FedNat Holding (FNHCQ) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 03, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	FEDERATED NATIONAL HOLDING CO
Entity Central Index Key	1,069,996
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,784,811
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments:
Debt securities, available-for-sale, at fair value (amortized cost of $356,199 and $338,021, respectively)	$ 365,364	$ 339,178
Debt securities, held-to-maturity, at amortized cost	5,905	6,619
Equity securities, available-for-sale, at fair value (cost of $34,565 and $33,581, respectively)	40,601	38,534
Total investments	411,870	384,331
Cash and cash equivalents	80,073	53,038
Prepaid reinsurance premiums	109,809	120,771
Premiums receivable, net of allowance of $123 and $302, respectively	58,063	38,594
Reinsurance recoverable, net	20,572	12,714
Deferred acquisition costs	21,287	15,547
Income taxes receivable	8,687	2,691
Property and equipment, net	3,335	2,894
Other assets	7,918	7,605
TOTAL ASSETS	721,614	638,185
LIABILITIES:
Loss and loss adjustment expense reserves	120,723	97,340
Unearned premiums	295,769	253,960
Debt from consolidated variable interest entity	4,898	4,887
Deferred income taxes, net	5,720	5,627
Other liabilities	28,824	25,612
Total liabilities	455,934	387,426
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value: 1,000,000 shares authorized	0	0
Common stock, $0.01 par value: 25,000,000 shares authorized; 13,782,911 and 13,798,773 shares issued and outstanding, respectively	138	138
Additional paid-in capital	135,255	131,998
Accumulated other comprehensive income	9,422	3,985
Retained earnings	102,189	96,461
Total Federated National Holding Company shareholders' equity	247,004	232,582
Noncontrolling interest	18,676	18,177
Total shareholders' equity	265,680	250,759
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 721,614	$ 638,185

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments:
Debt securities, available-for-sale at amortized cost	$ 356,199	$ 338,021
Equity securities, available-for-sale at cost	34,565	33,581
Premiums receivable, allowance for credit losses	$ 123	$ 302
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)	13,782,911	13,798,773
Common stock, shares outstanding (in shares)	13,782,911	13,798,773

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Net premiums earned	$ 60,045	$ 49,227	$ 115,042	$ 94,012
Net investment income	2,194	1,701	4,234	3,248
Net realized investment gains	7	913	934	2,617
Other income	12,818	6,949	23,814	13,849
Total revenue	75,064	58,790	144,024	113,726
Costs and expenses:
Losses and loss adjustment expenses	47,025	23,148	76,570	47,098
Commissions and other underwriting expenses	21,044	13,630	40,896	26,324
General and administrative expenses	5,086	3,287	9,167	7,085
Interest expense	94	86	178	97
Total costs and expenses	73,249	40,151	126,811	80,604
Income before income taxes	1,815	18,639	17,213	33,122
Income taxes	697	6,755	6,492	12,465
Net income	1,118	11,884	10,721	20,657
Net income (loss) attributable to noncontrolling interest	127	150	195	(361)
Net income attributable to Federated National Holding Company shareholders	$ 991	$ 11,734	$ 10,526	$ 21,018
Net income per share attributable to Federated National Holding Company shareholders:
Basic (in dollars per share)	$ 0.07	$ 0.86	$ 0.76	$ 1.54
Diluted (in dollars per share)	$ 0.07	$ 0.84	$ 0.75	$ 1.50
Weighted average number of shares of common stock outstanding:
Basic (in shares)	13,805	13,722	13,816	13,689
Diluted (in shares)	13,988	13,985	14,013	13,978
Dividends declared per share of common stock (in dollars per share)	$ 0.06	$ 0.04	$ 0.11	$ 0.08

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net income	$ 1,118	$ 11,884	$ 10,721	$ 20,657
Change in net unrealized gains (losses) on investments, available-for-sale	5,006	(3,974)	9,090	(2,010)
Comprehensive income before income taxes	6,124	7,910	19,811	18,647
Income tax benefit (expense) related to items of other comprehensive income	(1,805)	1,409	(3,349)	651
Comprehensive income	4,319	9,319	16,462	19,298
Less: Comprehensive income attributable to noncontrolling interest	273	0	499	0
Comprehensive income attributable to Federated National Holding Company shareholders	$ 4,046	$ 9,319	$ 15,963	$ 19,298

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2016 - 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, beginning of period 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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	$ 0	0	0	10,526	10,526	195	10,721
Other comprehensive income	0	0	0	5,437	0	5,437	304	5,741
Dividends	0	0	0	0	(2,425)	(2,425)	0	(2,425)
Shares issued under stock-based compensation plans	0	$ 0	26	0	0	26	0	26
Shares issued under stock-based compensation plans (in shares)		96,314
Tax benefits from stock-based awards	0	$ 0	598	0	0	598	0	598
Repurchases of common stock	0	$ 0	0	0	(2,373)	(2,373)	0	$ (2,373)
Repurchases of common stock (in shares)		(112,176)						(112,176)
Shares based compensation	0	$ 0	2,633	0	0	2,633	0	$ 2,633
Balance, end of period at Jun. 30, 2016	$ 0	$ 138	$ 135,255	$ 9,422	$ 102,189	$ 247,004	$ 18,676	$ 265,680
Balance (in shares) at Jun. 30, 2016		13,782,911

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flow from operating activities:
Net income	$ 10,721	$ 20,657
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net realized investment gains	(934)	(2,617)
Amortization of investment premium or discount, net	2,562	2,487
Depreciation and amortization	392	302
Share-based compensation	3,231	2,090
Changes in operating assets and liabilities:
Prepaid reinsurance premiums	10,962	14,173
Premiums receivable, net	(19,469)	(5,776)
Reinsurance recoverable, net	(7,858)	(2,760)
Deferred acquisition costs	(5,740)	(5,657)
Income taxes receivable, net	(6,595)	(3,709)
Loss and loss adjustment expense reserves	23,383	9,752
Unearned premiums	41,809	40,387
Deferred income taxes, net of other comprehensive income	(1,666)	4,273
Other, net	2,896	(2,593)
Net cash provided by operating activities	53,694	71,009
Cash flow from investing activities:
Sales, maturities and redemptions of investment securities	119,671	92,411
Purchases of investment securities	(141,334)	(129,545)
Purchases of property and equipment	(822)	(542)
Net cash used in investing activities	(22,485)	(37,676)
Cash flow from financing activities:
Noncontrolling interest equity investment	0	18,136
Tax benefit related to share-based compensation	598	706
Issuance of debt in consolidated variable interest entity	0	5,000
Purchases of FNHC common stock	(2,373)	0
Issuance of common stock for share-based awards	26	123
Dividends paid	(2,425)	(1,133)
Net cash (used in) provided by financing activities	(4,174)	22,832
Net increase in cash and cash equivalents	27,035	56,165
Cash and cash equivalents at beginning of period	53,038	40,157
Cash and cash equivalents at end of period	80,073	96,322
Cash paid during the period for:
Income taxes	14,360	10,662
Non-cash investing and finance activities:
Accrued dividends payable	$ 859	$ 567

ORGANIZATION, CONSOLIDATION AND

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION [Abstract]
ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION	1. ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION Organization Federated National Holding Company, (“FNHC,” the “Company,” “we,” or “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 automobile 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, Texas, Georgia, Alabama, Louisiana and South Carolina. We also serve as managing general agent for Monarch National Insurance Company (“MNIC”), which was founded in 2015 through the joint venture, described below, and is licensed as an admitted carrier in Florida. An admitted carrier is an insurance company that has received a license from the state department of insurance giving the Company the authority to write specific lines of insurance in that state. These companies are also bound by rate and form regulations, and are strictly regulated to protect policyholders from a variety of illegal and unethical practices, including fraud. Admitted carriers are also required to financially contribute to the state guarantee fund, which is used to pay for losses if an insurance carrier becomes insolvent or unable to pay the losses due to their policyholders. 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. Significant Customers We entered into an Insurance Agency Master Agreement with Ivantage Select Agency, Inc., (“ISA”), an affiliate of Allstate Insurance Company, (“Allstate”), pursuant to which we are authorized by ISA to appoint Allstate agents to offer our homeowners’ and commercial general liability insurance products to consumers in Florida. During the three and six months ended June 30, 2016, 24.7% and 24.1%, respectively, of the homeowners’ premiums we underwrote were from Allstate’s network of Florida agents. 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 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 12 for additional information on the VIE. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) . Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. These unaudited consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state, in all material respects, our financial position and results of operations for the periods presented. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. This report should be read in conjunction with the Company’s 2015 Annual Report on Form 10-K, as amended (the “2015 Form 10-K”).

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES	6 Months Ended
	Jun. 30, 2016
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES [Abstract]
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES	2 SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES Our significant accounting policies were described in Note 2 to our Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of the 2015 Form 10-K. 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 losses 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. Refer to Note 6 accompanying our consolidated financial statements for a discussion of our liability for losses and loss adjustment expense reserves. Reclassifications Certain amounts in prior year’s consolidated financial statements have been reclassified to conform to the 2016 presentation. These reclassifications had no effect on the reported consolidated statements of operations, balance sheets, and cash flows. In the current period, the Company concluded it was appropriate to reclassify certain revenue accounts that do not have material balances and include them within other income in the consolidated statements of operations. In addition, during the current period, the Company reclassified 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 these reclassifications provide greater clarity and insight into the consolidated financial statements for the periods presented. 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 prior period adjustments increased net income by $0.3 million and $1.6 million for the three and six months ended June 30, 2015, respectively. Adopted Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration-Contracts Financial Services—Insurance Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2016
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. Currently, the Company has no level 3 investments. The Company’s financial instruments measured at fair value and the level of the fair value hierarchy of inputs used were as follows: June 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) Debt securities: United States government obligations and authorities $ 37,442 $ 27,800 $ - $ 65,242 Obligations of states and political subdivisions - 139,685 - 139,685 Corporate - 148,597 - 148,597 International - 11,840 - 11,840 37,442 327,922 - 365,364 Equity securities 39,601 1,000 - 40,601 Total investments $ 77,043 $ 328,922 $ - $ 405,965 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

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 2016
INVESTMENTS [Abstract]
INVESTMENTS	4. INVESTMENTS Unrealized Gains and Losses The following table details the difference between amortized cost or cost and estimated fair value, by major investment catergory, at June 30, 2016 and at December 31, 2015: Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2016 Debt Securities - available-for-sale: United States government obligations and authorities $ 63,692 $ 1,551 $ 1 $ 65,242 Obligations of states and political subdivisions 136,439 3,248 2 139,685 Corporate 144,429 4,289 122 148,596 International 11,639 243 41 11,841 356,199 9,331 166 365,364 Debt Securities - held-to-maturity: United States government obligations and authorities 4,178 85 67 4,196 Corporate 1,662 45 1 1,706 International 65 3 - 68 5,905 133 68 5,970 Equity securities 34,565 7,204 1,168 40,601 Total investments $ 396,669 $ 16,668 $ 1,402 $ 411,935 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 - - 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 Net Realized Gains and Losses The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or amortized cost of the security sold. Net realized gains and losses on investments are determined in accordance with the specific identification method. The following tables detail the Company’s net realized gains (losses) by major investment category for the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Gross realized gains: Debt securities $ 624 $ 265 $ 1,927 $ 747 Equity securities 417 915 1,155 2,342 Total gross realized gains 1,041 1,180 3,082 3,089 Gross realized losses: Debt securities (55 ) (224 ) (595 ) (326 ) Equity securities (979 ) (43 ) (1,553 ) (146 ) Total gross realized losses (1,034 ) (267 ) (2,148 ) (472 ) Net realized gains on investments $ 7 $ 913 $ 934 $ 2,617 During the three months ended June 30, 2016 and 2015, the proceeds from sales of available-for-sale investment securities were $36.9 million and $30.3 million, respectively. During the six months ended June 30, 2016 and 2015, the proceeds from sales of available-for-sale investment securities were $99.4 million and $80.2 million, respectively. Contractual Maturity The amortized cost and estimated fair value of debt securities as of June 30, 2016 and December 31, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Securities with maturity dates: (in thousands) Debt securities, available-for-sale: One year or less $ 32,222 $ 32,266 $ 24,470 $ 24,488 Over one through five years 177,983 181,141 170,797 171,113 Over five through ten years 145,773 151,728 142,728 143,545 Over ten years 220 229 26 32 356,198 365,364 338,021 339,178 Debt securities, held-to-maturity: One year or less 431 432 486 487 Over one through five years 1,724 1,786 1,899 1,915 Over five through ten years 3,750 3,751 4,234 4,037 5,905 5,969 6,619 6,439 Total $ 362,103 $ 371,333 $ 344,640 $ 345,617 Net Investment Income The following table summarizes the Company’s net investment income for the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Interest income $ 1,984 $ 1,573 $ 3,837 $ 3,014 Dividends income 210 128 397 234 Net investment income $ 2,194 $ 1,701 $ 4,234 $ 3,248 Aging of Gross Unrealized Losses As of June 30, 2016 and December 31, 2015, gross unrealized losses and related fair values for available-for-sale debt securities 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 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2016 (in thousands) Debt securities - available-for-sale: United States government obligations and authorities $ - $ - $ 128 $ 1 $ 128 $ 1 Obligations of states and political subdivisions 2,372 1 1,025 1 3,397 2 Corporate 6,733 50 3,587 72 10,320 122 International - - 2,005 41 2,005 41 9,105 51 6,745 115 15,850 166 Equity securities 9,361 1,035 1,245 133 10,606 1,168 Total investments $ 18,466 $ 1,086 $ 7,990 $ 248 $ 26,456 $ 1,334 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2015 (in thousands) Debt securities - available-for-sale: 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 The Company holds its equity securities and some of its debt securities as available-for-sale and as such, these securities are recorded at fair value. The Company continually monitors the difference between cost and the estimated fair value of its investments, which involves uncertainty as to whether declines in value are temporary in nature. If the decline of a particular investment is deemed temporary, the Company records the decline as an unrealized loss in shareholders’ equity. If the decline is deemed to be other than temporary, the Company will write the security’s cost-basis or amortized cost-basis down to the fair value of the investment and recognizes an other than temporarily impairment (“OTTI”) loss in our consolidated statements of operations. Additionally, any portion of such decline related to debt securities that is believed to arise from factors other than credit will be recorded as a component of other comprehensive income rather than charged against income. The Company’s assessment of equity securities initially involves an evaluation of all securities that are in an unrealized loss position, regardless of the duration or severity of the loss, as of the applicable balance sheet date. Such initial review consists primarily of assessing whether: (i) there has been a negative credit or news event with respect to the issuer that could indicate the existence of an OTTI; and (ii) the Company has the ability and intent to hold an equity security for a period of time sufficient to allow for an anticipated recovery (generally considered to be one year from the balance sheet date). To the extent that an equity security in an unrealized loss position is not impaired based on the initial review described above, the Company then evaluates such equity security by considering qualitative and quantitative factors. These factors include but are not limited to facts and circumstances specific to individual securities, asset classes, the financial condition of the issuer, changes in dividend payment, the length of time fair value had been less than cost, the severity of the decline in fair value below cost, industry outlook and our ability and intent to hold each position until its forecasted recovery. If the Company intends to sell, or it is more likely than not that, the Company will sell, a debt security before recovery of its amortized cost basis, the total amount of the unrealized loss position is recognized as an OTTI loss in our consolidated statement of operations. To the extent a debt security in an unrealized loss position is not impaired based on the preceding, the Company will consider that security to be impaired when it believes collection of the amortized cost is not probable. During the Company’s quarterly evaluation of its securities for impairment, we had $0.3 million OTTI losses in our investments in debt and equity securities during the three and six months ended June 30, 2016. We did not have any material OTTI losses in our investments in debt and equity securities that reflected an unrealized loss position during the three and six months ended June 30, 2015. Collateral Deposits As of June 30, 2016, investments with fair values of approximately $10.8 million, the majority of which were debt securities, were deposited with governmental authorities and into custodial bank accounts as required by law or contractually obligated.

REINSURANCE

REINSURANCE	6 Months Ended
	Jun. 30, 2016
REINSURANCE [Abstract]
REINSURANCE	5 REINSURANCE Reinsurance is used to mitigate the exposure to losses, manage capacity and protect capital resources. The Company reinsures (cedes) a portion of written premiums on an excess of loss or a quota share basis in order to limit 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. We are selective in choosing reinsurers and consider numerous factors, the most important of which are the financial stability of the reinsurer or capital specifically pledged to uphold the contract, its history of responding to claims and its overall reputation. In an effort to minimize our exposure to the insolvency of a reinsurer, we evaluate the acceptability and review the financial condition of the reinsurer at least annually with the assistance of our reinsurance broker. Significant Reinsurance Contracts FNIC and MNIC operate 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. All of our reinsurance contracts do not relieve FNIC or MNIC from their direct obligations to the insured. FNIC’s 2015-2016 catastrophe reinsurance program, which runs either from June 1 to May 31 or from July 1 to June 30, consists of the Florida Hurricane Catastrophe Fund (“FHCF”), excess of loss treaties placed with the private market and a 40% property quota share program. The property quota share reinsurance is a form of proportional reinsurance that provides coverage for the homeowners’ property lines for wind related catastrophes in Florida. The FHCF treaty affords coverage for losses sustained in Florida and represents only a portion of the reinsurance coverage in Florida. The excess of loss and FHCF treaties, which became effective on July 1, 2015 and June 1, 2015, respectively, insures for approximately $1.82 billion of aggregate catastrophic losses and loss adjustment expenses (“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. FNIC’s 2016-2017 reinsurance programs include approximately $125.7 million for the private reinsurance for Federated National’s Florida exposure, including prepaid automatic premium reinstatement protection on all layers, along with approximately $53.8 million payable to the FHCF. The combination of private and FHCF reinsurance treaties will afford Federated National with approximately $2.22 billion of aggregate coverage with a maximum single event coverage totaling approximately $1.58 billion, exclusive of retentions. FNIC maintained its FHCF participation at 75% for the 2016 hurricane season. FNIC’s single event pre-tax retention for a catastrophic event in Florida is $18.45 million or 6.89% of the Company’s shareholders’ equity as of June 30, 2016. MNIC’s 2016-2017 catastrophe reinsurance program, which runs from either June 1 to May 31 or June 1 to June 30 (13 month period), consists of the FHCF and private market excess of loss treaties. All private layers have prepaid automatic reinstatement protection, which affords MNIC additional coverage, and have a cascading feature such that substantially all layers attach at $3.4 million for MNIC's Florida exposure. These treaties are with reinsurers that currently have an AM Best or Standard & Poor’s rating of “A-” or better, or have fully collateralized their maximum potential obligations in dedicated trusts. The Company’s property quota share treaties, which are included in the reinsurance program, run for a two-year period from July 1 to July 1 of the following year. The property quota share treaties consist of two different treaties, one for 30% which became effective July 1, 2014, and subsequently ended July 1, 2016, and the other for 10% which became effective July 1, 2015. The combined treaties provide a 40% quota share reinsurance on the first $100 million of covered losses for the homeowners’ property insurance program in Florida. The treaties are accounted for as retrospectively rated contracts whereby the estimated ultimate premium or commission is recognized over the period of the contracts. The Company’s private passenger automobile quota share treaties are typically one-year programs which become effective at different points in the year and cover auto policies across several states. These automobile quota share treaties cede 75% to 90% of all written premiums entered into by the Company. Certain reinsurance agreements require FNIC to secure the credit, regulatory and business risk. Fully funded trust agreements securing these risks totaled $2.7 million as of June 30, 2016 and $3.5 million as of December 31, 2015. Subsequent Events On July 1, 2016, the 30% property quota share treaty expired on a cut-off basis, which means as of that date the Company will retain 30% of its unearned premiums and losses. The reinsurers will remain liable for 30% of the paid losses occurring during the term of the treaty, until the treaty is commuted. Additionally, the Company’s private market excess of loss treaties became effective July 1, 2016 and all private layers have prepaid automatic reinstatement protection, which affords us additional coverage against multiple catastrophic events in the same hurricane season. The Company obtained multiple year protection for a portion of its program; as a result, some of the coverage will expire on June 30, 2017, and a portion of the coverage will remain in-force one additional treaty year until June 30, 2018. These private market excess of loss treaties structure coverage into layers, with a cascading feature such that substantially all private layers attach after $18.45 million in losses for FNIC’s Florida exposure. If the aggregate limit of the preceding layer is exhausted, the next layer drops down (cascades) in its place. Additionally, any unused layer protection drops down for subsequent events until exhausted. Reinsurance Recoverables Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the consolidated balance sheet as reinsurance recoverables. The following table presents reinsurance recoverables as reflected in the consolidated balance sheets as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Reinsurance recoverable on paid losses $ 6,364 $ 5,218 Reinsurance recoverable on unpaid losses 14,208 7,496 Reinsurance recoverable, net $ 20,572 $ 12,714 Premiums Written and Earned The following table presents premiums written and earned for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net Premiums written: Direct $ 171,218 $ 132,019 $ 307,242 $ 238,721 Ceded (119,410 ) (85,103 ) (162,980 ) (111,061 ) $ 51,808 $ 46,916 $ 144,262 $ 127,660 Net Premiums earned: Direct $ 137,334 $ 102,641 $ 265,433 $ 198,334 Ceded (77,289 ) (53,414 ) (150,391 ) (104,322 ) $ 60,045 $ 49,227 $ 115,042 $ 94,012

LOSS AND LOSS ADJUSTMENT EXPENS

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES	6 Months Ended
	Jun. 30, 2016
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES [Abstract]
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES	6 LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES The liability for loss and LAE reserves is determined on an individual-case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and incurred but not yet reported (“IBNR”). Activity in the liability for loss and LAE reserves is summarized as follows: Six Months Ended June 30, 2016 Year Ended December 31, 2015 (in thousands) Gross reserves, beginning of period $ 97,340 $ 78,330 Less: reinsurance recoverable (1) (7,496 ) (10,394 ) Net reserves, beginning of period 89,844 67,936 Incurred loss, net of reinsurance, related to: Current year 66,118 113,819 Prior years 10,452 (9,466 ) Total incurred loss and LAE, net of reinsurance 76,570 104,353 Paid loss, net of reinsurance, related to: Current year 27,707 49,531 Prior years 32,190 32,914 Total paid loss and LAE, net of reinsurance 59,897 82,445 Net reserves, end of period 106,515 89,844 Plus: reinsurance recoverable (1) 14,208 7,496 Gross reserves, end of period $ 120,723 $ 97,340 (1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves. The establishment of loss reserves is an inherently uncertain process and changes in loss reserve estimates are expected as such estimates are subject to the outcome of future events. The factors influencing changes in claim costs are often difficult to isolate or quantify and developments in paid and incurred losses from historical trends are frequently subject to multiple interpretations. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are made. During the six months ended June 30, 2016, the Company experienced $10.5 million of unfavorable loss and LAE reserve development on prior year accident years primarily in its’ all other peril homeowners’ coverage in the state of Florida. The deficiency primarily relates to higher severity above the expected development factor anticipated at December 31, 2015 which was driven by the impact from assignment of benefits and related ligation costs. During the year ended December 31, 2015, the Company experienced $9.5 million of redundancy on prior year accident years 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. Specifically, we have experienced better severity than expected on the 2014 and 2013 accident years.

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2016
LONG-TERM DEBT [Abstract]
LONG-TERM DEBT	7 LONG-TERM DEBT On March 17, 2015, MNHC, a wholly owned subsidiary of Monarch Delaware, and MNIC’s direct parent, 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 Transatlantic Reinsurance Company (“TransRe”), a related party, and is being carried at the unpaid principal balance, net of debt issuance costs, and any accrued and unpaid interest is recognized in other liabilities in the consolidated balance sheet. The Company recorded $0.1 million of debt issuance costs related to the 6% promissory note.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
INCOME TAXES [Abstract]
INCOME TAXES	8 INCOME TAXES The provision for income tax expense for the three and six months ended June 30, 2016 and 2015 (in thousands) is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Federal: Current $ 4,614 $ 1,688 $ 8,158 $ 6,340 Deferred (3,925 ) 4,196 (2,487 ) 4,455 Federal income tax expense 689 5,884 5,671 10,795 State: Current 1,072 416 1,347 1,147 Deferred (1,064 ) 455 (526 ) 523 State income tax expense 8 871 821 1,670 Total income taxes $ 697 $ 6,755 $ 6,492 $ 12,465 The actual income tax expense differs from the “expected” income tax expense (computed by applying the combined applicable effective federal and state tax rates to income before income tax expense) as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Computed expected tax expense provision, at federal rate $ 663 $ 6,140 $ 6,052 $ 11,387 State tax, net of federal tax benefit 11 584 544 1,106 Other 23 31 (104 ) (28 ) Total income taxes $ 697 $ 6,755 $ 6,492 $ 12,465 The Company files income tax returns in the U.S. federal jurisdiction and various states and local jurisdictions. As a matter of course, various taxing authorities, including the Internal Revenue Service (“IRS”), regularly audit us. As of June 30, 2016, no open tax years are under examination by the IRS or any material state and local jurisdictions. As of June 30, 2016 and December 31, 2015, we have determined that there are no uncertain tax positions.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Legal Proceedings In the ordinary course of business, the Company is involved in various legal proceedings, specifically claims litigation. The Company’s insurance subsidiaries participate in most of these proceedings by either defending third-party claims brought against insureds or litigating first-party coverage claims. The Company accounts for such activity through the establishment of loss and LAE reserves. 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 reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. The Company does not establish reserves for identified legal matters when we believe that the likelihood of an unfavorable outcome is not probable. 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 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 FNHC and its subsidiaries lease certain facilities, furniture and equipment under long-term lease agreements. Additional information about leases can be found in Note 8 to our Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of the 2015 Form 10-K.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2016
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	10 . SHAREHOLDERS’ EQUITY Common Stock Repurchases In March 2016, our Board of Directors authorized a program to repurchase shares of common stock of FNHC, at such times and at prices as management determines advisable, up to an aggregate of $10.0 million through March 31, 2017. Pursuant to our Board of Directors authorizations, the Company repurchased 112,176 shares of its common stock at a total cost of $2.4 million, which is an average price per share of $21.13, during the six months ended June 30, 2016. As of June 30, 2016, the remaining availability for future repurchases of our common stock million. Share-based Compensation Expense The following table provides certain information in connection with the Company’s share-based compensation arrangements for the three and six months ended June 30, 2016 and 2015, respectively: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Restricted stock $ 1,953 $ 627 $ 2,633 $ 1,355 Stock options - 5 - 29 Total share-based compensation expense $ 1,953 $ 632 $ 2,633 $ 1,384 Intrinsic value of options exercised $ 1,024 $ 5,809 $ 1,217 $ 8,155 Fair value of restricted stock vested $ 16,564 $ 11,772 $ 28,922 $ 11,772 The intrinsic value of options exercised represents the difference between the stock option exercise price and the weighted average closing stock price of FNHC common stock on the exercise dates, as reported on The NASDAQ Global Market. At June 30, 2016, there was approximately $6.8 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to Restricted Stock Awards, which is currently expected to be recognized over a weighted average period of approximately 3.02 years. Stock Option Awards A summary of the Company’s stock option activity for the period from January 1, 2016 to June 30, 2016 is as follows: Number of Shares Weighted Average Option Exercise Price Outstanding at January 1, 2016 174,633 $ 3.79 Granted - $ - Exercised (6,933 ) $ 3.74 Cancelled - $ - Outstanding at June 30, 2016 167,700 $ 3.79 Restricted Stock Awards The Company recognizes share-based compensation expense for all restricted stock awards (“RSAs”) held by employees. The accounting charge is measured at the grant date as the fair value of FNHC common stock and expensed as non-cash compensation over the vesting term using the straight-line basis. During the first quarter of 2016 and 2015, the Board of Directors granted 128,472 and 116,140 RSAs, respectively, vesting over three or five years, to the Company’s Directors, Executives and other key employees. The following tables summarizes RSA activity during the six months ended June 30, 2016: Number of Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2016 418,807 $ 20.14 Granted 128,472 $ 19.16 Vested (155,916 ) $ 18.55 Cancelled - $ - Outstanding at June 30, 2016 391,363 $ 20.45 The weighted average grant date fair value is measured using the closing price of FNHC common stock on the grant date, as reported on The NASDAQ Global Market. Accumulated Other Comprehensive Income The following table presents a reconciliation of the changes in accumulated other comprehensive income during the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, 2016 2015 Before Tax Income Tax Net Before Tax Income Tax Net (in thousands) Accumulated other comprehensive income, beginning of period $ 10,195 $ (3,791 ) $ 6,404 $ 14,382 $ (5,457 ) $ 8,925 Other comprehensive income before reclassifications 5,036 (1,828 ) 3,208 (2,478 ) 825 (1,653 ) Reclassification adjustment for realized gains included in net income (30 ) 23 (7 ) (1,497 ) 584 (913 ) 5,006 (1,805 ) 3,201 (3,975 ) 1,409 (2,566 ) Accumulated other comprehensive income, end of period $ 15,201 $ (5,596 ) $ 9,605 $ 10,407 $ (4,048 ) $ 6,359 Six Months Ended June 30, 2016 2015 Before Tax Income Tax Net Before Tax Income Tax Net (in thousands) Accumulated other comprehensive income, beginning of period $ 6,111 $ (2,247 ) $ 3,864 $ 12,417 $ (4,699 ) $ 7,718 Other comprehensive income before reclassifications 10,606 (3,931 ) 6,675 2,239 (981 ) 1,258 Reclassification adjustment for realized gains included in net income (1,516 ) 582 (934 ) (4,249 ) 1,632 (2,617 ) 9,090 (3,349 ) 5,741 (2,010 ) 651 (1,359 ) Accumulated other comprehensive income, end of period $ 15,201 $ (5,596 ) $ 9,605 $ 10,407 $ (4,048 ) $ 6,359

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2016
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	11 . EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards and vested restricted stock awards. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options. The computations of diluted earnings per share available to common stockholders do not include approximately 0.2 million stock options and RSAs for the three months ended June 30, 2016 and 2015, respectively, and 0.2 million stock options and RSAs for the six months ended June 30, 2016 and 2015, respectively, as the effect of their inclusion would have been antidilutive to earnings per share. The following table presents the calculation of basic and diluted EPS: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands, except per share data) (in thousands, except per share data) Net income attributable to Federated National Holding Company shareholders $ 991 $ 11,734 $ 10,526 $ 21,018 Weighted average number of common shares outstanding - basic 13,805 13,722 13,816 13,689 Net income per share - basic $ 0.07 $ 0.86 $ 0.76 $ 1.54 Weighted average number of common shares outstanding - basic 13,805 13,722 13,816 13,689 Dilutive effect of stock compensation plans 183 263 197 289 Weighted average number of common shares outstanding - diluted 13,988 13,985 14,013 13,978 Net income per share - diluted $ 0.07 $ 0.84 $ 0.75 $ 1.50 Dividends per share $ 0.06 $ 0.04 $ 0.11 $ 0.08 Dividends Declared In February and May 2016, our Board of Directors declared a quarterly dividend payment of $0.05 and $0.06 per common share, respectively, paid in March and June 2016, respectively, amounting to $1.6 million. In June 2016, our Board of Directors declared a $0.06 per common share dividend payable September 1, 2016 to shareholders of record on August 1, 2016.

VARIABLE INTEREST ENTITY

VARIABLE INTEREST ENTITY	6 Months Ended
	Jun. 30, 2016
Variable Interest Entity [Abstract]
VARIABLE INTEREST ENTITY	12 . VARIABLE INTEREST ENTITY The carrying amounts of the assets of Monarch Delaware, our consolidated VIE, 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: June 30, 2016 December 31, 2015 ASSETS (in thousands) Investments Debt securities, available for sale, at amortized cost $ 22,303 $ 21,312 Equity securities, available-for-sale, at fair value 1,529 1,358 Total investments 23,832 22,670 Cash and cash equivalents 16,289 14,616 Prepaid reinsurance premiums - 34 Premiums receivable, net 1,155 355 Deferred income taxes 5 646 Income taxes receivable - - Deferred acquisition costs 645 234 Other assets - 157 Total assets $ 41,926 $ 38,712 LIABILITIES Loss and loss adjustment expense reserves $ 407 $ 237 Unearned premiums 3,736 1,448 Debt 4,898 4,887 Income taxes payable - 8 Other liabilities 237 374 Total liabilities $ 9,278 $ 6,954

ORGANIZATION, CONSOLIDATION A20

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2016
ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION [Abstract]
Significant Customers	Significant Customers We entered into an Insurance Agency Master Agreement with Ivantage Select Agency, Inc., (“ISA”), an affiliate of Allstate Insurance Company, (“Allstate”), pursuant to which we are authorized by ISA to appoint Allstate agents to offer our homeowners’ and commercial general liability insurance products to consumers in Florida. During the three and six months ended June 30, 2016, 24.7% and 24.1%, respectively, of the homeowners’ premiums we underwrote were from Allstate’s network of Florida agents.
Principles of Consolidation	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 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 12 for additional information on the VIE.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) . Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. These unaudited consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state, in all material respects, our financial position and results of operations for the periods presented. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. This report should be read in conjunction with the Company’s 2015 Annual Report on Form 10-K, as amended (the “2015 Form 10-K”).

SIGNIFICANT ACCOUNTING POLICI21

SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policies)	6 Months Ended
	Jun. 30, 2016
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES [Abstract]
Accounting Estimates and Assumptions	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 losses 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. Refer to Note 6 accompanying our consolidated financial statements for a discussion of our liability for losses and loss adjustment expense reserves.
Reclassifications	Reclassifications Certain amounts in prior year’s consolidated financial statements have been reclassified to conform to the 2016 presentation. These reclassifications had no effect on the reported consolidated statements of operations, balance sheets, and cash flows. In the current period, the Company concluded it was appropriate to reclassify certain revenue accounts that do not have material balances and include them within other income in the consolidated statements of operations. In addition, during the current period, the Company reclassified 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 these reclassifications provide greater clarity and insight into the consolidated financial statements for the periods presented.
Adjustments	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 prior period adjustments increased net income by $0.3 million and $1.6 million for the three and six months ended June 30, 2015, respectively.
Adopted Accounting Pronouncements	Adopted Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration-Contracts Financial Services—Insurance
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2016
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: June 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) Debt securities: United States government obligations and authorities $ 37,442 $ 27,800 $ - $ 65,242 Obligations of states and political subdivisions - 139,685 - 139,685 Corporate - 148,597 - 148,597 International - 11,840 - 11,840 37,442 327,922 - 365,364 Equity securities 39,601 1,000 - 40,601 Total investments $ 77,043 $ 328,922 $ - $ 405,965 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

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
INVESTMENTS [Abstract]
Summary of Amortized Cost and Fair Value of Debt and Equity Securities	The following table details the difference between amortized cost or cost and estimated fair value, by major investment catergory, at June 30, 2016 and at December 31, 2015: Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2016 Debt Securities - available-for-sale: United States government obligations and authorities $ 63,692 $ 1,551 $ 1 $ 65,242 Obligations of states and political subdivisions 136,439 3,248 2 139,685 Corporate 144,429 4,289 122 148,596 International 11,639 243 41 11,841 356,199 9,331 166 365,364 Debt Securities - held-to-maturity: United States government obligations and authorities 4,178 85 67 4,196 Corporate 1,662 45 1 1,706 International 65 3 - 68 5,905 133 68 5,970 Equity securities 34,565 7,204 1,168 40,601 Total investments $ 396,669 $ 16,668 $ 1,402 $ 411,935 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 - - 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
Net Realized Gains and Losses	The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or amortized cost of the security sold. Net realized gains and losses on investments are determined in accordance with the specific identification method. The following tables detail the Company’s net realized gains (losses) by major investment category for the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Gross realized gains: Debt securities $ 624 $ 265 $ 1,927 $ 747 Equity securities 417 915 1,155 2,342 Total gross realized gains 1,041 1,180 3,082 3,089 Gross realized losses: Debt securities (55 ) (224 ) (595 ) (326 ) Equity securities (979 ) (43 ) (1,553 ) (146 ) Total gross realized losses (1,034 ) (267 ) (2,148 ) (472 ) Net realized gains on investments $ 7 $ 913 $ 934 $ 2,617
Summary of Debt Securities, Contractual Maturity	The amortized cost and estimated fair value of debt securities as of June 30, 2016 and December 31, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Securities with maturity dates: (in thousands) Debt securities, available-for-sale: One year or less $ 32,222 $ 32,266 $ 24,470 $ 24,488 Over one through five years 177,983 181,141 170,797 171,113 Over five through ten years 145,773 151,728 142,728 143,545 Over ten years 220 229 26 32 356,198 365,364 338,021 339,178 Debt securities, held-to-maturity: One year or less 431 432 486 487 Over one through five years 1,724 1,786 1,899 1,915 Over five through ten years 3,750 3,751 4,234 4,037 5,905 5,969 6,619 6,439 Total $ 362,103 $ 371,333 $ 344,640 $ 345,617
Net Investment Income	The following table summarizes the Company’s net investment income for the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Interest income $ 1,984 $ 1,573 $ 3,837 $ 3,014 Dividends income 210 128 397 234 Net investment income $ 2,194 $ 1,701 $ 4,234 $ 3,248
Gross Unrealized Losses and Fair Values for Debt and Equity Securities in Continuous Unrealized Loss Position	As of June 30, 2016 and December 31, 2015, gross unrealized losses and related fair values for available-for-sale debt securities 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 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2016 (in thousands) Debt securities - available-for-sale: United States government obligations and authorities $ - $ - $ 128 $ 1 $ 128 $ 1 Obligations of states and political subdivisions 2,372 1 1,025 1 3,397 2 Corporate 6,733 50 3,587 72 10,320 122 International - - 2,005 41 2,005 41 9,105 51 6,745 115 15,850 166 Equity securities 9,361 1,035 1,245 133 10,606 1,168 Total investments $ 18,466 $ 1,086 $ 7,990 $ 248 $ 26,456 $ 1,334 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2015 (in thousands) Debt securities - available-for-sale: 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

REINSURANCE (Tables)

REINSURANCE (Tables)	6 Months Ended
	Jun. 30, 2016
REINSURANCE [Abstract]
Reinsurance Recoverables	The following table presents reinsurance recoverables as reflected in the consolidated balance sheets as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Reinsurance recoverable on paid losses $ 6,364 $ 5,218 Reinsurance recoverable on unpaid losses 14,208 7,496 Reinsurance recoverable, net $ 20,572 $ 12,714
Premiums Written and Earned	Premiums Written and Earned The following table presents premiums written and earned for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net Premiums written: Direct $ 171,218 $ 132,019 $ 307,242 $ 238,721 Ceded (119,410 ) (85,103 ) (162,980 ) (111,061 ) $ 51,808 $ 46,916 $ 144,262 $ 127,660 Net Premiums earned: Direct $ 137,334 $ 102,641 $ 265,433 $ 198,334 Ceded (77,289 ) (53,414 ) (150,391 ) (104,322 ) $ 60,045 $ 49,227 $ 115,042 $ 94,012

LOSS AND LOSS ADJUSTMENT EXPE25

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)	6 Months Ended
	Jun. 30, 2016
LOSS AND LOSS ADJUSTMENT EXPENSE 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: Six Months Ended June 30, 2016 Year Ended December 31, 2015 (in thousands) Gross reserves, beginning of period $ 97,340 $ 78,330 Less: reinsurance recoverable (1) (7,496 ) (10,394 ) Net reserves, beginning of period 89,844 67,936 Incurred loss, net of reinsurance, related to: Current year 66,118 113,819 Prior years 10,452 (9,466 ) Total incurred loss and LAE, net of reinsurance 76,570 104,353 Paid loss, net of reinsurance, related to: Current year 27,707 49,531 Prior years 32,190 32,914 Total paid loss and LAE, net of reinsurance 59,897 82,445 Net reserves, end of period 106,515 89,844 Plus: reinsurance recoverable (1) 14,208 7,496 Gross reserves, end of period $ 120,723 $ 97,340 (1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2016
INCOME TAXES [Abstract]
Summary of Provision for Income Tax Benefit	The provision for income tax expense for the three and six months ended June 30, 2016 and 2015 (in thousands) is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Federal: Current $ 4,614 $ 1,688 $ 8,158 $ 6,340 Deferred (3,925 ) 4,196 (2,487 ) 4,455 Federal income tax expense 689 5,884 5,671 10,795 State: Current 1,072 416 1,347 1,147 Deferred (1,064 ) 455 (526 ) 523 State income tax expense 8 871 821 1,670 Total income taxes $ 697 $ 6,755 $ 6,492 $ 12,465
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: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Computed expected tax expense provision, at federal rate $ 663 $ 6,140 $ 6,052 $ 11,387 State tax, net of federal tax benefit 11 584 544 1,106 Other 23 31 (104 ) (28 ) Total income taxes $ 697 $ 6,755 $ 6,492 $ 12,465

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2016
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 for the three and six months ended June 30, 2016 and 2015, respectively: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Restricted stock $ 1,953 $ 627 $ 2,633 $ 1,355 Stock options - 5 - 29 Total share-based compensation expense $ 1,953 $ 632 $ 2,633 $ 1,384 Intrinsic value of options exercised $ 1,024 $ 5,809 $ 1,217 $ 8,155 Fair value of restricted stock vested $ 16,564 $ 11,772 $ 28,922 $ 11,772
Summary of Stock Option Activity	A summary of the Company’s stock option activity for the period from January 1, 2016 to June 30, 2016 is as follows: Number of Shares Weighted Average Option Exercise Price Outstanding at January 1, 2016 174,633 $ 3.79 Granted - $ - Exercised (6,933 ) $ 3.74 Cancelled - $ - Outstanding at June 30, 2016 167,700 $ 3.79
Summary of Restricted Stock Activity	The following tables summarizes RSA activity during the six months ended June 30, 2016: Number of Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2016 418,807 $ 20.14 Granted 128,472 $ 19.16 Vested (155,916 ) $ 18.55 Cancelled - $ - Outstanding at June 30, 2016 391,363 $ 20.45
Reconciliation of Changes in Accumulated Other Comprehensive Income Attributable to FNHC Shareholders	The following table presents a reconciliation of the changes in accumulated other comprehensive income during the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, 2016 2015 Before Tax Income Tax Net Before Tax Income Tax Net (in thousands) Accumulated other comprehensive income, beginning of period $ 10,195 $ (3,791 ) $ 6,404 $ 14,382 $ (5,457 ) $ 8,925 Other comprehensive income before reclassifications 5,036 (1,828 ) 3,208 (2,478 ) 825 (1,653 ) Reclassification adjustment for realized gains included in net income (30 ) 23 (7 ) (1,497 ) 584 (913 ) 5,006 (1,805 ) 3,201 (3,975 ) 1,409 (2,566 ) Accumulated other comprehensive income, end of period $ 15,201 $ (5,596 ) $ 9,605 $ 10,407 $ (4,048 ) $ 6,359 Six Months Ended June 30, 2016 2015 Before Tax Income Tax Net Before Tax Income Tax Net (in thousands) Accumulated other comprehensive income, beginning of period $ 6,111 $ (2,247 ) $ 3,864 $ 12,417 $ (4,699 ) $ 7,718 Other comprehensive income before reclassifications 10,606 (3,931 ) 6,675 2,239 (981 ) 1,258 Reclassification adjustment for realized gains included in net income (1,516 ) 582 (934 ) (4,249 ) 1,632 (2,617 ) 9,090 (3,349 ) 5,741 (2,010 ) 651 (1,359 ) Accumulated other comprehensive income, end of period $ 15,201 $ (5,596 ) $ 9,605 $ 10,407 $ (4,048 ) $ 6,359

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
EARNINGS PER SHARE [Abstract]
Schedule of Computations of Basic and Diluted Net Income Per Common Share	The following table presents the calculation of basic and diluted EPS: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands, except per share data) (in thousands, except per share data) Net income attributable to Federated National Holding Company shareholders $ 991 $ 11,734 $ 10,526 $ 21,018 Weighted average number of common shares outstanding - basic 13,805 13,722 13,816 13,689 Net income per share - basic $ 0.07 $ 0.86 $ 0.76 $ 1.54 Weighted average number of common shares outstanding - basic 13,805 13,722 13,816 13,689 Dilutive effect of stock compensation plans 183 263 197 289 Weighted average number of common shares outstanding - diluted 13,988 13,985 14,013 13,978 Net income per share - diluted $ 0.07 $ 0.84 $ 0.75 $ 1.50 Dividends per share $ 0.06 $ 0.04 $ 0.11 $ 0.08

VARIABLE INTEREST ENTITY (Table

VARIABLE INTEREST ENTITY (Tables)	6 Months Ended
	Jun. 30, 2016
Variable Interest Entity [Abstract]
Carrying Amount of VIE Consolidated Assets and Liabilities	The carrying amounts of the assets of Monarch Delaware, our consolidated VIE, 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: June 30, 2016 December 31, 2015 ASSETS (in thousands) Investments Debt securities, available for sale, at amortized cost $ 22,303 $ 21,312 Equity securities, available-for-sale, at fair value 1,529 1,358 Total investments 23,832 22,670 Cash and cash equivalents 16,289 14,616 Prepaid reinsurance premiums - 34 Premiums receivable, net 1,155 355 Deferred income taxes 5 646 Income taxes receivable - - Deferred acquisition costs 645 234 Other assets - 157 Total assets $ 41,926 $ 38,712 LIABILITIES Loss and loss adjustment expense reserves $ 407 $ 237 Unearned premiums 3,736 1,448 Debt 4,898 4,887 Income taxes payable - 8 Other liabilities 237 374 Total liabilities $ 9,278 $ 6,954

ORGANIZATION, CONSOLIDATION A30

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Mar. 17, 2015
Monarch Delaware Holdings LLC [Member]
Business Organization [Line Item]
Capital contribution for voting interests	$ 14	$ 14
Ownership interest in Monarch Parent's equity	42.40%	42.40%
Voting interest held in Monarch Parent's equity	50.00%	50.00%
Long-term debt			$ 5
Interest rate percentage			6.00%
Monarch Delaware Holdings LLC [Member] | Crosswinds [Member]
Business Organization [Line Item]
Capital contribution for voting interests	$ 14	$ 14
Ownership interest in Monarch Parent's equity	42.40%	42.40%
Voting interest held in Monarch Parent's equity	50.00%	50.00%
Monarch Delaware Holdings LLC [Member] | Transatlantic Reinsurance Company [Member]
Business Organization [Line Item]
Capital contribution for voting interests	$ 5	$ 5
Ownership interest in Monarch Parent's equity	15.20%	15.20%
Monarch Delaware Holdings LLC [Member] | Transatlantic Reinsurance Company [Member] | Senior Debt [Member]
Business Organization [Line Item]
Long-term debt	$ 5	$ 5
Maturity period of debt		6 years
Interest rate percentage	6.00%	6.00%
Premiums Written, Net [Member] | Homeowners' Insurance Product Line [Member] | Customer Concentration Risk [Member] | ISA [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	24.70%	24.10%

SIGNIFICANT ACCOUNTING POLICI31

SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Change in Accounting Estimate [Line Items]
Net income	$ 1,118	$ 11,884	$ 10,721	$ 20,657
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets	7,918		7,918		$ 7,605
Debt from consolidated variable interest entity	4,898		4,898		$ 4,887
Change in Accounting Method Accounted for as Change in Estimate [Member] | Quota Share Reinsurance Adjustments [Member]
Change in Accounting Estimate [Line Items]
Net income		$ 300		$ 1,600
Accounting Standards Update 2015-03 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets	(100)		(100)
Debt from consolidated variable interest entity	$ (100)		$ (100)

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Debt securities	$ 365,364	$ 339,178
Equity securities, available-for-sale, at fair value	40,601	38,534
United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	65,242	61,553
Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	139,685	110,702
Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	148,596	154,620
International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	11,841	12,303
Recurring [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	365,364	339,178
Equity securities, available-for-sale, at fair value	40,601	38,534
Total investments	405,965	377,712
Recurring [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	65,242	61,553
Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	139,685	110,702
Recurring [Member] | Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	148,597	154,620
Recurring [Member] | International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	11,840	12,303
Recurring [Member] | Level 1 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	37,442	34,733
Equity securities, available-for-sale, at fair value	39,601	38,012
Total investments	77,043	72,745
Recurring [Member] | Level 1 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	37,442	34,733
Recurring [Member] | Level 1 [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	0	0
Recurring [Member] | Level 1 [Member] | Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	0	0
Recurring [Member] | Level 1 [Member] | International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	0	0
Recurring [Member] | Level 2 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	327,922	304,445
Equity securities, available-for-sale, at fair value	1,000	522
Total investments	328,922	304,967
Recurring [Member] | Level 2 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	27,800	26,820
Recurring [Member] | Level 2 [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	139,685	110,702
Recurring [Member] | Level 2 [Member] | Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	148,597	154,620
Recurring [Member] | Level 2 [Member] | International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	11,840	12,303
Recurring [Member] | Level 3 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	0	0
Equity securities, available-for-sale, at fair value	0	0
Total investments	0	0
Recurring [Member] | Level 3 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	0	0
Recurring [Member] | Level 3 [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	0	0
Recurring [Member] | Level 3 [Member] | Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	0	0
Recurring [Member] | Level 3 [Member] | International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	$ 0	$ 0

INVESTMENTS, Unrealized Gains a

INVESTMENTS, Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available-for-sale, Debt securities [Abstract]
Amortized cost	$ 356,199	$ 338,021
Gross unrealized gains	9,331	3,250
Gross unrealized losses	166	2,093
Estimated fair value	365,364	339,178
Available-for-sale, Equity securities [Abstract]
Amortized cost	34,565	33,581
Gross unrealized gains	7,204	6,809
Gross unrealized losses	1,168	1,856
Estimated fair value	40,601	38,534
Held-to-maturity securities [Abstract]
Amortized cost	5,905	6,619
Gross unrealized gains	133	44
Gross unrealized losses	68	224
Estimated fair value	5,970	6,439
Total Investments [Abstract]
Amortized cost	396,669	378,221
Gross unrealized gains	16,668	10,103
Gross unrealized losses	1,402	4,173
Estimated fair value	411,935	384,151
United States Government Obligations and Authorities [Member]
Available-for-sale, Debt securities [Abstract]
Amortized cost	63,692	61,384
Gross unrealized gains	1,551	489
Gross unrealized losses	1	320
Estimated fair value	65,242	61,553
Obligations of States and Political Subdivisions [Member]
Available-for-sale, Debt securities [Abstract]
Amortized cost	136,439	109,152
Gross unrealized gains	3,248	1,590
Gross unrealized losses	2	40
Estimated fair value	139,685	110,702
Corporate [Member]
Available-for-sale, Debt securities [Abstract]
Amortized cost	144,429	154,957
Gross unrealized gains	4,289	1,153
Gross unrealized losses	122	1,490
Estimated fair value	148,596	154,620
International [Member]
Available-for-sale, Debt securities [Abstract]
Amortized cost	11,639	12,528
Gross unrealized gains	243	18
Gross unrealized losses	41	243
Estimated fair value	11,841	12,303
United States Government Obligations and Authorities [Member]
Held-to-maturity securities [Abstract]
Amortized cost	4,178	4,275
Gross unrealized gains	85	30
Gross unrealized losses	67	204
Estimated fair value	4,196	4,101
Corporate [Member]
Held-to-maturity securities [Abstract]
Amortized cost	1,662	2,253
Gross unrealized gains	45	14
Gross unrealized losses	1	20
Estimated fair value	1,706	2,247
International [Member]
Held-to-maturity securities [Abstract]
Amortized cost	65	91
Gross unrealized gains	3	0
Gross unrealized losses	0	0
Estimated fair value	$ 68	$ 91

INVESTMENTS, Net Realized Gains

INVESTMENTS, Net Realized Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Gross realized gains and losses [Abstract]
Total gross realized gains	$ 1,041	$ 1,180	$ 3,082	$ 3,089
Total gross realized losses	(1,034)	(267)	(2,148)	(472)
Net realized gains on investments	7	913	934	2,617
Proceeds from sales of available-for-sale investment securities	34,900	30,300	99,400	80,200
Debt Securities [Member]
Gross realized gains and losses [Abstract]
Total gross realized gains	624	265	1,927	747
Total gross realized losses	(55)	(224)	(595)	(326)
Equity Securities [Member]
Gross realized gains and losses [Abstract]
Total gross realized gains	417	915	1,155	2,342
Total gross realized losses	$ (979)	$ (43)	$ (1,553)	$ (146)

INVESTMENTS, Contractual Maturi

INVESTMENTS, Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available-for-sale Securities, Debt maturities, Amortized cost [Abstract]
One year or less	$ 32,222	$ 24,470
Over one through five years	177,983	170,797
Over five through ten years	145,773	142,728
Over ten years	220	26
Amortized cost	356,198	338,021
Available-for-sale Securities, Debt maturities, Fair value [Abstract]
One year or less	32,266	24,488
Over one through five years	181,141	171,113
Over five through ten years	151,728	143,545
Over ten years	229	32
Amortized cost	365,364	339,178
Held-to-maturity Securities, Debt maturities, Amortized cost [Abstract]
One year or less	431	486
Over one through five years	1,724	1,899
Over five through ten years	3,750	4,234
Amortized cost	5,905	6,619
Held-to-maturity Securities, Debt Maturities, Fair value [Abstract]
One year or less	432	487
Over one through five years	1,786	1,915
Over five through ten years	3,751	4,037
Estimated fair value	5,969	6,439
Total Investments [Abstract]
Amortized cost	362,103	344,640
Estimated fair value	$ 371,333	$ 345,617

INVESTMENTS, Net Investment Inc

INVESTMENTS, Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net investment income [Abstract]
Interest income	$ 1,984	$ 1,573	$ 3,837	$ 3,014
Dividends income	210	128	397	234
Net investment income	$ 2,194	$ 1,701	$ 4,234	$ 3,248

INVESTMENTS, Aging of Gross Unr

INVESTMENTS, Aging of Gross Unrealized Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Fair value [Abstract]
Less than 12 months	$ 18,466		$ 18,466		$ 154,742
12 months or longer	7,990		7,990		4,614
Total fair value	26,456		26,456		159,356
Gross unrealized losses [Abstract]
Less than 12 months	1,086		1,086		3,804
12 months or longer	248		248		145
Total gross unrealized losses	1,334		1,334		3,949
OTTI losses	300	$ 0	300	$ 0
Debt Securities [Member]
Fair value [Abstract]
Less than 12 months	9,105		9,105		142,952
12 months or longer	6,745		6,745		4,530
Total fair value	15,850		15,850		147,482
Gross unrealized losses [Abstract]
Less than 12 months	51		51		1,954
12 months or longer	115		115		139
Total gross unrealized losses	166		166		2,093
United States Government Obligations and Authorities [Member]
Fair value [Abstract]
Less than 12 months	0		0		30,464
12 months or longer	128		128		659
Total fair value	128		128		31,123
Gross unrealized losses [Abstract]
Less than 12 months	0		0		303
12 months or longer	1		1		17
Total gross unrealized losses	1		1		320
Obligations of States and Political Subdivisions [Member]
Fair value [Abstract]
Less than 12 months	2,372		2,372		16,652
12 months or longer	1,025		1,025		0
Total fair value	3,397		3,397		16,652
Gross unrealized losses [Abstract]
Less than 12 months	1		1		40
12 months or longer	1		1		0
Total gross unrealized losses	2		2		40
Corporate [Member]
Fair value [Abstract]
Less than 12 months	6,733		6,733		87,176
12 months or longer	3,587		3,587		3,590
Total fair value	10,320		10,320		90,766
Gross unrealized losses [Abstract]
Less than 12 months	50		50		1,420
12 months or longer	72		72		70
Total gross unrealized losses	122		122		1,490
International [Member]
Fair value [Abstract]
Less than 12 months	0		0		8,660
12 months or longer	2,005		2,005		281
Total fair value	2,005		2,005		8,941
Gross unrealized losses [Abstract]
Less than 12 months	0		0		191
12 months or longer	41		41		52
Total gross unrealized losses	41		41		243
Equity Securities [Member]
Fair value [Abstract]
Less than 12 months	9,361		9,361		11,790
12 months or longer	1,245		1,245		84
Total fair value	10,606		10,606		11,874
Gross unrealized losses [Abstract]
Less than 12 months	1,035		1,035		1,850
12 months or longer	133		133		6
Total gross unrealized losses	$ 1,168		$ 1,168		$ 1,856

INVESTMENTS, Collateral Deposit

INVESTMENTS, Collateral Deposits (Details) $ in Millions	Jun. 30, 2016USD ($)
INVESTMENTS [Abstract]
Fair value of investments deposited with governmental authorities required by law	$ 10.8

REINSURANCE (Details)

REINSURANCE (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Program	Jun. 30, 2015USD ($)	Jul. 01, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Liability for Catastrophe Claims [Line Items]
Trust agreement for loss exposure		$ 2,700		$ 2,700			$ 3,500
SUBSEQUENT EVENTS [Abstract]
Period of additional treaty coverage				1 year
Reinsurance recoverables [Abstract]
Reinsurance recoverable on paid losses		6,364		$ 6,364			5,218
Reinsurance recoverable on unpaid losses	[1]	14,208		14,208			7,496	$ 10,394
Reinsurance recoverable, net		20,572		20,572			$ 12,714
Premiums written [Abstract]
Direct		171,218	$ 132,019	307,242	$ 238,721
Ceded		(119,410)	(85,103)	(162,980)	(111,061)
Net premiums written		51,808	46,916	144,262	127,660
Premiums earned [Abstract]
Direct		137,334	102,641	265,433	198,334
Ceded		(77,289)	(53,414)	(150,391)	(104,322)
Net premiums earned		60,045	$ 49,227	$ 115,042	$ 94,012
Subsequent Event [Member]
SUBSEQUENT EVENTS [Abstract]
Percentage of property quota share expired on cut off basis						30.00%
Percentage of unearned premiums and losses retained						30.00%
FNIC's 2015-2016 Catastrophe Reinsurance Program [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share program				40.00%
Aggregate catastrophic loss coverage		1,820,000		$ 1,820,000
Maximum single event coverage		1,260,000		1,260,000
Ceded premiums in connection with catastrophe reinsurance program				149,700
FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Maximum single event coverage		1,580,000		1,580,000
Total reinsurance coverage amount		2,220,000		$ 2,220,000
Quota Share Treaties [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Period of property quota share reinsurance treaty				2 years
Number of property quota share treaties | Program				2
Percentage of property quota share reinsurance treaty				40.00%
Quota Share Treaties [Member] | Private Passenger Automobile Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Period of property quota share reinsurance treaty				1 year
Quota Share Treaties [Member] | Private Passenger Automobile Insurance Product Line [Member] | Minimum [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty				75.00%
Quota Share Treaties [Member] | Private Passenger Automobile Insurance Product Line [Member] | Maximum [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty				90.00%
Quota Share One [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty				30.00%
Quota Share Two [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty				10.00%
Federated National's Florida [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program		125,700		$ 125,700
MNIC's Florida [Member]
Liability for Catastrophe Claims [Line Items]
Term for loss treaties				13 months
Additional coverage amount		3,400		$ 3,400
FHCF [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program		53,800		$ 53,800
Percentage of property quota share reinsurance treaty				75.00%
Florida [Member]
Liability for Catastrophe Claims [Line Items]
Amount retained per loss				$ 12,900
Florida [Member] | Subsequent Event [Member]
SUBSEQUENT EVENTS [Abstract]
Amount of private market excess of loss treaties						$ 18,450
Florida [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Covered losses for homeowners' insurance program		$ 100,000		100,000
Florida [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Pre-tax retention amount for catastrophic event				$ 18,450
Percentage of pre-tax retention amount for catastrophic event				6.89%
Louisiana, Alabama and South Carolina [Member]
Liability for Catastrophe Claims [Line Items]
Amount retained per loss				$ 5,000
[1]	Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

LOSS AND LOSS ADJUSTMENT EXPE40

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Details) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2016	Dec. 31, 2015
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES [Abstract]
Gross reserves, beginning of period		$ 97,340	$ 78,330
Less: reinsurance recoverable	[1]	(7,496)	(10,394)
Net reserves, beginning of period		89,844	67,936
Incurred loss, net of reinsurance, related to [Abstract]
Current year		66,118	113,819
Prior years		10,452	(9,466)
Total incurred loss and LAE, net of reinsurance		76,570	104,353
Paid loss, net of reinsurance, related to [Abstract]
Current year		27,707	49,531
Prior years		32,190	32,914
Total paid loss and LAE, net of reinsurance		59,897	82,445
Net reserves, end of period		106,515	89,844
Plus: reinsurance recoverable	[1]	14,208	7,496
Gross reserves, end of period		$ 120,723	$ 97,340
[1]	Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - Monarch Delaware Holdings LLC [Member] - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	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	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Federal [Abstract]
Current	$ 4,614	$ 1,688	$ 8,158	$ 6,340
Deferred	(3,925)	4,196	(2,487)	4,455
Federal income tax expense	689	5,884	5,671	10,795
State [Abstract]
Current	1,072	416	1,347	1,147
Deferred	(1,064)	455	(526)	523
State income tax expense	8	871	821	1,670
Total income taxes	$ 697	$ 6,755	$ 6,492	$ 12,465

INCOME TAXES, Effective Income

INCOME TAXES, Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
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	$ 663	$ 6,140	$ 6,052	$ 11,387
State tax, net of federal tax benefit	11	584	544	1,106
Other	23	31	(104)	(28)
Total income taxes	697	$ 6,755	6,492	$ 12,465
Uncertain tax positions	$ 0		$ 0		$ 0

SHAREHOLDERS' EQUITY, Common St

SHAREHOLDERS' EQUITY, Common Stock Repurchases (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
SHAREHOLDERS' EQUITY [Abstract]
Common stock repurchases, authorized amount	$ 10,000
Common stock repurchased during period (in shares) | shares	112,176
Common stock repurchased during period, total cost	$ 2,373
Common stock repurchased during period, average price (in dollars per share) | $ / shares	$ 21.13
Remaining amount available for future repurchases of common stock	$ 7,600

SHAREHOLDERS' EQUITY, Share-bas

SHAREHOLDERS' EQUITY, Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 1,953	$ 632	$ 2,633	$ 1,384
Intrinsic value of options exercised	1,024	5,809	1,217	8,155
Fair value of restricted stock vested	16,564	11,772	28,922	11,772
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	1,953	627	2,633	1,355
Unrecognized share-based compensation expense	6,800		$ 6,800
Weighted average period for recognition of unrecognized share-based compensation expense			3 years 7 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 0	$ 5	$ 0	$ 29

SHAREHOLDERS' EQUITY, Stock Opt

SHAREHOLDERS' EQUITY, Stock Option Awards (Details) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Stock Options, Number of Shares [Roll Forward]
Outstanding, beginning of period (in shares) | shares	174,633
Granted (in shares) | shares	0
Exercised (in shares) | shares	(6,933)
Cancelled (in shares) | shares	0
Outstanding, end of period (in shares) | shares	167,700
Stock Options, Weighted Average Option Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 3.79
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	3.74
Cancelled (in dollars per share) | $ / shares	0
Outstanding, end of period (in dollars per share) | $ / shares	$ 3.79

SHAREHOLDERS' EQUITY, Restricte

SHAREHOLDERS' EQUITY, Restricted Stock (Details) - Restricted Stock [Member] - $ / shares	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2016
Restricted Shares, Number of Shares [Roll Forward]
Outstanding, beginning of period (in shares)	418,807		418,807
Granted (in shares)	128,472	116,140	128,472
Vested (in shares)			(155,916)
Cancelled (in shares)			0
Outstanding, end of period (in shares)			391,363
Restricted Shares, Weighted Average Option Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 20.14		$ 20.14
Granted (in dollars per share)			19.16
Vested (in dollars per share)			18.55
Cancelled (in dollars per share)			0
Outstanding, end of period (in dollars per share)			$ 20.45
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants vesting period	3 years	3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants vesting period	5 years	5 years

SHAREHOLDERS' EQUITY, Reconcili

SHAREHOLDERS' EQUITY, Reconciliation of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Before Tax [Roll Forward]
Accumulated other comprehensive income, beginning of period	$ 10,195	$ 14,382	$ 6,111	$ 12,417
Other comprehensive income before reclassifications	5,036	(2,478)	10,606	2,239
Reclassification adjustment for realized gains included in net income	(30)	(1,497)	(1,516)	(4,249)
Other comprehensive income after reclassifications	5,006	(3,975)	9,090	(2,010)
Accumulated other comprehensive income, end of period	15,201	10,407	15,201	10,407
Income Tax [Roll Forward]
Accumulated other comprehensive income, beginning of period	(3,791)	(5,457)	(2,247)	(4,699)
Other comprehensive income before reclassifications	(1,828)	825	(3,931)	(981)
Reclassification adjustment for realized gains included in net income	23	584	582	1,632
Other comprehensive income after reclassifications	(1,805)	1,409	(3,349)	651
Accumulated other comprehensive income, end of period	(5,596)	(4,048)	(5,596)	(4,048)
Net [Roll Forward]
Balance, beginning of period			232,582
Other comprehensive income before reclassifications	3,208	(1,653)	6,675	1,258
Reclassification adjustment for realized gains included in net income	(7)	(913)	(934)	(2,617)
Other comprehensive income after reclassifications	3,201	(2,566)	5,741	(1,359)
Balance, end of period	247,004		247,004
Accumulated Other Comprehensive Income [Member]
Net [Roll Forward]
Balance, beginning of period	6,404	8,925	3,864	7,718
Balance, end of period	$ 9,605	$ 6,359	$ 9,605	$ 6,359

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share, Basic and Diluted [Abstract]
Net income attributable to Federated National Holding Company shareholders	$ 991	$ 11,734	$ 10,526	$ 21,018
Weighted average number of common shares outstanding - basic (in shares)	13,805	13,722	13,816	13,689
Net income per share - basic (in dollars per share)	$ 0.07	$ 0.86	$ 0.76	$ 1.54
Dilutive effect of stock compensation plans (in shares)	183	263	197	289
Weighted average number of common shares outstanding - diluted (in shares)	13,988	13,985	14,013	13,978
Net income per share - diluted (in dollars per share)	$ 0.07	$ 0.84	$ 0.75	$ 1.50
Dividends per share (in dollars per share)	$ 0.06	$ 0.04	$ 0.11	$ 0.08
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share available to stockholders (in shares)	200	200	200	200
Restricted Stock Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share available to stockholders (in shares)	200	200	200	200

EARNINGS PER SHARE, Dividends D

EARNINGS PER SHARE, Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended				3 Months Ended		6 Months Ended
	Jun. 30, 2016	May 31, 2016	Mar. 31, 2016	Feb. 29, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)					$ 0.06	$ 0.04	$ 0.11	$ 0.08
Quarter One Dividends [Member]
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)				$ 0.05
Dividends paid			$ 1.6
Quarter Two Dividends [Member]
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)		$ 0.06
Dividends paid	$ 1.6
Quarter Three Dividends [Member]
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)	$ 0.06
Dividends payable date							Sep. 1, 2016
Dividends record date							Aug. 1, 2016

VARIABLE INTEREST ENTITY (Detai

VARIABLE INTEREST ENTITY (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Investments [Abstract]
Debt securities, available for sale, at amortized cost	$ 356,199	$ 338,021
Equity securities, available-for-sale, at fair value	40,601	38,534
Total investments	411,870	384,331
Cash and cash equivalents	80,073	53,038	$ 96,322	$ 40,157
Prepaid reinsurance premiums	109,809	120,771
Premiums receivable, net	58,063	38,594
Income taxes receivable	8,687	2,691
Deferred acquisition costs	21,287	15,547
Other assets	7,918	7,605
TOTAL ASSETS	721,614	638,185
LIABILITIES [Abstract]
Loss and loss adjustment expense reserves	120,723	97,340		$ 78,330
Unearned premiums	295,769	253,960
Debt	4,898	4,887
Other liabilities	28,824	25,612
Total liabilities	455,934	387,426
Variable Interest Entity (VIE) [Member]
Investments [Abstract]
Debt securities, available for sale, at amortized cost	22,303	21,312
Equity securities, available-for-sale, at fair value	1,529	1,358
Total investments	23,832	22,670
Cash and cash equivalents	16,289	14,616
Prepaid reinsurance premiums	0	34
Premiums receivable, net	1,155	355
Deferred income taxes	5	646
Income taxes receivable	0	0
Deferred acquisition costs	645	234
Other assets	0	157
TOTAL ASSETS	41,926	38,712
LIABILITIES [Abstract]
Loss and loss adjustment expense reserves	407	237
Unearned premiums	3,736	1,448
Debt	4,898	4,887
Income taxes payable	0	8
Other liabilities	237	374
Total liabilities	$ 9,278	$ 6,954