortized cost: United States government obligations and authorities 4,221 1.09 % 4,490 1.36 % Corporate 2,101 0.54 % 2,681 0.81 % International 65 0.02 % 246 0.07 % 6,387 1.65 % 7,417 2.24 % Total debt securities 348,302 90.15 % 291,516 88.14 % Equity securities, at fair value: 38,086 9.85 % 39,247 11.86 % Total investments $ 386,388 100.00 % $ 330,763 100.00 %
Realized Gains (Losses) for Debt and Equity Securities	The following table shows the realized gains (losses) for debt and equity securities for the three months ended September 30, 2015 and 2014. Three Months Ended September 30, 2015 2014 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (Dollars in Thousands) Debt securities $ 226 $ 21,843 $ 241 $ 16,413 Equity securities 1,847 4,226 453 1,642 Total realized gains 2,073 26,069 694 18,055 Debt securities (178 ) 9,744 (20 ) 1,627 Equity securities (769 ) 3,306 (15 ) 118 Total realized losses (947 ) 13,050 (35 ) 1,745 Net realized gains on investments $ 1,126 $ 39,119 $ 659 $ 19,800 The following table shows the realized gains (losses) for debt and equity securities for the nine months ended September 30, 2015 and 2014. Nine Months Ended September 30, 2015 2014 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (Dollars in Thousands) Debt securities $ 973 $ 71,869 $ 533 $ 38,657 Equity securities 4,189 9,985 4,013 12,595 Total realized gains 5,162 81,854 4,546 51,252 Debt securities (504 ) 39,926 (118 ) 8,333 Equity securities (915 ) 3,959 (381 ) 1,639 Total realized losses (1,419 ) 43,885 (499 ) 9,972 Net realized gains on investments $ 3,743 $ 125,739 $ 4,047 $ 61,224
Summary of Amortized Cost, Estimated Fair Value and Gross Unrealized Gains and Losses of Debt and Equity Securities	A summary of the amortized cost, estimated fair value and gross unrealized gains and losses of debt and equity securities at September 30, 2015 and December 31, 2014 is as follows. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in Thousands) September 30, 2015 Debt Securities - Available-For-Sale: United States government obligations and authorities $ 64,876 $ 1,233 $ 115 $ 65,994 Obligations of states and political subdivisions 107,211 1,428 42 108,597 Corporate 154,469 1,625 770 155,324 International 12,104 55 159 12,000 $ 338,660 $ 4,341 $ 1,086 $ 341,915 Debt Securities - Held-To-Maturity: United States government obligations and authorities $ 4,221 $ 51 $ 184 $ 4,088 Corporate 2,101 25 6 2,120 International 65 - - 65 $ 6,387 $ 76 $ 190 $ 6,273 Equity securities - common stocks $ 33,605 $ 6,391 $ 1,910 $ 38,086 December 31, 2014 Debt Securities - Available-For-Sale: United States government obligations and authorities $ 61,376 $ 1,022 $ 75 $ 62,323 Obligations of states and political subdivisions 90,728 956 70 91,614 Corporate 117,778 1,578 332 119,024 International 11,139 53 54 11,138 $ 281,021 $ 3,609 $ 531 $ 284,099 Debt Securities - Held-To-Maturity: United States government obligations and authorities $ 4,490 $ 41 $ 225 $ 4,306 Corporate 2,681 31 5 2,707 International 246 1 1 246 $ 7,417 $ 73 $ 231 $ 7,259 Equity securities - common stocks $ 29,908 $ 9,836 $ 497 $ 39,247
Unrealized Investment Losses by Investment Class, Aged for Length of Time in Continuous Unrealized Loss Position	The table below reflects our unrealized investment losses by investment class, aged for length of time in a continuous unrealized loss position as of September 30, 2015. Unrealized Losses Less than 12 months 12 months or longer (Dollars in Thousands) Debt securities: United States government obligations and authorities $ 115 $ 95 $ 20 Obligations of states and political subdivisions 42 42 - Corporate 770 740 30 International 159 159 - 1,086 1,036 50 Equity securities: Common stocks 1,910 1,881 29 Total debt and equity securities $ 2,996 $ 2,917 $ 79 The table below reflects our unrealized investment losses by investment class, aged for length of time in a continuous unrealized loss position as of December 31, 2014. Unrealized Losses Less than 12 months 12 months or longer (Dollars in Thousands) Debt securities: United States government obligations and authorities $ 75 $ 22 $ 53 Obligations of states and political subdivisions 70 66 4 Corporate 332 260 72 International 54 54 - 531 402 129 Equity securities: Common stocks 497 461 36 Total debt and equity securities $ 1,028 $ 863 $ 165
Summary of Debt Securities, by Contractual or Expected Maturity Periods	Below is a summary of debt securities at September 30, 2015 and December 31, 2014, by contractual or expected maturity periods. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2015 December 31, 2014 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (Dollars in Thousands) Due in one year or less $ 19,635 $ 19,659 $ 16,777 $ 16,797 Due after one through five years 188,397 190,047 173,236 174,273 Due after five through ten years 136,989 138,449 98,404 100,259 Due after ten years 26 33 26 33 Total $ 345,047 $ 348,188 $ 288,443 $ 291,362
Investment Results	The table below sets forth investment results for the three months ended September 30, 2015 and 2014. Three Months Ended September 30, 2015 2014 (Dollars in Thousands) Interest on debt securities $ 1,755 $ 1,328 Dividends on equity securities 147 121 Interest on cash and cash equivalents 5 1 Total investment income $ 1,907 $ 1,450 The table below sets forth investment results for the nine months ended September 30, 2015 and 2014. Nine Months Ended September 30, 2015 2014 (Dollars in Thousands) Interest on debt securities $ 4,713 $ 3,432 Dividends on equity securities 381 324 Interest on cash and cash equivalents 60 2 Total investment income $ 5,154 $ 3,758
Summary of Net Realized Investment Gains	The table below sets forth a summary of net realized investment gains during the three months ended September 30, 2015 and 2014. Three Months Ended September 30, 2015 2014 (Dollars in Thousands) Net realized gains Debt securities $ 48 $ 221 Equity securities 1,078 438 Total $ 1,126 $ 659 The table below sets forth a summary of net realized investment gains during the nine months ended September 30, 2015 and 2014. Nine Months Ended September 30, 2015 2014 (Dollars in Thousands) Net realized gains Debt securities $ 469 $ 415 Equity securities 3,274 3,632 Total $ 3,743 $ 4,047 The table below sets forth a summary of net unrealized investment gains as of September 30, 2015 and December 31, 2014. Unrealized Gains September 30, 2015 December 31, 2014 (Dollars in Thousands) Net unrealized gains Debt securities $ 3,255 $ 3,078 Equity securities 4,481 9,339 Total $ 7,736 $ 12,417

Fair Value Disclosure (Tables)

Fair Value Disclosure (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosure [Abstract]
Assets Measured at Fair Value on a Recurring Basis	Assets measured at fair value on a recurring basis as of September 30, 2015, presented in accordance with this guidance, are as follows. As of September 30, 2015 Level 1 Level 2 Level 3 Total (Dollars in Thousands) Debt securities: United States government obligations and authorities $ 40,833 $ 25,161 $ - $ 65,994 Obligations of states and political subdivisions - 108,597 - 108,597 Corporate - 155,324 - 155,324 International - 12,000 - 12,000 40,833 301,082 - 341,915 Equity securities: Common stocks 38,086 - - 38,086 38,086 - - 38,086 Total debt and equity securities $ 78,919 $ 301,082 $ - $ 380,001 Assets measured at fair value on a recurring basis as of December 31, 2014, presented in accordance with this guidance, are as follows. As of December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in Thousands) Debt securities: United States government obligations and authorities $ 46,002 $ 16,321 $ - $ 62,323 Obligations of states and political subdivisions - 91,614 - 91,614 Corporate - 119,024 - 119,024 International - 11,138 - 11,138 46,002 238,097 - 284,099 Equity securities: Common stocks 39,247 - - 39,247 39,247 - - 39,247 Total debt and equity securities $ 85,249 $ 238,097 $ - $ 323,346

Reinsurance Agreements (Tables)

Reinsurance Agreements (Tables)	9 Months Ended
	Sep. 30, 2015
Reinsurance Agreements [Abstract]
Private Reinsurance Companies and Their Respective Ratings	The 2015-2016 private reinsurance companies and their respective A.M. Best Company (“A.M. Best”) and S&P ratings are listed in the table as follows. Reinsurer A.M. Best Rating S&P Rating UNITED STATES American Agricultural Insurance Company A- NR American Standard Insurance Company of Wisconsin A NR Everest Reinsurance Company A+ A+ Odyssey Reinsurance Company A A- Partner Reinsurance Company of the US A+ A+ QBE Reinsurance Corporation A A+ RLI Insurance Company A+ A+ Transatlantic Reinsurance Company A A+ BERMUDA ACE Tempest Reinsurance Ltd. A++ AA Allianz Risk Transfer AG, Bermuda Branch (obo Nephila) A+ AA- Allied World Assurance Company, Limited A A Arch Reinsurance Limited A+ A+ Argo Re Ltd A NR Ariel Reinsurance Bermuda Ltd for and on Behalf of Ariel Syndicate 1910 (ARE) A- A+ Ascot Underwriting (Bermuda) Limited/AIG per AIRCO agreement A NR Aspen Bermuda Limited A A AXIS Specialty Limited A+ A+ BGS Services (Bermuda) Limited/Lloyds Syndicate 2987 A A+ Collateralised Re Ltd - LGT Capital NR * ** NR DaVinci Reinsurance Ltd. A AA- Endurance Specialty Insurance Ltd. A A Hamilton Re, Ltd. A- NR Hiscox Insurance Company (Bermuda) Limited A NR Horseshoe Re (obo Coriolis) NR * ** NR Markel Bermuda Limited A A Partner Reinsurance Company Limited A+ A+ Renaissance Reinsurance, Ltd. A+ AA- Securis Re II Ltd. Bermuda NR * ** NR Securis Re IV Ltd. Bermuda NR * ** NR Securis Re V Ltd. Bermuda NR * ** NR Tokio Millennium Re AG, Bermuda Branch A++ AA- XL RE Limited A A+ UNITED KINGDOM A.F. Beazley Syndicate No. 623 (AFB) A A+ A.F. Beazley Syndicate No. 2623 (AFB) A A+ Amlin Syndicate No. 2001 (AML) A A+ Antares Syndicate No. 1274 (AUL) A A+ Ariel Syndicate No. 1910 (ARE) A A+ ARK Syndicate No. 4020 (ARK) A A+ Ascot Syndicate No. 1414 (ASC) A A+ Barbican Syndication No. 1955 (BAR) A A+ Canopius Syndicate No. 958 (CNP) A A+ Canopius Syndicate No. 4444 (CNP) A A+ Cathederal Syndicate No. 2010 (MMX) A A+ China Re Syndicate No. 2088 (CNR) A A+ Dale Underwriting Syndicate No. 1729 (DUW) A A+ Faraday Syndicate No. 435 (FDY) A A+ Hiscox Syndicate No. 0033 (HIS) A A+ Liberty Syndicates Services Limited, Paris for and on behalf of Lloyd's Syndicate No. 4472 (LIB) A A+ MAP Underwriting Syndicate No. 2791 (MAP) A A+ MAP Underwriting Syndicate No. 2791 (Parallel) (MAP) A A+ Novae Syndicate No. 2007 (NVA) A A+ Renaissance Re Syndicate No. 1458 (RNR) A A+ S.J.O, Catlin & Others No. 2003 (SJC) A A+ Vibe Syndicate No. 5678 (VSM) A A+ EUROPE Amlin AG, Switzerland, Bermuda Branch A A Hannover Rueck SE (obo Pillar Capital Management) NR * ** NR Lansforsakringar Sak Forsakringsaktiebolag (publ) NR A SCOR Global P&C SE, Paris, Zurich Branch A A ASIA China Reinsurance (Group) Corporation A NR Fubon Insurance Co., Ltd. A A- General Insurance Corporation of India, trading as GIC Re A- NR Peak Re A- NR Pioneer CAT (obo Peak Re) A- NR Pioneer CAT (obo Taiping) A- NR Qatar Reinsurance Company LLC A A * Reinstatement Premium Protection Program Participants ** Participant will fund a trust agreement for their exposure with cash and U.S. Government obligations of American institutions at fair market value. The 2014-2015 private reinsurance companies and their respective A.M. Best and S&P ratings are listed in the table as follows. Reinsurer A.M. Best Rating S&P Rating UNITED STATES American Agricultural Insurance Company A- NR American Standard Insurance Company of Wisconsin A NR AIG (National Union Fire Insurance Company of Pittsburgh, PA) A A+ Everest Reinsurance Company A+ A+ Odyssey Reinsurance Company A A- QBE Reinsurance Corporation A A+ RLI Insurance Company A+ A+ Transatlantic Reinsurance Company A A+ BERMUDA ACE Tempest Reinsurance Limited A++ AA- Allied World Assurance Company, Limited A A Arch Reinsurance Limited A+ A+ Argo Reinsurance Limited A NR Ariel Reinsurance Bermuda Ltd for and on Behalf of Ariel Syndicate 1910 (ARE) A- A+ Aspen Bermuda Limited A A AXIS Specialty Limited A+ A+ BGS Services (Bermuda) Limited/Lloyds Syndicate 2987 A A+ DaVinci Reinsurance Ltd A AA- Endurance Specialty Insurance Limited A A Hamilton Re, Limited A- NR Hiscox Insurance Company (Bermuda) Limited A NR Partner Reinsurance Company Limited A+ A+ Platinum Underwriters Bermuda Limited A A- Renaissance Reinsurance, Limited A+ AA- Securis Re III Limited Bermuda NR * ** NR Securis Re IV Limited Bermuda NR * ** NR Tokio Millennium Re AG, Bermuda Branch A++ AA- XL RE Limited A A+ UNITED KINGDOM A.F. Beazley Syndicate No. 623 (AFB) A A+ A.F. Beazley Syndicate No. 2623 (AFB) A A+ Amlin Syndicate No. 2001 (AML) A A+ Antares Syndicate No. 1274 (AUL) A A+ Ariel Syndicate No. 1910 (ARE) A A+ ARK Syndicate No. 4020 (ARK) A A+ Ascot Syndicate No. 1414 (ASC) A A+ Barbican Syndication No. 1955 (BAR) A A+ Canopius Syndicate No. 958 (CNP) A A+ Canopius Syndicate No. 4444 (CNP) A A+ Cathederal Syndicate No. 2010 (MMX) A A+ Chaucer Syndicate No. 1084 (CSL) A A+ Dale Underwriting Syndicate No. 1729 (DUW) A A+ Faraday Syndicate No. 435 (FDY) A A+ Hiscox Syndicate No. 0033 (HIS) A A+ Kiln Syndicate No. 510 (KLN) A A+ Liberty Syndicates Services Limited, Paris for and on behalf of Lloyd's Syndicate No. 4472 (LIB) A A+ MAP Underwriting Syndicate No. 2791 (MAP) A A+ MAP Underwriting Syndicate No. 2791 (Parallel) (MAP) A A+ Novae Syndicate No. 2007 (NVA) A A+ S.J.O, Catlin & Others No. 2003 (SJC) A A+ EUROPE Amlin AG, Switzerland, Bermuda Branch A A Hannover Rueck SE (obo Pillar Capital Management) NR * ** NR Lansforsakringar Sak Forsakringsaktiebolag (publ) NR A SCOR Global P&C SE, Paris, Zurich Branch A A ASIA China Reinsurance (Group) Corporation A NR Qatar Reinsurance Company LLC A A * Reinstatement Premium Protection Program Participants ** Participant will fund a trust agreement for their exposure with cash and U.S. Government obligations of American institutions at fair market value.

Unpaid losses and LAE (Tables)

Unpaid losses and LAE (Tables)	9 Months Ended
	Sep. 30, 2015
Unpaid losses and LAE [Abstract]
Summary of Activity in Liability for Unpaid Losses and LAE	Activity in the liability for unpaid losses and LAE is summarized as follows. Period Ending September 30, 2015 December 31, 2014 (Dollars in Thousands) Balance at January 1 $ 78,330 $ 61,016 Less reinsurance recoverables (12,534 ) (2,742 ) Net balance at January 1 $ 65,796 $ 58,274 Incurred related to Current year $ 73,895 $ 79,932 Prior years 1,615 1,104 Total incurred $ 75,510 $ 81,036 Paid related to Current year $ 30,739 $ 42,391 Prior years 27,243 31,123 Total paid $ 57,982 $ 73,514 Net balance at period end $ 83,324 $ 65,796 Plus reinsurance recoverables 8,349 12,534 Balance as of period end $ 91,673 $ 78,330

Stock Compensation Plans (Table

Stock Compensation Plans (Tables)	9 Months Ended
	Sep. 30, 2015
Stock Compensation Plans [Abstract]
Activity in Stock Option and Incentive Plans	Activity in our stock option and incentive plans for the period from January 1, 2013 to September 30, 2015 is as follows. 1998 Plan 2002 Plan 2012 Plan Number of Shares Weighted Average Option Exercise Price Number of Shares Weighted Average Option Exercise Price Number of Shares Fair Market Value at Grant Outstanding at January 1, 2013 78,500 $ 12.73 702,597 $ 5.17 - $ - Granted - $ - - $ - 250,000 $ 5.54 Exercised (500 ) $ 8.67 (165,577 ) $ 7.15 - $ - Cancelled (75,000 ) $ 12.92 (13,499 ) $ 5.41 (500 ) $ 5.54 Outstanding at January 1, 2014 3,000 $ 8.67 523,521 $ 4.54 249,500 $ 5.54 Granted - $ - - $ - 268,648 $ 5.54 Exercised (3,000 ) $ 8.67 (299,735 ) $ 5.10 (68,988 ) $ - Cancelled - $ - (4,501 ) $ 3.49 (1,359 ) $ 5.54 Outstanding at January 1, 2015 - $ 8.67 219,285 $ 3.79 447,801 $ 5.54 Granted - $ - - $ - 116,140 $ 26.81 Exercised - $ - (34,135 ) $ 3.81 (135,134 ) $ 16.03 Cancelled - $ - - $ - - $ - Outstanding at September 30, 2015 - $ - 185,150 $ 3.79 428,807 $ 14.57
Maturity Schedule of Exercisable Options Outstanding	Options outstanding as of September 30, 2015 are exercisable as follows. 2002 Plan Options Exercisable at: Number of Shares Weighted Average Option Exercise Price September 30, 2015 184,150 $ 3.79 December 31, 2015 1,000 $ 3.79 December 31, 2016 - $ 3.79 December 31, 2017 - $ 3.79 December 31, 2018 - $ 3.79 December 31, 2019 - $ 3.79 Thereafter - $ 3.79 Total options exercisable 185,150
Summary Information about Stock Option Plans	Summary information about the Company’s stock option plans at September 30, 2015 is as follows. Range of Exercise Price Outstanding at September 30, 2015 Weighted Average Contractual Periods in Years Weighted Average Exercise Price Exercisable at September 30, 2015 2002 Plan $ 2.45 - $4.40 185,150 5.86 $ 3.79 184,150

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings per Share [Abstract]
Schedule of Computations of Basic and Diluted Net Income Per Common Share	The following table illustrates our computations of basic and diluted net income per common share. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in Thousands, Except Per Share Figures) Net income attributable to Federated National Holding Company common stockholders $ 10,593 $ 7,227 $ 31,611 $ 27,204 Weighted average number of common shares outstanding - basic 13,749 12,625 13,710 11,563 Net income per share - basic $ 0.77 $ 0.57 $ 2.31 $ 2.35 Weighted average number of common shares outstanding - basic 13,749 12,625 13,710 11,563 Dilutive effect of stock compensation plans 228 332 268 371 Weighted average number of common shares outstanding - diluted 13,977 12,957 13,978 11,934 Net income per share - diluted $ 0.76 $ 0.56 $ 2.26 $ 2.28

Organization and Business (Deta

Organization and Business (Details)	2 Months Ended			3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Jul. 31, 2015USD ($)	Jun. 09, 2015USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)AgentCarrier	Sep. 30, 2014USD ($)
Business Organization [Line Item]
Number of independent agents | Agent						3,900
Number of agents that actively sell and service the entity's products | Agent						2,500
Ratio of homeowners' premiums underwritten to total premiums underwritten				91.60%	90.50%	92.30%	91.20%
Ratio of commercial general liability premiums underwritten to total premiums underwritten				2.60%	3.40%	3.00%	3.40%
Ratio of federal flood premiums underwritten to total premiums underwritten				3.80%	2.50%	2.90%	2.20%
Ratio of automobile insurance premiums underwritten to total premiums underwritten				2.00%	3.60%	1.80%	3.20%
Portion of homeowners' gross premium written produced under "ISA"				$ 28,600,000	$ 19,000,000	$ 75,700,000	$ 49,400,000
Percentage of homeowners' gross premium written produced under "ISA"				24.10%	22.80%	22.20%	19.30%
Homeowners' gross premiums written				$ 118,900,000	$ 83,300,000	$ 340,200,000	$ 255,900,000
Portion of increased homeowners' gross premium written produced under "ISA"				$ 9,600,000		$ 26,300,000
Percentage of increased homeowners' gross premium written produced under "ISA"				27.00%		31.20%
Increased homeowners' gross premiums written				$ 35,600,000		$ 84,300,000
Original percentage commission fee from its affiliate				4.00%
Minimum [Member]
Business Organization [Line Item]
Number of carriers the entity provides insurance through | Carrier						100
Federated National Underwriters, Inc. [Member] | Minimum [Member]
Business Organization [Line Item]
Fees earned per policy				$ 25
Federated National Underwriters, Inc. [Member] | Maximum [Member]
Business Organization [Line Item]
Fees earned per policy				55
Florida [Member]
Product Information [Line Items]
Weekly homeowners' gross premiums written	$ 3,300,000	$ 4,900,000	$ 3,300,000
Period for average weekly new premium written after discontinuing use of underwriting analytics		49 days
Increase in average weekly new premium written		48.00%
Monarch Delaware Holdings LLC [Member]
Business Organization [Line Item]
Capital contribution for voting interests	$ 14,000,000			$ 14,000,000		$ 14,000,000
Ownership interest in Monarch Parent's equity	42.40%			42.40%		42.40%
Voting interest held in Monarch Parent's equity	50.00%			50.00%		50.00%
Monarch Delaware Holdings LLC [Member] | C.A. Bancorp Inc. [Member]
Business Organization [Line Item]
Capital contribution for voting interests	$ 14,000,000			$ 14,000,000		$ 14,000,000
Ownership interest in Monarch Parent's equity	42.40%			42.40%		42.40%
Voting interest held in Monarch Parent's equity	50.00%			50.00%		50.00%
Monarch Delaware Holdings LLC [Member] | Transatlantic Reinsurance Company [Member]
Business Organization [Line Item]
Capital contribution for voting interests	$ 5,000,000			$ 5,000,000		$ 5,000,000
Ownership interest in Monarch Parent's equity	15.20%			15.20%		15.20%
Monarch Delaware Holdings LLC [Member] | Transatlantic Reinsurance Company [Member] | Senior Debt [Member]
Business Organization [Line Item]
Long-term debt	$ 5,000,000			$ 5,000,000		$ 5,000,000
Maturity period of debt						6 years
Interest rate percentage	6.00%			6.00%		6.00%
Monarch Delaware Holdings LLC [Member] | Federated National Underwriters, Inc. [Member]
Business Organization [Line Item]
Percentage of written annual premium payable to agents for managing general agent services	4.00%			4.00%		4.00%
Percentage of earned annual premium payable for claims administration services	3.60%			3.60%		3.60%
Administrative fee per-policy underwritten	$ 25			$ 25		$ 25
Fire [Member] | Florida [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Fire [Member] | Alabama [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Licensed, but no current operations
Allied Lines [Member] | Florida [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Allied Lines [Member] | Alabama [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Licensed, but no current operations
Private Passenger Automobile [Member] | Florida [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Private Passenger Automobile [Member] | Alabama [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Licensed, but no current operations
Private Passenger Automobile [Member] | Georgia [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Private Passenger Automobile [Member] | Texas [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Homeowners' Multiperil [Member] | Florida [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Homeowners' Multiperil [Member] | Alabama [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Homeowners' Multiperil [Member] | Louisiana [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Homeowners' Multiperil [Member] | South Carolina [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for less than one year
Homeowners' Multiperil [Member] | Texas [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for less than one year
Commercial General Liability [Member] | Florida [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Ongoing operations for more than one year
Commercial General Liability [Member] | Alabama [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Working with state to discontinue line of authority
Commercial General Liability [Member] | Georgia [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Working with state to discontinue line of authority
Commercial General Liability [Member] | Louisiana [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Working with state to discontinue line of authority
Commercial General Liability [Member] | Texas [Member]
Operations by State and Line of Business [Abstract]
Status of operations						Working with state to discontinue line of authority

Summary of Significant Accoun30

Summary of Significant Accounting Policies and Practices (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Summary of Significant Accounting Policies and Practices [Abstract]
Maximum number of years for which claims incurred			10 years
Change in Accounting Estimate [Line Items]
Increase in net income	$ 10,593	$ 7,227	$ 31,611	$ 27,204
Decrease in gross ceded premiums	119,985	129,298	231,046	179,137
Increase in loss and loss adjustment expenses	28,412	15,126	75,510	60,476
Increase in deferred acquisition costs			(88)	(5,728)
Increase in prepaid reinsurance premiums			40,967	31,610
Increase (decrease) in reinsurance recoverable			(4,186)	6,494
Decrease in deferred policy acquisition costs	6,788	$ 5,815	16,938	$ 23,095
Change in Accounting Method Accounted for as Change in Estimate [Member] | Quota Share Reinsurance Adjustments [Member]
Change in Accounting Estimate [Line Items]
Increase in net income	2,200		2,200
Decrease in gross ceded premiums	(10,900)		(10,900)
Increase in loss and loss adjustment expenses	4,500		4,500
Increase in deferred acquisition costs	1,500		1,500
Increase in prepaid reinsurance premiums	10,900		10,900
Increase (decrease) in reinsurance recoverable	(4,500)		(4,500)
Decrease in deferred policy acquisition costs	1,500		1,500
Contingent quota-share profit sharing reclassified to prepaid reinsurance premiums	14,000		14,000
Deferred quota-share profit sharing reclassified to reinsurance recoverable	$ 7,000		$ 7,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)Category	Dec. 31, 2014USD ($)
Commitments and Contingencies [Abstract]
Number of major categories the entity commitments and contingencies are grouped into	3
Net deferred tax liability | $	$ 4,815	$ 1,341

Variable Interest Entity (Detai

Variable Interest Entity (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Investments [Abstract]
Debt maturities, held to maturity, at amortized cost	$ 6,387	$ 7,417
Equity securities, available for sale, at fair value	38,086	39,247
Total investments	386,388	330,763
Cash and short term investments	76,161	40,157	$ 45,926	$ 41,446
Premiums receivable, net	34,928	27,275
Deferred policy acquisition costs	13,522	13,610
Other assets	10,973	7,231
Total assets	634,307	503,631
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Unpaid losses and LAE	91,673	78,330		$ 61,016
Unearned premiums	250,397	192,424
Accounts payable and accrued expenses	16,403	10,924
Debt	5,000	0
Total liabilities	392,825	311,052
Shareholders' equity [Abstract]
Common stock, $0.01 par value. Issued and outstanding 100 shares	138	136
Additional paid-in capital	131,203	127,302
Accumulated other comprehensive income [Abstract]
Unrealized net gains on investments, available for sale	4,838	7,718
Total accumulated other comprehensive income	4,838	7,718
Retained earnings	87,188	57,423
Total shareholders' equity	241,482	192,579
Total liabilities and shareholders' equity	$ 634,307	$ 503,631
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	13,773,130	13,632,414
Common stock, shares outstanding (in shares)	13,773,130	13,632,414
Variable Interest Entity (VIE) [Member]
Investments [Abstract]
Debt maturities, held to maturity, at amortized cost	$ 21,877	$ 0
Equity securities, available for sale, at fair value	1,350	0
Total investments	23,227	0
Cash and short term investments	13,492	0
Premiums receivable, net	326	0
Deferred policy acquisition costs	168	0
Deferred income taxes, net	665	0
Other assets	178	0
Total assets	38,056	0
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Unpaid losses and LAE	112	0
Unearned premiums	1,072	0
Income taxes payable	110	0
Accounts payable and accrued expenses	249	0
Debt	5,000	0
Total liabilities	6,543	0
Shareholders' equity [Abstract]
Common stock, $0.01 par value. Issued and outstanding 100 shares	0	0
Additional paid-in capital	32,413	0
Accumulated other comprehensive income [Abstract]
Unrealized net gains on investments, available for sale	(234)	0
Total accumulated other comprehensive income	(234)	0
Retained earnings	(666)	0
Total shareholders' equity	31,513	0
Total liabilities and shareholders' equity	$ 38,056	$ 0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	100	100
Common stock, shares outstanding (in shares)	100	100

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Investments [Abstract]
Increase in total investments			$ 55,600
Percentage increase in investments			16.80%
Ratio of available-for-sale securities to total investments	98.00%		98.00%		98.00%
Schedule of Available-for-sale Securities [Line Items]
Realized investment losses charged to operations	$ 1,126	$ 659	$ 3,743	$ 4,047
Bond portfolio reclassified as held-to-maturity			$ 6,400		$ 7,400
Diverse Industries Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of debt securities to total debt portfolio			80.00%		77.00%
United States Government Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of debt securities to total debt portfolio			20.00%		23.00%
Diverse Industries Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Realized investment losses charged to operations				$ 0
Percentage of equity holdings to total equity portfolio			86.00%		88.00%
Diverse Industries Equity Securities [Member] | Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Realized investment losses charged to operations			$ (100)
Mutual Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of equity holdings to total equity portfolio			14.00%		12.00%

Investments, Summary of Investm

Investments, Summary of Investments by Type (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt securities, at fair value [Abstract]
Debt securities, at fair value	$ 341,915	$ 284,099
Percent of debt securities at fair value to total investments	88.50%	85.90%
Debt securities, at amortized cost [Abstract]
Debt securities, at amortized cost	$ 6,387	$ 7,417
Percent of debt securities at amortized cost to total investments	1.65%	2.24%
Total debt securities	$ 348,302	$ 291,516
Percent of debt securities to total investments	90.15%	88.14%
Equity securities, at fair value	$ 38,086	$ 39,247
Percentage of equity securities to total investments	9.85%	11.86%
Total investments	$ 386,388	$ 330,763
Total investments	100.00%	100.00%
United States Government Obligations and Authorities [Member]
Debt securities, at fair value [Abstract]
Debt securities, at fair value	$ 65,994	$ 62,323
Percent of debt securities at fair value to total investments	17.08%	18.84%
Debt securities, at amortized cost [Abstract]
Debt securities, at amortized cost	$ 4,221	$ 4,490
Percent of debt securities at amortized cost to total investments	1.09%	1.36%
Obligations of States and Political Subdivisions [Member]
Debt securities, at fair value [Abstract]
Debt securities, at fair value	$ 108,597	$ 91,614
Percent of debt securities at fair value to total investments	28.11%	27.70%
Corporate [Member]
Debt securities, at fair value [Abstract]
Debt securities, at fair value	$ 155,324	$ 119,024
Percent of debt securities at fair value to total investments	40.20%	35.99%
Debt securities, at amortized cost [Abstract]
Debt securities, at amortized cost	$ 2,101	$ 2,681
Percent of debt securities at amortized cost to total investments	0.54%	0.81%
International [Member]
Debt securities, at fair value [Abstract]
Debt securities, at fair value	$ 12,000	$ 11,138
Percent of debt securities at fair value to total investments	3.11%	3.37%
Debt securities, at amortized cost [Abstract]
Debt securities, at amortized cost	$ 65	$ 246
Percent of debt securities at amortized cost to total investments	0.02%	0.07%

Investments, Realized Gains (Lo

Investments, Realized Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Realized gains (losses) [Abstract]
Total realized gains	$ 2,073	$ 694	$ 5,162	$ 4,546
Fair Value at Sale of securities with realized gains	26,069	18,055	81,854	51,252
Total realized losses	(947)	(35)	(1,419)	(499)
Fair Value at Sale of securities with realized losses	13,050	1,745	43,885	9,972
Net realized gains (losses) on investments	1,126	659	3,743	4,047
Fair Value of Investments at Sale	39,119	19,800	125,739	61,224
Debt Securities [Member]
Realized gains (losses) [Abstract]
Total realized gains	226	241	973	533
Fair Value at Sale of securities with realized gains	21,843	16,413	71,869	38,657
Total realized losses	(178)	(20)	(504)	(118)
Fair Value at Sale of securities with realized losses	9,744	1,627	39,926	8,333
Equity Securities [Member]
Realized gains (losses) [Abstract]
Total realized gains	1,847	453	4,189	4,013
Fair Value at Sale of securities with realized gains	4,226	1,642	9,985	12,595
Total realized losses	(769)	(15)	(915)	(381)
Fair Value at Sale of securities with realized losses	$ 3,306	$ 118	$ 3,959	$ 1,639

Investments, Amortized Cost, Es

Investments, Amortized Cost, Estimated Fair Value and Gross Unrealized Gains and Losses of Debt and Equity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 338,660	$ 281,021
Gross unrealized gains	4,341	3,609
Gross unrealized losses	1,086	531
Estimated fair value	341,915	284,099
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Amortized cost	33,605	29,908
Gross unrealized gains	6,391	9,836
Gross unrealized losses	1,910	497
Estimated fair value	38,086	39,247
Held-to-maturity Securities [Abstract]
Amortized cost	6,387	7,417
Gross unrealized gains	76	73
Gross unrealized losses	190	231
Estimated fair value	6,273	7,259
United States Government Obligations and Authorities [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized cost	64,876	61,376
Gross unrealized gains	1,233	1,022
Gross unrealized losses	115	75
Estimated fair value	65,994	62,323
Held-to-maturity Securities [Abstract]
Amortized cost	4,221	4,490
Obligations of States and Political Subdivisions [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized cost	107,211	90,728
Gross unrealized gains	1,428	956
Gross unrealized losses	42	70
Estimated fair value	108,597	91,614
Corporate [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized cost	154,469	117,778
Gross unrealized gains	1,625	1,578
Gross unrealized losses	770	332
Estimated fair value	155,324	119,024
Held-to-maturity Securities [Abstract]
Amortized cost	2,101	2,681
International [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized cost	12,104	11,139
Gross unrealized gains	55	53
Gross unrealized losses	159	54
Estimated fair value	12,000	11,138
Held-to-maturity Securities [Abstract]
Amortized cost	65	246
United States Government Obligations and Authorities [Member]
Held-to-maturity Securities [Abstract]
Amortized cost	4,221	4,490
Gross unrealized gains	51	41
Gross unrealized losses	184	225
Estimated fair value	4,088	4,306
Corporate [Member]
Held-to-maturity Securities [Abstract]
Amortized cost	2,101	2,681
Gross unrealized gains	25	31
Gross unrealized losses	6	5
Estimated fair value	2,120	2,707
International [Member]
Held-to-maturity Securities [Abstract]
Amortized cost	65	246
Gross unrealized gains	0	1
Gross unrealized losses	0	1
Estimated fair value	$ 65	$ 246

Investments, Unrealized Investm

Investments, Unrealized Investment Losses by Investment Class (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Continuous unrealized loss position [Abstract]
Debt/Equity securities, Unrealized (Losses)	$ 2,996	$ 1,028
Debt/Equity securities, Less than 12 months	2,917	863
Debt/Equity securities, 12 months or longer	79	165
Debt Securities [Member]
Continuous unrealized loss position [Abstract]
Debt/Equity securities, Unrealized (Losses)	1,086	531
Debt/Equity securities, Less than 12 months	1,036	402
Debt/Equity securities, 12 months or longer	50	129
United States Government Obligations and Authorities [Member]
Continuous unrealized loss position [Abstract]
Debt/Equity securities, Unrealized (Losses)	115	75
Debt/Equity securities, Less than 12 months	95	22
Debt/Equity securities, 12 months or longer	20	53
Obligations of States and Political Subdivisions [Member]
Continuous unrealized loss position [Abstract]
Debt/Equity securities, Unrealized (Losses)	42	70
Debt/Equity securities, Less than 12 months	42	66
Debt/Equity securities, 12 months or longer	0	4
Corporate [Member]
Continuous unrealized loss position [Abstract]
Debt/Equity securities, Unrealized (Losses)	770	332
Debt/Equity securities, Less than 12 months	740	260
Debt/Equity securities, 12 months or longer	30	72
International [Member]
Continuous unrealized loss position [Abstract]
Debt/Equity securities, Unrealized (Losses)	159	54
Debt/Equity securities, Less than 12 months	159	54
Debt/Equity securities, 12 months or longer	0	0
Common Stock [Member]
Continuous unrealized loss position [Abstract]
Debt/Equity securities, Unrealized (Losses)	1,910	497
Debt/Equity securities, Less than 12 months	1,881	461
Debt/Equity securities, 12 months or longer	$ 29	$ 36

Investments, Debt Securities by

Investments, Debt Securities by Contractual or Expected Maturity Periods (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Amortized Cost [Abstract]
Due in one year or less, Amortized Cost	$ 19,635,000	$ 16,777,000
Due after one through five years, Amortized Cost	188,397,000	173,236,000
Due after five through ten years, Amortized Cost	136,989,000	98,404,000
Due after ten years, Amortized Cost	26,000	26,000
Total Amortized Cost	345,047,000	288,443,000
Estimated Fair Value [Abstract]
Due in one year or less, Estimated Fair Value	19,659,000	16,797,000
Due after one through five years, Estimated Fair Value	190,047,000	174,273,000
Due after five through ten years, Estimated Fair Value	138,449,000	100,259,000
Due after ten years, Estimated Fair Value	33,000	33,000
Total Estimated Fair Value	348,188,000	291,362,000
Federated National [Member] | United States Treasury Notes Maturing in 2016 [Member]
Estimated Fair Value [Abstract]
Investment on deposit, as required by law for FNIC and MNIC	$ 60,674	$ 61,465
Investment securities, maturity date	Dec. 31, 2016	Dec. 31, 2016
Federated National [Member] | United States Treasury Notes Maturing in 2022 [Member]
Estimated Fair Value [Abstract]
Investment on deposit, as required by law for FNIC and MNIC	$ 2,204,798	$ 2,208,588
Investment securities, maturity date	Dec. 31, 2022	Dec. 31, 2022
Federated National [Member] | Statutory Deposit Held in Trust [Member]
Estimated Fair Value [Abstract]
Investment on deposit, as required by law for FNIC and MNIC	$ 300,000

Investments, Investment Results

Investments, Investment Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Investment income [Abstract]
Interest on debt securities	$ 1,755	$ 1,328	$ 4,713	$ 3,432
Dividends on equity securities	147	121	381	324
Interest on cash and cash equivalents	5	1	60	2
Total investment income	1,907	1,450	5,154	3,758
Proceeds from sales and maturity of marketable securities	$ 42,500	$ 21,800	$ 134,918	$ 65,869

Investments, Net Realized and U

Investments, Net Realized and Unrealized Investment Gains (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Net realized and unrealized investment gains [Abstract]
Net realized gains	$ 1,126	$ 659	$ 3,743	$ 4,047
Net unrealized gains			7,736		$ 12,417
Debt Securities [Member]
Net realized and unrealized investment gains [Abstract]
Net realized gains	48	221	469	415
Net unrealized gains			3,255		3,078
Equity Securities [Member]
Net realized and unrealized investment gains [Abstract]
Net realized gains	$ 1,078	$ 438	3,274	$ 3,632
Net unrealized gains			$ 4,481		$ 9,339

Fair Value Disclosure (Details)

Fair Value Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt securities [Abstract]
Debt securities	$ 341,915	$ 284,099
Equity securities [Abstract]
Equity securities	38,086	39,247
Recurring [Member]
Debt securities [Abstract]
United States government obligations and authorities	65,994	62,323
Obligations of states and political subdivisions	108,597	91,614
Corporate	155,324	119,024
International	12,000	11,138
Debt securities	341,915	284,099
Equity securities [Abstract]
Common stocks	38,086	39,247
Equity securities	38,086	39,247
Total debt and equity securities	380,001	323,346
Level 1 [Member] | Recurring [Member]
Debt securities [Abstract]
United States government obligations and authorities	40,833	46,002
Obligations of states and political subdivisions	0	0
Corporate	0	0
International	0	0
Debt securities	40,833	46,002
Equity securities [Abstract]
Common stocks	38,086	39,247
Equity securities	38,086	39,247
Total debt and equity securities	78,919	85,249
Level 2 [Member] | Recurring [Member]
Debt securities [Abstract]
United States government obligations and authorities	25,161	16,321
Obligations of states and political subdivisions	108,597	91,614
Corporate	155,324	119,024
International	12,000	11,138
Debt securities	301,082	238,097
Equity securities [Abstract]
Common stocks	0	0
Equity securities	0	0
Total debt and equity securities	301,082	238,097
Level 3 [Member] | Recurring [Member]
Debt securities [Abstract]
United States government obligations and authorities	0	0
Obligations of states and political subdivisions	0	0
Corporate	0	0
International	0	0
Debt securities	0	0
Equity securities [Abstract]
Common stocks	0	0
Equity securities	0	0
Total debt and equity securities	$ 0	$ 0

Reinsurance Agreements (Details

Reinsurance Agreements (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)StructureProgram	Dec. 31, 2014USD ($)
Reinsurance Agreements [Abstract]
Number of types of reinsurance structures | Structure	3
Liability for Catastrophe Claims [Line Items]
Increase reinsurance premiums for total insured value	$ 0
Trust agreement for loss exposure	$ 4,000	$ 4,900
Number of quota share treaties | Program	2
Reinsurance premiums	$ 95,470	$ 54,502
Florida [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic loss coverage	$ 200,000
Percentage of quota share reinsurance treaty	30.00%
Number of years quota share reinsurance treaty	2 years
Aggregate catastrophic loss coverage of Florida	$ 200,000
Aggregate catastrophe coverage per year with maximum single event coverage	100,000
Aggregate cost of quota share projected	6,700
2014-2015 Hurricane Season [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic loss coverage	1,490,000
Maximum single event coverage	1,010,000
Aggregate catastrophic loss coverage of Florida	1,490,000
Reinsurance premium payable	40,200
Reinsurance premiums	117,000
2014-2015 Hurricane Season [Member] | Florida [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic loss coverage	1,460,000
Amount retained per loss	$ 11,200
Percentage of Florida coverage to total coverage	98.50%
Aggregate catastrophic loss coverage of Florida	$ 1,460,000
Coverage afforded by FHCF	$ 546,300
Percentage of FHCF coverage to total coverage	37.40%
2014-2015 Hurricane Season [Member] | Louisiana [Member]
Liability for Catastrophe Claims [Line Items]
Amount retained per loss	$ 3,000
2015-2016 Hurricane Season [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic loss coverage	1,820,000
Maximum single event coverage	$ 1,260,000
Percentage of loss covered by reinstatement treaty	50.00%
Aggregate catastrophic loss coverage of Florida	$ 1,820,000
Reinsurance premium payable	44,830
Reinsurance premiums	149,370
2015-2016 Hurricane Season [Member] | Maximum [Member]
Liability for Catastrophe Claims [Line Items]
Covered losses	100,000
2015-2016 Hurricane Season [Member] | Minimum [Member]
Liability for Catastrophe Claims [Line Items]
Covered losses	15,000
2015-2016 Hurricane Season [Member] | Quota Share One [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic loss coverage	$ 200,000
Percentage of quota share reinsurance treaty	30.00%
Number of years quota share reinsurance treaty	2 years
Aggregate catastrophic loss coverage of Florida	$ 200,000
Aggregate catastrophe coverage per year with maximum single event coverage	100,000
Aggregate cost of quota share projected	8,500
2015-2016 Hurricane Season [Member] | Quota Share Two [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic loss coverage	$ 200,000
Percentage of quota share reinsurance treaty	10.00%
Number of years quota share reinsurance treaty	2 years
Aggregate catastrophic loss coverage of Florida	$ 200,000
Aggregate catastrophe coverage per year with maximum single event coverage	100,000
Aggregate cost of quota share projected	2,800
2015-2016 Hurricane Season [Member] | Florida [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic loss coverage	1,740,000
Amount retained per loss	$ 12,900
Percentage of covered loss retained	10.00%
Covered loss retained	$ 2,500
Excess of covered loss retained	21,500
Maximum retention of losses incurred	$ 15,400
Percentage of Florida coverage to total coverage	95.50%
Combined percentage of quota share reinstatement treaty	40.00%
Covered losses for the Company's in-force new and renewal homeowners' insurance program	$ 100,000
Aggregate catastrophic loss coverage of Florida	1,740,000
Coverage afforded by FHCF	$ 581,200
Percentage of FHCF coverage to total coverage	33.40%
2015-2016 Hurricane Season [Member] | Louisiana, Alabama and South Carolina [Member]
Liability for Catastrophe Claims [Line Items]
Amount retained per loss	$ 5,000

Unpaid losses and LAE (Details)

Unpaid losses and LAE (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Unpaid losses and LAE [Abstract]
Balance, beginning of period	$ 78,330	$ 61,016
Less reinsurance recoverables	(12,534)	(2,742)
Net balance, beginning of period	65,796	58,274
Incurred related to [Abstract]
Current year	73,895	79,932
Prior years	1,615	1,104
Total incurred	75,510	81,036
Paid related to [Abstract]
Current year	30,739	42,391
Prior years	27,243	31,123
Total paid	57,982	73,514
Net balance, end of period	83,324	65,796
Plus reinsurance recoverables	8,349	12,534
Balance, end of period	$ 91,673	$ 78,330

Stock Compensation Plans (Detai

Stock Compensation Plans (Details) - $ / shares	May. 05, 2015	Mar. 10, 2015	Dec. 09, 2014	Sep. 09, 2014	Mar. 04, 2014	Aug. 05, 2013	Mar. 04, 2013	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
1998 Stock Option Plan [Member] | Stock Option [Member]
Stock Option Plans, Number of Shares [Abstract]
Outstanding, beginning of period (in shares)								0	3,000	78,500
Granted (in shares)								0	0	0
Exercised (in shares)								0	(3,000)	(500)
Cancelled (in shares)								0	0	(75,000)
Outstanding, end of period (in shares)								0	0	3,000
Stock Options, Weighted Average Option Exercise Price [Abstract]
Outstanding, beginning of period (in dollars per share)								$ 8.67	$ 8.67	$ 12.73
Granted (in dollars per share)								0	0	0
Exercised (in dollars per share)								0	8.67	8.67
Cancelled (in dollars per share)								0	0	12.92
Outstanding, end of period (in dollars per share)								$ 0	$ 8.67	$ 8.67
2002 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized to grant options to purchase (in shares)								1,800,000	1,800,000
Share-based payment award, expiration date								Apr. 30, 2012
Options exercisable outstanding (in shares)								185,150	219,285
Options Exercisable at [Abstract]
September 30, 2015 (in shares)								185,150	219,285
2002 Stock Option Plan [Member] | Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable outstanding (in shares)								184,150
Stock Option Plans, Number of Shares [Abstract]
Outstanding, beginning of period (in shares)								219,285	523,521	702,597
Granted (in shares)								0	0	0
Exercised (in shares)								(34,135)	(299,735)	(165,577)
Cancelled (in shares)								0	(4,501)	(13,499)
Outstanding, end of period (in shares)								185,150	219,285	523,521
Stock Options, Weighted Average Option Exercise Price [Abstract]
Outstanding, beginning of period (in dollars per share)								$ 3.79	$ 4.54	$ 5.17
Granted (in dollars per share)								0	0	0
Exercised (in dollars per share)								3.81	5.10	7.15
Cancelled (in dollars per share)								0	3.49	5.41
Outstanding, end of period (in dollars per share)								$ 3.79	$ 3.79	$ 4.54
Options Exercisable at [Abstract]
September 30, 2015 (in shares)								184,150
December 31, 2015 (in shares)								1,000
December 31, 2016 (in shares)								0
December 31, 2017 (in shares)								0
December 31, 2018 (in shares)								0
December 31, 2019 (in shares)								0
Thereafter (in shares)								0
Total options exercisable (in shares)								185,150
Options Weighted Average Option Exercise Price at [Abstract]
September 30, 2015 (in dollars per share)								$ 3.79
December 31, 2015 (in dollars per share)								3.79
December 31, 2016 (in dollars per share)								3.79
December 31, 2017 (in dollars per share)								3.79
December 31, 2018 (in dollars per share)								3.79
December 31, 2019 (in dollars per share)								3.79
Thereafter (in dollars per share)								$ 3.79
2012 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized to grant options to purchase (in shares)								1,000,000
Share-based payment award, expiration date								Apr. 5, 2022
Other Than Stock Option Plans, Number of Shares [Abstract]
Granted (in shares)		66,140		130,000	88,648	150,000	100,000
2012 Stock Incentive Plan [Member] | Chief Executive Officer and President [Member]
Other Than Stock Option Plans, Number of Shares [Abstract]
Granted (in shares)	50,000	32,997	50,000	45,000	43,997	100,000	25,000
2012 Stock Incentive Plan [Member] | Chief Financial Officer [Member]
Other Than Stock Option Plans, Number of Shares [Abstract]
Granted (in shares)		9,551		15,000	16,341	50,000	15,000
2012 Stock Incentive Plan [Member] | Director [Member]
Other Than Stock Option Plans, Number of Shares [Abstract]
Granted (in shares)		6,252		50,000	15,710		20,000
2012 Stock Incentive Plan [Member] | Other Employees [Member]
Other Than Stock Option Plans, Number of Shares [Abstract]
Granted (in shares)		17,340		20,000	12,600		40,000
2012 Stock Incentive Plan [Member] | Stock Option [Member]
Other Than Stock Option Plans, Number of Shares [Abstract]
Outstanding, beginning of period (in shares)								447,801	249,500	0
Granted (in shares)								116,140	268,648	250,000
Exercised (in shares)								(135,134)	(68,988)	0
Cancelled (in shares)								0	(1,359)	(500)
Outstanding, end of period (in shares)								428,807	447,801	249,500
Other Than Stock Options, Fair Market Value at Grant [Abstract]
Outstanding, beginning of period (in dollars per share)								$ 5.54	$ 5.54	$ 0
Granted (in dollars per share)								26.81	5.54	5.54
Exercised (in dollars per share)								16.03	0	0
Cancelled (in dollars per share)								0	5.54	5.54
Outstanding, end of period (in dollars per share)								$ 14.57	$ 5.54	$ 5.54

Stock Compensation Plans, Summa

Stock Compensation Plans, Summary Information about Stock Option Plans (Details) - 2002 Stock Option Plan [Member] - $2.45 - $4.40 [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Summary information about stock options outstanding [Abstract]
Range of exercise price, lower range limit (in dollars per share)	$ 2.45
Range of exercise price, upper range limit (in dollars per share)	$ 4.40
Options outstanding (in shares) | shares	185,150
Weighted average contractual periods	5 years 10 months 10 days
Weighted average exercise price (in dollars per share)	$ 3.79
Options exercisable (in shares) | shares	184,150

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings per Share [Abstract]
Net income attributable to Federated National Holding Company common stockholders	$ 10,593	$ 7,227	$ 31,611	$ 27,204
Weighted average number of common shares outstanding - basic (in shares)	13,749,394	12,624,746	13,709,605	11,562,709
Net income per share - basic (in dollars per share)	$ 0.77	$ 0.57	$ 2.31	$ 2.35
Dilutive effect of stock compensation plans (in shares)	228,000	332,000	268,000	371,000
Weighted average number of common shares outstanding - diluted (in shares)	13,976,709	12,956,407	13,978,381	11,934,057
Net income per share - diluted (in dollars per share)	$ 0.76	$ 0.56	$ 2.26	$ 2.28

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Stockholders' Equity [Abstract]
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, outstanding (in shares)	13,773,130	13,632,414