FedNat Holding (FNHCQ) 10-Q 8 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 04, 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 Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,801,757
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments:
Debt securities, available-for-sale, at fair value (amortized cost of $370,881 and $338,021, respectively)	$ 378,879	$ 339,178
Debt securities, held-to-maturity, at amortized cost	5,880	6,619
Equity securities, available-for-sale, at fair value (cost of $34,905 and $33,581, respectively)	41,334	38,534
Total investments (including $28,290 and $22,670 related to the VIE, respectively)	426,093	384,331
Cash and cash equivalents (including $14,753 and $14,616 related to the VIE, respectively)	106,200	53,038
Prepaid reinsurance premiums	58,763	120,771
Premiums receivable, net of allowance of $57 and $302, respectively (including $1,589 and $355 related to the VIE, respectively)	63,605	38,594
Reinsurance recoverable, net	25,151	12,714
Deferred acquisition costs	41,247	15,547
Income taxes receivable	16,706	2,691
Property and equipment, net	3,863	2,894
Other assets (including $1,269 and $1,037 related to the VIE, respectively)	7,829	7,605
TOTAL ASSETS	749,457	638,185
LIABILITIES:
Loss and loss adjustment expense reserves	127,485	97,340
Unearned premiums	309,283	253,960
Debt from consolidated variable interest entity	4,903	4,887
Deferred income taxes, net	12,912	5,627
Other liabilities	31,521	25,612
Total liabilities	486,104	387,426
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value: 1,000,000 shares authorized
Common stock, $0.01 par value: 25,000,000 shares authorized; 13,801,607 and 13,798,773 shares issued and outstanding, respectively	138	138
Additional paid-in capital	136,359	131,998
Accumulated other comprehensive income	8,800	3,985
Retained earnings	99,336	96,461
Total Federated National Holding Company shareholders' equity	244,633	232,582
Noncontrolling interest	18,720	18,177
Total shareholders' equity	263,353	250,759
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 749,457	$ 638,185

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments:
Debt securities, available-for-sale at amortized cost	$ 370,881	$ 338,021
Equity securities, available-for-sale at cost	34,905	33,581
Investments	426,093	384,331
Cash and cash equivalents	106,200	53,038
Premiums receivable, net	63,605	38,594
Premiums receivable, allowance for credit losses	57	302
Other Assets	$ 7,829	$ 7,605
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)	13,801,607	13,798,773
Common stock, shares outstanding (in shares)	13,801,607	13,798,773
Monarch Delaware - Variable Interest Entity [Member]
Investments:
Debt securities, available-for-sale at amortized cost	$ 26,710	$ 21,312
Investments	28,290	22,670
Cash and cash equivalents	14,753	14,616
Premiums receivable, net	1,589	355
Other Assets	$ 1,269	$ 1,037

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Net premiums earned	$ 69,405	$ 62,286	$ 184,447	$ 156,298
Net investment income	2,164	1,907	6,398	5,154
Net realized investment gains	1,126	1,126	2,060	3,743
Other income	11,095	7,280	34,909	21,130
Total revenue	83,790	72,599	227,814	186,325
Costs and expenses:
Losses and loss adjustment expenses	43,613	28,412	120,183	75,510
Commissions and other underwriting expenses	34,512	21,610	75,408	47,934
General and administrative expenses	4,044	4,887	13,211	11,973
Interest expense	81	65	259	161
Total costs and expenses	82,250	54,974	209,061	135,578
Income before income taxes	1,540	17,625	18,753	50,747
Income taxes	102	7,054	6,594	19,519
Net income	1,438	10,571	12,159	31,228
Net income (loss) attributable to noncontrolling interest	44	(22)	239	(383)
Net income attributable to Federated National Holding Company shareholders	$ 1,394	$ 10,593	$ 11,920	$ 31,611
Net income per share attributable to Federated National Holding Company shareholders:
Basic (in dollars per share)	$ 0.10	$ 0.77	$ 0.86	$ 2.31
Diluted (in dollars per share)	$ 0.10	$ 0.76	$ 0.85	$ 2.26
Weighted average number of shares of common stock outstanding:
Basic (in shares)	13,780,000	13,749,000	13,807,000	13,710,000
Diluted (in shares)	13,943,000	13,977,000	13,999,000	13,978,000
Dividends declared per share of common stock (in dollars per share)	$ 0.08	$ 0.04	$ 0.17	$ 0.13

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net income	$ 1,438	$ 10,571	$ 12,159	$ 31,228
Change in net unrealized (losses) gains on investments, available-for-sale	(774)	(2,671)	8,316	(4,681)
Comprehensive income before income taxes	664	7,900	20,475	26,547
Income tax benefit (expense) related to items of other comprehensive income	152	1,083	(3,197)	1,734
Comprehensive income	816	8,983	17,278	28,281
Less: comprehensive income (loss) attributable to noncontrolling interest	44	(17)	543	(494)
Comprehensive income attributable to Federated National Holding Company shareholders	$ 772	$ 9,000	$ 16,735	$ 28,775

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	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	$ 138	$ 131,998	$ 3,985	$ 96,461	$ 232,582	$ 18,177	$ 250,759
Balance (in shares) at Dec. 31, 2015	13,798,773
Net income				11,920	11,920	239	12,159
Other comprehensive income			4,815		4,815	304	5,119
Dividends				(3,563)	(3,563)		(3,563)
Shares issued under share-based compensation plans		360			360		360
Shares issued under share-based compensation plans (in shares)	288,815
Tax benefits from share-based awards		843			843		843
Repurchases of common stock				(5,482)	(5,482)		$ (5,482)
Repurchases of common stock (in shares)	(285,981)						(285,981)
Shares based compensation		3,158			3,158		$ 3,158
Balance, end of period at Sep. 30, 2016	$ 138	$ 136,359	$ 8,800	$ 99,336	$ 244,633	$ 18,720	$ 263,353
Balance (in shares) at Sep. 30, 2016	13,801,607

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flow from operating activities:
Net income	$ 12,159	$ 31,228
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net realized investment gains	(2,060)	(3,743)
Amortization of investment premium or discount, net	3,910	3,795
Depreciation and amortization	620	495
Share-based compensation	4,001	3,175
Changes in operating assets and liabilities:
Prepaid reinsurance premiums	62,008	(40,967)
Premiums receivable, net	(25,011)	(7,653)
Reinsurance recoverable, net	(12,437)	4,186
Deferred acquisition costs	(25,699)	88
Income taxes receivable, net	(14,858)	(3,953)
Loss and loss adjustment expense reserves	30,146	13,343
Unearned premiums	55,323	57,973
Deferred income taxes, net of other comprehensive income	5,491	5,277
Other, net	5,676	16,970
Net cash provided by operating activities	99,269	80,214
Cash flow from investing activities:
Sales, maturities and redemptions of investment securities	151,884	134,918
Purchases of investment securities	(188,576)	(195,278)
Purchases of property and equipment	(1,573)	(1,500)
Net cash used in investing activities	(38,265)	(61,860)
Cash flow from financing activities:
Noncontrolling interest equity investment		18,498
Tax benefit related to share-based compensation	843	869
Purchases of FNHC common stock	(5,482)
Issuance of common stock for share-based awards	360	130
Dividends paid	(3,563)	(1,847)
Net cash (used in) provided by financing activities	(7,842)	17,650
Net increase in cash and cash equivalents	53,162	36,004
Cash and cash equivalents at beginning of period	53,038	40,157
Cash and cash equivalents at end of period	106,200	76,161
Cash paid during the period for:
Income taxes	14,360	15,662
Non-cash investing and finance activities:
Accrued dividends payable	$ 1,134	$ 712

ORGANIZATION, CONSOLIDATION AND

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 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’”), personal automobile, commercial general liability, federal flood, and other lines of insurance in Florida and other states. We market, distribute and service our own and third-party insurers’ products and 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 c ontribute 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 policyholde rs.  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 Customer  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. As a percentage of the total homeowners’ premiums we underwrote in the three months ended September 30, 2016 and 2015, 24.7% and 25.4% , respectively, were from Allstate’s network of Florida agents. For the nine months ended September 30, 2016 and 2015 23.9% and 23.3% , 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”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and notes required by GAAP for complete financial statements. 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	9 Months Ended
	Sep. 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. There have been no significant changes in our significant accounting policies for the nine months ended September 30, 2016 .  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 (“ASC 944”), where amounts due to (from) the assuming companies are accrued based on estimated contract experience to date as though the contracts were terminated. Refer to Note 2 in our Form 10-Q for the period ended September 30, 2015 for additional information.  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 $2.2 million for the three and nine months ended September 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 (“ASU 2015-02”). ASU 2015-02 amended the consolidation guidance by modifying the evaluation criteria for whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affecting the consolidation analysis of reporting entities that are involved with variable interest entities. We adopted the provisions of ASU 2015-02 effective January 1, 2016 and re-evaluated all legal entity investments under the revised consolidation model. The adoption of ASU 2015-02 did not have any impact on our consolidated financial statements.  In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest . ASU 2015-03 reduces the complexity of disclosing debt issuance costs and debt discount and premium on the balance sheet by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The Company adopted this ASU retrospectively as of January 1, 2016. Other assets and debt from consolidated variable interest entity have been reclassified to be consistent with the adoption of this standard, which resulted in a reduction of $0.1 million each. There were no changes to shareholders’ equity as a result of this adoption. There were no other impacts on the Company’s consolidated financial statements.  In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration-Contracts . The amendments in this ASU apply to all insurance entities that issue short-duration contracts as defined in Topic 944, Financial Services—Insurance . The amendments require insurance entities to disclose for annual reporting periods information on the liability for unpaid claims and claim adjustment expenses. The amendments in this ASU are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. This new guidance affects disclosures only and will have no impact on the Company’s consolidated financial statements.  Recent Accounting Pronouncements  In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in United States Generally Accepted Accounting Principles when it becomes effective. In July 2015, the FASB voted to delay the effective date of ASU 2014-09 by one year, making it effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted as of the original effective date. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. In addition, during 2016 the FASB issued ASU 2016-08, ASU 2016-10, and ASU 2016-12, all of which clarify certain implementation guidance within ASU 2014-09. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures.  In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most notably, this new guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This new guidance is effective for annual reporting periods beginning after December 15, 2017. We are currently evaluating the impact the adoption of this standard would have on the Company’s consolidated financial statements.  In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). Upon the effective date, ASU 2016-02 will supersede the current lease guidance in Topic 840, Leases . Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. We are currently evaluating the effects the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements.  In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.  In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which significantly changes the measurement of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as currently performed under the other-than-temporary impairment model. Additionally, the standard will require enhanced disclosures for financial assets measured at amortized cost and available-for-sale debt securities to help the financial statement users better understand significant judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the effects the adoption of ASU 2016-13 will have on the Company’s consolidated financial statements.  In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on the following eight specific cash flow classification issues: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. Current GAAP does not include specific guidance on these eight cash flow classification issues. The amendments of this ASU are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect that ASU 2015-16 will have on its consolidated financial statements and related disclosures.

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 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:      September 30, 2016  Level 1 Level 2 Level 3 Total  (in thousands)  Debt securities:  United States government obligations and authorities $ 38,933 $ 26,877 $ — $ 65,810  Obligations of states and political subdivisions — 150,873 — 150,873  Corporate — 149,210 — 149,210  International — 12,986 — 12,986  38,933 339,946 — 378,879   Equity securities 40,458 876 — 41,334   Total investments $ 79,391 $ 340,822 $ — $ 420,213      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	9 Months Ended
	Sep. 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 category, at September 30, 2016 and at December 31, 2015 :      Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (in thousands)  September 30, 2016  Debt securities - available-for-sale:  United States government obligations and authorities $ 64,810 $ 1,039 $ 39 $ 65,810  Obligations of states and political subdivisions 148,366 2,556 49 150,873  Corporate 144,990 4,305 85 149,210  International 12,715 273 2 12,986  370,881 8,173 175 378,879   Debt securities - held-to-maturity:  United States government obligations and authorities 4,173 70 59 4,184  Corporate 1,636 47 — 1,683  International 71 2 — 73  5,880 119 59 5,940  Equity securities 34,905 7,278 849 41,334  Total investments $ 411,666 $ 15,570 $ 1,083 $ 426,153      Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains 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 nine months ended September 30, 2016 and 2015 :      Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Gross realized gains:  Debt securities $ 897 $ 226 $ 2,822 $ 973  Equity securities 597 1,847 1,752 4,188  Total gross realized gains 1,494 2,073 4,574 5,161   Gross realized losses:  Debt securities (20) (178) (614) (504)  Equity securities (348) (769) (1,900) (914)  Total gross realized losses (368) (947) (2,514) (1,418)  Net realized gains on investments $ 1,126 $ 1,126 $ 2,060 $ 3,743  During the three months ended September 30, 2016 and 2015 , the proceeds from sales of available-for-sale investment securities were $30.1 million and $42.5 million, respectively. During the nine months ended September 30, 2016 and 2015 , the proceeds from sales of available-for-sale investment securities were $129.5 million and $134.9 million, respectively .  Contractual Maturity  The amortized cost and estimated fair value of debt securities as of September 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.      September 30, 2016 December 31, 2015  Amortized Amortized  Cost Fair Value Cost Fair Value  Securities with maturity dates: (in thousands)  Debt securities, available-for-sale:  One year or less $ 41,507 $ 41,565 $ 24,470 $ 24,488  Over one through five years 182,129 185,001 170,797 171,113  Over five through ten years 145,639 150,694 142,728 143,545  Over ten years 1,606 1,619 26 32  370,881 378,879 338,021 339,178  Debt securities, held-to-maturity:  One year or less 413 413 486 487  Over one through five years 1,887 1,949 1,899 1,915  Over five through ten years 3,580 3,578 4,234 4,037  5,880 5,940 6,619 6,439  Total $ 376,761 $ 384,819 $ 344,640 $ 345,617  Net Investment Income  The following table summarizes the Company’s net investment income for the three and nine months ended September 30, 2016 and 2015 :      Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands)  Interest income $ 1,963 $ 1,760 $ 5,801 $ 4,773  Dividends income 201 147 597 381  Net investment income $ 2,164 $ 1,907 $ 6,398 $ 5,154  Aging of Gross Unrealized Losses  As of September 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  Gross Gross Gross  Fair Unrealized Fair Unrealized Fair Unrealized  Value Losses Value Losses Value Losses  September 30, 2016 (in thousands)  Debt securities - available-for-sale:  United States government obligations  and authorities $ 8,995 $ 38 $ 121 $ 1 $ 9,116 $ 39  Obligations of states and political subdivisions 28,481 47 1,015 2 29,496 49  Corporate 11,405 33 3,345 52 14,750 85  International 1,170 1 302 1 1,472 2  50,051 119 4,783 56 54,834 175   Equity securities 5,590 679 2,179 170 7,769 849   Total investments $ 55,641 $ 798 $ 6,962 $ 226 $ 62,603 $ 1,024      Less than 12 months 12 months or longer Total  Gross Gross Gross  Fair Unrealized Fair Unrealized Fair Unrealized  Value Losses Value Losses Value Losses  December 31, 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 temporary impairment (“OTTI”) los s in our consolidated statement of operations. Additionally, any portion of such decline related to debt securities that is believed to arise from factors other than credit will be recorded as a component of other comprehensive income rather than charged against income.  The Company’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, there were no identified OTTI losses in our investments in debt and equity securities during the three months ended September 30, 2016 and $0.3 million OTTI losses in our investments in debt and equity securit ies during the nine months ended September 30, 2016 . We did not have any OTTI losses in our investments in debt and equity securities that were in an unrealized loss position during the three and nine months ended September 30, 2015 .  Collateral Deposits  As of September 30, 2016 , investments with fair values of approximately $10.7 million, the majority of which were debt securities, were deposited with governmental authorities and into custodial bank accounts as required by law or contractual obligations .

REINSURANCE

REINSURANCE	9 Months Ended
	Sep. 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 r a n 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- sh are 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, insure 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. Ceded premiums in connection with this program totaled approximately $149.7 million.  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.  FNIC’s 2016-2017 reinsurance programs , costing approximately $ 179.5 million, 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. In addition, FNIC purchases separate underlying reinsurance layers in Louisiana, Alabama, and South Carolina to cover losses and LAE outside of Florida for each catastrophic event from $ 8.0 million to $18.45 million. Depending on the characteristics of the catastrophic event, and the states involved, FNIC’s single event pre-tax retention could be as low as $8.0 million. The maximum pre-tax retention of $18.45 million for Florida represents 7.01% of the Company’s shareholders’ equity as of September 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.  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 foll owing year. The property quota- share treaties consist of two different treaties, one for 30% which became effective July 1, 2014, and the other for 10% which became effective July 1, 2015. The combined treaties provide d 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.  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.  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 $2.6 million as of September 30, 2016 and $3.5 million as of December 31, 2015 .  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 September 30, 2016 and December 31, 2015 :      September 30, December 31,  2016 2015  (in thousands)  Reinsurance recoverable on paid losses $ 8,094 $ 5,218  Reinsurance recoverable on unpaid losses 17,057 7,496  Reinsurance recoverable, net $ 25,151 $ 12,714  Premiums Written and Earned  The following table presents premiums written and earned for the three and nine months ended September 30, 2016 and 2015 :      Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Net premiums written:  Direct $ 161,137 $ 129,840 $ 468,379 $ 368,560  Ceded (96,327) (119,985) (259,307) (231,046)  $ 64,810 $ 9,855 $ 209,072 $ 137,514  Net premiums earned:  Direct $ 147,624 $ 112,253 $ 413,056 $ 310,587  Ceded (78,219) (49,967) (228,609) (154,289)  $ 69,405 $ 62,286 $ 184,447 $ 156,298 

LOSS AND LOSS ADJUSTMENT EXPENS

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES	9 Months Ended
	Sep. 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:      Nine Months Year  Ended Ended  September 30, December 31,  2016 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 109,237 113,819  Prior years 10,946 (9,466)  Total incurred loss and LAE, net of reinsurance 120,183 104,353   Paid loss, net of reinsurance, related to:  Current year 46,073 49,531  Prior years 53,526 32,914  Total paid loss and LAE, net of reinsurance 99,599 82,445   Net reserves, end of period 110,428 89,844  Plus: reinsurance recoverable (1) 17,057 7,496  Gross reserves, end of period $ 127,485 $ 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 nine months ended September 30, 2016 , the Company experienced unfavorable loss and LAE reserve development on prior year accident years primarily in its all other peril homeowners’ coverage in 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 other related adjusting expenses .  During the year ended December 31, 2015 , the Company experienced a 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	9 Months Ended
	Sep. 30, 2016
LONG-TERM DEBT [Abstract]
LONG-TERM DEBT	7 . LONG-TERM DEBT  On March 17, 2015, MNHC, a wholly owned subsidiary of Monarch Dela ware, 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 TransRe , a related party, in connection with its investment in Monarch Delaware, and is being carried at the unpaid principal balance, net of debt issuance costs, and a ny 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	9 Months Ended
	Sep. 30, 2016
INCOME TAXES [Abstract]
INCOME TAXES	8 . INCOME TAXES  The provision for income tax expense for the three and nine months ended September 30, 2016 and 2015 is as follows:      Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Federal:  Current $ (10,433) $ 5,040 $ (2,275) $ 11,016  Deferred 10,709 1,194 8,222 5,982  Federal income tax expense 276 6,234 5,947 16,998  State:  Current (1,960) 665 (613) 1,760  Deferred 1,786 155 1,260 761  State income tax expense (174) 820 647 2,521  Total income tax expense $ 102 $ 7,054 $ 6,594 $ 19,519  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 Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Computed expected tax expense provision, at federal rate $ 552 $ 6,374 $ 6,604 $ 17,761  State tax, net of federal tax benefit (148) 578 396 1,685  Other (302) 102 (406) 73  Total income tax expense $ 102 $ 7,054 $ 6,594 $ 19,519  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 September 30, 2016 , no open tax years are under examination by the IRS or any material state and local jurisdictions.  As of September 30, 2016 and December 31, 2015 , we have determined that there are no uncertain tax positions.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 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. The Company is a party to a Co-Existence Agreement effective as of August 30, 2013 (the “Co-Existence Agreement”) with Federated Mutual Insurance Company (“Mutual”) pursuant to which the Company has agreed to certain restrictions on its use of the word “FEDERATED” without the word “NATIONAL” when referring to FNHC and FNIC. In response to Mutual’s allegations that the Company’s use of the word “FED” as part of the Company’s federally registered “FEDNAT” trademark infringes on Mutual’s federal and common law trademark rights, which the Company disputes, on July 21, 2016, the Company filed a declaratory judgment action for non-infringement of trademark in the U.S. District Court for the Southern District of Florida. Specifically, the Company seeks a declaration that its federally registered trademark "FEDNAT" does not infringe any alleged trademark rights of Mutual and that Mutual does not own any trademark rights to the name or mark "FED" in connection with insurance services outside of Owatonna, Minnesota. On July 26, 2016, Mutual filed a demand for arbitration against the Company before the American Arbitration Association alleging a breach of the Co-Existence Agreement. Both matters are in their preliminary stages and FNHC intends to vigorously defend against all of Mutual’s allegations, although there can be no assurances as to the outcome of either matter.  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: Florida Insurance Guaranty Association (“FIGA”), Citizens Property Insurance Corporation (“Citizens”), FHCF , Florida Joint Underwriters Insurance Association (“JUA”) , Georgia Insurers Insolvency Pool (“GIIP”), Special Insurance Fraud Fund (“SIIF”), Fair Access to Insurance Requirements Plan (“FAIRP”), Georgia Automobile Insurance Plan (“GAIP”), Property Insurance Association of Louisiana (“PIAL”), Louisiana Automobile Insurance Plan (“LAIP”), South Carolina Property & Casualty Insurance Guaranty Association (“SCPCIGA”), Texas Property and Casualty Insurance Guaranty Association (“TPCIGA”), Texas Windstorm Insurance Association (“TWIA”), Texas Automobile Insurance Plan Association (“TAIPA”), Alabama Insurance Guaranty Association (“AIGA”), and Alabama Insurance Underwriters Association (“AIUA”). . As a direct premium writer in Florida, we are required to participate in certain insurer solvency associations under Florida law , administered by FIGA. 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 law , which is referred to as a JUA Plan. The JUA Plan provides for the equitable apportionment of any profits realized, or losses and expenses incurred, among participating automobile insurers. In the event of an underwriting deficit incurred by the JUA Plan which is not recovered through the policyholders in the JUA Plan, such deficit shall be recovered from the companies participating in the JUA Plan in the proportion that the net direct written premiums of each such member during the preceding calendar year bear to the aggregate net direct premiums written in this state by all members of the JUA Plan. 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	9 Months Ended
	Sep. 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. Common stock repurchases are conducted in the open market. The amount and timing of all repurchase transactions are contingent upon market conditions, applicable legal requirements and other factors. This program may be modified, suspended or terminated by us at any time without notice.  Pursuant to our Board of Directors ’ authorizations, the Company repurchased 285,981 shares of its common stock at a total cost of approximately $5.5 million, which is an average price per share of $19.22 , during the nine months ended September 30, 2016 . As of September 30, 2016 , the remaining availability for future repurchases of our common stock was $4.5 million.  Share- B ased Compensation Expense  The following table provides certain information in connection with the Company’s share-based compensation arrangements for the three and nine months ended September 30, 2016 and 2015 , respectively:      Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Restricted stock $ 525 $ 936 $ 3,158 $ 2,277  Stock options — 5 — 29  Total share-based compensation expense $ 525 $ 941 $ 3,158 $ 2,306   Intrinsic value of options exercised $ 12,464 $ 396 $ 13,681 $ 8,551  Fair value of restricted stock vested $ 10,685 $ 24,444 $ 39,607 $ 36,216  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 September 30, 2016 , there was approximately $6.3 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to r estricted s tock a wards, which is currently expected to be recognized over a weighted average period of approximately 1.85 years.  Stock Option Awards  A summary of the Company’s stock option activity for the period from January 1, 2016 to September 30, 2016 is as follows:      Number of Shares Weighted Average Option Exercise Price  Outstanding at January 1, 2016 174,633 $ 3.79  Granted — $ —  Exercised (93,899) $ 3.85  Cancelled — $ —  Outstanding at September 30, 2016 80,734 $ 3.71  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 d irectors, e xecutives and other key employees.  The following table summarizes RSA activity during the nine months ended September 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 (194,916) $ 20.32  Cancelled (540) $ 19.16  Outstanding at September 30, 2016 351,823 $ 19.68  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 nine months ended September 30, 2016 and 2015 :      Three Months Ended September 30,  2016 2015  Before Tax Income Tax Net Before Tax Income Tax Net  (in thousands)  Accumulated other comprehensive income,  beginning of period $ 15,201 $ (5,596) $ 9,605 $ 10,407 $ (4,048) $ 6,359  Other comprehensive income before reclassifications 690 (186) 504 (746) 284 (462)  Reclassification adjustment for realized gains included  in net income (1,464) 338 (1,126) (1,925) 799 (1,126)  (774) 152 (622) (2,671) 1,083 (1,588)  Accumulated other comprehensive income, end of period $ 14,427 $ (5,444) $ 8,983 $ 7,736 $ (2,965) $ 4,771      Nine Months Ended September 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 11,296 (4,117) 7,179 1,601 (805) 796  Reclassification adjustment for realized gains included  in net income (2,980) 920 (2,060) (6,282) 2,539 (3,743)  8,316 (3,197) 5,119 (4,681) 1,734 (2,947)  Accumulated other comprehensive income, end of period $ 14,427 $ (5,444) $ 8,983 $ 7,736 $ (2,965) $ 4,771 

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 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. Dilutive securities are common stock equivalents that are freely exercisable into common stock at less than market prices or otherwise dilute earnings if converted. The net effect of common stock equivalents is based on the incremental common stock that would be issued upon the assumed exercise of common stock options and the vesting of RSAs using the treasury stock method. Common stock equivalents are not included in diluted earnings per share when their inclusion is antidilutive.  The computations of diluted EPS available to our shareholders do not include approximately 0.2 million stock options and RSAs for the three months ended September 30, 2016 and 2015 , respectively, and 0.2 million stock options and RSAs for the nine months ended September 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 Nine Months Ended  September 30, September 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 $ 1,394 $ 10,593 $ 11,920 $ 31,611  Weighted average number of common shares outstanding -  basic 13,780 13,749 13,807 13,710  Net income per share - basic $ 0.10 $ 0.77 $ 0.86 $ 2.31   Weighted average number of common shares outstanding -  basic 13,780 13,749 13,807 13,710  Dilutive effect of stock compensation plans 163 228 192 268  Weighted average number of common shares outstanding -  diluted 13,943 13,977 13,999 13,978  Net income per share - diluted $ 0.10 $ 0.76 $ 0.85 $ 2.26   Dividends per share $ 0.08 $ 0.04 $ 0.17 $ 0.13  Dividends Declared  In February 2016 , our Board of Directors declared a quarterly dividend payment of $ 0.05 per common share, paid in March 2016 , amounting to $ 0.7 million. In May and June 2016, our Board of Directors declared quarterly dividend payments of $ 0.06 per common share, respectively, paid in June and August 2016, respectively, totaling $ 1.7 million.  In September 2016 , our Board of Directors declared a $ 0.08 per common share dividend payable December 1, 2016 to shareholders of record on November 1, 2016 .

VARIABLE INTEREST ENTITY

VARIABLE INTEREST ENTITY	9 Months Ended
	Sep. 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:      September 30, December 31,  2016 2015  ASSETS (in thousands)  Investments  Debt securities, available for sale, at amortized cost $ 26,710 $ 21,312  Equity securities, available-for-sale, at fair value 1,580 1,358  Total investments 28,290 22,670   Cash and cash equivalents 14,753 14,616  Prepaid reinsurance premiums — 34  Premiums receivable, net 1,589 355  Other assets 1,269 1,037  Total assets $ 45,902 $ 38,712   LIABILITIES  Loss and loss adjustment expense reserves $ 822 $ 237  Unearned premiums 6,426 1,448  Debt 4,903 4,887  Income taxes payable — 8  Other liabilities 1,461 374  Total liabilities $ 13,612 $ 6,954  

SUBSEQUENT EVENT

SUBSEQUENT EVENT	9 Months Ended
	Sep. 30, 2016
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENTS	1 3 . SUBSEQUENT EVENT  Hurricane Matthew impacted the east coast of Florida as a Category 4 hurricane and South Carolina as a Category 2 hurricane during the first week of October 2016. The Company's initial gross catastrophic loss estimate in the state of Florida is $ 75 million and $2 million in the state of South Carolina. After taking into consideration our reinsurance treaties, including the Company’s 10% property quota-share treaty, the Company expects to incur the full retention limit $ 18.45 million.

ORGANIZATION, CONSOLIDATION A21

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2016
ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION [Abstract]
Significant Customer	Significant Customer  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. As a percentage of the total homeowners’ premiums we underwrote in the three months ended September 30, 2016 and 2015, 24.7% and 25.4% , respectively, were from Allstate’s network of Florida agents. For the nine months ended September 30, 2016 and 2015 23.9% and 23.3% , 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”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and notes required by GAAP for complete financial statements. 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 POLICI22

SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policies)	9 Months Ended
	Sep. 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 (“ASC 944”), where amounts due to (from) the assuming companies are accrued based on estimated contract experience to date as though the contracts were terminated. Refer to Note 2 in our Form 10-Q for the period ended September 30, 2015 for additional information.  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 $2.2 million for the three and nine months ended September 30, 2015, respectively.
Adopted and Recent 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 (“ASU 2015-02”). ASU 2015-02 amended the consolidation guidance by modifying the evaluation criteria for whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affecting the consolidation analysis of reporting entities that are involved with variable interest entities. We adopted the provisions of ASU 2015-02 effective January 1, 2016 and re-evaluated all legal entity investments under the revised consolidation model. The adoption of ASU 2015-02 did not have any impact on our consolidated financial statements.  In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest . ASU 2015-03 reduces the complexity of disclosing debt issuance costs and debt discount and premium on the balance sheet by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The Company adopted this ASU retrospectively as of January 1, 2016. Other assets and debt from consolidated variable interest entity have been reclassified to be consistent with the adoption of this standard, which resulted in a reduction of $0.1 million each. There were no changes to shareholders’ equity as a result of this adoption. There were no other impacts on the Company’s consolidated financial statements.  In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration-Contracts . The amendments in this ASU apply to all insurance entities that issue short-duration contracts as defined in Topic 944, Financial Services—Insurance . The amendments require insurance entities to disclose for annual reporting periods information on the liability for unpaid claims and claim adjustment expenses. The amendments in this ASU are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. This new guidance affects disclosures only and will have no impact on the Company’s consolidated financial statements.  Recent Accounting Pronouncements  In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in United States Generally Accepted Accounting Principles when it becomes effective. In July 2015, the FASB voted to delay the effective date of ASU 2014-09 by one year, making it effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted as of the original effective date. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. In addition, during 2016 the FASB issued ASU 2016-08, ASU 2016-10, and ASU 2016-12, all of which clarify certain implementation guidance within ASU 2014-09. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures.  In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most notably, this new guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This new guidance is effective for annual reporting periods beginning after December 15, 2017. We are currently evaluating the impact the adoption of this standard would have on the Company’s consolidated financial statements.  In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). Upon the effective date, ASU 2016-02 will supersede the current lease guidance in Topic 840, Leases . Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. We are currently evaluating the effects the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements.  In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.  In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which significantly changes the measurement of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as currently performed under the other-than-temporary impairment model. Additionally, the standard will require enhanced disclosures for financial assets measured at amortized cost and available-for-sale debt securities to help the financial statement users better understand significant judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the effects the adoption of ASU 2016-13 will have on the Company’s consolidated financial statements.  In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on the following eight specific cash flow classification issues: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. Current GAAP does not include specific guidance on these eight cash flow classification issues. The amendments of this ASU are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect that ASU 2015-16 will have on its consolidated financial statements and related disclosures.

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2016
FAIR VALUE [Abstract]
Financial Instruments Measured at Fair Value	 September 30, 2016  Level 1 Level 2 Level 3 Total  (in thousands)  Debt securities:  United States government obligations and authorities $ 38,933 $ 26,877 $ — $ 65,810  Obligations of states and political subdivisions — 150,873 — 150,873  Corporate — 149,210 — 149,210  International — 12,986 — 12,986  38,933 339,946 — 378,879   Equity securities 40,458 876 — 41,334   Total investments $ 79,391 $ 340,822 $ — $ 420,213      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)	9 Months Ended
	Sep. 30, 2016
INVESTMENTS [Abstract]
Difference Between Amortized Cost or Cost and Estimated Fair Value, by Major Investment Category	 Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (in thousands)  September 30, 2016  Debt securities - available-for-sale:  United States government obligations and authorities $ 64,810 $ 1,039 $ 39 $ 65,810  Obligations of states and political subdivisions 148,366 2,556 49 150,873  Corporate 144,990 4,305 85 149,210  International 12,715 273 2 12,986  370,881 8,173 175 378,879   Debt securities - held-to-maturity:  United States government obligations and authorities 4,173 70 59 4,184  Corporate 1,636 47 — 1,683  International 71 2 — 73  5,880 119 59 5,940  Equity securities 34,905 7,278 849 41,334  Total investments $ 411,666 $ 15,570 $ 1,083 $ 426,153      Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains 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 (Losses) by Major Investment Category	   Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Gross realized gains:  Debt securities $ 897 $ 226 $ 2,822 $ 973  Equity securities 597 1,847 1,752 4,188  Total gross realized gains 1,494 2,073 4,574 5,161   Gross realized losses:  Debt securities (20) (178) (614) (504)  Equity securities (348) (769) (1,900) (914)  Total gross realized losses (368) (947) (2,514) (1,418)  Net realized gains on investments $ 1,126 $ 1,126 $ 2,060 $ 3,743 
Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity	   September 30, 2016 December 31, 2015  Amortized Amortized  Cost Fair Value Cost Fair Value  Securities with maturity dates: (in thousands)  Debt securities, available-for-sale:  One year or less $ 41,507 $ 41,565 $ 24,470 $ 24,488  Over one through five years 182,129 185,001 170,797 171,113  Over five through ten years 145,639 150,694 142,728 143,545  Over ten years 1,606 1,619 26 32  370,881 378,879 338,021 339,178  Debt securities, held-to-maturity:  One year or less 413 413 486 487  Over one through five years 1,887 1,949 1,899 1,915  Over five through ten years 3,580 3,578 4,234 4,037  5,880 5,940 6,619 6,439  Total $ 376,761 $ 384,819 $ 344,640 $ 345,617 
Summary of Net Investment Income	   Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands)  Interest income $ 1,963 $ 1,760 $ 5,801 $ 4,773  Dividends income 201 147 597 381  Net investment income $ 2,164 $ 1,907 $ 6,398 $ 5,154 
Gross Unrealized Losses and Related Fair Values for Available-For-Sale Debt Securities and Equity Securities, Grouped by Duration of Time in Continuous Unrealized Loss Position	 Less than 12 months 12 months or longer Total  Gross Gross Gross  Fair Unrealized Fair Unrealized Fair Unrealized  Value Losses Value Losses Value Losses  September 30, 2016 (in thousands)  Debt securities - available-for-sale:  United States government obligations  and authorities $ 8,995 $ 38 $ 121 $ 1 $ 9,116 $ 39  Obligations of states and political subdivisions 28,481 47 1,015 2 29,496 49  Corporate 11,405 33 3,345 52 14,750 85  International 1,170 1 302 1 1,472 2  50,051 119 4,783 56 54,834 175   Equity securities 5,590 679 2,179 170 7,769 849   Total investments $ 55,641 $ 798 $ 6,962 $ 226 $ 62,603 $ 1,024      Less than 12 months 12 months or longer Total  Gross Gross Gross  Fair Unrealized Fair Unrealized Fair Unrealized  Value Losses Value Losses Value Losses  December 31, 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)	9 Months Ended
	Sep. 30, 2016
REINSURANCE [Abstract]
Reinsurance Recoverables	   September 30, December 31,  2016 2015  (in thousands)  Reinsurance recoverable on paid losses $ 8,094 $ 5,218  Reinsurance recoverable on unpaid losses 17,057 7,496  Reinsurance recoverable, net $ 25,151 $ 12,714 
Premiums Written and Earned	   Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Net premiums written:  Direct $ 161,137 $ 129,840 $ 468,379 $ 368,560  Ceded (96,327) (119,985) (259,307) (231,046)  $ 64,810 $ 9,855 $ 209,072 $ 137,514  Net premiums earned:  Direct $ 147,624 $ 112,253 $ 413,056 $ 310,587  Ceded (78,219) (49,967) (228,609) (154,289)  $ 69,405 $ 62,286 $ 184,447 $ 156,298 

LOSS AND LOSS ADJUSTMENT EXPE26

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)	9 Months Ended
	Sep. 30, 2016
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES [Abstract]
Activity in Liability for Loss and LAE Reserves	 Nine Months Year  Ended Ended  September 30, December 31,  2016 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 109,237 113,819  Prior years 10,946 (9,466)  Total incurred loss and LAE, net of reinsurance 120,183 104,353   Paid loss, net of reinsurance, related to:  Current year 46,073 49,531  Prior years 53,526 32,914  Total paid loss and LAE, net of reinsurance 99,599 82,445   Net reserves, end of period 110,428 89,844  Plus: reinsurance recoverable (1) 17,057 7,496  Gross reserves, end of period $ 127,485 $ 97,340  (1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2016
INCOME TAXES [Abstract]
Summary of Provision for Income Tax Expense	   Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Federal:  Current $ (10,433) $ 5,040 $ (2,275) $ 11,016  Deferred 10,709 1,194 8,222 5,982  Federal income tax expense 276 6,234 5,947 16,998  State:  Current (1,960) 665 (613) 1,760  Deferred 1,786 155 1,260 761  State income tax expense (174) 820 647 2,521  Total income tax expense $ 102 $ 7,054 $ 6,594 $ 19,519 
Effective Federal and State Tax Rates to Income before Income Tax Expense	   Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Computed expected tax expense provision, at federal rate $ 552 $ 6,374 $ 6,604 $ 17,761  State tax, net of federal tax benefit (148) 578 396 1,685  Other (302) 102 (406) 73  Total income tax expense $ 102 $ 7,054 $ 6,594 $ 19,519 

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2016
SHAREHOLDERS' EQUITY [Abstract]
Schedule of Share-based Compensation Arrangements	   Three Months Ended Nine Months Ended  September 30, September 30,  2016 2015 2016 2015  (in thousands) (in thousands)  Restricted stock $ 525 $ 936 $ 3,158 $ 2,277  Stock options — 5 — 29  Total share-based compensation expense $ 525 $ 941 $ 3,158 $ 2,306   Intrinsic value of options exercised $ 12,464 $ 396 $ 13,681 $ 8,551  Fair value of restricted stock vested $ 10,685 $ 24,444 $ 39,607 $ 36,216 
Summary of Stock Option Activity	   Number of Shares Weighted Average Option Exercise Price  Outstanding at January 1, 2016 174,633 $ 3.79  Granted — $ —  Exercised (93,899) $ 3.85  Cancelled — $ —  Outstanding at September 30, 2016 80,734 $ 3.71 
Summary of Restricted Stock Activity	   Number of Shares Weighted Average Grant Date Fair Value  Outstanding at January 1, 2016 418,807 $ 20.14  Granted 128,472 $ 19.16  Vested (194,916) $ 20.32  Cancelled (540) $ 19.16  Outstanding at September 30, 2016 351,823 $ 19.68 
Reconciliation of Changes in Accumulated Other Comprehensive Income	 Three Months Ended September 30,  2016 2015  Before Tax Income Tax Net Before Tax Income Tax Net  (in thousands)  Accumulated other comprehensive income,  beginning of period $ 15,201 $ (5,596) $ 9,605 $ 10,407 $ (4,048) $ 6,359  Other comprehensive income before reclassifications 690 (186) 504 (746) 284 (462)  Reclassification adjustment for realized gains included  in net income (1,464) 338 (1,126) (1,925) 799 (1,126)  (774) 152 (622) (2,671) 1,083 (1,588)  Accumulated other comprehensive income, end of period $ 14,427 $ (5,444) $ 8,983 $ 7,736 $ (2,965) $ 4,771      Nine Months Ended September 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 11,296 (4,117) 7,179 1,601 (805) 796  Reclassification adjustment for realized gains included  in net income (2,980) 920 (2,060) (6,282) 2,539 (3,743)  8,316 (3,197) 5,119 (4,681) 1,734 (2,947)  Accumulated other comprehensive income, end of period $ 14,427 $ (5,444) $ 8,983 $ 7,736 $ (2,965) $ 4,771 

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2016
EARNINGS PER SHARE [Abstract]
Schedule Of Calculation Of Basic And Diluted Net Income Per Common Share	   Three Months Ended Nine Months Ended  September 30, September 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 $ 1,394 $ 10,593 $ 11,920 $ 31,611  Weighted average number of common shares outstanding -  basic 13,780 13,749 13,807 13,710  Net income per share - basic $ 0.10 $ 0.77 $ 0.86 $ 2.31   Weighted average number of common shares outstanding -  basic 13,780 13,749 13,807 13,710  Dilutive effect of stock compensation plans 163 228 192 268  Weighted average number of common shares outstanding -  diluted 13,943 13,977 13,999 13,978  Net income per share - diluted $ 0.10 $ 0.76 $ 0.85 $ 2.26   Dividends per share $ 0.08 $ 0.04 $ 0.17 $ 0.13 

VARIABLE INTEREST ENTITY (Table

VARIABLE INTEREST ENTITY (Tables)	9 Months Ended
	Sep. 30, 2016
Variable Interest Entity [Abstract]
Carrying Amount of VIE Consolidated Assets and Liabilities	   September 30, December 31,  2016 2015  ASSETS (in thousands)  Investments  Debt securities, available for sale, at amortized cost $ 26,710 $ 21,312  Equity securities, available-for-sale, at fair value 1,580 1,358  Total investments 28,290 22,670   Cash and cash equivalents 14,753 14,616  Prepaid reinsurance premiums — 34  Premiums receivable, net 1,589 355  Other assets 1,269 1,037  Total assets $ 45,902 $ 38,712   LIABILITIES  Loss and loss adjustment expense reserves $ 822 $ 237  Unearned premiums 6,426 1,448  Debt 4,903 4,887  Income taxes payable — 8  Other liabilities 1,461 374  Total liabilities $ 13,612 $ 6,954 

ORGANIZATION, CONSOLIDATION A31

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Mar. 17, 2015
Premiums Written, Net [Member] | Homeowners' Insurance Product Line [Member] | Customer Concentration Risk [Member] | ISA [Member]
Concentration risk, percentage	24.70%	25.40%	23.90%	23.30%
Monarch Delaware Holdings LLC [Member]
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%
Transatlantic Reinsurance Company [Member] | Monarch Delaware Holdings LLC [Member]
Ownership interest in Monarch Parent's equity	15.20%		15.20%
Capital contribution for non-voting interests	$ 5		$ 5
Transatlantic Reinsurance Company [Member] | Monarch Delaware Holdings LLC [Member] | Senior Debt [Member]
Long-term debt	$ 5		$ 5
Maturity period of debt			6 years
Interest rate percentage	6.00%		6.00%

SIGNIFICANT ACCOUNTING POLICI32

SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Significant Accounting Policies And Practices [Line Items]
Net income	$ 1,438	$ 10,571	$ 12,159	$ 31,228
Adjustments for New Accounting Pronouncement [Member]
Significant Accounting Policies And Practices [Line Items]
Reduction in other assets amount			(100)
Accounting Standards Update 2015-03 [Member]
Significant Accounting Policies And Practices [Line Items]
Reduction in other debt amount			$ (100)
Change in Accounting Method Accounted for as Change in Estimate [Member]
Significant Accounting Policies And Practices [Line Items]
Net income		$ 2,200		$ 2,200

FAIR VALUE (Financial Instrumen

FAIR VALUE (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Debt securities	$ 378,879	$ 339,178
Equity securities	41,334	38,534
Total investments	420,213	377,712
United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	65,810	61,553
Total investments	65,810	61,553
Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	150,873	110,702
Total investments	150,873	110,702
Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	149,210	154,620
Total investments	149,210	154,620
International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	12,986	12,303
Total investments	12,986	12,303
Level 1 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	38,933	34,733
Equity securities	40,458	38,012
Total investments	79,391	72,745
Level 1 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	38,933	34,733
Level 2 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	339,946	304,445
Equity securities	876	522
Total investments	340,822	304,967
Level 2 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	26,877	26,820
Level 2 [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	150,873	110,702
Level 2 [Member] | Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	149,210	154,620
Level 2 [Member] | International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities	$ 12,986	$ 12,303

INVESTMENTS (Narrative) (Detail

INVESTMENTS (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
INVESTMENTS [Abstract]
Proceeds from sales of available-for-sale investment securities	$ 30.1	$ 42.5	$ 129.5	$ 134.9
OTTI losses	0		0.3
Fair value of investments deposited with governmental authorities required by law	$ 10.7		$ 10.7

INVESTMENTS (Difference Between

INVESTMENTS (Difference Between Amortized Cost or Cost and Estimated Fair Value, by Major Investment Category) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Schedule of Investments [Line Items]
Available-for-sale securities, Fair Value	$ 420,213	$ 377,712
Held-to-maturity securities, Amortized Cost or Cost	5,880	6,619
Total investments, Amortized Cost or Cost	411,666	378,221
Total investments, Gross Unrealized Gain	15,570	10,103
Total investments, Gross Unrealized Loss	1,083	4,173
Total investments, Fair Value	426,153	384,151
Debt securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	370,881	338,021
Available-for-sale securities, Gross Unrealized Gain	8,173	3,250
Available-for-sale securities, Gross Unrealized Loss	175	2,093
Available-for-sale securities, Fair Value	378,879	339,178
Held-to-maturity securities, Amortized Cost or Cost	5,880	6,619
Held-to-maturity securities, Gross Unrealized Gains	119	44
Held-to-maturity securities, Gross Unrealized Losses	59	224
Held-to-maturity securities, Fair Value	5,940	6,439
United States Government Obligations and Authorities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	64,810	61,384
Available-for-sale securities, Gross Unrealized Gain	1,039	489
Available-for-sale securities, Gross Unrealized Loss	39	320
Available-for-sale securities, Fair Value	65,810	61,553
Held-to-maturity securities, Amortized Cost or Cost	4,173	4,275
Held-to-maturity securities, Gross Unrealized Gains	70	30
Held-to-maturity securities, Gross Unrealized Losses	59	204
Held-to-maturity securities, Fair Value	4,184	4,101
Obligations of States and Political Subdivisions [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	148,366	109,152
Available-for-sale securities, Gross Unrealized Gain	2,556	1,590
Available-for-sale securities, Gross Unrealized Loss	49	40
Available-for-sale securities, Fair Value	150,873	110,702
Corporate [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	144,990	154,957
Available-for-sale securities, Gross Unrealized Gain	4,305	1,153
Available-for-sale securities, Gross Unrealized Loss	85	1,490
Available-for-sale securities, Fair Value	149,210	154,620
Held-to-maturity securities, Amortized Cost or Cost	1,636	2,253
Held-to-maturity securities, Gross Unrealized Gains	47	14
Held-to-maturity securities, Gross Unrealized Losses		20
Held-to-maturity securities, Fair Value	1,683	2,247
International [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	12,715	12,528
Available-for-sale securities, Gross Unrealized Gain	273	18
Available-for-sale securities, Gross Unrealized Loss	2	243
Available-for-sale securities, Fair Value	12,986	12,303
Held-to-maturity securities, Amortized Cost or Cost	71	91
Held-to-maturity securities, Gross Unrealized Gains	2
Held-to-maturity securities, Fair Value	73	91
Equity Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	34,905	33,581
Available-for-sale securities, Gross Unrealized Gain	7,278	6,809
Available-for-sale securities, Gross Unrealized Loss	849	1,856
Available-for-sale securities, Fair Value	$ 41,334	$ 38,534

INVESTMENTS (Net Realized Gains

INVESTMENTS (Net Realized Gains (Losses) by Major Investment Category (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Gross realized gains and losses [Abstract]
Total gross realized gains	$ 1,494	$ 2,073	$ 4,574	$ 5,161
Total gross realized losses	(368)	(947)	(2,514)	(1,418)
Net realized gains on investments	1,126	1,126	2,060	3,743
Debt securities [Member]
Gross realized gains and losses [Abstract]
Total gross realized gains	897	226	2,822	973
Total gross realized losses	(20)	(178)	(614)	(504)
Equity Securities [Member]
Gross realized gains and losses [Abstract]
Total gross realized gains	597	1,847	1,752	4,188
Total gross realized losses	$ (348)	$ (769)	$ (1,900)	$ (914)

INVESTMENTS (Amortized Cost and

INVESTMENTS (Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Available-for-sale Securities, Debt maturities, Amortized cost [Abstract]
One year or less	$ 41,507	$ 24,470
Over one through five years	182,129	170,797
Over five through ten years	145,639	142,728
Over ten years	1,606	26
Amortized cost	370,881	338,021
Available-for-sale Securities, Debt maturities, Fair value [Abstract]
One year or less	41,565	24,488
Over one through five years	185,001	171,113
Over five through ten years	150,694	143,545
Over ten years	1,619	32
Amortized cost	378,879	339,178
Held-to-maturity Securities, Debt maturities, Amortized cost [Abstract]
One year or less	413	486
Over one through five years	1,887	1,899
Over five through ten years	3,580	4,234
Amortized cost	5,880	6,619
Held-to-maturity Securities, Debt Maturities, Fair value [Abstract]
One year or less	413	487
Over one through five years	1,949	1,915
Over five through ten years	3,578	4,037
Estimated fair value	5,940	6,439
Total Investments [Abstract]
Amortized cost	376,761	344,640
Estimated fair value	$ 384,819	$ 345,617

INVESTMENTS (Summary of Net Inv

INVESTMENTS (Summary of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net investment income [Abstract]
Interest income	$ 1,963	$ 1,760	$ 5,801	$ 4,773
Dividends income	201	147	597	381
Net investment income	$ 2,164	$ 1,907	$ 6,398	$ 5,154

INVESTMENTS (Gross Unrealized L

INVESTMENTS (Gross Unrealized Losses and Related Fair Values for Available-For-Sale Debt Securities and Equity Securities, Grouped by Duration of Time in Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair value [Abstract]
Less than 12 months	$ 55,641	$ 154,742
12 months or longer	6,962	4,614
Total fair value	62,603	159,356
Gross unrealized losses [Abstract]
Less than 12 months	798	3,804
12 months or longer	226	145
Total gross unrealized losses	1,024	3,949
Debt securities [Member]
Fair value [Abstract]
Less than 12 months	50,051	142,952
12 months or longer	4,783	4,530
Total fair value	54,834	147,482
Gross unrealized losses [Abstract]
Less than 12 months	119	1,954
12 months or longer	56	139
Total gross unrealized losses	175	2,093
United States Government Obligations and Authorities [Member]
Fair value [Abstract]
Less than 12 months	8,995	30,464
12 months or longer	121	659
Total fair value	9,116	31,123
Gross unrealized losses [Abstract]
Less than 12 months	38	303
12 months or longer	1	17
Total gross unrealized losses	39	320
Obligations of States and Political Subdivisions [Member]
Fair value [Abstract]
Less than 12 months	28,481	16,652
12 months or longer	1,015
Total fair value	29,496	16,652
Gross unrealized losses [Abstract]
Less than 12 months	47	40
12 months or longer	2
Total gross unrealized losses	49	40
Corporate [Member]
Fair value [Abstract]
Less than 12 months	11,405	87,176
12 months or longer	3,345	3,590
Total fair value	14,750	90,766
Gross unrealized losses [Abstract]
Less than 12 months	33	1,420
12 months or longer	52	70
Total gross unrealized losses	85	1,490
International [Member]
Fair value [Abstract]
Less than 12 months	1,170	8,660
12 months or longer	302	281
Total fair value	1,472	8,941
Gross unrealized losses [Abstract]
Less than 12 months	1	191
12 months or longer	1	52
Total gross unrealized losses	2	243
Equity Securities [Member]
Fair value [Abstract]
Less than 12 months	5,590	11,790
12 months or longer	2,179	84
Total fair value	7,769	11,874
Gross unrealized losses [Abstract]
Less than 12 months	679	1,850
12 months or longer	170	6
Total gross unrealized losses	$ 849	$ 1,856

REINSURANCE (Narrative) (Detail

REINSURANCE (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)agreement	Jul. 01, 2016	Dec. 31, 2015USD ($)
Liability for Catastrophe Claims [Line Items]
Trust agreement for loss exposure	$ 2,600		$ 3,500
FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program	$ 179,500
Quota Share Treaties [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share expired on cut off basis		30.00%
Percentage of unearned premiums and losses retained		30.00%
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%
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
FHCF [Member] | 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
Maximum single event coverage	1,260,000
Ceded premiums in connection with catastrophe reinsurance program	149,700
FHCF [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program	$ 53,800
Percentage of property quota share reinsurance treaty	75.00%
Private and FHCF Reinsurance [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Maximum single event coverage	$ 1,580,000
Total reinsurance coverage amount	2,220,000
Florida [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Covered losses for homeowners' insurance program	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
Maximum pre-tax retention amount representing percentage of shareholder’s equity	7.01%
Florida [Member] | 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 | agreement	2
Percentage of property quota share reinsurance treaty	40.00%
Florida [Member] | Quota Share One [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty	30.00%
Florida [Member] | Quota Share Two [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty	10.00%
Florida [Member] | FHCF [Member] | FNIC's 2015-2016 Catastrophe Reinsurance Program [Member]
Liability for Catastrophe Claims [Line Items]
Amount retained per loss	$ 12,900
Florida [Member] | FHCF [Member] | MNIC’s 2016-2017 Catastrophe Reinsurance Program [Member]
Liability for Catastrophe Claims [Line Items]
Term for loss treaties	13 months
Additional coverage amount	$ 3,400
Louisiana, Alabama and South Carolina [Member] | FNIC's 2016-2017 Reinsurance Programs [Member] | Minimum [Member]
Liability for Catastrophe Claims [Line Items]
Pre-tax retention amount for catastrophic event	8,000
Louisiana, Alabama and South Carolina [Member] | FNIC's 2016-2017 Reinsurance Programs [Member] | Maximum [Member]
Liability for Catastrophe Claims [Line Items]
Pre-tax retention amount for catastrophic event	18,450
Louisiana, Alabama and South Carolina [Member] | FHCF [Member] | FNIC's 2015-2016 Catastrophe Reinsurance Program [Member]
Liability for Catastrophe Claims [Line Items]
Amount retained per loss	$ 5,000

REINSURANCE (Reinsurance Recove

REINSURANCE (Reinsurance Recoverables) (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015	Dec. 31, 2014
REINSURANCE [Abstract]
Reinsurance recoverable on paid losses		$ 8,094	$ 5,218
Reinsurance recoverable on unpaid losses	[1]	17,057	7,496	$ 10,394
Reinsurance recoverable, net		$ 25,151	$ 12,714
[1]	Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

REINSURANCE (Premiums Written a

REINSURANCE (Premiums Written and Earned) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Premiums written [Abstract]
Direct	$ 161,137	$ 129,840	$ 468,379	$ 368,560
Ceded	(96,327)	(119,985)	(259,307)	(231,046)
Net premiums written	64,810	9,855	209,072	137,514
Premiums earned [Abstract]
Direct	147,624	112,253	413,056	310,587
Ceded	(78,219)	(49,967)	(228,609)	(154,289)
Net premiums earned	$ 69,405	$ 62,286	$ 184,447	$ 156,298

LOSS AND LOSS ADJUSTMENT EXPE43

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Activity in Liability for Loss and LAE Reserves) (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 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:
Current year		109,237	113,819
Prior years		10,946	(9,466)
Total incurred loss and LAE, net of reinsurance		120,183	104,353
Paid loss, net of reinsurance, related to:
Current year		46,073	49,531
Prior years		53,526	32,914
Total paid loss and LAE, net of reinsurance		99,599	82,445
Net reserves, end of period		110,428	89,844
Plus: reinsurance recoverable	[1]	17,057	7,496
Gross reserves, end of period		$ 127,485	$ 97,340
[1]	Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

LONG-TERM DEBT (Narrative) (Det

LONG-TERM DEBT (Narrative) (Details) - Monarch Delaware Holdings LLC [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Federal:
Current	$ (10,433)	$ 5,040	$ (2,275)	$ 11,016
Deferred	10,709	1,194	8,222	5,982
Federal income tax expense	276	6,234	5,947	16,998
State:
Current	(1,960)	665	(613)	1,760
Deferred	1,786	155	1,260	761
State income tax expense	(174)	820	647	2,521
Total income tax expense	$ 102	$ 7,054	$ 6,594	$ 19,519

INCOME TAXES (Effective Federal

INCOME TAXES (Effective Federal and State Tax Rates to Income before Income Tax Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
INCOME TAXES [Abstract]
Computed expected tax expense provision, at federal rate	$ 552	$ 6,374	$ 6,604	$ 17,761
State tax, net of federal tax benefit	(148)	578	396	1,685
Other	(302)	102	(406)	73
Total income tax expense	102	$ 7,054	6,594	$ 19,519
Uncertain tax positions	$ 0		$ 0		$ 0

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock repurchases, authorized amount			$ 10,000
Common stock repurchased during period (in shares)			285,981
Common stock repurchased during period, total cost			$ 5,482
Common stock repurchased during period, average price (in dollars per share)			$ 19.22
Remaining amount available for future repurchases of common stock			$ 4,500
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense			$ 6,300
Weighted average period for recognition of unrecognized share-based compensation expense			1 year 10 months 6 days
Shares granted	128,472	116,140	128,472
Minimum [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants vesting period			3 years
Maximum [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants vesting period			5 years

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule of Share-based Compensation Arrangements) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 525	$ 941	$ 3,158	$ 2,306
Intrinsic value of options exercised	12,464	396	13,681	8,551
Fair value of restricted stock vested	10,685	24,444	39,607	36,216
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 525	936	$ 3,158	2,277
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense		$ 5		$ 29

SHAREHOLDERS' EQUITY (Summary o

SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Stock Options, Number of Shares [Roll Forward]
Outstanding, beginning of period (in shares) | shares	174,633
Exercised (in shares) | shares	(93,899)
Outstanding, end of period (in shares) | shares	80,734
Stock Options, Weighted Average Option Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 3.79
Exercised (in dollars per share) | $ / shares	3.85
Outstanding, end of period (in dollars per share) | $ / shares	$ 3.71

SHAREHOLDERS' EQUITY (Summary50

SHAREHOLDERS' EQUITY (Summary of Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Sep. 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)			(194,916)
Cancelled (in shares)			(540)
Outstanding, end of period (in shares)			351,823
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)			20.32
Cancelled (in dollars per share)			19.16
Outstanding, end of period (in dollars per share)			$ 19.68

SHAREHOLDERS' EQUITY (Reconcili

SHAREHOLDERS' EQUITY (Reconciliation of Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Before Tax [Roll Forward]
Comprehensive income before income taxes	$ 664	$ 7,900	$ 20,475	$ 26,547
Income Tax [Roll Forward]
Other comprehensive income after reclassifications	152	1,083	(3,197)	1,734
Net [Roll Forward]
Accumulated other comprehensive income, beginning of period			3,985
Accumulated other comprehensive income, end of period	8,800		8,800
Accumulated Other Comprehensive Income [Member]
Before Tax [Roll Forward]
Accumulated other comprehensive income, beginning of period	15,201	10,407	6,111	12,417
Other comprehensive income before reclassifications	690	(746)	11,296	1,601
Reclassification adjustment for realized gains included in net income	(1,464)	(1,925)	(2,980)	(6,282)
Comprehensive income before income taxes	(774)	(2,671)	8,316	(4,681)
Accumulated other comprehensive income, end of period	14,427	7,736	14,427	7,736
Income Tax [Roll Forward]
Accumulated other comprehensive income, beginning of period	(5,596)	(4,048)	(2,247)	(4,699)
Other comprehensive income before reclassifications	(186)	284	(4,117)	(805)
Reclassification adjustment for realized gains included in net income	338	799	920	2,539
Other comprehensive income after reclassifications	152	1,083	(3,197)	1,734
Accumulated other comprehensive income, end of period	(5,444)	(2,965)	(5,444)	(2,965)
Net [Roll Forward]
Accumulated other comprehensive income, beginning of period	9,605	6,359	3,864	7,718
Other comprehensive income before reclassifications	504	(462)	7,179	796
Reclassification adjustment for realized gains included in net income	(1,126)	(1,126)	(2,060)	(3,743)
Other comprehensive income after reclassifications	(622)	(1,588)	5,119	(2,947)
Accumulated other comprehensive income, end of period	$ 8,983	$ 4,771	$ 8,983	$ 4,771

EARNINGS PER SHARE (Narrative)

EARNINGS PER SHARE (Narrative) (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
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)	0.2	0.2	0.2	0.2
Restricted Stock [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)	0.2	0.2	0.2	0.2

EARNINGS PER SHARE (Schedule of

EARNINGS PER SHARE (Schedule of Calculation of Basic and Diluted Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
EARNINGS PER SHARE [Abstract]
Net income attributable to Federated National Holding Company shareholders	$ 1,394	$ 10,593	$ 11,920	$ 31,611
Weighted average number of common shares outstanding - basic (in shares)	13,780,000	13,749,000	13,807,000	13,710,000
Net income per share - basic (in dollars per share)	$ 0.10	$ 0.77	$ 0.86	$ 2.31
Dilutive effect of stock compensation plans (in shares)	163,000	228,000	192,000	268,000
Weighted average number of common shares outstanding - diluted (in shares)	13,943,000	13,977,000	13,999,000	13,978,000
Net income per share - diluted (in dollars per share)	$ 0.10	$ 0.76	$ 0.85	$ 2.26
Dividends per share (in dollars per share)	$ 0.08	$ 0.04	$ 0.17	$ 0.13

EARNINGS PER SHARE (Dividends D

EARNINGS PER SHARE (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended						3 Months Ended		9 Months Ended
	Sep. 30, 2016	Aug. 31, 2016	Jun. 30, 2016	May 31, 2016	Mar. 31, 2016	Feb. 29, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)							$ 0.08	$ 0.04	$ 0.17	$ 0.13
Quarter One Dividends [Member]
Dividends Payable [Line Items]
Dividends declared date									Feb. 29, 2016
Dividends declared per share (in dollars per share)						$ 0.05
Dividends paid					$ 0.7
Dividends payable date									Mar. 31, 2016
Quarter Two Dividends [Member]
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)			$ 0.06	$ 0.06
Dividends paid		$ 1.7
Quarter Three Dividends [Member]
Dividends Payable [Line Items]
Dividends declared date									Sep. 30, 2016
Dividends declared per share (in dollars per share)	$ 0.08
Dividends payable date									Dec. 1, 2016
Dividends record date									Nov. 1, 2016

VARIABLE INTEREST ENTITY (Carry

VARIABLE INTEREST ENTITY (Carrying Amount of VIE Consolidated Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Investments
Debt securities, available for sale, at amortized cost	$ 370,881	$ 338,021
Equity securities, available-for-sale, at fair value	41,334	38,534
Total investments (including $28,290 and $22,670 related to the VIE, respectively)	426,093	384,331
Cash and cash equivalents	106,200	53,038	$ 76,161	$ 40,157
Prepaid reinsurance premiums	58,763	120,771
Premiums receivable, net	63,605	38,594
Income taxes receivable	16,706	2,691
Deferred acquisition costs	41,247	15,547
Other asset	7,829	7,605
TOTAL ASSETS	749,457	638,185
LIABILITIES
Loss and loss adjustment expense reserves	127,485	97,340		$ 78,330
Unearned premiums	309,283	253,960
Debt	4,903	4,887
Other liabilities	31,521	25,612
Total liabilities	486,104	387,426
Monarch Delaware - Variable Interest Entity [Member]
Investments
Debt securities, available for sale, at amortized cost	26,710	21,312
Equity securities, available-for-sale, at fair value	1,580	1,358
Total investments (including $28,290 and $22,670 related to the VIE, respectively)	28,290	22,670
Cash and cash equivalents	14,753	14,616
Prepaid reinsurance premiums		34
Premiums receivable, net	1,589	355
Other asset	1,269	1,037
TOTAL ASSETS	45,902	38,712
LIABILITIES
Loss and loss adjustment expense reserves	822	237
Unearned premiums	6,426	1,448
Debt	4,903	4,887
Income taxes payable		8
Other liabilities	1,461	374
Total liabilities	$ 13,612	$ 6,954

SUBSEQUENT EVENT (Narrative) (D

SUBSEQUENT EVENT (Narrative) (Details) - Subsequent Event [Member] - Hurricane Matthew [Member] $ in Thousands	1 Months Ended
	Oct. 31, 2016USD ($)
Subsequent Event [Line Items]
Percentage of quota share reinsurance treaty	10.00%
Maximum [Member]
Subsequent Event [Line Items]
Amount payable under reinsurance program	$ 18,450
Florida [Member]
Subsequent Event [Line Items]
Initial gross loss estimate from hurricane disaster	75,000
South Carolina [Member]
Subsequent Event [Line Items]
Initial gross loss estimate from hurricane disaster	$ 2,000