FedNat Holding (FNHCQ) 10-K 14 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 07, 2016	Jun. 30, 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 Public Float			$ 312,306,493
Entity Common Stock, Shares Outstanding		14,241,207
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investments
Debt securities, available-for-sale, at fair value	$ 339,178	$ 284,099
Debt securities, held-to-maturity, at amortized cost	6,619	7,417
Equity securities, available-for-sale, at fair value	38,534	39,247
Total investments	384,331	330,763
Cash and cash equivalents	53,038	40,157
Prepaid reinsurance premiums	120,771	54,502
Premiums receivable, net of allowance of $302 and $148, respectively	38,594	27,275
Reinsurance recoverable, net	12,714	12,534
Deferred acquisition costs	15,547	13,610
Income taxes receivable	2,691	1,810
Property and equipment, net	2,894	1,749
Other assets	7,718	21,231
Total assets	638,298	503,631
LIABILITIES AND SHAREHOLDERS' EQUITY
Loss and loss adjustment expense reserves	97,340	78,330
Unearned premiums	253,960	192,424
Debt from consolidated variable interest entity	5,000	0
Deferred income taxes, net	5,627	1,341
Other liabilities	25,612	38,957
Total liabilities	387,539	311,052
Preferred stock, $0.01 par value, 1,000,000 shares authorized	0	0
Common stock, $0.01 par value, 25,000,000 shares authorized; 13,798,773 and 13,632,414 shares issued and outstanding, respectively	138	136
Additional paid-in capital	131,998	127,302
Accumulated other comprehensive income	3,985	7,718
Retained earnings	96,461	57,423
Total shareholders' equity attributable to Federated National Holding Company shareholders	232,582	192,579
Noncontrolling interest	18,177	0
Total shareholders' equity	250,759	192,579
Total liabilities and shareholders' equity	$ 638,298	$ 503,631

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Premiums receivable, allowance for credit losses	$ 302	$ 148
LIABILITIES AND SHAREHOLDERS' EQUITY
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
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)	13,798,773	13,632,414
Common stock, shares outstanding (in shares)	13,798,773	13,632,414

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue:
Net premiums earned	$ 210,020	$ 170,905	$ 104,381
Net investment income	7,226	5,385	3,332
Net realized investment gains	3,616	4,426	2,881
Other income	29,031	19,976	11,143
Total revenue	249,893	200,692	121,737
Costs and expenses:
Losses and loss adjustment expenses	104,353	81,036	56,410
Commissions and other underwriting expenses	65,315	52,077	38,580
General and administrative expenses	15,032	10,272	7,529
Total costs and expenses	184,700	143,385	102,519
Income before income taxes	65,193	57,307	19,218
Income taxes	24,753	20,108	6,491
Net income	40,440	37,199	12,727
Net loss attributable to noncontrolling interest	(445)	0	0
Net income attributable to Federated National Holding Company shareholders	$ 40,885	$ 37,199	$ 12,727
Net income per share attributable to Federated National Holding Company shareholders:
Basic (in dollars per share)	$ 2.98	$ 3.08	$ 1.50
Diluted (in dollars per share)	$ 2.92	$ 2.99	$ 1.45

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 40,440	$ 37,199	$ 12,727
Change in net unrealized (losses) gains on investments available-for-sale	(6,308)	2,856	3,041
Comprehensive income before income taxes	34,132	40,055	15,768
Income tax benefit (expense) related to items of other comprehensive income	2,454	(1,102)	(1,144)
Comprehensive income	36,586	38,953	14,624
Comprehensive loss attributable to noncontrolling interest	(566)	0	0
Comprehensive income attributable to Federated National Holding Company shareholders	$ 37,152	$ 38,953	$ 14,624

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]	Total Shareholders' Equity Attributable to Federated National Holding Company Shareholders [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2012	$ 0	$ 80	$ 51,356	$ 4,067	$ 10,402	$ 65,905	$ 0	$ 65,905
Balance (in shares) at Dec. 31, 2012		7,979,488
Increase (Decrease) in Stockholders' Equity
Net income (loss)	0	$ 0	0	0	12,727	12,727	0	12,727
Other comprehensive income, net of tax	0	0	0	1,897	0	1,897	0	1,897
Dividends paid	0	0	0	0	(1,233)	(1,233)	0	(1,233)
Stock issued in public offering	0	$ 28	27,851	0	0	27,879	0	27,879
Stock issued in public offering (in shares)		2,781,395
Issuance of common stock for share-based awards	0	$ 1	857	0	0	858	0	858
Issuance of common stock for share-based awards (in shares)		140,833
Shares based compensation	0	$ 0	461	0	0	461	0	461
Balance at Dec. 31, 2013	0	$ 109	80,525	5,964	21,896	108,494	0	108,494
Balance (in shares) at Dec. 31, 2013		10,901,716
Increase (Decrease) in Stockholders' Equity
Net income (loss)	0	$ 0	0	0	37,199	37,199	0	37,199
Other comprehensive income, net of tax	0	0	0	1,754	0	1,754	0	1,754
Dividends paid	0	0	0	0	(1,672)	(1,672)	0	(1,672)
Stock issued in public offering	0	$ 23	43,086	0	0	43,109	0	43,109
Stock issued in public offering (in shares)		2,358,975
Issuance of common stock for share-based awards	0	$ 4	1,551	0	0	1,555	0	1,555
Issuance of common stock for share-based awards (in shares)		371,723
Shares based compensation	0	$ 0	2,140	0	0	2,140	0	2,140
Balance at Dec. 31, 2014	0	$ 136	127,302	7,718	57,423	192,579	0	192,579
Balance (in shares) at Dec. 31, 2014		13,632,414
Increase (Decrease) in Stockholders' Equity
Net income (loss)	0	$ 0	0	0	40,885	40,885	(445)	40,440
Other comprehensive income, net of tax	0	0	0	(3,733)	0	(3,733)	(121)	(3,854)
Noncontrolling interest capital contributions	0	0	0	0	0	0	18,743	18,743
Dividends paid	0	0	0	0	(1,847)	(1,847)	0	(1,847)
Issuance of common stock for share-based awards	0	$ 2	169	0	0	171	0	171
Issuance of common stock for share-based awards (in shares)		166,359
Shares based compensation	0	$ 0	4,527	0	0	4,527	0	4,527
Balance at Dec. 31, 2015	$ 0	$ 138	$ 131,998	$ 3,985	$ 96,461	$ 232,582	$ 18,177	$ 250,759
Balance (in shares) at Dec. 31, 2015		13,798,773

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Increase (Decrease) in Stockholders' Equity
Other comprehensive income, tax	$ 2,454
Total Shareholders' Equity Attributable to Federated National Holding Company Shareholders [Member]
Increase (Decrease) in Stockholders' Equity
Other comprehensive income, tax	2,318
Noncontrolling Interest [Member]
Increase (Decrease) in Stockholders' Equity
Other comprehensive income, tax	$ 136

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flow from operating activities:
Net income	$ 40,440	$ 37,199	$ 12,727
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net realized investment gains	(3,616)	(4,426)	(2,881)
Amortization of investment premium or discount, net	5,645	4,165	1,761
Depreciation and amortization	624	149	263
Share-based compensation	4,527	2,140	461
Changes in operating assets and liabilities:
Prepaid reinsurance premiums	(66,269)	(46,911)	(546)
Premiums receivable, net	(11,319)	(4,860)	(14,391)
Reinsurance recoverable, net	(180)	(9,793)	761
Deferred acquisition costs	(1,937)	3,098	(8,229)
Income taxes receivable, net	(2,445)	(4,189)	2,418
Loss and loss adjustment expense reserves	19,010	17,315	11,108
Unearned premiums	61,535	64,081	69,336
Deferred income taxes, net of other comprehensive income	6,741	765	2,020
Other, net	135	4,411	4,905
Net cash provided by operating activities	52,891	63,144	79,713
Cash flow from investing activities:
Sales, maturities and redemptions of investment securities	169,979	87,151	106,173
Purchases of investment securities	(231,884)	(194,087)	(192,627)
Purchases of property and equipment	(1,736)	(969)	(629)
Net cash used in investing activities	(63,641)	(107,905)	(87,083)
Cash flow from financing activities:
Noncontrolling interest equity investment	18,743	0	0
Issuance of debt in consolidated variable interest entity	5,000	0	0
Tax benefit related to share-based compensation	1,564	480	169
Issuance of common stock in public offering	0	43,109	27,879
Issuance of common stock for share-based awards	171	1,555	858
Dividends paid	(1,847)	(1,672)	(1,233)
Net cash provided by financing activities	23,631	43,472	27,673
Net increase (decrease) in cash and cash equivalents	12,881	(1,289)	20,303
Cash and cash equivalents at beginning of period	40,157	41,446	21,143
Cash and cash equivalents at end of period	53,038	40,157	41,446
Cash paid during the period for:
Income taxes	16,262	19,185	1,870
Non-cash investing and finance activities:
Accrued dividends payable	$ 0	$ 564	$ 330

ORGANIZATION AND BUSINESS

ORGANIZATION AND BUSINESS	12 Months Ended
	Dec. 31, 2015
ORGANIZATION AND BUSINESS [Abstract]
ORGANIZATION AND BUSINESS	(1) ORGANIZATION AND BUSINESS Federated National Holding Company (“FNHC”, “Company”, “we”, “us”), 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 other lines of insurance in Florida and other states. We market, distribute and service 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”), which is licensed as an admitted carrier in Florida. We also serve as managing general agent for Monarch National Insurance Company (“MNIC”), which was founded in 2015 through the joint venture, described below. 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. Monarch National Insurance Company Joint Venture On March 19, 2015, the Company entered into a joint venture to organize 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”). The Company’s joint venture partners are a majority-owned limited partnership of Crosswinds Holdings Inc., a publicly traded Canadian private equity firm and asset manager (“Crosswinds”); and Transatlantic Reinsurance Company (“TransRe”). The Company and Crosswinds 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 invested $5.0 million for a 15.2% non-voting interest in Monarch Delaware and 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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES	(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (a) BASIS OF PRESENTATION The accompanying consolidated financial statements are prepared in accordance with United States of America Generally Accepted Accounting Principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. (b) PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of FNHC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIE”) in which we are the primary beneficiary. All material inter-company accounts and transactions have been eliminated in consolidation. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. In connection with the investment in Monarch Delaware, we have determined that we are the primary beneficiary of this VIE, as we possess both the power to direct the activities of the VIE that most significantly impact its economic performance. Accordingly, we consolidate the VIE in our consolidated financial statements. Refer to note 14 for additional information on the VIE. (c) ACCOUNTING ESTIMATES AND ASSUMPTIONS 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. Similar to other property and casualty insurers, our liability for loss and loss adjustment expense reserves, although supported by actuarial projections and other data is ultimately based on management's reasoned expectations of future events. Although considerable variability is inherent in these estimates, we believe that this liability is adequate. Estimates are reviewed regularly and adjusted as necessary. Such adjustments are reflected in current operations. (d) FAIR VALUE The fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Alternative valuation techniques may be appropriate under the circumstances to determine the value that would be received to sell an asset or pay to transfer a liability in an orderly transaction. Market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not acting under duress. Our nonperformance or credit risk is considered in determining the fair value of liabilities. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. Refer to note 3 for additional information regarding fair value. (e) INVESTMENTS Investments consist of debt and equity securities. Debt securities consist of securities with an initial fixed maturity, which include corporate bonds, municipal bonds and United States government bonds. Equity securities generally consist of securities that represent ownership interests in an enterprise. The Company determines the appropriate classification of investments in debt and equity securities at the acquisition date and re-evaluates the classification at each balance sheet date. Held-to-maturity investments are recorded at the amortized cost, reflecting the ability and intent to hold the securities to maturity. All other securities were classified as available-for-sale and recorded at fair value. Unrealized gains and losses during the year, net of the related tax effect applicable to available-for-sale, are excluded from income and reflected in other comprehensive income, and the cumulative effect is reported as a separate component of shareholders’ equity until realized. If a decline in fair value is deemed to be other-than-temporary, the investment is written down to its fair value and the amount of the write-down is recorded as an other-than-temporary impairment (“OTTI”) loss on the statement of income. In addition, any portion of such decline related to debt securities that is believed to arise from factors other than credit is recorded as a component of other comprehensive income rather than against income. Net realized gains and losses on investments are determined in accordance with the specific identification method. Net investment income consists primarily of interest income from debt securities, cash and cash equivalents, including any premium amortization or discount accretion and dividend income from equity securities; less expenses related to investments. Refer to note 4 for additional information regarding investments. (f) CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of all deposit balances with a bank that are available for immediate withdrawal and highly liquid investments. All investments with maturities of three months or less at the date of the purchase are considered cash equivalents. (g) PREMIUMS AND UNEARNED PREMIUMS Premiums are recognized as revenue on a pro-rata basis over the term of an insurance policy. Assumed reinsurance premiums written and earned are based on reports received from ceding companies for pro-rata treaty contracts and are generally recorded as written based on contract terms for excess-of-loss and quota share contracts. Premiums are earned ratably over the terms of the related coverage. Unearned premiums and ceded unearned premiums represent the portion of gross premiums written and ceded premiums written, respectively, relating to the unexpired terms of such coverage. Premium receivable balances are reported net of an allowance for estimated uncollectible premium amounts. Such allowance is based upon an ongoing review of amounts outstanding, length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. (h) REINSURANCE Reinsurance is used to mitigate the exposure to losses, manage capacity and protect capital resources. Reinsuring loss exposures does not relieve a ceding entity from its obligations to policyholders and cedants. Reinsurance recoverables (including amounts related to claims incurred but not reported) and ceded unearned premiums are reported as assets. To minimize exposure to losses from a reinsurer’s inability to pay, the financial condition of such reinsurer is evaluated initially upon placement of the reinsurance and periodically thereafter. In addition to considering the financial condition of the reinsurer, the collectability of the reinsurance recoverables is evaluated (and where appropriate, whether an allowance for estimated uncollectible reinsurance recoverables is to be established) based upon a number of other factors. Such factors include the amounts outstanding, length of collection periods, disputes, any collateral or letters of credit held and other relevant factors. To the extent that an allowance for uncollectible reinsurance recoverable is established, amounts deemed to be uncollectible are written off against the allowance for estimated uncollectible reinsurance recoverables. The Company currently has no allowances for uncollectible reinsurance recoverables. Ceded premiums written are recorded in accordance with applicable terms of the various reinsurance contracts and ceded premiums earned are charged against revenue over the period of the various reinsurance contracts. This also generally applies to reinstatement premiums paid to a reinsurer, which arise when contractually-specified ceded loss triggers have been breached. Ceded commissions reduce commissions, brokerage and other underwriting expenses and ceded losses incurred reduce net loss and loss adjustment expense incurred over the applicable periods of the various reinsurance contracts with third party reinsurers. If premiums or commissions are subject to adjustment (for example, retrospectively-rated or experience-rated), the estimated ultimate premium or commission is recognized over the period of the contract. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business and consistent with the terms of the underlying reinsurance contract. (i) OTHER INCOME Other income represents primarily policy fees, commission, brokerage and other income. Policy fees represent a non-refundable application fee for insurance coverage, which are intended to reimburse us for the costs incurred to underwrite the policy. Policy fees are recognized on the effective date of the insurance policy. Commission and brokerage income is recognized on a pro-rata basis over the respective terms of the contracts. (j) DEFERRED ACQUISITION COSTS Deferred Acquisition Costs (“DAC”) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. The Company defers incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such DAC generally include agent or broker commissions, premium taxes, medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. The Company also defers a portion of the employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. It is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. The Company assesses the recoverability of DAC on an annual basis or more frequently if circumstances indicate impairment may have occurred. (k) PROPERTY AND EQUIPMENT Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated using a straight-line method over the estimated useful lives, ranging from 3 to 15 years. Repairs and maintenance are charged to expense as incurred. The Company accounts for internal-use software development costs in accordance with accounting guidelines which state that software costs, including internal payroll costs, incurred in connection with the development or acquisition of software for internal use is charged to expense as incurred until the project enters the application development phase. Costs incurred in the application development phase are capitalized and are depreciated using the straight-line method over an estimated useful life of 5 years, beginning when the software is ready for use. (l) LOSSES AND LOSS ADJUSTMENT EXPENSES The reserves for loss and loss adjustment expense (“LAE”) represent management’s best estimate of the ultimate cost of all reported and unreported losses incurred through the balance sheet date. Such liabilities are determined based upon our assessment of claims pending and the development of prior years' loss liability. These amounts include liabilities based upon individual case estimates for reported losses and LAE’s and estimates of such amounts that are incurred but not yet reported (“IBNR”). Changes in the estimated liability are charged or credited to operations as the losses and LAE’s are settled. The estimates of the liability for loss and LAE reserves are subject to the effect of trends in claims severity and frequency and are continually reviewed. As part of this process, we review historical data and consider various factors, including known and anticipated legal developments, inflation and economic conditions. As experience develops and other data become available, these estimates are revised, as required, resulting in increases or decreases to the existing liability for loss and loss adjustment expense reserves. Adjustments are reflected in results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates. (m) INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss, capital loss and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income or expense in the period that includes the enactment date. (n) SHARE-BASED COMPENSATION The Company accounts for share-based compensation based on the estimated grant date fair value. The Company grants awards with service only conditions and generally amortizes them on a straight-line over the requisite service period of the award, which is the vesting term. The fair value of the restricted stock grants is determined based on the closing market price on the date of grant. Non-employee directors are treated as employees for accounting purposes. (o) BASIC AND DILUTED NET INCOME PER SHARE Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares, while diluted net income per share is computed by dividing net income available to common shareholders by the weighted average number of such common shares and dilutive share equivalents result from the assumed exercise of employee stock options and vesting of restricted common stock and are calculated using the treasury stock method. (p) ADJUSTMENTS During 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 concluded reinsurance contracts which have retrospective rating provisions should be accounted for under Accounting Standards Codification 944, Financial Services — Insurance 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 year ended December 31, 2015. The adjustments increased net income by $0.6 million for the year ended December 31, 2015. (q) RECLASSIFICATIONS Certain amounts in prior year’s consolidated financial statements have been reclassified to conform to the 2015 presentation. These reclassifications had no effect on the reported results of operations, financial condition, and cash flows. In the current period, the Company concluded it was appropriate to classify accounts on the consolidated balance sheets that do not have material balances in the periods being presented, such as contingent quota-share profit sharing, deferred quota-share profit sharing, and accounts payable and accrued expenses. These prior year accounts are included within other assets and other liabilities on the consolidated balance sheets. We have also reclassified certain revenue accounts that do not have material balances and included them within other income in the consolidated statements of operations. In addition, during the current period, we reclassify certain costs and expenses, principally, operating and underwriting expenses, salaries and wages and amortization of deferred policy acquisition costs. These respective account balances are now included in commissions and other underwriting expenses and general and administrative expenses in the consolidated statements of operations. The Company believes this reclassification provide greater clarity and insight into the consolidated financial statements for the periods presented. (r) RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration-Contracts In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

FAIR VALUE

FAIR VALUE	12 Months Ended
	Dec. 31, 2015
FAIR VALUE [Abstract]
FAIR VALUE	(3) FAIR VALUE 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 — Quoted prices (unadjusted) in active markets for identical assets or liabilities. An active market is defined as a market where transactions for the financial statement occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 — Quoted market prices for similar assets or liabilities and valuations, using models or other valuation techniques that use observable market data. All significant inputs are observable, or derived from observable information in the marketplace, or are supported by observable levels at which transactions are executed in the market place. Level 3 — Instruments that use non-binding broker quotes or model driven valuations that do not have observable market data or those that are estimated based on an ownership interest to which a proportionate share of net assets is attributed. The Company’s financial instruments measured at fair value and the level of the fair value hierarchy of inputs used were as follows: December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Debt securities: United States government obligations and authorities $ 34,733 $ 26,820 $ - $ 61,553 Obligations of states and political subdivisions - 110,702 - 110,702 Corporate - 154,620 - 154,620 International - 12,303 - 12,303 34,733 304,445 - 339,178 Equity securities 38,012 522 - 38,534 Total investments $ 72,745 $ 304,967 $ - $ 377,712 December 31, 2014 Level 1 Level 2 Level 3 Total (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 39,247 - - 39,247 Total investments $ 85,249 $ 238,097 $ - $ 323,346

INVESTMENTS

INVESTMENTS	12 Months Ended
	Dec. 31, 2015
INVESTMENTS [Abstract]
INVESTMENTS	(4) INVESTMENTS (a) UNREALIZED GAINS AND LOSSES The amortized cost and the fair value of debt and equity securities as of December 31, 2015 and 2014 are summarized as follows: Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) December 31, 2015 Debt Securities - available-for-sale: United States government obligations and authorities $ 61,384 $ 489 $ 320 $ 61,553 Obligations of states and political subdivisions 109,152 1,590 40 110,702 Corporate 154,957 1,153 1,490 154,620 International 12,528 18 243 12,303 338,021 3,250 2,093 339,178 Debt Securities - held-to-maturity: United States government obligations and authorities 4,275 30 204 4,101 Corporate 2,253 14 20 2,247 International 91 0 0 91 6,619 44 224 6,439 Equity securities 33,581 6,809 1,856 38,534 Total investments $ 378,221 $ 10,103 $ 4,173 $ 384,151 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) 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 29,908 9,836 497 39,247 Total investments $ 318,346 $ 13,518 $ 1,259 $ 330,605 (b) CONTRACTUAL MATURITY The amortized cost and estimated fair value of debt securities as of December 31, 2015 and 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2015 2014 Amortized Amortized Securities with maturity dates: Cost Fair Value Cost Fair Value (in thousands) Debt securities, available-for-sale: One year or less $ 24,470 $ 24,488 $ 16,346 $ 16,364 Over one through five years 170,797 171,113 170,286 171,320 Over five through ten years 142,728 143,545 94,368 96,382 Over ten years 26 32 26 33 338,021 339,178 281,026 284,099 Debt securities, held-to-maturity: One year or less 486 487 432 433 Over one through five years 1,899 1,915 2,947 2,953 Over five through ten years 4,234 4,037 4,038 3,873 Over ten years - - - - 6,619 6,439 7,417 7,259 Total $ 344,640 $ 345,617 $ 288,443 $ 291,358 (c) NET INVESTMENT INCOME Net investment income was as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Interest income $ 6,576 $ 4,775 $ 2,850 Dividends income 588 553 478 Cash and cash equivalents 62 57 4 Net investment income $ 7,226 $ 5,385 $ 3,332 (d) NET REALIZED GAINS AND LOSSES The amount of gross realized gains and losses were as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Gross realized gains: Debt securities $ 1,272 $ 725 $ 1,690 Equity securities 4,959 4,489 2,858 Total gross realized gains 6,231 5,214 4,548 Gross realized losses: Debt securities (805 ) (147 ) (1,001 ) Equity securities (1,810 ) (641 ) (666 ) Total gross realized losses (2,615 ) (788 ) (1,667 ) Net realized gains on investments $ 3,616 $ 4,426 $ 2,881 During the years ended December 31, 2015, 2014 and 2013, the proceeds from sales of investment securities were $157.2 million, $81.5 million and $100.1 million, respectively. During the years ended December 31, 2015, 2014 and 2013, OTTI losses were $0.4 million, $0 and $0, respectively. The determination that unrealized losses on such securities were other-than-temporary was primarily based on the duration of the decline in the fair value of such relative to their cost as of the balance sheet date. (e) AGING OF GROSS UNREALIZED LOSSES As of December 31, 2015 and 2014, gross unrealized losses and related fair values for debt and equity securities, grouped by duration of time in a continuous unrealized loss position, were as follows: Less than 12 months 12 months or longer Total December 31, 2015 Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Debt securities: United States government obligations and authorities $ 30,464 $ 303 $ 659 $ 17 $ 31,123 $ 320 Obligations of states and political subdivisions 16,652 40 - - 16,652 40 Corporate 87,176 1,420 3,590 70 90,766 1,490 International 8,660 191 281 52 8,941 243 142,952 1,954 4,530 139 147,482 2,093 Equity securities 11,790 1,850 84 6 11,874 1,856 Total investments $ 154,742 $ 3,804 $ 4,614 $ 145 $ 159,356 $ 3,949 Less than 12 months 12 months or longer Total December 31, 2014 Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Debt securities: United States government obligations and authorities $ 9,171 $ 22 $ 3,809 $ 53 $ 12,980 $ 75 Obligations of states and political subdivisions 27,426 66 246 4 27,672 70 Corporate 42,888 260 4,861 72 47,749 332 International 6,261 54 - - 6,261 54 85,746 402 8,916 129 94,662 531 Equity securities 3,683 461 200 36 3,883 497 Total investments $ 89,429 $ 863 $ 9,116 $ 165 $ 98,545 $ 1,028 (f) STATUTORY DEPOSITS As of December 31, 2015, investments with fair values of $6.6 million, the majority of which were debt securities, were deposited with governmental authorities as required by law.

REINSURANCE

REINSURANCE	12 Months Ended
	Dec. 31, 2015
REINSURANCE [Abstract]
REINSURANCE	(5) REINSURANCE Overview The Company reinsures (cedes) a portion of written premiums on an excess of loss or a quota-share basis to nonaffiliated insurance companies in order to limit our loss exposure. To the extent that reinsuring companies are unable to meet their obligations assumed under these reinsurance agreements, we remain primarily liable to our policyholders. Reinsurance Recoverables Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables. The following reinsurance recoverable is reflected in the consolidated balance sheets as of the dates presented as follows: Year Ended December 31, 2015 2014 (in thousands) Reinsurance recoverable on paid losses $ 5,218 $ 2,140 Reinsurance recoverable on unpaid losses 7,496 10,394 Reinsurance recoverable, net $ 12,714 $ 12,534 Premiums Written and Earned The following table indicates premiums written and earned as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Premiums written: Direct $ 493,770 $ 377,156 $ 243,373 Ceded (268,517 ) (201,998 ) (82,709 ) $ 225,253 $ 175,158 $ 160,664 Premiums earned: Direct $ 432,233 $ 313,075 $ 174,037 Ceded (222,213 ) (142,170 ) (69,656 ) $ 210,020 $ 170,905 $ 104,381 Significant Reinsurance Contracts FNIC operates primarily by underwriting and accepting risks for their direct account on a gross basis and reinsuring a portion of the exposure on either an individual risk or an aggregate basis to the extent those exceed the desired retention level. We continually evaluate the relative attractiveness of different forms of reinsurance contracts and different markets that may be used to achieve our risk and profitability objectives. MNIC does not have any material reinsurance contracts as of December 31, 2015. All of our reinsurance contracts do not relieve FNIC from their direct obligations to insured. The Company’s reinsurance program, which generally runs from July 1 to June 30 of the following year, consists of excess of loss, Florida Hurricane Catastrophe Fund (“FHCF”) and quota share, which is a form of proportional reinsurance, treaties which insure the homeowners’ property lines from catastrophes in Florida and other states. The excess of loss and FHCF treaties, which became effective on July 1, 2015, insures 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 FHCF treaty only affords coverage for losses sustained in Florida and represents only a portion of the reinsurance coverage in Florida. The Company’s quota share treaties, which are included in the reinsurance program, runs from July 1 to June 30 of the following year. The quota share treaties consist of two different treaties, one for 30% which became effective July 1, 2014 and the other for 10% which became effective July 1, 2015. The combined treaties provide a 40% quota share reinsurance treaty on the first $100 million of covered losses for the homeowners’ insurance program in Florida. The quota share reinsurance agreements require FNIC to secure the credit, regulatory and business risk. Fully funded trust agreements securing these risks totaled $3.5 million and $4.9 million, as of December 31, 2015 and 2014, respectively.

LOSS AND LAE RESERVES

LOSS AND LAE RESERVES	12 Months Ended
	Dec. 31, 2015
LOSS AND LAE RESERVES [Abstract]
LOSS AND LAE RESERVES	(6) LOSS AND LAE RESERVES The liability for loss and LAE reserves is determined on an individual-case basis for all incidents reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and IBNR. Activity in the liability for loss and LAE reserves is summarized as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Gross reserves, beginning of period $ 78,330 $ 61,016 $ 49,908 Less: reinsurance recoverable (1) (10,394 ) (2,313 ) (3,212 ) Net reserves, beginning of period 67,936 58,703 46,696 Incurred loss, net of reinsurance, related to: Current year 113,819 79,932 56,209 Prior years (9,466 ) 1,104 201 Total incurred loss and LAE, net of reinsurance 104,353 81,036 56,410 Paid loss, net of reinsurance, related to: Current year 49,531 40,680 22,557 Prior years 32,914 31,123 21,846 Total paid loss and LAE, net of reinsurance 82,445 71,803 44,403 Net reserves, end of period 89,844 67,936 58,703 Plus: reinsurance recoverable (1) 7,496 10,394 2,313 Gross reserves, end of period $ 97,340 $ 78,330 $ 61,016 (1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves. The favorable development in 2015 is primarily a result of continued favorable loss experience (mostly caused by decreased severity in reported claims) in the Company's all other peril homeowners coverage caused in part by the absence of severe weather in Florida in recent years. Specifically, we have experienced better severity than expected on the 2014 and 2013 accident years.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2015
DEBT [Abstract]
DEBT	(7) DEBT On March 17, 2015, MNHC, our consolidated VIE, issued a promissory note with a principal amount of $5.0 million bearing 6% annual interest, due March 17, 2021 with interest payable on an annual basis due March 17 each year. The debt was issued to TransRe and is being carried at the unpaid principal balance; any accrued and unpaid interest is recognized in other liabilities in the consolidated statement of operations. In addition, the Company recorded $0.1 million of debt issuance costs related to the 6% promissory note.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES [Abstract]
INCOME TAXES	(8) INCOME TAXES A summary of the provision for income tax expense is as follows. Year Ended December 31, 2015 2014 2013 (in thousands) Federal: Current $ 15,523 $ 16,659 $ 4,289 Deferred 6,118 1,059 1,393 Federal income tax expense 21,641 17,718 5,682 State: Current 2,489 2,204 - Deferred 623 186 809 State income tax expense 3,112 2,390 809 Total $ 24,753 $ 20,108 $ 6,491 The actual income tax expense differs from the "expected" income tax expense (computed by applying the combined applicable effective federal and state tax rates to income before income tax expense as follows): Year Ended December 31, 2015 2014 2013 (in thousands) Computed expected tax expense provision, at federal rate $ 22,829 $ 19,887 $ 6,535 State tax, net of federal tax benefit 2,291 1,696 698 Tax-exempt interest (445 ) (312 ) (31 ) Income subject to dividends-received deduction (109 ) (136 ) (97 ) Return to provision and rate changes 119 (1,027 ) (306 ) Other 68 - (308 ) Income tax expense total $ 24,753 $ 20,108 $ 6,491 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our net deferred tax liability are as follows: Year Ended December 31, 2015 2014 (in thousands) Deferred tax assets: Unearned premiums $ 9,375 $ 7,812 Loss and loss adjustment expense reserves 1,175 1,239 Accrued expenses 694 - Net operating loss carryforwards 140 - Share-based compensation 606 545 Other 212 144 Total 12,202 9,740 Deferred tax liabilities: Deferred acquisition costs (11,906 ) (6,199 ) Net unrealized gains on investments (2,336 ) (4,792 ) Deferred revenue related to reinsurance (3,395 ) - Other (192 ) (90 ) Total (17,829 ) (11,081 ) Net deferred tax liability $ (5,627 ) $ (1,341 ) As of December 31, 2015, 2014 and 2013, we have determined that there are no uncertain tax positions.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	(9) COMMITMENTS AND CONTINGENCIES Legal Proceedings In the ordinary course of conducting business, the Company is involved in various legal proceedings, specifically claims litigation. The company’s insurance subsidiaries participate in most of these proceedings by either defending third-party claims brought against insureds or litigating first-party coverage claims. The company accounts for such activity through the establishment of loss and loss adjustment expense reserves. We believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, is immaterial to our consolidated financial statements. The Company is also occasionally involved in other legal and regulatory proceedings, some of which may assert claims for substantial amounts. These other legal proceedings may occasionally make us party to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith in the handling of insurance claims. On a quarterly basis, the Company reviews these outstanding matters, if any. Consistent with GAAP, the Company establishes accruals when it is probable that a loss has been incurred and the Company can reasonably estimate its potential exposure. We record for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, the Company believes that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial statements. 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”), 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. Future assessments are likely, although the impact of these assessments on our balance sheet, results of operations or cash flow are undeterminable at this time. 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. Future assessments by this association are undeterminable at this time. Leases The Company is committed under various operating lease agreements for office space. Rental expense for the years ended December 31, 2015, 2014 and 2013 was $0.7 million, $0.5 million and $0.4 million, respectively. As of December 31, 2015, the future minimum lease payments under these agreements are as follows: Year Ended December 31, Aggregate Minimum Lease Payments (in thousands) 2016 $ 918 2017 934 2018 953 2019 981 2020 1,019 Thereafter 2,104 Total $ 6,909

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	(10) SHAREHOLDERS’ EQUITY Stock Compensation Plan 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 stock options and restricted stocks. Officers, directors, executive management and all other employees of the Company and its subsidiaries are eligible to participate in the 2012 Plan. Awards may be granted singly, in combination, or in tandem. The 2012 Plan will expire on April 5, 2022. Share-based Compensation Expense The following table provides certain information in connection with the Company’s share-based compensation arrangements as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Restricted stock $ 2,930 $ 1,525 $ 120 Stock options 33 135 172 Total share-based compensation expense $ 2,963 $ 1,660 $ 292 Excess tax benefits from share-based awards $ 1,564 $ 480 $ 169 Intrinsic value of options exercised $ 1,124 $ 5,172 $ 583 Fair value of restricted stock vested $ 2,303 $ 549 $ - The intrinsic value of options exercised represents the difference between the stock option exercise price and the weighted average closing stock price of FNHC common stock on the exercise dates, as reported on The NASDAQ Global Select Market. The unamortized share-based compensation expense is $6.9 million for the year ended December 31, 2015, which will be recognized over the remaining weighted average vesting period of approximately 3.21 years. Stock Option Awards A summary of the Company’s stock option activity for the period from January 1, 2013 to December 31, 2015 is as follows: Number of Shares Weighted Average Option Exercise Price Outstanding at January 1, 2013 781,097 $ 5.93 Granted - $ - Exercised (166,077 ) $ 7.15 Cancelled (88,499 ) $ 11.77 Outstanding at December 31, 2013 526,521 $ 4.56 Granted - $ - Exercised (302,735 ) $ 5.13 Cancelled (4,501 ) $ 3.49 Outstanding at December 31, 2014 219,285 $ 3.79 Granted - $ - Exercised (44,652 ) $ 3.81 Cancelled - $ - Outstanding at December 31, 2015 174,633 $ 3.79 A following table summarizes information about stock options outstanding and exercisable in a select price range as of December 31, 2015: Options Outstanding and Exercisable Range of Exercise Price Shares Outstanding and Exercisable Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Aggregate Intrinsic Value $2.45 - $4.40 174,633 5.60 $ 3.79 $ 4,500,825 Restricted Stock During the years ended December 31, 2015, 2014 and 2013, the restricted stock awards issued have been granted to executives, directors and other key employees. The shares granted typically vest in equal portions over three or five years. A summary of the Company’s restricted stock activity for the period from January 1, 2013 to December 31, 2015 is as follows: Number of Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2013 - $ - Granted 250,000 $ 8.23 Vested - $ - Cancelled (500 ) $ 5.54 Outstanding at December 31, 2013 249,500 $ 8.24 Granted 268,648 $ 22.50 Vested (68,988 ) $ 7.96 Cancelled (1,359 ) $ 8.29 Outstanding at December 31, 2014 447,801 $ 16.84 Granted 116,140 $ 27.53 Vested (145,134 ) $ 15.87 Cancelled - $ - Outstanding at December 31, 2015 418,807 $ 20.14 The weighted average grant date fair value is measured at the closing price of FNHC common stock on the grant date, as reported on the NASDAQ Global Select Market.

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2015
EMPLOYEE BENEFIT PLAN [Abstract]
EMPLOYEE BENEFIT PLAN	(11) EMPLOYEE BENEFIT PLAN The Company sponsors a profit sharing plan under Section 401(K) of the Internal Revenue Code, which is a defined contribution plan that allows employees to defer compensation through contributions to the 401(K) Plan. This plan covers substantially all employees who meet specified service requirements and includes a 100% match up to the first 6% of an employee’s salary, not to exceed statutory limits. Additionally, the Company may make additional profit-sharing contributions. For the year ended December 31, 2015, the Company made an additional contribution of 1% of an employee’s salary. During the years ended December 31, 2014 and 2013, there was no additional profit-sharing contribution during the years ended December 31, 2014 and 2013. The Company’s total contributions to the 401(K) Plan were $0.6 million, $0.4 million and $0.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	(12) RELATED PARTY TRANSACTIONS The following is a summary of the related party transactions entered into by the Company for the years ended December 31, 2015, 2014, and 2013. The Company entered into catastrophe excess of loss reinsurance agreements with TransRe. For the years ended December 31, 2015, 2014, and 2013, the Company ceded premiums related to these agreements totaling $4.1 million, $1.2 million, and $0, respectively. There have not been any ceded losses relating to these agreements. The Company's Chairman of the Board of Directors is a partner at a law firm that handles certain litigation claims for FNHC. Fees paid to the law firm amounted to $26,151, $6,538 and $36,400 for the years ended December 31, 2015, 2014, and 2013, respectively. For the years ended December 31, 2015, 2014, and 2013, the Company paid investment fees to Crosswinds AUM, LLC, a wholly owned subsidiary of Crosswinds, totaling $0.2 million, $0 and $0, respectively. Refer to note 7 for information relating to the debt owed to TransRe.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2015
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	(13) EARNINGS PER SHARE The following table illustrates our computations of basic and diluted net income per share. Year Ended December 31, 2015 2014 2013 (in thousands, except per share data) Net income attributable to Federated National Holding Company shareholders $ 40,885 $ 37,199 $ 12,727 Weighted average number of common shares outstanding - basic 13,729 12,082 8,506 Net income per share - basic $ 2.98 $ 3.08 $ 1.50 Weighted average number of common shares outstanding - basic 13,729 12,082 8,506 Dilutive effect of stock compensation plans 268 356 266 Weighted average number of common shares outstanding - diluted 13,997 12,438 8,772 Net income per share - diluted $ 2.92 $ 2.99 $ 1.45 Dividends per share $ 0.18 $ 0.13 $ 0.11

VARIABLE INTEREST ENTITY

VARIABLE INTEREST ENTITY	12 Months Ended
	Dec. 31, 2015
Variable Interest Entity [Abstract]
VARIABLE INTEREST ENTITY	(14) VARIABLE INTEREST ENTITY The carrying amounts of Monarch Delaware, our consolidated VIE, assets, which can only be used to settle obligations of Monarch Delaware, and liabilities of Monarch Delaware for which creditors do not have recourse are as follows: December 31, 2015 ASSETS (in thousands) Investments Debt maturities, held-to-maturity, at amortized cost $ 21,312 Equity securities, available-for-sale, at fair value 1,358 Total investments 22,670 Cash and cash equivalents 14,616 Prepaid reinsurance premiums 34 Premiums receivable, net 355 Deferred income taxes, net 646 Deferred acquisition costs 234 Other assets 270 Total assets $ 38,825 LIABILITIES Loss and loss adjustment expense reserves $ 237 Unearned premiums 1,448 Debt 5,000 Income taxes payable 8 Other liabilities 374 Total liabilities $ 7,067

STATUTORY ACCOUNTING AND DIVIDE

STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS	12 Months Ended
	Dec. 31, 2015
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS [Abstract]
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS	(15) STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS The Company’s insurance companies are subject to regulations and standards of the Florida OIR. These standards require that insurance companies prepare statutory-basis financial statements in accordance with the National Association of Insurance Commissioners Accounting Practices and Procedures Manual. The Company did not use any prescribed or permitted statutory accounting practices that differed from the National Association of Insurance Commissioners’ statutory accounting practices as of December 31, 2015. The Company’s insurance companies are required to report their risk-based capital (“RBC”) each December 31. Failure to maintain an adequate RBC could subject the Company to regulatory action and could restrict the payment of dividends. As of December 31, 2015, the RBC levels of the Company’s insurance companies did not subject them to any regulatory action. Additionally, Florida Statutes require the Company’s insurance companies to maintain specified levels of statutory capital and restrict the timing and amount of dividends and other distributions that may be paid to the parent company. These standards require dividends to be paid only from statutory unassigned surplus. The maximum dividend that may be paid by the Company’s insurance companies to their parent company, without prior regulatory approval is limited to the lesser of statutory net income from operations of the preceding calendar year, not including realized capital gains, plus a 2-year carryforward or 10.0% of statutory unassigned surplus as of the preceding year end. A dividend may also be taken without prior regulatory approval if (a) the dividend is equal to or less than the greater of (i) Ten percent of the insurer’s surplus as to policyholders derived from realized net operating profits on its business and net realized capital gains; or (ii) the insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year; (b) the insurer will have surplus as to policyholders equal to or exceeding 115 percent of the minimum required statutory surplus as to policyholders after the dividend or distribution is made; and (c) the insurer has filed notice with the office at least 10 business days prior to the dividend payment or distribution, or such shorter period of time as approved by the Florida OIR on a case-by-case basis. These dividends are referred to as “ordinary dividends.” However, if a dividend, together with other dividends paid within the preceding twelve months, exceeds this statutory limit or is paid from sources other than earned surplus, the entire dividend is generally considered an “extraordinary dividend” and must receive prior regulatory approval before such dividend can be paid. As of December 31, 2015 and 2014, on a consolidated statutory basis, the capital and surplus of the Company’s insurance companies was $175.9 million and $125.3 million, respectively. For the years ended December 2015, 2014 and 2013, consolidated statutory net income of the Company’s insurance companies was $23.9 million, $29.3 million and $3.6 million, respectively. Statutory capital and surplus significantly exceeds amounts necessary to satisfy regulatory requirements.

QUARTERLY RESULTS OF OPERATIONS

QUARTERLY RESULTS OF OPERATIONS	12 Months Ended
	Dec. 31, 2015
QUARTERLY RESULTS OF OPERATIONS [Abstract]
QUARTERLY RESULTS OF OPERATIONS	(16) QUARTERLY RESULTS OF OPERATIONS The following is a summary of unaudited quarterly results of operations: First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share data) 2015 Net premiums earned $ 44,786 $ 49,227 $ 62,286 $ 53,721 Total revenue $ 54,936 $ 58,790 $ 72,599 $ 63,568 Losses and loss adjustment expenses $ 23,949 $ 23,149 $ 28,412 $ 28,843 Total costs and expenses $ 40,452 $ 40,151 $ 54,974 $ 49,123 Net income attributable to Federated National Holding Company shareholders $ 9,284 $ 11,734 $ 10,593 $ 9,274 Net income per share - basic $ 0.68 $ 0.86 $ 0.77 $ 0.67 2014 Net premiums earned $ 44,004 $ 51,433 $ 34,518 $ 40,950 Total revenue $ 49,715 $ 59,003 $ 43,150 $ 48,824 Losses and loss adjustment expenses $ 20,828 $ 24,522 $ 15,126 $ 20,560 Total costs and expenses $ 35,987 $ 41,009 $ 31,695 $ 34,694 Net income attributable to Federated National Holding Company shareholders $ 8,423 $ 11,554 $ 7,227 $ 9,995 Net income per share - basic $ 0.77 $ 1.04 $ 0.57 $ 0.73

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	(17) SUBSEQUENT EVENTS On March 7, 2016, we announced that the Company’s Board of Directors approved a dividend of $0.06 per share, which will be paid on June 1, 2016 to shareholders on record as of May 2, 2016. On March 10, 2016 the Company’s Board of Directors granted 128,472 of restricted shares to the Company’s Directors, Executives and other employees. The restricted shares vest over three or five years.

Schedule II - Condensed Financi

Schedule II - Condensed Financial Information of Registrant	12 Months Ended
	Dec. 31, 2015
Schedule II - Condensed Financial Information of Registrant [Abstract]
Schedule II - Condensed Financial Information of Registrant	Schedule II – Condensed Financial Information of Registrant Condensed Balance Sheets FEDERATED NATIONAL HOLDING COMPANY (Parent Company Only) December 31, 2015 and 2014 December 31, 2015 2014 ASSETS (in thousands) Investments in subsidiaries $ 282,504 $ 208,853 Investments securities, available-for-sale, at fair value 25,649 43,962 Cash and cash equivalents 2,397 12,053 Deferred income taxes, net 485 332 Income taxes receivable 10,471 8,966 Other assets 1,506 1,555 Total assets $ 323,012 $ 275,721 LIABILITIES AND SHAREHOLDERS’ EQUITY Due to subsidiaries $ 70,079 $ 63,649 Capital contribution payable - 18,501 Other liabilities 2,174 992 Total liabilities 72,253 83,142 Preferred stock - - Common stock 138 136 Additional paid-in capital 131,998 127,302 Accumulated other comprehensive income 3,985 7,718 Retained earnings 96,461 57,423 Total shareholders’ equity attributable Federated National Holding Company shareholders 232,582 192,579 Noncontrolling interest 18,177 - Total shareholders’ equity 250,759 192,579 Total liabilities and shareholders’ equity $ 323,012 $ 275,721 See accompanying notes to condensed financial statements. Schedule II – Condensed Financial Information of Registrant (continued) Condensed Statements of Earnings FEDERATED NATIONAL HOLDING COMPANY (Parent Company Only) Year Ended December 31, 2015 2014 2013 (in thousands) Revenue: Management fees $ 2,489 $ 2,387 $ 1,864 Net investment income 609 417 147 Equity in income of consolidated subsidiaries 71,905 61,653 21,623 Total revenue 75,003 64,457 23,634 Costs and expenses: General and administrative expenses 9,810 7,150 4,416 Total costs and expenses 9,810 7,150 4,416 Income before income taxes 65,193 57,307 19,218 Income taxes 24,753 20,108 6,491 Net income 40,440 37,199 12,727 Net loss attributable to noncontrolling interest (445 ) - - Net income attributable to Federated National Holding Company shareholders $ 40,885 $ 37,199 $ 12,727 See accompanying notes to condensed financial statements. Schedule II – Condensed Financial Information of Registrant (continued) Condensed Statements of Cash Flows FEDERATED NATIONAL HOLDING COMPANY (Parent Company Only) Year Ended December 31, 2015 2014 2013 (in thousands) Cash flow from operating activities: Net income $ 40,440 $ 37,199 $ 12,727 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of consolidated subsidiaries (71,905 ) (61,653 ) (21,623 ) Share-based compensation 4,527 2,140 461 Changes in operating assets and liabilities: Deferred income taxes, net of other comprehensive (loss) income (153 ) 674 3,333 Income taxes receivable, net 24,352 16,521 1,732 Capital contribution payable (18,501 ) 2,501 16,000 Other, net 8,551 2,483 5,339 Net cash (used in) provided by operating activities (12,689 ) (135 ) 17,969 Cash flow from investing activities: Capital contributions to consolidated subsidiaries, net (32,743 ) (18,501 ) (16,000 ) Sales, maturities and redemptions of investments securities 38,612 22,414 1,524 Purchases of investment securities (21,354 ) (36,949 ) (30,366 ) Purchases from property and equipment (113 ) (391 ) (149 ) Net cash used in investing activities (15,598 ) (33,427 ) (44,991 ) Cash flow from financing activities: Noncontrolling interest equity investment 18,743 - - Tax benefit related to share-based compensation 1,564 480 169 Issuance of common stock for share-based awards 171 1,555 858 Issuance of common stock in public offering - 43,109 27,879 Dividends paid (1,847 ) (1,672 ) (1,233 ) Net cash provided by financing activities 18,631 43,472 27,673 Net (decrease) increase in cash and cash equivalents (9,656 ) 9,910 651 Cash and cash equivalents at beginning of period 12,053 2,143 1,492 Cash and cash equivalents at end of period $ 2,397 $ 12,053 $ 2,143 See accompanying notes to condensed financial statements. (1) ORGANIZATION AND BASIS OF PRESENTATION FNHC, the Parent Company, 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. The accompanying condensed financial statements include the activity of the Parent Company and, on an equity basis, its consolidated subsidiaries. Accordingly, these condensed financial statements have been presented for the parent company only. These condensed financial statements should be read in conjunction with the consolidated financial statements and related notes of FNHC and subsidiaries set forth in Part II, Item 8 “Financial Statements and Supplemental Data” of this Form 10-K. In applying the equity method to our consolidated subsidiaries, we record the investment at cost and subsequently adjust for additional capital contributions, distributions and proportionate share of earnings or losses. Certain amounts in prior year’s condensed financial statements have been reclassified to conform to the 2015 presentation.

Schedule V - Valuation and Qual

Schedule V - Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2015
Schedule V - Valuation and Qualifying Accounts [Abstract]
Schedule V - Valuation and Qualifying Accounts	Schedule V – Valuation and Qualifying Accounts FEDERATED NATIONAL HOLDING COMPANY AND SUBSIDIARIES Year Description Balance at January 1, Charged to Costs and Expenses Deductions Balance at December 31, (in thousands) 2015 Allowance for uncollectible reinsurance recoverable $ - $ - $ - $ - Allowance for uncollectible premiums receivable $ 148 $ 192 $ (38 ) $ 302 2014 Allowance for uncollectible reinsurance recoverable $ - $ - $ - $ - Allowance for uncollectible premiums receivable $ 143 $ 45 $ (40 ) $ 148 2013 Allowance for uncollectible reinsurance recoverable $ - $ - $ - $ - Allowance for uncollectible premiums receivable $ 69 $ 250 $ (176 ) $ 143

Schedule VI - Supplemental Info

Schedule VI - Supplemental Information Concerning Insurance Operations	12 Months Ended
	Dec. 31, 2015
Schedule VI - Supplemental Information Concerning Insurance Operations [Abstract]
Schedule VI - Supplemental Information Concerning Insurance Operations	SCHEDULE VI – Supplemental Information Concerning Insurance Operations FEDERATED NATIONAL HOLDING COMPANY AND SUBSIDIARIES At December 31, For the Year Ended December 31, Claim and Claim Adjustment Expenses Incurred Related to Year Line of Business Deferred Acquisition Costs Loss and Loss Adjustment Expense Reserves Unearned Premiums Earned Premiums Net Investment Income Current Year Prior Year Amortization of Deferred Acquisition Costs Paid Claims and Claim Adjustment Expenses Premiums Written (in thousands) 2015 Property and Casualty Insurance $ 15,547 $ 97,340 $ 253,960 $ 210,020 $ 7,226 $ 113,819 $ (9,466 ) $ 37,276 $ 82,445 $ 225,253 2014 Property and Casualty Insurance $ 13,610 $ 78,330 $ 192,424 $ 170,905 $ 5,385 $ 79,932 $ 1,104 $ 27,474 $ 71,803 $ 175,158 2013 Property and Casualty Insurance $ 16,708 $ 61,016 $ 128,343 $ 104,381 $ 3,332 $ 56,209 $ 201 $ 21,447 $ 44,403 $ 160,664

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policies)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES [Abstract]
BASIS OF PRESENTATION	(a) BASIS OF PRESENTATION The accompanying consolidated financial statements are prepared in accordance with United States of America Generally Accepted Accounting Principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below.
PRINCIPLES OF CONSOLIDATION	(b) PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of FNHC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIE”) in which we are the primary beneficiary. All material inter-company accounts and transactions have been eliminated in consolidation. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. In connection with the investment in Monarch Delaware, we have determined that we are the primary beneficiary of this VIE, as we possess both the power to direct the activities of the VIE that most significantly impact its economic performance. Accordingly, we consolidate the VIE in our consolidated financial statements. Refer to note 14 for additional information on the VIE.
ACCOUNTING ESTIMATES AND ASSUMPTIONS	(c) ACCOUNTING ESTIMATES AND ASSUMPTIONS 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. Similar to other property and casualty insurers, our liability for loss and loss adjustment expense reserves, although supported by actuarial projections and other data is ultimately based on management's reasoned expectations of future events. Although considerable variability is inherent in these estimates, we believe that this liability is adequate. Estimates are reviewed regularly and adjusted as necessary. Such adjustments are reflected in current operations.
FAIR VALUE	(d) FAIR VALUE The fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Alternative valuation techniques may be appropriate under the circumstances to determine the value that would be received to sell an asset or pay to transfer a liability in an orderly transaction. Market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not acting under duress. Our nonperformance or credit risk is considered in determining the fair value of liabilities. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. Refer to note 3 for additional information regarding fair value.
INVESTMENTS	(e) INVESTMENTS Investments consist of debt and equity securities. Debt securities consist of securities with an initial fixed maturity, which include corporate bonds, municipal bonds and United States government bonds. Equity securities generally consist of securities that represent ownership interests in an enterprise. The Company determines the appropriate classification of investments in debt and equity securities at the acquisition date and re-evaluates the classification at each balance sheet date. Held-to-maturity investments are recorded at the amortized cost, reflecting the ability and intent to hold the securities to maturity. All other securities were classified as available-for-sale and recorded at fair value. Unrealized gains and losses during the year, net of the related tax effect applicable to available-for-sale, are excluded from income and reflected in other comprehensive income, and the cumulative effect is reported as a separate component of shareholders’ equity until realized. If a decline in fair value is deemed to be other-than-temporary, the investment is written down to its fair value and the amount of the write-down is recorded as an other-than-temporary impairment (“OTTI”) loss on the statement of income. In addition, any portion of such decline related to debt securities that is believed to arise from factors other than credit is recorded as a component of other comprehensive income rather than against income. Net realized gains and losses on investments are determined in accordance with the specific identification method. Net investment income consists primarily of interest income from debt securities, cash and cash equivalents, including any premium amortization or discount accretion and dividend income from equity securities; less expenses related to investments. Refer to note 4 for additional information regarding investments.
CASH AND CASH EQUIVALENTS	(f) CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of all deposit balances with a bank that are available for immediate withdrawal and highly liquid investments. All investments with maturities of three months or less at the date of the purchase are considered cash equivalents.
PREMIUMS AND UNEARNED PREMIUMS	(g) PREMIUMS AND UNEARNED PREMIUMS Premiums are recognized as revenue on a pro-rata basis over the term of an insurance policy. Assumed reinsurance premiums written and earned are based on reports received from ceding companies for pro-rata treaty contracts and are generally recorded as written based on contract terms for excess-of-loss and quota share contracts. Premiums are earned ratably over the terms of the related coverage. Unearned premiums and ceded unearned premiums represent the portion of gross premiums written and ceded premiums written, respectively, relating to the unexpired terms of such coverage. Premium receivable balances are reported net of an allowance for estimated uncollectible premium amounts. Such allowance is based upon an ongoing review of amounts outstanding, length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance.
REINSURANCE	(h) REINSURANCE Reinsurance is used to mitigate the exposure to losses, manage capacity and protect capital resources. Reinsuring loss exposures does not relieve a ceding entity from its obligations to policyholders and cedants. Reinsurance recoverables (including amounts related to claims incurred but not reported) and ceded unearned premiums are reported as assets. To minimize exposure to losses from a reinsurer’s inability to pay, the financial condition of such reinsurer is evaluated initially upon placement of the reinsurance and periodically thereafter. In addition to considering the financial condition of the reinsurer, the collectability of the reinsurance recoverables is evaluated (and where appropriate, whether an allowance for estimated uncollectible reinsurance recoverables is to be established) based upon a number of other factors. Such factors include the amounts outstanding, length of collection periods, disputes, any collateral or letters of credit held and other relevant factors. To the extent that an allowance for uncollectible reinsurance recoverable is established, amounts deemed to be uncollectible are written off against the allowance for estimated uncollectible reinsurance recoverables. The Company currently has no allowances for uncollectible reinsurance recoverables. Ceded premiums written are recorded in accordance with applicable terms of the various reinsurance contracts and ceded premiums earned are charged against revenue over the period of the various reinsurance contracts. This also generally applies to reinstatement premiums paid to a reinsurer, which arise when contractually-specified ceded loss triggers have been breached. Ceded commissions reduce commissions, brokerage and other underwriting expenses and ceded losses incurred reduce net loss and loss adjustment expense incurred over the applicable periods of the various reinsurance contracts with third party reinsurers. If premiums or commissions are subject to adjustment (for example, retrospectively-rated or experience-rated), the estimated ultimate premium or commission is recognized over the period of the contract. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business and consistent with the terms of the underlying reinsurance contract.
OTHER INCOME	(i) OTHER INCOME Other income represents primarily policy fees, commission, brokerage and other income. Policy fees represent a non-refundable application fee for insurance coverage, which are intended to reimburse us for the costs incurred to underwrite the policy. Policy fees are recognized on the effective date of the insurance policy. Commission and brokerage income is recognized on a pro-rata basis over the respective terms of the contracts.
DEFERRED ACQUISITION COSTS	(j) DEFERRED ACQUISITION COSTS Deferred Acquisition Costs (“DAC”) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. The Company defers incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such DAC generally include agent or broker commissions, premium taxes, medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. The Company also defers a portion of the employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. It is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. The Company assesses the recoverability of DAC on an annual basis or more frequently if circumstances indicate impairment may have occurred.
PROPERTY AND EQUIPMENT	(k) PROPERTY AND EQUIPMENT Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated using a straight-line method over the estimated useful lives, ranging from 3 to 15 years. Repairs and maintenance are charged to expense as incurred. The Company accounts for internal-use software development costs in accordance with accounting guidelines which state that software costs, including internal payroll costs, incurred in connection with the development or acquisition of software for internal use is charged to expense as incurred until the project enters the application development phase. Costs incurred in the application development phase are capitalized and are depreciated using the straight-line method over an estimated useful life of 5 years, beginning when the software is ready for use.
LOSSES AND LOSS ADJUSTMENT EXPENSES	(l) LOSSES AND LOSS ADJUSTMENT EXPENSES The reserves for loss and loss adjustment expense (“LAE”) represent management’s best estimate of the ultimate cost of all reported and unreported losses incurred through the balance sheet date. Such liabilities are determined based upon our assessment of claims pending and the development of prior years' loss liability. These amounts include liabilities based upon individual case estimates for reported losses and LAE’s and estimates of such amounts that are incurred but not yet reported (“IBNR”). Changes in the estimated liability are charged or credited to operations as the losses and LAE’s are settled. The estimates of the liability for loss and LAE reserves are subject to the effect of trends in claims severity and frequency and are continually reviewed. As part of this process, we review historical data and consider various factors, including known and anticipated legal developments, inflation and economic conditions. As experience develops and other data become available, these estimates are revised, as required, resulting in increases or decreases to the existing liability for loss and loss adjustment expense reserves. Adjustments are reflected in results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates.
INCOME TAXES	(m) INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss, capital loss and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income or expense in the period that includes the enactment date.
SHARE-BASED COMPENSATION	(n) SHARE-BASED COMPENSATION The Company accounts for share-based compensation based on the estimated grant date fair value. The Company grants awards with service only conditions and generally amortizes them on a straight-line over the requisite service period of the award, which is the vesting term. The fair value of the restricted stock grants is determined based on the closing market price on the date of grant. Non-employee directors are treated as employees for accounting purposes.
BASIC AND DILUTED NET INCOME PER SHARE	(o) BASIC AND DILUTED NET INCOME PER SHARE Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares, while diluted net income per share is computed by dividing net income available to common shareholders by the weighted average number of such common shares and dilutive share equivalents result from the assumed exercise of employee stock options and vesting of restricted common stock and are calculated using the treasury stock method.
ADJUSTMENTS	(p) ADJUSTMENTS During 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 concluded reinsurance contracts which have retrospective rating provisions should be accounted for under Accounting Standards Codification 944, Financial Services — Insurance 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 year ended December 31, 2015. The adjustments increased net income by $0.6 million for the year ended December 31, 2015.
RECLASSIFICATIONS	(q) RECLASSIFICATIONS Certain amounts in prior year’s consolidated financial statements have been reclassified to conform to the 2015 presentation. These reclassifications had no effect on the reported results of operations, financial condition, and cash flows. In the current period, the Company concluded it was appropriate to classify accounts on the consolidated balance sheets that do not have material balances in the periods being presented, such as contingent quota-share profit sharing, deferred quota-share profit sharing, and accounts payable and accrued expenses. These prior year accounts are included within other assets and other liabilities on the consolidated balance sheets. We have also reclassified certain revenue accounts that do not have material balances and included them within other income in the consolidated statements of operations. In addition, during the current period, we reclassify certain costs and expenses, principally, operating and underwriting expenses, salaries and wages and amortization of deferred policy acquisition costs. These respective account balances are now included in commissions and other underwriting expenses and general and administrative expenses in the consolidated statements of operations. The Company believes this reclassification provide greater clarity and insight into the consolidated financial statements for the periods presented.
RECENT ACCOUNTING PRONOUNCEMENTS	(r) RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration-Contracts In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
	Dec. 31, 2015
FAIR VALUE [Abstract]
Assets Measured at Fair Value on a Recurring Basis	The Company’s financial instruments measured at fair value and the level of the fair value hierarchy of inputs used were as follows: December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Debt securities: United States government obligations and authorities $ 34,733 $ 26,820 $ - $ 61,553 Obligations of states and political subdivisions - 110,702 - 110,702 Corporate - 154,620 - 154,620 International - 12,303 - 12,303 34,733 304,445 - 339,178 Equity securities 38,012 522 - 38,534 Total investments $ 72,745 $ 304,967 $ - $ 377,712 December 31, 2014 Level 1 Level 2 Level 3 Total (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 39,247 - - 39,247 Total investments $ 85,249 $ 238,097 $ - $ 323,346

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
INVESTMENTS [Abstract]
Summary of Amortized Cost and Fair Value of Debt and Equity Securities	The amortized cost and the fair value of debt and equity securities as of December 31, 2015 and 2014 are summarized as follows: Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) December 31, 2015 Debt Securities - available-for-sale: United States government obligations and authorities $ 61,384 $ 489 $ 320 $ 61,553 Obligations of states and political subdivisions 109,152 1,590 40 110,702 Corporate 154,957 1,153 1,490 154,620 International 12,528 18 243 12,303 338,021 3,250 2,093 339,178 Debt Securities - held-to-maturity: United States government obligations and authorities 4,275 30 204 4,101 Corporate 2,253 14 20 2,247 International 91 0 0 91 6,619 44 224 6,439 Equity securities 33,581 6,809 1,856 38,534 Total investments $ 378,221 $ 10,103 $ 4,173 $ 384,151 Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) 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 29,908 9,836 497 39,247 Total investments $ 318,346 $ 13,518 $ 1,259 $ 330,605
Summary of Debt Securities, Contractual Maturity	The amortized cost and estimated fair value of debt securities as of December 31, 2015 and 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2015 2014 Amortized Amortized Securities with maturity dates: Cost Fair Value Cost Fair Value (in thousands) Debt securities, available-for-sale: One year or less $ 24,470 $ 24,488 $ 16,346 $ 16,364 Over one through five years 170,797 171,113 170,286 171,320 Over five through ten years 142,728 143,545 94,368 96,382 Over ten years 26 32 26 33 338,021 339,178 281,026 284,099 Debt securities, held-to-maturity: One year or less 486 487 432 433 Over one through five years 1,899 1,915 2,947 2,953 Over five through ten years 4,234 4,037 4,038 3,873 Over ten years - - - - 6,619 6,439 7,417 7,259 Total $ 344,640 $ 345,617 $ 288,443 $ 291,358
Net Investment Income	Net investment income was as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Interest income $ 6,576 $ 4,775 $ 2,850 Dividends income 588 553 478 Cash and cash equivalents 62 57 4 Net investment income $ 7,226 $ 5,385 $ 3,332
Net Realized Gains and Losses	The amount of gross realized gains and losses were as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Gross realized gains: Debt securities $ 1,272 $ 725 $ 1,690 Equity securities 4,959 4,489 2,858 Total gross realized gains 6,231 5,214 4,548 Gross realized losses: Debt securities (805 ) (147 ) (1,001 ) Equity securities (1,810 ) (641 ) (666 ) Total gross realized losses (2,615 ) (788 ) (1,667 ) Net realized gains on investments $ 3,616 $ 4,426 $ 2,881
Gross Unrealized Losses and Fair Values for Debt and Equity Securities in Continuous Unrealized Loss Position	As of December 31, 2015 and 2014, gross unrealized losses and related fair values for debt and equity securities, grouped by duration of time in a continuous unrealized loss position, were as follows: Less than 12 months 12 months or longer Total December 31, 2015 Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Debt securities: United States government obligations and authorities $ 30,464 $ 303 $ 659 $ 17 $ 31,123 $ 320 Obligations of states and political subdivisions 16,652 40 - - 16,652 40 Corporate 87,176 1,420 3,590 70 90,766 1,490 International 8,660 191 281 52 8,941 243 142,952 1,954 4,530 139 147,482 2,093 Equity securities 11,790 1,850 84 6 11,874 1,856 Total investments $ 154,742 $ 3,804 $ 4,614 $ 145 $ 159,356 $ 3,949 Less than 12 months 12 months or longer Total December 31, 2014 Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Debt securities: United States government obligations and authorities $ 9,171 $ 22 $ 3,809 $ 53 $ 12,980 $ 75 Obligations of states and political subdivisions 27,426 66 246 4 27,672 70 Corporate 42,888 260 4,861 72 47,749 332 International 6,261 54 - - 6,261 54 85,746 402 8,916 129 94,662 531 Equity securities 3,683 461 200 36 3,883 497 Total investments $ 89,429 $ 863 $ 9,116 $ 165 $ 98,545 $ 1,028

REINSURANCE (Tables)

REINSURANCE (Tables)	12 Months Ended
	Dec. 31, 2015
REINSURANCE [Abstract]
Reinsurance Recoverables	The following reinsurance recoverable is reflected in the consolidated balance sheets as of the dates presented as follows: Year Ended December 31, 2015 2014 (in thousands) Reinsurance recoverable on paid losses $ 5,218 $ 2,140 Reinsurance recoverable on unpaid losses 7,496 10,394 Reinsurance recoverable, net $ 12,714 $ 12,534
Premiums Written and Earned	The following table indicates premiums written and earned as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Premiums written: Direct $ 493,770 $ 377,156 $ 243,373 Ceded (268,517 ) (201,998 ) (82,709 ) $ 225,253 $ 175,158 $ 160,664 Premiums earned: Direct $ 432,233 $ 313,075 $ 174,037 Ceded (222,213 ) (142,170 ) (69,656 ) $ 210,020 $ 170,905 $ 104,381

LOSS AND LAE RESERVES (Tables)

LOSS AND LAE RESERVES (Tables)	12 Months Ended
	Dec. 31, 2015
LOSS AND LAE RESERVES [Abstract]
Summary of Activity in Liability for Loss and LAE Reserves	Activity in the liability for loss and LAE reserves is summarized as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Gross reserves, beginning of period $ 78,330 $ 61,016 $ 49,908 Less: reinsurance recoverable (1) (10,394 ) (2,313 ) (3,212 ) Net reserves, beginning of period 67,936 58,703 46,696 Incurred loss, net of reinsurance, related to: Current year 113,819 79,932 56,209 Prior years (9,466 ) 1,104 201 Total incurred loss and LAE, net of reinsurance 104,353 81,036 56,410 Paid loss, net of reinsurance, related to: Current year 49,531 40,680 22,557 Prior years 32,914 31,123 21,846 Total paid loss and LAE, net of reinsurance 82,445 71,803 44,403 Net reserves, end of period 89,844 67,936 58,703 Plus: reinsurance recoverable (1) 7,496 10,394 2,313 Gross reserves, end of period $ 97,340 $ 78,330 $ 61,016 (1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
INCOME TAXES [Abstract]
Summary of Provision for Income Tax Benefit	A summary of the provision for income tax expense is as follows. Year Ended December 31, 2015 2014 2013 (in thousands) Federal: Current $ 15,523 $ 16,659 $ 4,289 Deferred 6,118 1,059 1,393 Federal income tax expense 21,641 17,718 5,682 State: Current 2,489 2,204 - Deferred 623 186 809 State income tax expense 3,112 2,390 809 Total $ 24,753 $ 20,108 $ 6,491
Components of Effective Federal and State Tax Rates to Income before Provision for Income Tax Benefit	The actual income tax expense differs from the "expected" income tax expense (computed by applying the combined applicable effective federal and state tax rates to income before income tax expense as follows): Year Ended December 31, 2015 2014 2013 (in thousands) Computed expected tax expense provision, at federal rate $ 22,829 $ 19,887 $ 6,535 State tax, net of federal tax benefit 2,291 1,696 698 Tax-exempt interest (445 ) (312 ) (31 ) Income subject to dividends-received deduction (109 ) (136 ) (97 ) Return to provision and rate changes 119 (1,027 ) (306 ) Other 68 - (308 ) Income tax expense total $ 24,753 $ 20,108 $ 6,491
Components of Net Deferred Tax Asset	Significant components of our net deferred tax liability are as follows: Year Ended December 31, 2015 2014 (in thousands) Deferred tax assets: Unearned premiums $ 9,375 $ 7,812 Loss and loss adjustment expense reserves 1,175 1,239 Accrued expenses 694 - Net operating loss carryforwards 140 - Share-based compensation 606 545 Other 212 144 Total 12,202 9,740 Deferred tax liabilities: Deferred acquisition costs (11,906 ) (6,199 ) Net unrealized gains on investments (2,336 ) (4,792 ) Deferred revenue related to reinsurance (3,395 ) - Other (192 ) (90 ) Total (17,829 ) (11,081 ) Net deferred tax liability $ (5,627 ) $ (1,341 )

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
Schedule of Expected Future Lease Payouts	As of December 31, 2015, the future minimum lease payments under these agreements are as follows: Year Ended December 31, Aggregate Minimum Lease Payments (in thousands) 2016 $ 918 2017 934 2018 953 2019 981 2020 1,019 Thereafter 2,104 Total $ 6,909

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2015
SHAREHOLDERS' EQUITY [Abstract]
Schedule of Share-based Compensation Arrangements	The following table provides certain information in connection with the Company’s share-based compensation arrangements as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Restricted stock $ 2,930 $ 1,525 $ 120 Stock options 33 135 172 Total share-based compensation expense $ 2,963 $ 1,660 $ 292 Excess tax benefits from share-based awards $ 1,564 $ 480 $ 169 Intrinsic value of options exercised $ 1,124 $ 5,172 $ 583 Fair value of restricted stock vested $ 2,303 $ 549 $ -
Summary of Stock Option Activity	A summary of the Company’s stock option activity for the period from January 1, 2013 to December 31, 2015 is as follows: Number of Shares Weighted Average Option Exercise Price Outstanding at January 1, 2013 781,097 $ 5.93 Granted - $ - Exercised (166,077 ) $ 7.15 Cancelled (88,499 ) $ 11.77 Outstanding at December 31, 2013 526,521 $ 4.56 Granted - $ - Exercised (302,735 ) $ 5.13 Cancelled (4,501 ) $ 3.49 Outstanding at December 31, 2014 219,285 $ 3.79 Granted - $ - Exercised (44,652 ) $ 3.81 Cancelled - $ - Outstanding at December 31, 2015 174,633 $ 3.79
Summary of Information about Stock Options Outstanding and Exercisable in Select Price Range	A following table summarizes information about stock options outstanding and exercisable in a select price range as of December 31, 2015: Options Outstanding and Exercisable Range of Exercise Price Shares Outstanding and Exercisable Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Aggregate Intrinsic Value $2.45 - $4.40 174,633 5.60 $ 3.79 $ 4,500,825
Summary of Restricted Stock Activity	A summary of the Company’s restricted stock activity for the period from January 1, 2013 to December 31, 2015 is as follows: Number of Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2013 - $ - Granted 250,000 $ 8.23 Vested - $ - Cancelled (500 ) $ 5.54 Outstanding at December 31, 2013 249,500 $ 8.24 Granted 268,648 $ 22.50 Vested (68,988 ) $ 7.96 Cancelled (1,359 ) $ 8.29 Outstanding at December 31, 2014 447,801 $ 16.84 Granted 116,140 $ 27.53 Vested (145,134 ) $ 15.87 Cancelled - $ - Outstanding at December 31, 2015 418,807 $ 20.14

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2015
EARNINGS PER SHARE [Abstract]
Schedule of Computations of Basic and Diluted Net Income Per Share	The following table illustrates our computations of basic and diluted net income per share. Year Ended December 31, 2015 2014 2013 (in thousands, except per share data) Net income attributable to Federated National Holding Company shareholders $ 40,885 $ 37,199 $ 12,727 Weighted average number of common shares outstanding - basic 13,729 12,082 8,506 Net income per share - basic $ 2.98 $ 3.08 $ 1.50 Weighted average number of common shares outstanding - basic 13,729 12,082 8,506 Dilutive effect of stock compensation plans 268 356 266 Weighted average number of common shares outstanding - diluted 13,997 12,438 8,772 Net income per share - diluted $ 2.92 $ 2.99 $ 1.45 Dividends per share $ 0.18 $ 0.13 $ 0.11

VARIABLE INTEREST ENTITY (Table

VARIABLE INTEREST ENTITY (Tables)	12 Months Ended
	Dec. 31, 2015
Variable Interest Entity [Abstract]
Carrying Amount of VIE Consolidated Assets and Liabilities	The carrying amounts of Monarch Delaware, our consolidated VIE, assets, which can only be used to settle obligations of Monarch Delaware, and liabilities of Monarch Delaware for which creditors do not have recourse are as follows: December 31, 2015 ASSETS (in thousands) Investments Debt maturities, held-to-maturity, at amortized cost $ 21,312 Equity securities, available-for-sale, at fair value 1,358 Total investments 22,670 Cash and cash equivalents 14,616 Prepaid reinsurance premiums 34 Premiums receivable, net 355 Deferred income taxes, net 646 Deferred acquisition costs 234 Other assets 270 Total assets $ 38,825 LIABILITIES Loss and loss adjustment expense reserves $ 237 Unearned premiums 1,448 Debt 5,000 Income taxes payable 8 Other liabilities 374 Total liabilities $ 7,067

QUARTERLY RESULTS OF OPERATIO39

QUARTERLY RESULTS OF OPERATIONS (Tables)	12 Months Ended
	Dec. 31, 2015
QUARTERLY RESULTS OF OPERATIONS [Abstract]
Summary of Unaudited Quarterly Results of Operations	The following is a summary of unaudited quarterly results of operations: First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share data) 2015 Net premiums earned $ 44,786 $ 49,227 $ 62,286 $ 53,721 Total revenue $ 54,936 $ 58,790 $ 72,599 $ 63,568 Losses and loss adjustment expenses $ 23,949 $ 23,149 $ 28,412 $ 28,843 Total costs and expenses $ 40,452 $ 40,151 $ 54,974 $ 49,123 Net income attributable to Federated National Holding Company shareholders $ 9,284 $ 11,734 $ 10,593 $ 9,274 Net income per share - basic $ 0.68 $ 0.86 $ 0.77 $ 0.67 2014 Net premiums earned $ 44,004 $ 51,433 $ 34,518 $ 40,950 Total revenue $ 49,715 $ 59,003 $ 43,150 $ 48,824 Losses and loss adjustment expenses $ 20,828 $ 24,522 $ 15,126 $ 20,560 Total costs and expenses $ 35,987 $ 41,009 $ 31,695 $ 34,694 Net income attributable to Federated National Holding Company shareholders $ 8,423 $ 11,554 $ 7,227 $ 9,995 Net income per share - basic $ 0.77 $ 1.04 $ 0.57 $ 0.73

ORGANIZATION AND BUSINESS (Deta

ORGANIZATION AND BUSINESS (Details) - Monarch Delaware Holdings LLC [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 17, 2015
Business Organization [Line Item]
Capital contribution for voting interests	$ 14
Ownership interest in Monarch Parent's equity	42.40%
Voting interest held in Monarch Parent's equity	50.00%
Long-term debt		$ 5
Interest rate percentage		6.00%
Crosswinds [Member]
Business Organization [Line Item]
Capital contribution for voting interests	$ 14
Ownership interest in Monarch Parent's equity	42.40%
Voting interest held in Monarch Parent's equity	50.00%
Transatlantic Reinsurance Company [Member]
Business Organization [Line Item]
Capital contribution for voting interests	$ 5
Ownership interest in Monarch Parent's equity	15.20%
Transatlantic Reinsurance Company [Member] | Senior Debt [Member]
Business Organization [Line Item]
Long-term debt	$ 5
Maturity period of debt	6 years
Interest rate percentage	6.00%

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Change in Accounting Estimate [Line Items]
Net income	$ 40,440	$ 37,199	$ 12,727
Minimum [Member]
PROPERTY AND EQUIPMENT [Abstract]
Estimated useful lives of property, plant and equipment	3 years
Maximum [Member]
PROPERTY AND EQUIPMENT [Abstract]
Estimated useful lives of property, plant and equipment	15 years
Software and Software Development Costs [Member]
PROPERTY AND EQUIPMENT [Abstract]
Estimated useful lives of property, plant and equipment	5 years
Change in Accounting Method Accounted for as Change in Estimate [Member] | Quota Share Reinsurance Adjustments [Member]
Change in Accounting Estimate [Line Items]
Net income	$ 600

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt securities [Abstract]
Debt securities	$ 339,178	$ 284,099
Equity securities	38,534	39,247
Recurring [Member]
Debt securities [Abstract]
United States government obligations and authorities	61,553	62,323
Obligations of states and political subdivisions	110,702	91,614
Corporate	154,620	119,024
International	12,303	11,138
Debt securities	339,178	284,099
Equity securities	38,534	39,247
Total investments	377,712	323,346
Recurring [Member] | Level 1 [Member]
Debt securities [Abstract]
United States government obligations and authorities	34,733	46,002
Obligations of states and political subdivisions	0	0
Corporate	0	0
International	0	0
Debt securities	34,733	46,002
Equity securities	38,012	39,247
Total investments	72,745	85,249
Recurring [Member] | Level 2 [Member]
Debt securities [Abstract]
United States government obligations and authorities	26,820	16,321
Obligations of states and political subdivisions	110,702	91,614
Corporate	154,620	119,024
International	12,303	11,138
Debt securities	304,445	238,097
Equity securities	522	0
Total investments	304,967	238,097
Recurring [Member] | Level 3 [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	0	0
Total investments	$ 0	$ 0

INVESTMENTS, Unrealized Gains a

INVESTMENTS, Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale, Debt securities [Abstract]
Amortized cost	$ 338,021	$ 281,021
Gross unrealized gains	3,250	3,609
Gross unrealized losses	2,093	531
Estimated fair value	339,178	284,099
Available-for-sale, Equity securities [Abstract]
Amortized cost	33,581	29,908
Gross unrealized gains	6,809	9,836
Gross unrealized losses	1,856	497
Estimated fair value	38,534	39,247
Held-to-maturity securities [Abstract]
Amortized cost	6,619	7,417
Gross unrealized gains	44	73
Gross unrealized losses	224	231
Estimated fair value	6,439	7,259
Total Investments [Abstract]
Amortized cost	378,221	318,346
Gross unrealized gains	10,103	13,518
Gross unrealized losses	4,173	1,259
Estimated fair value	384,151	330,605
United States Government Obligations and Authorities [Member]
Available-for-sale, Debt securities [Abstract]
Amortized cost	61,384	61,376
Gross unrealized gains	489	1,022
Gross unrealized losses	320	75
Estimated fair value	61,553	62,323
Obligations of States and Political Subdivisions [Member]
Available-for-sale, Debt securities [Abstract]
Amortized cost	109,152	90,728
Gross unrealized gains	1,590	956
Gross unrealized losses	40	70
Estimated fair value	110,702	91,614
Corporate [Member]
Available-for-sale, Debt securities [Abstract]
Amortized cost	154,957	117,778
Gross unrealized gains	1,153	1,578
Gross unrealized losses	1,490	332
Estimated fair value	154,620	119,024
International [Member]
Available-for-sale, Debt securities [Abstract]
Amortized cost	12,528	11,139
Gross unrealized gains	18	53
Gross unrealized losses	243	54
Estimated fair value	12,303	11,138
United States Government Obligations and Authorities [Member]
Held-to-maturity securities [Abstract]
Amortized cost	4,275	4,490
Gross unrealized gains	30	41
Gross unrealized losses	204	225
Estimated fair value	4,101	4,306
Corporate [Member]
Held-to-maturity securities [Abstract]
Amortized cost	2,253	2,681
Gross unrealized gains	14	31
Gross unrealized losses	20	5
Estimated fair value	2,247	2,707
International [Member]
Held-to-maturity securities [Abstract]
Amortized cost	91	246
Gross unrealized gains	0	1
Gross unrealized losses	0	1
Estimated fair value	$ 91	$ 246

INVESTMENTS, Contractual Maturi

INVESTMENTS, Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale Securities, Debt maturities, Amortized cost [Abstract]
One year or less	$ 24,470	$ 16,346
Over one through five years	170,797	170,286
Over five through ten years	142,728	94,368
Over ten years	26	26
Amortized cost	338,021	281,026
Available-for-sale Securities, Debt maturities, Fair value [Abstract]
One year or less	24,488	16,364
Over one through five years	171,113	171,320
Over five through ten years	143,545	96,382
Over ten years	32	33
Amortized cost	339,178	284,099
Held-to-maturity Securities, Debt maturities, Amortized cost [Abstract]
One year or less	486	432
Over one through five years	1,899	2,947
Over five through ten years	4,234	4,038
Over ten years	0	0
Amortized cost	6,619	7,417
Held-to-maturity Securities, Debt Maturities, Fair value [Abstract]
One year or less	487	433
Over one through five years	1,915	2,953
Over five through ten years	4,037	3,873
Over ten years	0	0
Estimated fair value	6,439	7,259
Total Investments [Abstract]
Amortized cost	344,640	288,443
Estimated fair value	$ 345,617	$ 291,358

INVESTMENTS, Net Investment Inc

INVESTMENTS, Net Investment Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net investment income [Abstract]
Interest income	$ 6,576	$ 4,775	$ 2,850
Dividends income	588	553	478
Cash and cash equivalents	62	57	4
Net investment income	$ 7,226	$ 5,385	$ 3,332

INVESTMENTS, Net Realized Gains

INVESTMENTS, Net Realized Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Gross realized gains and losses [Abstract]
Total gross realized gains	$ 6,231	$ 5,214	$ 4,548
Total gross realized losses	(2,615)	(788)	(1,667)
Net realized gains on investments	3,616	4,426	2,881
Proceeds from sales of investments securities	157,200	81,500	100,100
OTTI losses	400	0	0
Debt Securities [Member]
Gross realized gains and losses [Abstract]
Total gross realized gains	1,272	725	1,690
Total gross realized losses	(805)	(147)	(1,001)
Equity Securities [Member]
Gross realized gains and losses [Abstract]
Total gross realized gains	4,959	4,489	2,858
Total gross realized losses	$ (1,810)	$ (641)	$ (666)

INVESTMENTS, Aging of Gross Unr

INVESTMENTS, Aging of Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair value [Abstract]
Less than 12 months	$ 154,742	$ 89,429
12 months or longer	4,614	9,116
Total fair value	159,356	98,545
Gross unrealized losses [Abstract]
Less than 12 months	3,804	863
12 months or longer	145	165
Total gross unrealized losses	3,949	1,028
Debt Securities [Member]
Fair value [Abstract]
Less than 12 months	142,952	85,746
12 months or longer	4,530	8,916
Total fair value	147,482	94,662
Gross unrealized losses [Abstract]
Less than 12 months	1,954	402
12 months or longer	139	129
Total gross unrealized losses	2,093	531
United States Government Obligations and Authorities [Member]
Fair value [Abstract]
Less than 12 months	30,464	9,171
12 months or longer	659	3,809
Total fair value	31,123	12,980
Gross unrealized losses [Abstract]
Less than 12 months	303	22
12 months or longer	17	53
Total gross unrealized losses	320	75
Obligations of States and Political Subdivisions [Member]
Fair value [Abstract]
Less than 12 months	16,652	27,426
12 months or longer	0	246
Total fair value	16,652	27,672
Gross unrealized losses [Abstract]
Less than 12 months	40	66
12 months or longer	0	4
Total gross unrealized losses	40	70
Corporate [Member]
Fair value [Abstract]
Less than 12 months	87,176	42,888
12 months or longer	3,590	4,861
Total fair value	90,766	47,749
Gross unrealized losses [Abstract]
Less than 12 months	1,420	260
12 months or longer	70	72
Total gross unrealized losses	1,490	332
International [Member]
Fair value [Abstract]
Less than 12 months	8,660	6,261
12 months or longer	281	0
Total fair value	8,941	6,261
Gross unrealized losses [Abstract]
Less than 12 months	191	54
12 months or longer	52	0
Total gross unrealized losses	243	54
Equity Securities [Member]
Fair value [Abstract]
Less than 12 months	11,790	3,683
12 months or longer	84	200
Total fair value	11,874	3,883
Gross unrealized losses [Abstract]
Less than 12 months	1,850	461
12 months or longer	6	36
Total gross unrealized losses	$ 1,856	$ 497

INVESTMENTS, Statutory Deposits

INVESTMENTS, Statutory Deposits (Details) $ in Millions	Dec. 31, 2015USD ($)
INVESTMENTS [Abstract]
Fair value of investments deposited with governmental authorities required by law	$ 6.6

REINSURANCE (Details)

REINSURANCE (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)Program	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Reinsurance recoverables [Abstract]
Reinsurance recoverable on paid losses	$ 5,218				$ 2,140				$ 5,218	$ 2,140
Reinsurance recoverable on unpaid losses	7,496				10,394				7,496	10,394
Reinsurance recoverable, net	12,714				12,534				12,714	12,534
Premiums written [Abstract]
Direct									493,770	377,156	$ 243,373
Ceded									(268,517)	(201,998)	(82,709)
Net premiums written									225,253	175,158	160,664
Premiums earned [Abstract]
Direct									432,233	313,075	174,037
Ceded									(222,213)	(142,170)	(69,656)
Net premiums earned	53,721	$ 62,286	$ 49,227	$ 44,786	40,950	$ 34,518	$ 51,433	$ 44,004	210,020	170,905	$ 104,381
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic loss coverage	1,820,000								1,820,000
Maximum single event coverage	1,260,000								$ 1,260,000
Number of quota share treaties | Program									2
Combined percentage of quota share reinstatement treaty									40.00%
Trust agreement for loss exposure	3,500				$ 4,900				$ 3,500	$ 4,900
Quota Share One [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of quota share reinsurance treaty									30.00%
Quota Share Two [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of quota share reinsurance treaty									10.00%
Florida [Member]
Liability for Catastrophe Claims [Line Items]
Amount retained per loss									$ 12,900
Covered losses for homeowners' insurance program	$ 100,000								100,000
Louisiana, Alabama and South Carolina [Member]
Liability for Catastrophe Claims [Line Items]
Amount retained per loss									$ 5,000

LOSS AND LAE RESERVES (Details)

LOSS AND LAE RESERVES (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
LOSS AND LAE RESERVES [Abstract]
Gross reserves, beginning of period		$ 78,330	$ 61,016	$ 49,908
Less: reinsurance recoverable	[1]	(10,394)	(2,313)	(3,212)
Net reserves, beginning of period		67,936	58,703	46,696
Incurred loss, net of reinsurance, related to [Abstract]
Current year		113,819	79,932	56,209
Prior years		(9,466)	1,104	201
Total incurred loss and LAE, net of reinsurance		104,353	81,036	56,410
Paid loss, net of reinsurance, related to [Abstract]
Current year		49,531	40,680	22,557
Prior years		32,914	31,123	21,846
Total paid loss and LAE, net of reinsurance		82,445	71,803	44,403
Net reserves, end of period		89,844	67,936	58,703
Plus: reinsurance recoverable	[1]	7,496	10,394	2,313
Gross reserves, end of period		$ 97,340	$ 78,330	$ 61,016
[1]	Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

DEBT (Details)

DEBT (Details) - Monarch Delaware Holdings LLC [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 17, 2015
Debt Instrument [Line Items]
Long-term debt		$ 5
Interest rate percentage		6.00%
Maturity period of debt	Mar. 17, 2021
Debt issuance cost	$ 0.1

INCOME TAXES, Summary of Provis

INCOME TAXES, Summary of Provision for Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal [Abstract]
Current	$ 15,523	$ 16,659	$ 4,289
Deferred	6,118	1,059	1,393
Federal income tax expense	21,641	17,718	5,682
State [Abstract]
Current	2,489	2,204	0
Deferred	623	186	809
State income tax expense	3,112	2,390	809
Income tax expense total	$ 24,753	$ 20,108	$ 6,491

INCOME TAXES, Effective Income

INCOME TAXES, Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of effective federal and state tax rates to income before provision for income tax benefit [Abstract]
Computed expected tax expense provision, at federal rate	$ 22,829	$ 19,887	$ 6,535
State tax, net of federal tax benefit	2,291	1,696	698
Tax-exempt interest	(445)	(312)	(31)
Income subject to dividends-received deduction	(109)	(136)	(97)
Return to provision and rate changes	119	(1,027)	(306)
Other	68	0	(308)
Income tax expense total	$ 24,753	$ 20,108	$ 6,491

INCOME TAXES, Significant Compo

INCOME TAXES, Significant Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets [Abstract]
Unearned premiums	$ 9,375	$ 7,812
Loss and loss adjustment expense reserves	1,175	1,239
Accrued expenses	694	0
Net operating loss carryforwards	140	0
Share-based compensation	606	545
Other	212	144
Total	12,202	9,740
Deferred tax liabilities [Abstract]
Deferred acquisition costs	(11,906)	(6,199)
Net unrealized gains on investments	(2,336)	(4,792)
Deferred revenue related to reinsurance	(3,395)	0
Other	(192)	(90)
Total	(17,829)	(11,081)
Net deferred tax liability	(5,627)	(1,341)
Uncertain tax positions	$ 0	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES55

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES [Abstract]
Rent expense	$ 700	$ 500	$ 400
Expected future lease payouts [Abstract]
2,016	918
2,017	934
2,018	953
2,019	981
2,020	1,019
Thereafter	2,104
Total	$ 6,909

SHAREHOLDERS' EQUITY, Share-bas

SHAREHOLDERS' EQUITY, Share-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 2,963	$ 1,660	$ 292
Excess tax benefits from share-based awards	1,564	480	169
Intrinsic value of options exercised	1,124	5,172	583
Fair value of restricted stock vested	2,303	549	0
Unamortized share-based compensation expense	$ 6,900
Remaining weighted average vesting period	3 years 2 months 16 days
2012 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	1,000,000
Share-based payment award, expiration date	Apr. 5, 2022
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 2,930	1,525	120
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 33	$ 135	$ 172

SHAREHOLDERS' EQUITY, Stock Opt

SHAREHOLDERS' EQUITY, Stock Option Awards (Details) - Stock Options [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Options, Number of Shares [Roll Forward]
Outstanding, beginning of period (in shares)	219,285	526,521	781,097
Granted (in shares)	0	0	0
Exercised (in shares)	(44,652)	(302,735)	(166,077)
Cancelled (in shares)	0	(4,501)	(88,499)
Outstanding, end of period (in shares)	174,633	219,285	526,521
Stock Options, Weighted Average Option Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 3.79	$ 4.56	$ 5.93
Granted (in dollars per share)	0	0	0
Exercised (in dollars per share)	3.81	5.13	7.15
Cancelled (in dollars per share)	0	3.49	11.77
Outstanding, end of period (in dollars per share)	$ 3.79	$ 3.79	$ 4.56

SHAREHOLDERS' EQUITY, Summary I

SHAREHOLDERS' EQUITY, Summary Information about Stock Options Outstanding and Exercisable (Details) - $2.45 - $4.40 [Member]	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
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
Shares outstanding and exercisable (in shares) | shares	174,633
Weighted average remaining contractual life	5 years 7 months 6 days
Weighted average exercise price (in dollars per share)	$ 3.79
Aggregate intrinsic value | $	$ 4,500,825

SHAREHOLDERS' EQUITY, Restricte

SHAREHOLDERS' EQUITY, Restricted Stock (Details) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Restricted Shares, Number of Shares [Roll Forward]
Outstanding, beginning of period (in shares)	447,801	249,500	0
Granted (in shares)	116,140	268,648	250,000
Vested (in shares)	(145,134)	(68,988)	0
Cancelled (in shares)	0	(1,359)	(500)
Outstanding, end of period (in shares)	418,807	447,801	249,500
Restricted Shares, Weighted Average Option Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 16.84	$ 8.24	$ 0
Granted (in dollars per share)	27.53	22.50	8.23
Vested (in dollars per share)	15.87	7.96	0
Cancelled (in dollars per share)	0	8.29	5.54
Outstanding, end of period (in dollars per share)	$ 20.14	$ 16.84	$ 8.24
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants vesting period	3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants vesting period	5 years

EMPLOYEE BENEFIT PLAN (Details)

EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
EMPLOYEE BENEFIT PLAN [Abstract]
Eligible employees to contribution, percentage	100.00%
Entity's matching contribution	$ 0.6	$ 0.4	$ 0.2
Percentage of additional contribution of employee salary	1.00%	0.00%	0.00%
Percentage of first elective contributions	6.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Ceded premiums	$ 268,517,000	$ 201,998,000	$ 82,709,000
Transatlantic Reinsurance Company [Member]
Related Party Transaction [Line Items]
Ceded premiums	4,100,000	1,200,000	0
Law Firm Associated with Chairman of the Board of Directors [Member]
Related Party Transaction [Line Items]
Fees paid to related party	26,151	6,538	36,400
Crosswinds AUM, LLC [Member]
Related Party Transaction [Line Items]
Fees paid to related party	$ 200,000	$ 0	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
EARNINGS PER SHARE [Abstract]
Net income attributable to Federated National Holding Company shareholders	$ 9,274	$ 10,593	$ 11,734	$ 9,284	$ 9,995	$ 7,227	$ 11,554	$ 8,423	$ 40,885	$ 37,199	$ 12,727
Weighted average number of common shares outstanding - basic (in shares)									13,729	12,082	8,506
Net income per share - basic (in dollars per share)	$ 0.67	$ 0.77	$ 0.86	$ 0.68	$ 0.73	$ 0.57	$ 1.04	$ 0.77	$ 2.98	$ 3.08	$ 1.50
Dilutive effect of stock compensation plans (in shares)									268	356	266
Weighted average number of common shares outstanding - diluted (in shares)									13,997	12,438	8,772
Net income per share - diluted (in dollars per share)									$ 2.92	$ 2.99	$ 1.45
Dividends per share (in dollars per share)	$ 0.18				$ 0.13				$ 0.18	$ 0.13	$ 0.11

VARIABLE INTEREST ENTITY (Detai

VARIABLE INTEREST ENTITY (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Investments [Abstract]
Debt maturities, held-to-maturity, at amortized cost	$ 6,619	$ 7,417
Equity securities, available-for-sale, at fair value	38,534	39,247
Total investments	384,331	330,763
Cash and cash equivalents	53,038	40,157	$ 41,446	$ 21,143
Prepaid reinsurance premiums	120,771	54,502
Premiums receivable, net	38,594	27,275
Deferred acquisition costs	15,547	13,610
Other assets	7,718	21,231
Total assets	638,298	503,631
LIABILITIES [Abstract]
Loss and loss adjustment expense reserves	97,340	78,330	$ 61,016	$ 49,908
Unearned premiums	253,960	192,424
Debt	5,000	0
Other liabilities	25,612	38,957
Total liabilities	387,539	$ 311,052
Variable Interest Entity (VIE) [Member]
Investments [Abstract]
Debt maturities, held-to-maturity, at amortized cost	21,312
Equity securities, available-for-sale, at fair value	1,358
Total investments	22,670
Cash and cash equivalents	14,616
Prepaid reinsurance premiums	34
Premiums receivable, net	355
Deferred income taxes, net	646
Deferred acquisition costs	234
Other assets	270
Total assets	38,825
LIABILITIES [Abstract]
Loss and loss adjustment expense reserves	237
Unearned premiums	1,448
Debt	5,000
Income taxes payable	8
Other liabilities	374
Total liabilities	$ 7,067

STATUTORY ACCOUNTING AND DIVI64

STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS [Abstract]
Carryforward period for statutory unassigned surplus included in consideration of dividend to be paid	2 years
Percentage of statutory unassigned surplus as of preceding year included in consideration of dividend to be paid	10.00%
Percentage of insurers capital surplus considered for dividend distribution	10.00%
Percentage of minimum statutory capital surplus after the dividend or distribution	115.00%
Number of business days prior to dividend payment	10 days
Statutory capital and surplus	$ 175.9	$ 125.3
Statutory net income	$ 23.9	$ 29.3	$ 3.6

QUARTERLY RESULTS OF OPERATIO65

QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Unaudited Quarterly Results of Operations [Abstract]
Net premiums earned	$ 53,721	$ 62,286	$ 49,227	$ 44,786	$ 40,950	$ 34,518	$ 51,433	$ 44,004	$ 210,020	$ 170,905	$ 104,381
Total revenue	63,568	72,599	58,790	54,936	48,824	43,150	59,003	49,715	249,893	200,692	121,737
Losses and loss adjustment expenses	28,843	28,412	23,149	23,949	20,560	15,126	24,522	20,828	104,353	81,036	56,410
Total costs and expenses	49,123	54,974	40,151	40,452	34,694	31,695	41,009	35,987	184,700	143,385	102,519
Net income attributable to Federated National Holding Company shareholders	$ 9,274	$ 10,593	$ 11,734	$ 9,284	$ 9,995	$ 7,227	$ 11,554	$ 8,423	$ 40,885	$ 37,199	$ 12,727
Net income per share - basic (in dollars per share)	$ 0.67	$ 0.77	$ 0.86	$ 0.68	$ 0.73	$ 0.57	$ 1.04	$ 0.77	$ 2.98	$ 3.08	$ 1.50

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - $ / shares	Mar. 10, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Mar. 07, 2016
Subsequent Event [Line Items]
Dividends declaration date		Mar. 7, 2016
Dividends payable, per share (in dollars per share)		$ 0.18	$ 0.13	$ 0.11
Dividends payable date		Jun. 1, 2016
Dividends payable. record date		May 2, 2016
Restricted Stock [Member]
Subsequent Event [Line Items]
Restricted shares granted (in shares)		116,140	268,648	250,000
Restricted Stock [Member] | Minimum [Member]
Subsequent Event [Line Items]
Award vesting period		3 years
Restricted Stock [Member] | Maximum [Member]
Subsequent Event [Line Items]
Award vesting period		5 years
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends payable, per share (in dollars per share)					$ 0.06
Subsequent Event [Member] | Restricted Stock [Member]
Subsequent Event [Line Items]
Restricted shares granted (in shares)	128,472

Schedule II - Condensed Finan67

Schedule II - Condensed Financial Information of Registrant (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
ASSETS [Abstract]
Cash and cash equivalents	$ 53,038	$ 40,157	$ 41,446	$ 21,143
Income taxes receivable	2,691	1,810
Other assets	7,718	21,231
Total assets	638,298	503,631
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Other liabilities	25,612	38,957
Total liabilities	387,539	311,052
Preferred stock	0	0
Common stock	138	136
Additional paid-in capital	131,998	127,302
Accumulated other comprehensive loss	3,985	7,718
Retained earnings	96,461	57,423
Total shareholders' equity attributable Federated National Holding Company shareholders	232,582	192,579
Noncontrolling interest	18,177	0
Total shareholders' equity	250,759	192,579	108,494	65,905
Total liabilities and shareholders' equity	638,298	503,631
Parent Company [Member]
ASSETS [Abstract]
Investments in subsidiaries	282,504	208,853
Investments securities, available-for-sale, at fair value	25,649	43,962
Cash and cash equivalents	2,397	12,053	$ 2,143	$ 1,492
Deferred income taxes, net	485	332
Income taxes receivable	10,471	8,966
Other assets	1,506	1,555
Total assets	323,012	275,721
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Due to subsidiaries	70,079	63,649
Capital contribution payable	0	18,501
Other liabilities	2,174	992
Total liabilities	72,253	83,142
Preferred stock	0	0
Common stock	138	136
Additional paid-in capital	131,998	127,302
Accumulated other comprehensive loss	3,985	7,718
Retained earnings	96,461	57,423
Total shareholders' equity attributable Federated National Holding Company shareholders	232,582	192,579
Noncontrolling interest	18,177	0
Total shareholders' equity	250,759	192,579
Total liabilities and shareholders' equity	$ 323,012	$ 275,721

Schedule II - Condensed Finan68

Schedule II - Condensed Financial Information of Registrant, Condensed Statements of Earnings (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue [Abstract]
Net investment income									$ 7,226	$ 5,385	$ 3,332
Total revenue	$ 63,568	$ 72,599	$ 58,790	$ 54,936	$ 48,824	$ 43,150	$ 59,003	$ 49,715	249,893	200,692	121,737
Costs and expenses [Abstract]
General and administrative expenses									15,032	10,272	7,529
Total costs and expenses	49,123	54,974	40,151	40,452	34,694	31,695	41,009	35,987	184,700	143,385	102,519
Income before income taxes									65,193	57,307	19,218
Income taxes									24,753	20,108	6,491
Net income									40,440	37,199	12,727
Net loss attributable to noncontrolling interest									(445)	0	0
Net income attributable to Federated National Holding Company shareholders	$ 9,274	$ 10,593	$ 11,734	$ 9,284	$ 9,995	$ 7,227	$ 11,554	$ 8,423	40,885	37,199	12,727
Parent Company [Member]
Revenue [Abstract]
Management fees									2,489	2,387	1,864
Net investment income									609	417	147
Equity in income of consolidated subsidiaries									71,905	61,653	21,623
Total revenue									75,003	64,457	23,634
Costs and expenses [Abstract]
General and administrative expenses									9,810	7,150	4,416
Total costs and expenses									9,810	7,150	4,416
Income before income taxes									65,193	57,307	19,218
Income taxes									24,753	20,108	6,491
Net income									40,440	37,199	12,727
Net loss attributable to noncontrolling interest									(445)	0	0
Net income attributable to Federated National Holding Company shareholders									$ 40,885	$ 37,199	$ 12,727

Schedule II - Condensed Finan69

Schedule II - Condensed Financial Information of Registrant, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flow from operating activities [Abstract]
Net income	$ 40,440	$ 37,199	$ 12,727
Adjustments to reconcile net income to net cash (used in) provided by operating activities [Abstract]
Share-based compensation	4,527	2,140	461
Changes in operating assets and liabilities [Abstract]
Deferred income taxes, net of other comprehensive income	6,741	765	2,020
Income taxes receivable, net	(2,445)	(4,189)	2,418
Net cash provided by operating activities	52,891	63,144	79,713
Cash flow from investing activities [Abstract]
Sales, maturities and redemptions of investments securities	169,979	87,151	106,173
Purchases of property and equipment	(1,736)	(969)	(629)
Net cash used in investing activities	(63,641)	(107,905)	(87,083)
Cash flow from financing activities [Abstract]
Noncontrolling interest equity investment	18,743	0	0
Tax benefit related to share-based compensation	1,564	480	169
Issuance of common stock for share-based awards	171	1,555	858
Issuance of common stock in public offering	0	43,109	27,879
Dividends paid	(1,847)	(1,672)	(1,233)
Net cash provided by financing activities	23,631	43,472	27,673
Net increase (decrease) in cash and cash equivalents	12,881	(1,289)	20,303
Cash and cash equivalents at beginning of period	40,157	41,446	21,143
Cash and cash equivalents at end of period	53,038	40,157	41,446
Parent Company [Member]
Cash flow from operating activities [Abstract]
Net income	40,440	37,199	12,727
Adjustments to reconcile net income to net cash (used in) provided by operating activities [Abstract]
Equity in undistributed income of consolidated subsidiaries	(71,905)	(61,653)	(21,623)
Share-based compensation	4,527	2,140	461
Changes in operating assets and liabilities [Abstract]
Deferred income taxes, net of other comprehensive income	(153)	674	3,333
Income taxes receivable, net	24,352	16,521	1,732
Capital contribution payable	(18,501)	2,501	16,000
Other, net	8,551	2,483	5,339
Net cash provided by operating activities	(12,689)	(135)	17,969
Cash flow from investing activities [Abstract]
Capital contributions to consolidated subsidiaries	(32,743)	(18,501)	(16,000)
Sales, maturities and redemptions of investments securities	38,612	22,414	1,524
Purchases of investment securities	(21,354)	(36,949)	(30,366)
Purchases of property and equipment	(113)	(391)	(149)
Net cash used in investing activities	(15,598)	(33,427)	(44,991)
Cash flow from financing activities [Abstract]
Noncontrolling interest equity investment	18,743	0	0
Tax benefit related to share-based compensation	1,564	480	169
Issuance of common stock for share-based awards	171	1,555	858
Issuance of common stock in public offering	0	43,109	27,879
Dividends paid	(1,847)	(1,672)	(1,233)
Net cash provided by financing activities	18,631	43,472	27,673
Net increase (decrease) in cash and cash equivalents	(9,656)	9,910	651
Cash and cash equivalents at beginning of period	12,053	2,143	1,492
Cash and cash equivalents at end of period	$ 2,397	$ 12,053	$ 2,143

Schedule V - Valuation and Qu70

Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for Uncollectible Reinsurance Recoverable [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 0	$ 0	$ 0
Charged to costs and expenses	0	0	0
Deductions	0	0	0
Balance, end of period	0	0	0
Allowance for Uncollectible Premiums Receivable [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	148	143	69
Charged to costs and expenses	192	45	250
Deductions	(38)	(40)	(176)
Balance, end of period	$ 302	$ 148	$ 143

Schedule VI - Supplemental In71

Schedule VI - Supplemental Information Concerning Insurance Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items]
Claim and claim adjustment expenses incurred related to current year	$ 113,819	$ 79,932	$ 56,209
Claim and claim adjustment expenses incurred related to prior year	(9,466)	1,104	201
Property and Casualty Insurance [Member]
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items]
Deferred acquisition costs	15,547	13,610	16,708
Loss and loss adjustment expense reserves	97,340	78,330	61,016
Unearned premiums	253,960	192,424	128,343
Earned premiums	210,020	170,905	104,381
Net investment income	7,226	5,385	3,332
Claim and claim adjustment expenses incurred related to current year	113,819	79,932	56,209
Claim and claim adjustment expenses incurred related to prior year	(9,466)	1,104	201
Amortization of deferred acquisition costs	37,276	27,474	21,447
Paid claims and claims adjustment expense	82,445	71,803	44,403
Premiums written	$ 225,253	$ 175,158	$ 160,664