FedNat Holding (FNHCQ) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 06, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	FEDERATED NATIONAL HOLDING CO
Entity Central Index Key	1,069,996
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017
Trading Symbol	fnhc
Amendment Flag	false
Entity Common Stock, Shares Outstanding		13,053,281

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments:
Debt securities, available-for-sale, at fair value (amortized cost of $419,243 and $376,644, respectively)	$ 422,359	$ 374,756
Debt securities, held-to-maturity, at amortized cost	5,410	5,551
Equity securities, available-for-sale, at fair value (cost of $14,531 and $24,163, respectively)	15,575	29,375
Total investments (including $29,878 and $28,704 related to the VIE, respectively)	443,344	409,682
Cash and cash equivalents (including $13,952 and $15,668 related to the VIE, respectively)	81,535	74,593
Prepaid reinsurance premiums	189,957	156,932
Premiums receivable, net of allowance of $93 and $55, respectively (including $926 and $1,584 related to the VIE, respectively)	55,145	54,854
Reinsurance recoverable, net	338,015	48,530
Deferred acquisition costs	38,958	37,477
Income taxes receivable	20,707	13,871
Property and equipment, net	4,202	4,194
Other assets (including $2,699 and $635 related to the VIE, respectively)	9,607	11,509
TOTAL ASSETS	1,181,470	811,642
LIABILITIES:
Loss and loss adjustment expense reserves	461,541	158,476
Unearned premiums	312,227	294,022
Reinsurance payable	126,479	79,154
Debt from consolidated variable interest entity	4,925	4,909
Deferred income taxes, net	8,769	1,433
Other liabilities	38,766	35,792
Total liabilities	952,707	573,786
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value: 1,000,000 shares authorized
Common stock, $0.01 par value: 25,000,000 shares authorized; 13,053,281 and 13,473,120 shares issued and outstanding, respectively	130	134
Additional paid-in capital	139,161	136,779
Accumulated other comprehensive income	2,713	1,941
Retained earnings	70,265	80,275
Total shareholders’ equity attributable to Federated National Holding Company shareholders	212,269	219,129
Noncontrolling interest	16,494	18,727
Total shareholders' equity	228,763	237,856
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,181,470	$ 811,642

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments:
Debt securities, available-for-sale, at amortized cost	$ 419,243	$ 376,644
Equity securities, available-for-sale at cost	14,531	24,163
Total investments	443,344	409,682
Cash and cash equivalents	81,535	74,593
Premiums receivable, net	55,145	54,854
Premiums receivable, allowance for credit losses	93	55
Other Assets	$ 9,607	$ 11,509
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)	13,053,281	13,473,120
Common stock, shares outstanding (in shares)	13,053,281	13,473,120
Monarch Delaware - Variable Interest Entity [Member]
Investments:
Total investments	$ 29,878	$ 28,704
Cash and cash equivalents	13,952	15,668
Premiums receivable, net	926	1,584
Other Assets	$ 2,699	$ 635

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Net premiums earned	$ 78,663	$ 69,405	$ 240,315	$ 184,447
Net investment income	2,603	2,164	7,481	6,398
Net realized investment gains	6,101	1,126	8,644	2,060
Direct written policy fees	3,651	4,318	13,222	13,445
Other income	4,874	4,493	14,511	13,321
Total revenue	95,892	81,506	284,173	219,671
Costs and expenses:
Losses and loss adjustment expenses	72,935	45,973	181,657	126,216
Commissions and other underwriting expenses	29,242	29,868	86,578	61,232
General and administrative expenses	5,042	4,044	14,737	13,211
Interest expense	81	81	247	259
Total costs and expenses	107,300	79,966	283,219	200,918
(Loss) income before income taxes	(11,408)	1,540	954	18,753
Income taxes	(4,223)	102	350	6,594
Net (loss) income	(7,185)	1,438	604	12,159
Net (loss) income attributable to noncontrolling interest	(1,674)	44	(1,975)	239
Net (loss) income attributable to Federated National Holding Company shareholders	$ (5,511)	$ 1,394	$ 2,579	$ 11,920
Net (loss) income per share attributable to Federated National Holding Company shareholders:
Basic (in dollars per share)	$ (0.42)	$ 0.10	$ 0.20	$ 0.86
Diluted (in dollars per share)	$ (0.42)	$ 0.10	$ 0.19	$ 0.85
Weighted average number of shares of common stock outstanding:
Basic (in shares)	13,135,000	13,780,000	13,211,000	13,807,000
Diluted (in shares)	13,135,000	13,943,000	13,302,000	13,999,000
Dividends declared per share of common stock (in dollars per share)	$ 0.08	$ 0.08	$ 0.24	$ 0.17

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net (loss) income	$ (7,185)	$ 1,438	$ 604	$ 12,159
Change in net unrealized gains on investments, available-for-sale	(4,088)	(774)	836	8,316
Comprehensive (loss) income before income taxes	(11,273)	664	1,440	20,475
Income tax benefit (expense) related to items of other comprehensive income	1,643	152	(322)	(3,197)
Comprehensive income (loss)	(9,630)	816	1,118	17,278
Less: comprehensive (loss) income attributable to noncontrolling interest	(1,674)	44	(2,233)	543
Comprehensive (loss) income attributable to Federated National Holding Company shareholders	$ (7,956)	$ 772	$ 3,351	$ 16,735

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2017 - 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, 2016	$ 134	$ 136,779	$ 1,941	$ 80,275	$ 219,129	$ 18,727	$ 237,856
Balance (in shares) at Dec. 31, 2016	13,473,120
Net (loss) income				2,579	2,579	(1,975)	604
Other comprehensive income (loss)			772		772	(258)	514
Dividends declared				(3,189)	(3,189)		(3,189)
Shares issued under share-based compensation plans		103			103		103
Shares issued under share-based compensation plans (in shares)	159,014
Repurchases of common stock	$ (4)			(9,400)	(9,404)		$ (9,404)
Repurchases of common stock (in shares)	(578,853)						(578,853)
Shares-based compensation		2,279			2,279		$ 2,279
Balance, end of period at Sep. 30, 2017	$ 130	$ 139,161	$ 2,713	$ 70,265	$ 212,269	$ 16,494	$ 228,763
Balance (in shares) at Sep. 30, 2017	13,053,281

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flow from operating activities:
Net income	$ 604	$ 12,159
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment gains	(8,644)	(2,060)
Amortization of investment premium or discount, net	3,065	3,910
Depreciation and amortization	312	620
Share-based compensation	2,279	4,001
Tax impact related to share-based compensation	(150)
Changes in operating assets and liabilities:
Prepaid reinsurance premiums	(33,025)	(29,125)
Premiums receivable, net	(291)	(25,011)
Reinsurance recoverable, net	(289,485)	(12,437)
Deferred acquisition costs	(1,481)	(25,699)
Income taxes receivable, net	(6,836)	(14,858)
Loss and loss adjustment expense reserves	303,065	30,146
Unearned premiums	18,205	55,323
Reinsurance payable	47,325	91,133
Deferred income taxes, net of other comprehensive income	2,436	5,491
Other, net	4,871	5,676
Net cash provided by operating activities	42,250	99,269
Cash flow used in investing activities:
Proceeds from sales of equity securities	57,016	14,322
Proceeds from sales of debt securities	195,090	129,483
Purchases of equity securities	(34,339)	(14,036)
Purchases of debt securities	(268,999)	(174,540)
Maturities and redemptions of debt securities	28,718	8,079
Purchases of property and equipment	(304)	(1,573)
Net cash used in investing activities	(22,818)	(38,265)
Cash flow from financing activities:
Tax impact related to share-based compensation		843
Purchases of FNHC common stock	(9,404)	(5,482)
Issuance of common stock for share-based awards	103	360
Dividends paid	(3,189)	(3,563)
Net cash used in financing activities	(12,490)	(7,842)
Net increase in cash and cash equivalents	6,942	53,162
Cash and cash equivalents at beginning of period	74,593	53,038
Cash and cash equivalents at end of period	81,535	106,200
Cash (received) paid during the period for:
Income taxes	(414)	14,360
Non-cash investing and finance activities:
Accrued dividends payable	$ 1,065	$ 1,134

ORGANIZATION, CONSOLIDATION AND

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
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 contribute to the state guarantee fund, which is used to pay for losses if an insurance carrier becomes insolvent or unable to pay the losses due to their policyholders.  On March 19, 2015, the Company entered into a joint venture to organize MNIC, which received its certificate of authority to write homeowners’ property and casualty insurance in Florida from the Florida Office of Insurance Regulation (the “Florida OIR”). The Company’s joint venture partners are a majority-owned limited partnership of Crosswinds Holdings Inc., a publicly traded Canadian private equity firm and asset manager (“Crosswinds”); and Transatlantic Reinsurance Company (“TransRe”).  The Company and Crosswinds each invested $14.0 million in Monarch Delaware Holdings LLC (“Monarch Delaware”), the indirect parent company of MNIC, for a 42.4% interest in Monarch Delaware (each holding 50% of the voting interests in Monarch Delaware). TransRe invested $5.0 million for a 15.2% non-voting interest in Monarch Delaware and advanced an additional $5.0 million in debt evidenced by a six -year promissory note bearing 6% annual interest payable by Monarch National Holding Company (“MNHC”), a wholly owned subsidiary of Monarch Delaware and the direct parent company of MNIC.  Partnerships  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, 2017 and 2016 , 25.5% and 24.7% , respectively, were from Allstate’s network of Florida agents. For the nine months ended September 30, 2017 and 2016, 24.5% and 23.9% , respectively, of the homeowners’ premiums we underwrote were from Allstate’s network of Florida agents.  Additionally, we have a managing general underwriting agreement with SageSure Insurance Managers (“SageSure”) to facilitate growth in our FNIC homeowners business outside of Florida. As a percentage of the total homeowners’ premiums we underwrote in the three months ended September 30, 2017 and 2016 , 10.7% and 7.3% , respectively , were underwritten by SageSure. For the nine months ended September 30, 2017 and 2016, 9.7% and 6.6% , respectively, were underwritten by SageSure .  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 2016 Annual Report on Form 10-K (the “ 2016 Form 10-K”).

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES	9 Months Ended
	Sep. 30, 2017
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 2016 Form 10-K. There have been no significant changes in our significant accounting policies for the nine months ended September 30, 2017 .  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  As disclosed in our 2017 second quarter Form 10-Q, during the second quarter of 2017 we re-assessed the income statement classification of ceded commission income and salaries and wages from our claims department. As a result of this re-assessment, we have adjusted the historical income statement classification of these items as follows: (a) ceding commission income from Other income to Commissions and other underwriting expenses (b) salaries and wages from our claims department from Commissions and other underwriting expenses to Loss and loss adjustment expenses  These reclassifications represent corrections of immaterial errors and are not material in any prior quarter or annual period based on quantitative and qualitative factors in accordance with SEC guidance. Additionally, these reclassified items had no effect on the reported results of operations, financial condition or statements of cash flows.  As a result, these reclassified items impacted the following income statement line items for the three and nine months ended September 30, 2016:  · Other income decreased by $2.3 million and $8.1 million, respectively, · Loss and loss adjustment expenses increased by $2. 4 million and $6.0 million, respectively, and · Commissions and other underwriting expenses decreased by $ 4.6 million, and $14.2 million, respectively. The reclassifications above had the following impact on our net loss ratios, net expense ratios and combined ratios for the three and nine months ended September 30, 2016:  · Net loss ratio increased by 3.4% and 3.3% , respectively, · Net expense ratio decreased by 6.7% and 7.7% , respectively, and · Combined ratio decreased by 3.3% and 4.4% , respectively .  Finally, the reclassifications impacted the following balance sheet line items as of December 31, 2016: · Deferred policy acquisition costs decreased by $1.5 million, · Loss and loss adjustment expense reserves increased by $0.4 million, and · Other liabilities decreased by $1.9 million.  Adopted Accounting Pronouncements  In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. The Company adopted these amendments effective January 1, 2017, resulting in $0.2 million of discrete income tax deficiencies reflected as a component of the income tax provision on the Consolidated Statements of Operations. Additionally, ASU 2016-09 requires excess tax benefits be presented within the statement of cash flows as an operating activity rather than as a financing activity. The Company adopted this change on a prospective basis, which resulted in a $ 0.2 million decrease in cash provided by operating activities for the nine months ended September 30, 2017. Further, ASU 2016-09 requires excess tax benefits and deficiencies to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares, which increased the Company's weighted average number of diluted common shares outstanding by 9,334 and 14,102 shares in the third quarter and first nine months of 2017, respectively.  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. This authoritative guidance replaces all general and most industry specific revenue recognition guidance (excluding insurance) currently prescribed by GAAP. The core principle is that an entity recognizes revenue to reflect the transfer of a promised good or service to customers in an amount that reflects that consideration to which the entity expects to be entitled in exchange for that good or service. This guidance also provides clarification on when an entity is a principal or an agent in a transaction. The guidance may be applied using one of the two following methods: (1) retrospectively to each prior reporting periods presented, or (2) retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. 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. We will adopt this accounting standard update effective January 1, 2018 using the modified retrospective approach .  As part of our implementation process, we have gained an understanding of the new standard and performed an analysis to identify accounting policies that may need to change and additional disclosures that will be required. While we continue to evaluate the impact of the provisions of this accounting standard update, only a portion of our revenues are impacted by this guidance because the guidance does not apply to revenue on contracts accounted for under the financial instruments or insurance contracts standards. As a result, we expect the timing of our revenue recognition for most of our revenue streams to generally remain the same. Our evaluation process includes, but is not limited to, identifying contracts within the scope of the guidance, reviewing and documenting our accounting for these contracts, and identifying and determining the accounting for any related contract costs. We have not yet quantified the impact, if any, to our consolidated financial statements .  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. The Company is in the early stages of evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. The effect of adopting this guidance will be principally affected by the level of unrealized gains or losses associated with equity investments with readily determinable market values. Such unrealized gains or losses will be recognized upon adoption as a cumulative-effect adjustment with future unrealized gains or losses reflected in the statement of income and comprehensive income. Refer to Note 4 for the current status of such unrealized gains and losses levels that are currently recognized as other comprehensive income .  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 (“ROU”) 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. 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. All of our leases are classified as operating leases under current lease accounting guidance. This guidance will require us to add our operating leases to the balance sheet. We do not expect this standard will have a material effect on our financial statements due to the recognition of new ROU assets and lease liabilities on our balance sheets for our operating leases. We expect to elect all of the standard’s available practical expedients on adoption.  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 in the early stages of 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. We will adopt this ASU effective January 1, 2018. The provisions of this update are not expected to have a material impact on our consolidated statements of cash flows.

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2017
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, 2017  Level 1 Level 2 Level 3 Total  (in thousands)  Debt securities - available-for-sale:  United States government obligations and authorities $ 69,855 $ 46,355 $ — $ 116,210  Obligations of states and political subdivisions 1,632 71,367 — 72,999  Corporate 469 218,932 — 219,401  International — 13,749 — 13,749  71,956 350,403 — 422,359   Equity securities 15,575 — — 15,575   Total investments $ 87,531 $ 350,403 $ — $ 437,934      December 31, 2016  Level 1 Level 2 Level 3 Total  (in thousands)  Debt securities - available-for-sale:  United States government obligations and authorities $ 36,560 $ 25,645 $ — $ 62,205  Obligations of states and political subdivisions — 151,183 — 151,183  Corporate — 149,505 — 149,505  International — 11,863 — 11,863  36,560 338,196 — 374,756   Equity securities 28,960 415 — 29,375   Total investments $ 65,520 $ 338,611 $ — $ 404,131  The Company’s held-to-maturity debt securities are reported on the consolidated balance sheets at amortized cost and disclosed at fair value in Note 4 herein. The fair values of these securities are classified within Level 1 and Level 2 of the fair value hierarchy and consist of United States government obligations and authorities, corporate securities, and i nternational securities. The fair value of the securities classified as Level 1 was $3.9 million as of September 30, 2017 and December 31, 2016. The fair value of the securities classified as Level 2 was $1.4 million and $1.6 million as of September 30, 2017 and December 31, 2016, respectively.  A third party nationally recognized pricing service provides the fair value of securities in Level 2. We review the third party pricing methodologies quarterly and test for significant differences between the market price used to value the security and recent sales activity. A summary of the significant valuation techniques and market inputs for each class of security is as follows:  United States government obligations and authorities : In determining the fair value for U.S. Government securities in Level 1 we use quoted prices (unadjusted) in active markets for identical assets or liabilities. In determining the fair value for U.S. Government securities in Level 2 we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events.  Obligations of states and political subdivisions : In determining the fair value for state and municipal securities we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads, reference data and industry and economic events.  Corporate and International : In determining the fair value for corporate securities we use the market approach. The primary inputs to the valuation include reported trades, dealer quotes for identical or similar assets in markets that are not active, benchmark yields, credit spreads (for investment grade securities), observations of equity and credit default swap curves (for high-yield corporates), reference data and industry and economic events.

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2017
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, 2017 and at December 31, 2016 :      Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (in thousands)  September 30, 2017  Debt securities - available-for-sale:  United States government obligations and authorities $ 116,390 $ 421 $ 601 $ 116,210  Obligations of states and political subdivisions 72,372 792 165 72,999  Corporate 216,923 2,897 419 219,401  International 13,558 193 2 13,749  419,243 4,303 1,187 422,359   Debt securities - held-to-maturity:  United States government obligations and authorities 4,156 18 91 4,083  Corporate 1,189 28 — 1,217  International 65 1 — 66  5,410 47 91 5,366  Equity securities 14,531 1,312 268 15,575  Total investments $ 439,184 $ 5,662 $ 1,546 $ 443,300      Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (in thousands)  December 31, 2016  Debt securities - available-for-sale:  United States government obligations and authorities $ 62,881 $ 177 $ 853 $ 62,205  Obligations of states and political subdivisions 152,823 427 2,067 151,183  Corporate 149,053 1,347 895 149,505  International 11,887 95 119 11,863  376,644 2,046 3,934 374,756   Debt securities - held-to-maturity:  United States government obligations and authorities 4,163 22 118 4,067  Corporate 1,317 20 2 1,335  International 71 — — 71  5,551 42 120 5,473  Equity securities 24,163 5,500 288 29,375  Total investments $ 406,358 $ 7,588 $ 4,342 $ 409,604  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, 2017 and 2016 :      Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Gross realized gains:  Debt securities $ 618 $ 897 $ 1,471 $ 2,822  Equity securities 6,527 597 9,776 1,752  Total gross realized gains 7,145 1,494 11,247 4,574   Gross realized losses:  Debt securities (103) (20) (1,293) (614)  Equity securities (941) (348) (1,310) (1,900)  Total gross realized losses (1,044) (368) (2,603) (2,514)  Net realized gains on investments $ 6,101 $ 1,126 $ 8,644 $ 2,060  Contractual Maturity  The amortized cost and estimated fair value of debt securities as of September 30, 2017 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, 2017  Amortized  Cost Fair Value  Securities with maturity dates: (in thousands)  Debt securities, available-for-sale:  One year or less $ 37,940 $ 37,968  Over one through five years 196,630 198,180  Over five through ten years 182,560 184,199  Over ten years 2,113 2,012  419,243 422,359  Debt securities, held-to-maturity:  One year or less 170 170  Over one through five years 4,114 4,065  Over five through ten years 1,126 1,131  5,410 5,366  Total $ 424,653 $ 427,725  Net Investment Income  The following table provides a detail of the Company’s net investment income for the three and nine months ended September 30, 2017 and 2016 :      Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands)  Interest income $ 2,492 $ 1,963 $ 7,073 $ 5,801  Dividends income 111 201 408 597  Net investment income $ 2,603 $ 2,164 $ 7,481 $ 6,398  Aging of Gross Unrealized Losses  As of September 30, 2017 and December 31, 2016 , 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, 2017 (in thousands)  Debt securities - available-for-sale:  United States government obligations  and authorities $ 67,924 $ 527 $ 5,820 $ 74 $ 73,744 $ 601  Obligations of states and political subdivisions 15,454 135 2,966 30 18,420 165  Corporate 58,838 340 3,971 79 62,809 419  International 1,383 2 — — 1,383 2  143,599 1,004 12,757 183 156,356 1,187   Equity securities 3,478 267 242 1 3,720 268   Total investments $ 147,077 $ 1,271 $ 12,999 $ 184 $ 160,076 $ 1,455      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, 2016 (in thousands)  Debt securities - available-for-sale:  United States government obligations  and authorities $ 45,255 $ 850 $ 111 $ 3 $ 45,366 $ 853  Obligations of states and political subdivisions 103,724 2,066 1,007 1 104,731 2,067  Corporate 59,970 864 2,427 31 62,397 895  International 5,925 119 5 — 5,930 119  214,874 3,899 3,550 35 218,424 3,934   Equity securities 4,701 253 434 35 5,135 288   Total investments $ 219,575 $ 4,152 $ 3,984 $ 70 $ 223,559 $ 4,222  As of September 30, 2017 , the Company held a total of 614 debt and equity securities that were in an unrealized loss position, of which 25 securities were in an unrealized los s position continuously for 12 months or more. As of December 31, 2016 , the Company held a total of 1,132 debt and equity securities that were in an unrealized loss position, of which 36 securities were in an unrealized loss position continuously for 12 months or more. The unrealized losses associated with these securities consisted primarily of losses related to corporate securities.  The Company holds 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”) loss 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 OTTI losses identified in our investments in debt and equity securities during the three and nine months ended September 30, 2017 and 2016 .  Collateral Deposits  As of September 30, 2017 , investments with fair values of approximately $12.9 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, 2017
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 2016-2017 reinsurance programs, costing $ 179.5 million, included $125.6 million for the private reinsurance for F NIC ’s Florida exposure, including prepaid automatic premium reinstatement protection on all layers, along with $53.9 million payable to the FHCF. The combination of private and FHCF reinsurance treaties afforded F NIC with $2.23 billion of aggregate coverage with a maximum single event coverage totaled $1.59 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 wa s $18.45 million. In addition, FNIC purchases separate underlying reinsurance layers in Louisiana, Texas, 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 have been as low as $8.0 million.  Additionally, the Company’s private market excess of loss treaties became effective June 1, 2016 and July 1, 2016 , and all private layers , except the FHCF supplemental layer reinsurance contract, have prepaid automatic reinstatement protection, which afforded 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 expired 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 2017-2018 reinsurance programs are estimated to cost $176.9 million which includes approximately $125.1 million for the private reinsurance for FNIC’s Florida exposure described above, including prepaid automatic premium reinstatement protection, along with approximately $49.9 million payable to the FHCF. The combination of private and FHCF reinsurance treaties will afford FNIC approximately $2.14 billion of aggregate coverage with a maximum single event coverage totaling approximately $1.5 billion, exclusive of retentions. FNIC maintained its FHCF participation at 75% for the 2017 hurricane season. FNIC’s single event pre-tax retention for a catastrophic event in Florida is $18 million, down slightly from the 2016-2017 reinsurance programs.  FNIC’s private market excess of loss treaties, covering both Florida and Non-Florida exposures, are effective June 1, 2017 and July 1, 2017 , and all private layers have prepaid automatic reinstatement protection , except the FHCF supplemental layer reinsurance contract , which affords FNIC additional coverage for subsequent events. The reinsurance program includes multiple year protection with $89 million of new multiple year protection this year and $156 million of renewing multiple year protection from last year. These private market excess of loss treaties structure coverage into layers, with a cascading feature such that substantially all layers attach after $25.1 million in losses for FNIC’s exposure. 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 purchased an underlying limit of protection for $7.1 million excess of $18 million with prepaid automatic reinstatement protection. These treaties are with reinsurers that currently have an A.M. Best Company (“AM Best”) or Standard & Poor’s rating of “A-” or better, or have fully collateralized their maximum potential obligations in dedicated trusts.  FNIC’s Non-Florida excess of loss reinsurance treaties affords us up to an additional $21 million of aggregate coverage with first event coverage totaling $5 million and second event coverage up to $16 million. The Non-Florida retention is lowered to $13 million for the first event and $2 million for the second event (for hurricane losses only) on a gross basis though it is reduced to $6.5 million and $1 million on a net basis after taking into account the profit share agreement that FNIC has with our non-affiliated managing general underwriter that writes our Non-Florida property business. FNIC’s Non-Florida reinsurance program cost includes $1.9 million for this private reinsurance, including prepaid automatic premium reinstatement protection.  MNIC’s 2016-2017 catastrophe reinsurance program, which ran from either June 1 to May 31 or June 1 to June 30 ( 13 month period), consisted of the FHCF and private market excess of loss t reaties. All private layers had prepaid automatic reinstatement protection, which afforded MNIC additional coverage, and had a cascading feature such that substantially all layers attached at $3.4 million for MNIC's Florida exposure.  MNIC’s 2017-2018 reinsurance programs are estimated to cost $5.04 million which includes approximately $3.23 million for the private reinsurance as described below, along with approximately $1.81 million payable to FHCF. The combination of private and FHCF reinsurance treaties will afford Monarch National approximately $105.79 million of aggregate coverage with a maximum single event coverage totaling approximately $64.86 million, exclusive of retentions. Monarch National’s FHCF participation is at 75% for the 2017 hurricane season.  MNIC’s private market excess of loss treaties are effective July 1, 2017 and all private layers have prepaid automatic reinstatement protection, which affords MNIC additional coverage for subsequent events, and have a cascading feature such that substantially all layers attach at $3.4 million for Monarch National’s Florida exposure. These treaties are with reinsurers that currently have an AM Best or Standard & Poor’s rating of “A-” or better, or have fully collateralized their maximum potential obligations in dedicated trusts.  FNIC bound a new 10% quota-share on its Florida homeowners book of business, which became effective on July 1, 2017 and excludes named storms. Prior to this treaty, t he Company’s property quota share treaties consisted of two different treaties, one for 30% which became effective July 1, 2014, and the other for 10% which became effective July 1, 2015 , each of which ran for a two -year period . The combined treaties provided a 40% quota-share reinsurance on 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, 2017, the 10% property quota-share treaty expired on a cut-off basis, which means as of that date the Company retained an incremental 10% of its unearned premiums and losses. The reinsurers remain liable for 10% of the paid losses occurring during the term of the treaty, until the treaty is commuted.  On July 1, 2016, the 30% property quota-share treaty expired on a cut-off basis, which means as of that date the Company retained an incremental 30% of its unearned premiums and losses. The reinsurers 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 approximately 75% of all written premiums entered into by the Company.  Certain reinsurance agreements require FNIC and MNIC to secure the credit, regulatory and business risk. Fully funded trust agreements securing these risks for FNIC totaled $2.6 million as of September 30, 2017 and as of December 31, 2016 . Fully funded trust agreements securing these risks for MNIC totaled $0.3 million as of September 30, 2017 and as of December 31, 2016.  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, 2017 and December 31, 2016 :      September 30, December 31,  2017 2016  (in thousands)  Reinsurance recoverable on paid losses $ 11,973 $ 7,451  Reinsurance recoverable on unpaid losses 326,042 41,079  Reinsurance recoverable, net $ 338,015 $ 48,530  As of September 30, 2017, reinsurance recoverables, net includes $288.6 million relating to loss recoveries from the impact of Hurricane Irma, which made landfall in the United States as a Category 4 hurricane on September 10, 2017. Approximately 11% and 19% of the reinsurance recoverable at September 30, 2017 was concentrated in two reinsurers related to Hurricane Irma. Additionally, these two reinsurers and all other reinsurers in our excess-of-loss reinsurance programs have an AM Best or Standard & Poor’s rating of “A-“ or better, or have fully collateralized their maximum potential obligations in dedicated trusts .  Premiums Written and Earned  The following table presents premiums written and earned for the three and nine months ended September 30, 2017 and 2016 :      Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Net premiums written:  Direct $ 154,782 $ 161,137 $ 469,525 $ 468,379  Ceded (148,623) (96,327) (254,911) (259,307)  $ 6,159 $ 64,810 $ 214,614 $ 209,072  Net premiums earned:  Direct $ 152,779 $ 147,624 $ 451,320 $ 413,056  Ceded (74,116) (78,219) (211,005) (228,609)  $ 78,663 $ 69,405 $ 240,315 $ 184,447 

LOSS AND LOSS ADJUSTMENT EXPENS

LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) RESERVES	9 Months Ended
	Sep. 30, 2017
LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) RESERVES [Abstract]
LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) RESERVES	6 . LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) 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, consideration for anticipated subrogation recoveries that will offset future loss payments, anticipated future claim development and incurred but not yet reported (“IBNR”) claims .  Activity in the liability for loss and LAE reserves is summarized as follows:      Nine Months Ended  September 30,  2017 2016  (in thousands)  Gross reserves, beginning of period $ 158,476 $ 97,340  Less: reinsurance recoverable (1) (41,079) (7,496)  Net reserves, beginning of period 117,397 89,844   Incurred loss, net of reinsurance, related to:  Current year 178,299 115,270  Prior years 3,358 10,946  Total incurred loss and LAE, net of reinsurance 181,657 126,216   Paid loss, net of reinsurance, related to:  Current year 106,233 46,073  Prior years 57,322 53,526  Total paid loss and LAE, net of reinsurance 163,555 99,599   Net reserves, end of period 135,499 110,428  Plus: reinsurance recoverable (1) 326,042 17,057  Gross reserves, end of period $ 461,541 $ 127,485  (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.  As previously disclosed, the Company entered into 30% and 10% retrospectively-rated Florida-only property quota share treaties, which ended on July 1, 2016 and 2017, respectively. These agreements included a profit share (experience account) provision, under which the Company will receive ceded premium adjustments at the end of the treaty to the extent there is a positive balance in the experience account. This experience account is based on paid losses rather than incurred losses. Due to the retrospectively-rated nature of this treaty, when the experience account is positive we cede losses under these treaties as the claims are paid with an equal and offsetting adjustment to ceded premiums (in recognition of the related change to the experience account receivable), with no impact on net income. For purposes of this disclosure, we classify paid losses ceded in the current year as relating to the current year, even if the ceded claim paid was incurred in a prior year. This matches the ceded paid losses with the year in which the loss and loss adjustment expenses caption in our statement of operations was impacted, and results in the prior year development amounts of $3.4 million and $10.9 million for the nine months ended September 30, 2017 and 2016, respectively, being representative of the pre-tax impact on net income from prior year development. For the nine months ended September 30, 2017 and 2016, $11.4 million and $15.4 million, respectively, of paid ceded losses were classified as ‘current year’.  We believe this presentation is consistent with the purpose of this disclosure and effectively provides users of the financial statements with the pre-tax net income impact of prior year development, inclusive of the negative change in the experience account that is attributable to prior accident years.  During the nine months ended September 30, 2017, the Company experienced $3.4 million of unfavorable loss and LAE reserve development on prior accident years primarily in its Homeowners line of business . The Homeowners’ unfavorable development primarily relates to the continued impact from assignment of benefits and related ligation costs in the state of Florida.  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 .

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2017
LONG-TERM DEBT [Abstract]
LONG-TERM DEBT	7 . LONG-TERM DEBT  On March 17, 2015, MNHC, a wholly owned subsidiary of Monarch Delaware, and MNIC’s direct parent, our consolidated VIE, issued a promissory note with a principal amount of $5.0 million bearing 6% annual interest, due March 17, 2021 with interest payable on an annual basis due March 17 each year. The debt was issued to 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 any accrued and unpaid interest is recognized in other liabilities in the consolidated balance sheet. The Company recorded $0.1 million of debt issuance costs related to the 6% promissory note.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
INCOME TAXES [Abstract]
INCOME TAXES	8 . INCOME TAXES  The provision for income tax expense for the three and nine months ended September 30, 2017 and 2016 is as follows:      Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Federal:  Current $ (4,594) $ (10,433) $ (3,547) $ (2,275)  Deferred 1,176 10,709 4,084 8,222  Federal income tax expense (3,418) 276 537 5,947  State:  Current (590) (1,960) (440) (613)  Deferred (215) 1,786 253 1,260  State income tax expense (805) (174) (187) 647  Total income tax expense $ (4,223) $ 102 $ 350 $ 6,594  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,  2017 2016 2017 2016  (in thousands) (in thousands)  Computed expected tax expense provision, at federal rate $ (3,993) $ 552 $ 334 $ 6,604  State tax, net of federal tax benefit (321) (148) 55 396  Other 91 (302) (39) (406)  Total income tax expense $ (4,223) $ 102 $ 350 $ 6,594  The Company files income tax returns in the U.S. federal jurisdiction and various states and local jurisdictions . MNHC , a wholly owned subsidiary of the consolidated VIE, is currently under Federal audit for tax year 2015. As of September 30, 2017, except for the MNHC 2015 Federal income tax return audit, no other open tax years are under examination by the IRS or any material state and local jurisdictions  The Company adopted ASU 2016-09 in the first quarter of 2017 which requires the recognition of excess tax benefits and tax deficiencies within income tax (benefit) expense in the Consolidated Statements of Operations (see Note 2). The Company elected to apply this change in presentation prospectively from the beginning of fiscal year 2017, thus prior periods have not been adjusted. This adoption resulted in the recognition of $0.4 million , pre-tax, of excess tax deficiencies for the nine months ended September 30, 2017. This change could create volatility in the Company's effective tax rate in future periods. During the nine months ended September 30, 2016, excess tax benefits were recorded in shareholders’ equity within the Consolidated Balance Sheets instead of income tax expense within the Consolidated Statements of Operations.  As of September 30, 2017 and December 31, 2016 , there are no uncertain tax positions.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
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 Federated National Insurance Company. 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 o utside of Owatonna, Minnesota. Mutual has initiated an arbitration proceeding before the American Arbitration Association (the “AAA”) in which it claims FNHC’s use of the mark “FEDNAT” violates Mutual’s trademark rights in the word “FEDERATED.” An arbitrator has been selected, and discovery is ongoing. FNHC is vigorously defending against Mutual’s claims, although there can be no assurances as to the outcome of the arbitration proceeding. On March 2, 2017, the Company filed a complaint in Broward County, Florida court to enforce the terms of the restrictive covenants set forth in the Amended and Restated Non-Competition, Non-Disclosure and Non-Solicitation Agreement dated August 5, 2013, as amended, entered into between Peter J. Prygelski, III and the Company during Mr. Prygelski’s employment with the Company and set forth in the separation agreement he entered into in connection with his separation from the Company. The Company believes that he accepted employment with a competitor in contravention of these restrictive covenants. The Company’s motion for preliminary (temporary) injunctive relief was also denied by the court. The parties have each filed claims in arbitration, which remain pending , along with litigation seeking injunctive relief . Because of the relatively early stage of this matter, there can be no assurances as to its outcome.  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. There were no material assessments by the JUA Plan as of September 30, 201 7 . 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 9 to our Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data,” of the 2016 Form 10-K.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2017
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	10. SHAREHOLDERS’ EQUITY  Common Stock Repurchases  In November 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 1, 2017. In March 2017, our Board of Directors authorized an additional $10.0 million share buyback program to repurchase shares of common stock through March 31, 2018. This program may be modified, suspended or terminated by us at any time without notice. Common stock repurchases are conducted in the open market or under Rule 10b5-1 trading plans from time to time in its discretion, based on ongoing assessments of the Company’s capital needs, the market price of its common stock and general market conditions. The amount and timing of all repurchase transactions are contingent upon market conditions, applicable legal requirements and other factors.  Pursuant to our Board of Directors’ authorizations, the Company repurchased 578,853 shares of its common stock at a total cost of $9.4 million, which is an average price per share of $16.24 , during the nine months ended September 30, 2017 . As of September 30, 2017 , the remaining availability for future repurchases of our common stock was $2.0 million .  Share-Based Compensation Expense  The following table provides certain information in connection with the Company’s share-based compensation arrangements for the three and nine months ended September 30, 2017 and 2016 :      Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Restricted stock $ 866 $ 525 $ 2,279 $ 3,158  Stock options — — — —  Total share-based compensation expense $ 866 $ 525 $ 2,279 $ 3,158   Intrinsic value of options exercised $ 30 $ 125 $ 36 $ 137  Fair value of restricted stock vested $ 686 $ 1,069 $ 2,191 $ 3,961  The intrinsic value of options exercised represents the difference between the stock option exercise price and the weighted average closing stock price of FNHC common stock on the exercise dates, as reported on the NASDAQ Global Market.  Stock Option Awards  A summary of the Company’s stock option activity for the period from January 1, 2017 to September 30, 2017 is as follows:      Number of Shares Weighted Average Option Exercise Price  Outstanding at January 1, 2017 79,484 $ 3.70  Granted — $ —  Exercised (28,500) $ 3.70  Cancelled — $ —  Outstanding at September 30, 2017 50,984 $ 3.70  Restricted Stock Awards  The Company recognizes share-based compensation expense for all restricted stock awards (“RSAs”) held by the Company’s directors, executives and other key employees. The accounting charge is measured at the grant date as the fair value of FNHC common stock and expensed as non-cash compensation over the vesting term using the straight-line basis for service awards and the accelerated basis for performance ‑based awards with graded vesting . Certain cliff vesting awards contain performance criteria which are tied to the achievement of certain market conditions. This value is recognized as expense over the service period using the straight ‑line recognition method.  During the first nine months of 2017 and 2016 , the Board of Directors granted 106,454 and 128,472 RSAs, respectively, vesting over three or five years, to the Company’s directors, executives and other key employees.  The following table summarizes RSA activity during the nine months ended September 30, 2017 :      Number of Shares Weighted Average Grant Date Fair Value  Outstanding at January 1, 2017 337,203 $ 19.69  Granted 106,454 $ 17.95  Vested (130,514) $ 16.79  Cancelled (4,860) $ 19.79  Outstanding at September 30, 2017 308,283 $ 20.31  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, 2017 and 2016 :      Three Months Ended September 30,  2017 2016  Before Tax Income Tax Net Before Tax Income Tax Net  (in thousands)  Accumulated other comprehensive income,  beginning of period $ 8,247 $ (3,164) $ 5,083 $ 15,201 $ (5,596) $ 9,605  Other comprehensive income before reclassifications 2,013 (710) 1,303 690 (186) 504  Reclassification adjustment for realized (gains) losses included  in net income (6,101) 2,353 (3,748) (1,464) 338 (1,126)  (4,088) 1,643 (2,445) (774) 152 (622)  Accumulated other comprehensive income, end of period $ 4,159 $ (1,521) $ 2,638 $ 14,427 $ (5,444) $ 8,983      Nine Months Ended September 30,  2017 2016  Before Tax Income Tax Net Before Tax Income Tax Net  (in thousands)  Accumulated other comprehensive income,  beginning of period $ 3,323 $ (1,199) $ 2,124 $ 6,111 (2,247) $ 3,864  Other comprehensive income before reclassifications 9,480 (3,656) 5,824 11,296 (4,117) 7,179  Reclassification adjustment for realized (gains) losses included  in net income (8,644) 3,334 (5,310) (2,980) 920 (2,060)  836 (322) 514 8,316 (3,197) 5,119  Accumulated other comprehensive income, end of period $ 4,159 $ (1,521) $ 2,638 $ 14,427 $ (5,444) $ 8,983 

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2017
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	11. EARNINGS PER SHARE  Basic earnings per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards and vested restricted stock awards during the period. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options. 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.  During the three months ended September 30, 2017, the Company was in a net loss position and therefore did not take antidilution into account for the calculation of diluted EPS. For the three months ended September 30, 2016, t he computations of diluted EPS available to our shareholders do not include approximately 0.2 million stock options and RSAs , as the effect of their inclusion would have been antidilutive to earnings per share . Additionally , the computation of diluted EPS for the nine months ended September 30, 2017 and 2016 did not include 0.1 million and 0.2 million stock options and RSAs, 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,  2017 2016 2017 2016  (in thousands, except per share data) (in thousands, except per share data)  Net (loss) income attributable to Federated National Holding  Company shareholders $ (5,511) $ 1,394 $ 2,579 $ 11,920  Weighted average number of common shares outstanding -  basic 13,135 13,780 13,211 13,807  Net (loss) income per share - basic $ (0.42) $ 0.10 $ 0.20 $ 0.86   Weighted average number of common shares outstanding -  basic 13,135 13,780 13,211 13,807  Dilutive effect of stock compensation plans - 163 91 192  Weighted average number of common shares outstanding -  diluted 13,135 13,943 13,302 13,999  Net (loss) income per share - diluted $ (0.42) $ 0.10 $ 0.19 $ 0.85   Dividends per share $ 0.08 $ 0.08 $ 0.24 $ 0.17  Dividends Declared  In March 2017 , our Board of Directors declared a $ 0.08 per common share dividend, paid in June 2017 , to shareholders of record on May 1, 201 7 , amounting to $1.1 million.  In June 2017 , our Board of Directors declared a $0.08 per common share dividend, paid September 2017, to shareholders of record on August 1, 2017 , amounting to $1.1 million .  In September 2017 , our Board of Directors declared a $0.08 per common share dividend payable on December 1, 2017 to shareholders of record on November 1, 2017 .

VARIABLE INTEREST ENTITY

VARIABLE INTEREST ENTITY	9 Months Ended
	Sep. 30, 2017
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,  2017 2016  (in thousands)  ASSETS  Investments  Debt securities, available-for-sale, at fair value $ 28,319 $ 27,100  Equity securities, available-for-sale, at fair value 1,559 1,604  Total investments 29,878 28,704  Cash and cash equivalents 13,952 15,668  Reinsurance recoverable 6,600 -  Prepaid reinsurance premiums 3,721 1,070  Premiums receivable, net 926 1,584  Deferred acquisition costs 1,296 1,539  Other assets 2,699 635  Total assets $ 59,072 $ 49,200   LIABILITIES  Loss and loss adjustment expense reserves $ 12,969 $ 1,659  Unearned premiums 7,135 8,406  Reinsurance payable 3,868 863  Debt 4,925 4,909  Other liabilities 3,250 1,026  Total liabilities $ 32,147 $ 16,863

ORGANIZATION, CONSOLIDATION A20

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION (Policy)	9 Months Ended
	Sep. 30, 2017
ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION [Abstract]
Partnerships	Partnerships  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, 2017 and 2016 , 25.5% and 24.7% , respectively, were from Allstate’s network of Florida agents. For the nine months ended September 30, 2017 and 2016, 24.5% and 23.9% , respectively, of the homeowners’ premiums we underwrote were from Allstate’s network of Florida agents.  Additionally, we have a managing general underwriting agreement with SageSure Insurance Managers (“SageSure”) to facilitate growth in our FNIC homeowners business outside of Florida. As a percentage of the total homeowners’ premiums we underwrote in the three months ended September 30, 2017 and 2016 , 10.7% and 7.3% , respectively , were underwritten by SageSure. For the nine months ended September 30, 2017 and 2016, 9.7% and 6.6% , respectively, were underwritten by SageSure .
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 2016 Annual Report on Form 10-K (the “ 2016 Form 10-K”).

SIGNIFICANT ACCOUNTING POLICI21

SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policy)	9 Months Ended
	Sep. 30, 2017
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  As disclosed in our 2017 second quarter Form 10-Q, during the second quarter of 2017 we re-assessed the income statement classification of ceded commission income and salaries and wages from our claims department. As a result of this re-assessment, we have adjusted the historical income statement classification of these items as follows: (a) ceding commission income from Other income to Commissions and other underwriting expenses (b) salaries and wages from our claims department from Commissions and other underwriting expenses to Loss and loss adjustment expenses  These reclassifications represent corrections of immaterial errors and are not material in any prior quarter or annual period based on quantitative and qualitative factors in accordance with SEC guidance. Additionally, these reclassified items had no effect on the reported results of operations, financial condition or statements of cash flows.  As a result, these reclassified items impacted the following income statement line items for the three and nine months ended September 30, 2016:  · Other income decreased by $2.3 million and $8.1 million, respectively, · Loss and loss adjustment expenses increased by $2. 4 million and $6.0 million, respectively, and · Commissions and other underwriting expenses decreased by $ 4.6 million, and $14.2 million, respectively. The reclassifications above had the following impact on our net loss ratios, net expense ratios and combined ratios for the three and nine months ended September 30, 2016:  · Net loss ratio increased by 3.4% and 3.3% , respectively, · Net expense ratio decreased by 6.7% and 7.7% , respectively, and · Combined ratio decreased by 3.3% and 4.4% , respectively .  Finally, the reclassifications impacted the following balance sheet line items as of December 31, 2016: · Deferred policy acquisition costs decreased by $1.5 million, · Loss and loss adjustment expense reserves increased by $0.4 million, and · Other liabilities decreased by $1.9 million.
Adopted and Recent Accounting Pronouncements	Adopted Accounting Pronouncements  In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. The Company adopted these amendments effective January 1, 2017, resulting in $0.2 million of discrete income tax deficiencies reflected as a component of the income tax provision on the Consolidated Statements of Operations. Additionally, ASU 2016-09 requires excess tax benefits be presented within the statement of cash flows as an operating activity rather than as a financing activity. The Company adopted this change on a prospective basis, which resulted in a $ 0.2 million decrease in cash provided by operating activities for the nine months ended September 30, 2017. Further, ASU 2016-09 requires excess tax benefits and deficiencies to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares, which increased the Company's weighted average number of diluted common shares outstanding by 9,334 and 14,102 shares in the third quarter and first nine months of 2017, respectively.  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. This authoritative guidance replaces all general and most industry specific revenue recognition guidance (excluding insurance) currently prescribed by GAAP. The core principle is that an entity recognizes revenue to reflect the transfer of a promised good or service to customers in an amount that reflects that consideration to which the entity expects to be entitled in exchange for that good or service. This guidance also provides clarification on when an entity is a principal or an agent in a transaction. The guidance may be applied using one of the two following methods: (1) retrospectively to each prior reporting periods presented, or (2) retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. 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. We will adopt this accounting standard update effective January 1, 2018 using the modified retrospective approach .  As part of our implementation process, we have gained an understanding of the new standard and performed an analysis to identify accounting policies that may need to change and additional disclosures that will be required. While we continue to evaluate the impact of the provisions of this accounting standard update, only a portion of our revenues are impacted by this guidance because the guidance does not apply to revenue on contracts accounted for under the financial instruments or insurance contracts standards. As a result, we expect the timing of our revenue recognition for most of our revenue streams to generally remain the same. Our evaluation process includes, but is not limited to, identifying contracts within the scope of the guidance, reviewing and documenting our accounting for these contracts, and identifying and determining the accounting for any related contract costs. We have not yet quantified the impact, if any, to our consolidated financial statements .  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. The Company is in the early stages of evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. The effect of adopting this guidance will be principally affected by the level of unrealized gains or losses associated with equity investments with readily determinable market values. Such unrealized gains or losses will be recognized upon adoption as a cumulative-effect adjustment with future unrealized gains or losses reflected in the statement of income and comprehensive income. Refer to Note 4 for the current status of such unrealized gains and losses levels that are currently recognized as other comprehensive income .  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 (“ROU”) 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. 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. All of our leases are classified as operating leases under current lease accounting guidance. This guidance will require us to add our operating leases to the balance sheet. We do not expect this standard will have a material effect on our financial statements due to the recognition of new ROU assets and lease liabilities on our balance sheets for our operating leases. We expect to elect all of the standard’s available practical expedients on adoption.  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 in the early stages of 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. We will adopt this ASU effective January 1, 2018. The provisions of this update are not expected to have a material impact on our consolidated statements of cash flows.

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2017
FAIR VALUE [Abstract]
Financial Instruments Measured at Fair Value	   September 30, 2017  Level 1 Level 2 Level 3 Total  (in thousands)  Debt securities - available-for-sale:  United States government obligations and authorities $ 69,855 $ 46,355 $ — $ 116,210  Obligations of states and political subdivisions 1,632 71,367 — 72,999  Corporate 469 218,932 — 219,401  International — 13,749 — 13,749  71,956 350,403 — 422,359   Equity securities 15,575 — — 15,575   Total investments $ 87,531 $ 350,403 $ — $ 437,934      December 31, 2016  Level 1 Level 2 Level 3 Total  (in thousands)  Debt securities - available-for-sale:  United States government obligations and authorities $ 36,560 $ 25,645 $ — $ 62,205  Obligations of states and political subdivisions — 151,183 — 151,183  Corporate — 149,505 — 149,505  International — 11,863 — 11,863  36,560 338,196 — 374,756   Equity securities 28,960 415 — 29,375   Total investments $ 65,520 $ 338,611 $ — $ 404,131 

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
INVESTMENTS [Abstract]
Summary of Amortized Cost and Fair Value of Debt and Equity Securities	   Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (in thousands)  September 30, 2017  Debt securities - available-for-sale:  United States government obligations and authorities $ 116,390 $ 421 $ 601 $ 116,210  Obligations of states and political subdivisions 72,372 792 165 72,999  Corporate 216,923 2,897 419 219,401  International 13,558 193 2 13,749  419,243 4,303 1,187 422,359   Debt securities - held-to-maturity:  United States government obligations and authorities 4,156 18 91 4,083  Corporate 1,189 28 — 1,217  International 65 1 — 66  5,410 47 91 5,366  Equity securities 14,531 1,312 268 15,575  Total investments $ 439,184 $ 5,662 $ 1,546 $ 443,300      Amortized Gross Gross  Cost Unrealized Unrealized  or Cost Gains Losses Fair Value  (in thousands)  December 31, 2016  Debt securities - available-for-sale:  United States government obligations and authorities $ 62,881 $ 177 $ 853 $ 62,205  Obligations of states and political subdivisions 152,823 427 2,067 151,183  Corporate 149,053 1,347 895 149,505  International 11,887 95 119 11,863  376,644 2,046 3,934 374,756   Debt securities - held-to-maturity:  United States government obligations and authorities 4,163 22 118 4,067  Corporate 1,317 20 2 1,335  International 71 — — 71  5,551 42 120 5,473  Equity securities 24,163 5,500 288 29,375  Total investments $ 406,358 $ 7,588 $ 4,342 $ 409,604 
Net Realized Gains (Losses) by Major Investment Category	   Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Gross realized gains:  Debt securities $ 618 $ 897 $ 1,471 $ 2,822  Equity securities 6,527 597 9,776 1,752  Total gross realized gains 7,145 1,494 11,247 4,574   Gross realized losses:  Debt securities (103) (20) (1,293) (614)  Equity securities (941) (348) (1,310) (1,900)  Total gross realized losses (1,044) (368) (2,603) (2,514)  Net realized gains on investments $ 6,101 $ 1,126 $ 8,644 $ 2,060 
Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity	   September 30, 2017  Amortized  Cost Fair Value  Securities with maturity dates: (in thousands)  Debt securities, available-for-sale:  One year or less $ 37,940 $ 37,968  Over one through five years 196,630 198,180  Over five through ten years 182,560 184,199  Over ten years 2,113 2,012  419,243 422,359  Debt securities, held-to-maturity:  One year or less 170 170  Over one through five years 4,114 4,065  Over five through ten years 1,126 1,131  5,410 5,366  Total $ 424,653 $ 427,725 
Summary of Net Investment Income	   Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands)  Interest income $ 2,492 $ 1,963 $ 7,073 $ 5,801  Dividends income 111 201 408 597  Net investment income $ 2,603 $ 2,164 $ 7,481 $ 6,398 
Gross Unrealized Losses and Related Fair Values for Debt 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, 2017 (in thousands)  Debt securities - available-for-sale:  United States government obligations  and authorities $ 67,924 $ 527 $ 5,820 $ 74 $ 73,744 $ 601  Obligations of states and political subdivisions 15,454 135 2,966 30 18,420 165  Corporate 58,838 340 3,971 79 62,809 419  International 1,383 2 — — 1,383 2  143,599 1,004 12,757 183 156,356 1,187   Equity securities 3,478 267 242 1 3,720 268   Total investments $ 147,077 $ 1,271 $ 12,999 $ 184 $ 160,076 $ 1,455      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, 2016 (in thousands)  Debt securities - available-for-sale:  United States government obligations  and authorities $ 45,255 $ 850 $ 111 $ 3 $ 45,366 $ 853  Obligations of states and political subdivisions 103,724 2,066 1,007 1 104,731 2,067  Corporate 59,970 864 2,427 31 62,397 895  International 5,925 119 5 — 5,930 119  214,874 3,899 3,550 35 218,424 3,934   Equity securities 4,701 253 434 35 5,135 288   Total investments $ 219,575 $ 4,152 $ 3,984 $ 70 $ 223,559 $ 4,222 

REINSURANCE (Tables)

REINSURANCE (Tables)	9 Months Ended
	Sep. 30, 2017
REINSURANCE [Abstract]
Reinsurance Recoverables	   September 30, December 31,  2017 2016  (in thousands)  Reinsurance recoverable on paid losses $ 11,973 $ 7,451  Reinsurance recoverable on unpaid losses 326,042 41,079  Reinsurance recoverable, net $ 338,015 $ 48,530 
Premiums Written and Earned	   Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Net premiums written:  Direct $ 154,782 $ 161,137 $ 469,525 $ 468,379  Ceded (148,623) (96,327) (254,911) (259,307)  $ 6,159 $ 64,810 $ 214,614 $ 209,072  Net premiums earned:  Direct $ 152,779 $ 147,624 $ 451,320 $ 413,056  Ceded (74,116) (78,219) (211,005) (228,609)  $ 78,663 $ 69,405 $ 240,315 $ 184,447 

LOSS AND LOSS ADJUSTMENT EXPE25

LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) RESERVES (Tables)	9 Months Ended
	Sep. 30, 2017
LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) RESERVES [Abstract]
Activity in Liability for Loss and LAE Reserves	   Nine Months Ended  September 30,  2017 2016  (in thousands)  Gross reserves, beginning of period $ 158,476 $ 97,340  Less: reinsurance recoverable (1) (41,079) (7,496)  Net reserves, beginning of period 117,397 89,844   Incurred loss, net of reinsurance, related to:  Current year 178,299 115,270  Prior years 3,358 10,946  Total incurred loss and LAE, net of reinsurance 181,657 126,216   Paid loss, net of reinsurance, related to:  Current year 106,233 46,073  Prior years 57,322 53,526  Total paid loss and LAE, net of reinsurance 163,555 99,599   Net reserves, end of period 135,499 110,428  Plus: reinsurance recoverable (1) 326,042 17,057  Gross reserves, end of period $ 461,541 $ 127,485  (1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2017
INCOME TAXES [Abstract]
Summary of Provision for Income Tax Expense	   Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Federal:  Current $ (4,594) $ (10,433) $ (3,547) $ (2,275)  Deferred 1,176 10,709 4,084 8,222  Federal income tax expense (3,418) 276 537 5,947  State:  Current (590) (1,960) (440) (613)  Deferred (215) 1,786 253 1,260  State income tax expense (805) (174) (187) 647  Total income tax expense $ (4,223) $ 102 $ 350 $ 6,594 
Effective Federal and State Tax Rates to Income before Income Tax Expense	   Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Computed expected tax expense provision, at federal rate $ (3,993) $ 552 $ 334 $ 6,604  State tax, net of federal tax benefit (321) (148) 55 396  Other 91 (302) (39) (406)  Total income tax expense $ (4,223) $ 102 $ 350 $ 6,594 

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2017
SHAREHOLDERS' EQUITY [Abstract]
Schedule of Share-based Compensation Arrangements	   Three Months Ended Nine Months Ended  September 30, September 30,  2017 2016 2017 2016  (in thousands) (in thousands)  Restricted stock $ 866 $ 525 $ 2,279 $ 3,158  Stock options — — — —  Total share-based compensation expense $ 866 $ 525 $ 2,279 $ 3,158   Intrinsic value of options exercised $ 30 $ 125 $ 36 $ 137  Fair value of restricted stock vested $ 686 $ 1,069 $ 2,191 $ 3,961 
Summary of Stock Option Activity	   Number of Shares Weighted Average Option Exercise Price  Outstanding at January 1, 2017 79,484 $ 3.70  Granted — $ —  Exercised (28,500) $ 3.70  Cancelled — $ —  Outstanding at September 30, 2017 50,984 $ 3.70 
Summary of Restricted Stock Activity	   Number of Shares Weighted Average Grant Date Fair Value  Outstanding at January 1, 2017 337,203 $ 19.69  Granted 106,454 $ 17.95  Vested (130,514) $ 16.79  Cancelled (4,860) $ 19.79  Outstanding at September 30, 2017 308,283 $ 20.31 
Reconciliation of Changes in Accumulated Other Comprehensive Income	   Three Months Ended September 30,  2017 2016  Before Tax Income Tax Net Before Tax Income Tax Net  (in thousands)  Accumulated other comprehensive income,  beginning of period $ 8,247 $ (3,164) $ 5,083 $ 15,201 $ (5,596) $ 9,605  Other comprehensive income before reclassifications 2,013 (710) 1,303 690 (186) 504  Reclassification adjustment for realized (gains) losses included  in net income (6,101) 2,353 (3,748) (1,464) 338 (1,126)  (4,088) 1,643 (2,445) (774) 152 (622)  Accumulated other comprehensive income, end of period $ 4,159 $ (1,521) $ 2,638 $ 14,427 $ (5,444) $ 8,983      Nine Months Ended September 30,  2017 2016  Before Tax Income Tax Net Before Tax Income Tax Net  (in thousands)  Accumulated other comprehensive income,  beginning of period $ 3,323 $ (1,199) $ 2,124 $ 6,111 (2,247) $ 3,864  Other comprehensive income before reclassifications 9,480 (3,656) 5,824 11,296 (4,117) 7,179  Reclassification adjustment for realized (gains) losses included  in net income (8,644) 3,334 (5,310) (2,980) 920 (2,060)  836 (322) 514 8,316 (3,197) 5,119  Accumulated other comprehensive income, end of period $ 4,159 $ (1,521) $ 2,638 $ 14,427 $ (5,444) $ 8,983 

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2017
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,  2017 2016 2017 2016  (in thousands, except per share data) (in thousands, except per share data)  Net (loss) income attributable to Federated National Holding  Company shareholders $ (5,511) $ 1,394 $ 2,579 $ 11,920  Weighted average number of common shares outstanding -  basic 13,135 13,780 13,211 13,807  Net (loss) income per share - basic $ (0.42) $ 0.10 $ 0.20 $ 0.86   Weighted average number of common shares outstanding -  basic 13,135 13,780 13,211 13,807  Dilutive effect of stock compensation plans - 163 91 192  Weighted average number of common shares outstanding -  diluted 13,135 13,943 13,302 13,999  Net (loss) income per share - diluted $ (0.42) $ 0.10 $ 0.19 $ 0.85   Dividends per share $ 0.08 $ 0.08 $ 0.24 $ 0.17 

VARIABLE INTEREST ENTITY (Table

VARIABLE INTEREST ENTITY (Tables)	9 Months Ended
	Sep. 30, 2017
VARIABLE INTEREST ENTITY [Abstract]
Carrying Amount of VIE Consolidated Assets and Liabilities	   September 30, December 31,  2017 2016  (in thousands)  ASSETS  Investments  Debt securities, available-for-sale, at fair value $ 28,319 $ 27,100  Equity securities, available-for-sale, at fair value 1,559 1,604  Total investments 29,878 28,704  Cash and cash equivalents 13,952 15,668  Reinsurance recoverable 6,600 -  Prepaid reinsurance premiums 3,721 1,070  Premiums receivable, net 926 1,584  Deferred acquisition costs 1,296 1,539  Other assets 2,699 635  Total assets $ 59,072 $ 49,200   LIABILITIES  Loss and loss adjustment expense reserves $ 12,969 $ 1,659  Unearned premiums 7,135 8,406  Reinsurance payable 3,868 863  Debt 4,925 4,909  Other liabilities 3,250 1,026  Total liabilities $ 32,147 $ 16,863 

ORGANIZATION, CONSOLIDATION A30

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 17, 2015
Premiums Written, Net [Member] | Homeowners' Insurance Product Line [Member] | Customer Concentration Risk [Member] | ISA [Member]
Concentration risk, percentage	25.50%	24.70%	24.50%	23.90%
Premiums Written, Net [Member] | Homeowners' Insurance Product Line [Member] | Customer Concentration Risk [Member] | SageSure [Member]
Concentration risk, percentage	10.70%	7.30%	9.70%	6.60%
Monarch Delaware Holdings LLC [Member]
Capital contribution for voting interests	$ 14		$ 14
Percentage of ownership interest	42.40%		42.40%
Percentage of voting interest held	50.00%		50.00%
Long-term debt					$ 5
Interest rate percentage					6.00%
Transatlantic Reinsurance Company [Member] | Monarch Delaware Holdings LLC [Member]
Percentage of ownership interest	15.20%		15.20%
Capital contribution for non-voting interests	$ 5		$ 5
Interest rate percentage	6.00%		6.00%
Transatlantic Reinsurance Company [Member] | Monarch Delaware Holdings LLC [Member] | Senior Debt [Member]
Long-term debt	$ 5		$ 5
Maturity period of debt			6 years

SIGNIFICANT ACCOUNTING POLICI31

SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Significant Accounting Policies And Practices [Line Items]
Increase in loss and loss adjustment expenses			$ 303,065	$ 30,146
Decrease in deferred policy acquisistion costs			1,481	25,699
Pre-tax of excess tax deficiencies	$ (4,223)	$ 102	350	6,594
Accounting Standards Update 2016-09 [Member]
Significant Accounting Policies And Practices [Line Items]
Pre-tax of excess tax deficiencies	$ 200		400
Decrease in cash provided by operating activities			$ (200)
Increase in weighted average number of diluted common shares outstanding	9,334		14,102
Reclassifications Representing Corrections of Immaterial Errors [Member]
Significant Accounting Policies And Practices [Line Items]
Decrease in other income		(2,300)		(8,100)
Increase in loss and loss adjustment expenses		2,400		6,000	$ 400
Decrease in commissions and other underwriting expenses		$ (4,600)		$ (14,200)
Decrease in deferred policy acquisistion costs					(1,500)
Decrease in other liabilities					$ (1,900)
Increase in net loss ratio		3.40%		3.30%
Decrease in net expense ratio		(6.70%)		(7.70%)
Decrease in combined ratio		(3.30%)		(4.40%)

FAIR VALUE (Narrative) (Details

FAIR VALUE (Narrative) (Details) - US Government Obligations and Authorities, Corporate and International Securities [Member] - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Level 1 [Member]
Held-to-maturity, Fair Value	$ 3.9	$ 3.9
Level 2 [Member]
Held-to-maturity, Fair Value	$ 1.4	$ 1.6

FAIR VALUE (Financial Instrumen

FAIR VALUE (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	$ 422,359	$ 374,756
Equity securities, available-for-sale	15,575	29,375
Total investments	437,934	404,131
United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	116,210	62,205
Total investments	116,210	62,205
Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	72,999	151,183
Total investments	72,999	151,183
Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	219,401	149,505
Total investments	219,401	149,505
International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	13,749	11,863
Total investments	13,749	11,863
Level 1 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	71,956	36,560
Equity securities, available-for-sale	15,575	28,960
Total investments	87,531	65,520
Level 1 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	69,855	36,560
Level 1 [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	1,632
Level 1 [Member] | Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	469
Level 2 [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	350,403	338,196
Equity securities, available-for-sale		415
Total investments	350,403	338,611
Level 2 [Member] | United States Government Obligations and Authorities [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	46,355	25,645
Level 2 [Member] | Obligations of States and Political Subdivisions [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	71,367	151,183
Level 2 [Member] | Corporate [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	218,932	149,505
Level 2 [Member] | International [Member]
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	$ 13,749	$ 11,863

INVESTMENTS (Narrative) (Detail

INVESTMENTS (Narrative) (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)security	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)security	Sep. 30, 2016USD ($)	Dec. 31, 2016security
INVESTMENTS [Abstract]
Debt and equity securities held in an unrealized loss position | security	614		614		1,132
Debt securities and equity securities held in an unrealized loss position 12 months or more | security	25		25		36
OTTI losses identified in investments | $	$ 0	$ 0	$ 0	$ 0
Fair value of investments deposited with governmental authorities required by law | $	$ 12.9		$ 12.9

INVESTMENTS (Summary of Amortiz

INVESTMENTS (Summary of Amortized Cost and Fair Value of Debt and Equity Securities) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Available-for-sale securities, Fair Value	$ 437,934	$ 404,131
Held-to-maturity securities, Amortized Cost or Cost	5,410	5,551
Total investments, Amortized Cost or Cost	439,184	406,358
Total investments, Gross Unrealized Gain	5,662	7,588
Total investments, Gross Unrealized Loss	1,546	4,342
Total investments, Fair Value	443,300	409,604
Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	419,243	376,644
Available-for-sale securities, Gross Unrealized Gain	4,303	2,046
Available-for-sale securities, Gross Unrealized Losses	1,187	3,934
Available-for-sale securities, Fair Value	422,359	374,756
Held-to-maturity securities, Amortized Cost or Cost	5,410	5,551
Held-to-maturity securities, Gross Unrealized Gains	47	42
Held-to-maturity securities, Gross Unrealized Losses	91	120
Held-to-maturity securities, Fair Value	5,366	5,473
United States Government Obligations and Authorities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	116,390	62,881
Available-for-sale securities, Gross Unrealized Gain	421	177
Available-for-sale securities, Gross Unrealized Losses	601	853
Available-for-sale securities, Fair Value	116,210	62,205
Held-to-maturity securities, Amortized Cost or Cost	4,156	4,163
Held-to-maturity securities, Gross Unrealized Gains	18	22
Held-to-maturity securities, Gross Unrealized Losses	91	118
Held-to-maturity securities, Fair Value	4,083	4,067
Obligations of States and Political Subdivisions [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	72,372	152,823
Available-for-sale securities, Gross Unrealized Gain	792	427
Available-for-sale securities, Gross Unrealized Losses	165	2,067
Available-for-sale securities, Fair Value	72,999	151,183
Corporate [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	216,923	149,053
Available-for-sale securities, Gross Unrealized Gain	2,897	1,347
Available-for-sale securities, Gross Unrealized Losses	419	895
Available-for-sale securities, Fair Value	219,401	149,505
Held-to-maturity securities, Amortized Cost or Cost	1,189	1,317
Held-to-maturity securities, Gross Unrealized Gains	28	20
Held-to-maturity securities, Gross Unrealized Losses		2
Held-to-maturity securities, Fair Value	1,217	1,335
International [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	13,558	11,887
Available-for-sale securities, Gross Unrealized Gain	193	95
Available-for-sale securities, Gross Unrealized Losses	2	119
Available-for-sale securities, Fair Value	13,749	11,863
Held-to-maturity securities, Amortized Cost or Cost	65	71
Held-to-maturity securities, Gross Unrealized Gains	1
Held-to-maturity securities, Fair Value	66	71
Equity Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost or Cost	14,531	24,163
Available-for-sale securities, Gross Unrealized Gain	1,312	5,500
Available-for-sale securities, Gross Unrealized Losses	268	288
Available-for-sale securities, Fair Value	$ 15,575	$ 29,375

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Gross realized gains and losses [Abstract]
Total gross realized gains	$ 7,145	$ 1,494	$ 11,247	$ 4,574
Total gross realized losses	(1,044)	(368)	(2,603)	(2,514)
Net realized gains on investments	6,101	1,126	8,644	2,060
Debt Securities [Member]
Gross realized gains and losses [Abstract]
Total gross realized gains	618	897	1,471	2,822
Total gross realized losses	(103)	(20)	(1,293)	(614)
Equity Securities [Member]
Gross realized gains and losses [Abstract]
Total gross realized gains	6,527	597	9,776	1,752
Total gross realized losses	$ (941)	$ (348)	$ (1,310)	$ (1,900)

INVESTMENTS (Amortized Cost and

INVESTMENTS (Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity) (Details) $ in Thousands	Sep. 30, 2017USD ($)
Available-for-sale Securities, Debt maturities, Amortized cost:
One year or less	$ 37,940
Over one through five years	196,630
Over five through ten years	182,560
Over ten years	2,113
Amortized cost	419,243
Available-for-sale Securities, Debt maturities, Fair value:
One year or less	37,968
Over one through five years	198,180
Over five through ten years	184,199
Over ten years	2,012
Fair value	422,359
Held-to-maturity Securities, Debt maturities, Amortized cost [Abstract]
One year or less	170
Over one through five years	4,114
Over five through ten years	1,126
Amortized cost	5,410
Held-to-maturity Securities, Debt Maturities, Fair value:
One year or less	170
Over one through five years	4,065
Over five through ten years	1,131
Fair value	5,366
Total Investments [Abstract]
Amortized cost	424,653
Fair value	$ 427,725

INVESTMENTS (Summary of Net Inv

INVESTMENTS (Summary of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net investment income [Abstract]
Interest income	$ 2,492	$ 1,963	$ 7,073	$ 5,801
Dividends income	111	201	408	597
Net investment income	$ 2,603	$ 2,164	$ 7,481	$ 6,398

INVESTMENTS (Gross Unrealized L

INVESTMENTS (Gross Unrealized Losses and Related Fair Values for Debt and Equity Securities, Grouped by Duration of Time in Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair value [Abstract]
Less than 12 months	$ 147,077	$ 219,575
12 months or longer	12,999	3,984
Total fair value	160,076	223,559
Gross unrealized losses [Abstract]
Less than 12 months	1,271	4,152
12 months or longer	184	70
Total gross unrealized losses	1,455	4,222
Debt Securities [Member]
Fair value [Abstract]
Less than 12 months	143,599	214,874
12 months or longer	12,757	3,550
Total fair value	156,356	218,424
Gross unrealized losses [Abstract]
Less than 12 months	1,004	3,899
12 months or longer	183	35
Total gross unrealized losses	1,187	3,934
United States Government Obligations and Authorities [Member]
Fair value [Abstract]
Less than 12 months	67,924	45,255
12 months or longer	5,820	111
Total fair value	73,744	45,366
Gross unrealized losses [Abstract]
Less than 12 months	527	850
12 months or longer	74	3
Total gross unrealized losses	601	853
Obligations of States and Political Subdivisions [Member]
Fair value [Abstract]
Less than 12 months	15,454	103,724
12 months or longer	2,966	1,007
Total fair value	18,420	104,731
Gross unrealized losses [Abstract]
Less than 12 months	135	2,066
12 months or longer	30	1
Total gross unrealized losses	165	2,067
Corporate [Member]
Fair value [Abstract]
Less than 12 months	58,838	59,970
12 months or longer	3,971	2,427
Total fair value	62,809	62,397
Gross unrealized losses [Abstract]
Less than 12 months	340	864
12 months or longer	79	31
Total gross unrealized losses	419	895
International [Member]
Fair value [Abstract]
Less than 12 months	1,383	5,925
12 months or longer		5
Total fair value	1,383	5,930
Gross unrealized losses [Abstract]
Less than 12 months	2	119
Total gross unrealized losses	2	119
Equity Securities [Member]
Fair value [Abstract]
Less than 12 months	3,478	4,701
12 months or longer	242	434
Total fair value	3,720	5,135
Gross unrealized losses [Abstract]
Less than 12 months	267	253
12 months or longer	1	35
Total gross unrealized losses	$ 268	$ 288

REINSURANCE (Narrative) (Detail

REINSURANCE (Narrative) (Details) $ in Thousands	Jul. 01, 2017USD ($)	Jul. 31, 2017	Jul. 31, 2016	Sep. 30, 2017USD ($)itemagreement	Dec. 31, 2016USD ($)	Jul. 01, 2016
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				$ 126,479	$ 79,154
Reinsurance recoverable, net				338,015	48,530
Hurricane Irma [Member]
Liability for Catastrophe Claims [Line Items]
Reinsurance recoverable, net				$ 288,600
Number of reinsurers | item				2
Hurricane Irma [Member] | Reinsurance Recoverable [Member] | Reinsurer Concentration Risk [Member] | Reinsurer One [Member]
Liability for Catastrophe Claims [Line Items]
Concentration risk, percentage				11.00%
Hurricane Irma [Member] | Reinsurance Recoverable [Member] | Reinsurer Concentration Risk [Member] | Reinsurer Two [Member]
Liability for Catastrophe Claims [Line Items]
Concentration risk, percentage				19.00%
FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				$ 179,500
FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				176,900
MNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				$ 5,040
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
Percentage of property quota share reinsurance treaty				75.00%
FNIC Non-Florida Reinsurance Program [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				$ 1,900
FNIC Non-Florida Reinsurance Program [Member] | First Event Coverage [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				5,000
Reinsurance retention amount				13,000
Reinsurance amount retained on net basis with profit share agreement				6,500
FNIC Non-Florida Reinsurance Program [Member] | Second Event Coverage [Member]
Liability for Catastrophe Claims [Line Items]
Reinsurance retention amount				2,000
Reinsurance amount retained on net basis with profit share agreement				1,000
FNIC Non-Florida Reinsurance Program [Member] | Maximum [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				21,000
FNIC Non-Florida Reinsurance Program [Member] | Maximum [Member] | Second Event Coverage [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount				16,000
Federated National's Florida Exposure [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				125,600
Federated National's Florida Exposure [Member] | FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				125,100
Federated National's Florida Exposure [Member] | Private Market Excess of Loss Treaties [Member]
Liability for Catastrophe Claims [Line Items]
Amount of private market excess of loss treaties	$ 25,100
Florida And Non-Florida Exposures [Member] | Private Market Excess of Loss Treaties [Member] | New Multiple Year Protection This Year [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount	89,000
Florida And Non-Florida Exposures [Member] | Private Market Excess of Loss Treaties [Member] | Renewing Multiple Year Protection From Last Year [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount	156,000
MNIC's Florida [Member]
Liability for Catastrophe Claims [Line Items]
Trust agreement for loss exposure				300	300
MNIC's Florida [Member] | MNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				3,230
MNIC's Florida [Member] | Private Market Excess of Loss Treaties [Member]
Liability for Catastrophe Claims [Line Items]
Additional coverage amount	$ 3,400
FHCF [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				$ 53,900
Percentage of property quota share reinsurance treaty				75.00%
FHCF [Member] | FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				$ 49,900
Percentage of property quota share reinsurance treaty				75.00%
FHCF [Member] | MNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Amount payable under reinsurance program				$ 1,810
FNIC [Member]
Liability for Catastrophe Claims [Line Items]
Trust agreement for loss exposure				2,600	$ 2,600
FNIC [Member] | FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Pre-tax retention amount for catastrophic event				18,000
FNIC [Member] | Quota Share Treaties [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share expired on cut off basis	10.00%
Percentage of unearned premiums and losses retained	10.00%
FNIC [Member] | Quota Share Treaties [Member] | Florida Homeowners Book of Business [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty	10.00%
FNIC [Member] | Private Market Excess of Loss Treaties [Member] | Minimum [Member]
Liability for Catastrophe Claims [Line Items]
Payment made to purchase an underlying limit of protection	$ 7,100
Reinsurance prepaid automatic reinstatement protection amount acquired	$ 18,000
Private and FHCF Reinsurance [Member] | FNIC's 2016-2017 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic losses coverage amount				2,230,000
Maximum single event coverage				1,590,000
Private and FHCF Reinsurance [Member] | FNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic losses coverage amount				2,140,000
Maximum single event coverage				1,500,000
Private and FHCF Reinsurance [Member] | MNIC's 2017-2018 Reinsurance Programs [Member]
Liability for Catastrophe Claims [Line Items]
Aggregate catastrophic losses coverage amount				105,790
Maximum single event coverage				$ 64,860
Percentage of property quota share reinsurance treaty				75.00%
Florida [Member] | Quota Share Treaties [Member] | Property Insurance Product Line [Member]
Liability for Catastrophe Claims [Line Items]
Percentage of property quota share reinsurance treaty		10.00%	30.00%
Florida [Member] | Quota Share One [Member] | Property Insurance Product Line [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%
Florida [Member] | FHCF [Member] | MNIC’s 2016-2017 Catastrophe Reinsurance Program [Member]
Liability for Catastrophe Claims [Line Items]
Private market term for loss treaties				13 months
Additional coverage amount				$ 3,400
Florida [Member] | FNIC [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] | FNIC [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] | FNIC [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%
Louisiana, Texas, 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, Texas, 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

REINSURANCE (Reinsurance Recove

REINSURANCE (Reinsurance Recoverables) (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
REINSURANCE [Abstract]
Reinsurance recoverable on paid losses		$ 11,973	$ 7,451
Reinsurance recoverable on unpaid losses	[1]	326,042	41,079	$ 17,057	$ 7,496
Reinsurance recoverable, net		$ 338,015	$ 48,530
[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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Premiums written [Abstract]
Direct	$ 154,782	$ 161,137	$ 469,525	$ 468,379
Ceded	(148,623)	(96,327)	(254,911)	(259,307)
Net premiums written	6,159	64,810	214,614	209,072
Premiums earned [Abstract]
Direct	152,779	147,624	451,320	413,056
Ceded	(74,116)	(78,219)	(211,005)	(228,609)
Net premiums earned	$ 78,663	$ 69,405	$ 240,315	$ 184,447

LOSS AND LOSS ADJUSTMENT EXPE43

LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) RESERVES (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Claim and claim adjustment expenses incurred related to prior year			$ 3,358	$ 10,946
Claim and claim adjustment expenses incurred related to current year			178,299	115,270
Loss and loss adjustment expense reserves			303,065	30,146
Homeowners’ Line of Business [Member] | Florida [Member]
Loss and loss adjustment expense reserves			3,400
Quota Share Treaties [Member] | Property Insurance Product Line [Member] | Florida [Member]
Percentage of quota share reinsurance treaty	10.00%	30.00%
Claim and claim adjustment expenses incurred related to prior year			3,400	10,900
Claim and claim adjustment expenses incurred related to current year			$ 11,400	$ 15,400
Quota Share Treaties [Member] | Private Passenger Automobile Insurance Product Line [Member]
Percentage of quota share reinsurance treaty			75.00%

LOSS AND LOSS ADJUSTMENT EXPE44

LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) RESERVES (Activity in Liability for Loss and LAE Reserves) (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016
LOSS AND LOSS ADJUSTMENT EXPENSE (“LAE”) RESERVES [Abstract]
Gross reserves, beginning of period		$ 158,476	$ 97,340
Less: reinsurance recoverable	[1]	(41,079)	(7,496)
Net reserves, beginning of period		117,397	89,844
Incurred loss, net of reinsurance, related to:
Current year		178,299	115,270
Prior years		3,358	10,946
Total incurred loss and LAE, net of reinsurance		181,657	126,216
Paid loss, net of reinsurance, related to:
Current year		106,233	46,073
Prior years		57,322	53,526
Total paid loss and LAE, net of reinsurance		163,555	99,599
Net reserves, end of period		135,499	110,428
Plus: reinsurance recoverable	[1]	326,042	17,057
Gross reserves, end of period		$ 461,541	$ 127,485
[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, 2017	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 (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Pre-tax of excess tax deficiencies	$ (4,223)	$ 102	$ 350	$ 6,594
Uncertain tax positions	0		0		$ 0
Accounting Standards Update 2016-09 [Member]
Pre-tax of excess tax deficiencies	$ 200		$ 400

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Federal:
Current	$ (4,594)	$ (10,433)	$ (3,547)	$ (2,275)
Deferred	1,176	10,709	4,084	8,222
Federal income tax expense	(3,418)	276	537	5,947
State:
Current	(590)	(1,960)	(440)	(613)
Deferred	(215)	1,786	253	1,260
State income tax expense	(805)	(174)	(187)	647
Total income tax expense	$ (4,223)	$ 102	$ 350	$ 6,594

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
INCOME TAXES [Abstract]
Computed expected tax expense provision, at federal rate	$ (3,993)	$ 552	$ 334	$ 6,604
State tax, net of federal tax benefit	(321)	(148)	55	396
Other	91	(302)	(39)	(406)
Total income tax expense	$ (4,223)	$ 102	$ 350	$ 6,594

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017	Nov. 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)	578,853
Common stock repurchased during period, total cost	$ 9,404
Common stock repurchased during period, average price (in dollars per share)	$ 16.24
Remaining amount available for future repurchases of common stock	$ 2,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	106,454	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]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock repurchases, authorized amount				$ 10,000
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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 866	$ 525	$ 2,279	$ 3,158
Intrinsic value of options exercised	30	125	36	137
Fair value of restricted stock vested	686	1,069	2,191	3,961
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 866	$ 525	$ 2,279	$ 3,158

SHAREHOLDERS' EQUITY (Summary o

SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Number of Shares
Outstanding, beginning of period (in shares) | shares	79,484
Exercised (in shares) | shares	(28,500)
Outstanding, end of period (in shares) | shares	50,984
Weighted Average Option Exercise Price
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 3.70
Exercised (in dollars per share) | $ / shares	3.70
Outstanding, end of period (in dollars per share) | $ / shares	$ 3.70

SHAREHOLDERS' EQUITY (Summary52

SHAREHOLDERS' EQUITY (Summary of Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Restricted Shares, Number of Shares [Roll Forward]
Outstanding, beginning of period (in shares)	337,203
Granted (in shares)	106,454	128,472
Vested (in shares)	(130,514)
Cancelled (in shares)	(4,860)
Outstanding, end of period (in shares)	308,283
Restricted Shares, Weighted Average Option Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 19.69
Granted (in dollars per share)	17.95
Vested (in dollars per share)	16.79
Cancelled (in dollars per share)	19.79
Outstanding, end of period (in dollars per share)	$ 20.31

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Before Tax [Roll Forward]
Comprehensive (loss) income before income taxes	$ (11,273)	$ 664	$ 1,440	$ 20,475
Income Tax [Roll Forward]
Other comprehensive income after reclassifications	1,643	152	(322)	(3,197)
Net [Roll Forward]
Accumulated other comprehensive income, beginning of period			1,941
Accumulated other comprehensive income, end of period	2,713		2,713
Accumulated Other Comprehensive Income [Member]
Before Tax [Roll Forward]
Accumulated other comprehensive income, beginning of period	8,247	15,201	3,323	6,111
Other comprehensive income before reclassifications	2,013	690	9,480	11,296
Reclassification adjustment for realized (gains) losses included in net income	(6,101)	(1,464)	(8,644)	(2,980)
Comprehensive (loss) income before income taxes	(4,088)	(774)	836	8,316
Accumulated other comprehensive income, end of period	4,159	14,427	4,159	14,427
Income Tax [Roll Forward]
Accumulated other comprehensive income, beginning of period	(3,164)	(5,596)	(1,199)	(2,247)
Other comprehensive income before reclassifications	(710)	(186)	(3,656)	(4,117)
Reclassification adjustment for realized (gains) losses included in net income	2,353	338	3,334	920
Other comprehensive income after reclassifications	1,643	152	(322)	(3,197)
Accumulated other comprehensive income, end of period	(1,521)	(5,444)	(1,521)	(5,444)
Net [Roll Forward]
Accumulated other comprehensive income, beginning of period	5,083	9,605	2,124	3,864
Other comprehensive income before reclassifications	1,303	504	5,824	7,179
Reclassification adjustment for realized (gains) losses included in net income	(3,748)	(1,126)	(5,310)	(2,060)
Other comprehensive income after reclassifications	(2,445)	(622)	514	5,119
Accumulated other comprehensive income, end of period	$ 2,638	$ 8,983	$ 2,638	$ 8,983

EARNINGS PER SHARE (Narrative)

EARNINGS PER SHARE (Narrative) (Details) - shares shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
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	0.1	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	0.1	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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
EARNINGS PER SHARE [Abstract]
Net (loss) income attributable to Federated National Holding Company shareholders	$ (5,511)	$ 1,394	$ 2,579	$ 11,920
Weighted average number of common shares outstanding - basic (in shares)	13,135,000	13,780,000	13,211,000	13,807,000
Net (loss) income per share - basic (in dollars per share)	$ (0.42)	$ 0.10	$ 0.20	$ 0.86
Dilutive effect of stock compensation plans (in shares)		163,000	91,000	192,000
Weighted average number of common shares outstanding - diluted (in shares)	13,135,000	13,943,000	13,302,000	13,999,000
Net (loss) income per share - diluted (in dollars per share)	$ (0.42)	$ 0.10	$ 0.19	$ 0.85
Dividends per share	$ 0.08	$ 0.08	$ 0.24	$ 0.17

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, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Dividends Payable [Line Items]
Dividends declared per share (in dollars per share)				$ 0.08	$ 0.08	$ 0.24	$ 0.17
Quarter One Dividends [Member]
Dividends Payable [Line Items]
Dividends declared date	2017-03			2017-03		2017-03
Dividends declared per share (in dollars per share)			$ 0.08
Dividends paid		$ 1.1
Dividend paid date	2017-06			2017-06		2017-06
Dividends record date						May 1, 2017
Quarter Two Dividends [Member]
Dividends Payable [Line Items]
Dividends declared date	2017-06			2017-06		2017-06
Dividends declared per share (in dollars per share)		$ 0.08
Dividends paid	$ 1.1
Dividend paid date	2017-09			2017-09		2017-09
Dividends record date						Aug. 1, 2017
Quarter Three Dividends [Member]
Dividends Payable [Line Items]
Dividends declared date	2017-09			2017-09		2017-09
Dividends declared per share (in dollars per share)						$ 0.08
Dividends payable date						Dec. 1, 2017
Dividends record date						Nov. 1, 2017

VARIABLE INTEREST ENTITY (Carry

VARIABLE INTEREST ENTITY (Carrying Amount of VIE Consolidated Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Investments
Debt securities, available-for-sale, at fair value	$ 422,359	$ 374,756
Equity securities, available-for-sale, at fair value	15,575	29,375
Total investments	443,344	409,682
Cash and cash equivalents	81,535	74,593	$ 106,200	$ 53,038
Reinsurance recoverable	338,015	48,530
Prepaid reinsurance premiums	189,957	156,932
Premiums receivable, net	55,145	54,854
Deferred acquisition costs	38,958	37,477
Other asset	9,607	11,509
TOTAL ASSETS	1,181,470	811,642
LIABILITIES
Loss and loss adjustment expense reserves	461,541	158,476	$ 127,485	$ 97,340
Unearned premiums	312,227	294,022
Reinsurance Payable	126,479	79,154
Debt	4,925	4,909
Other liabilities	38,766	35,792
Total liabilities	952,707	573,786
Monarch Delaware - Variable Interest Entity [Member]
Investments
Debt securities, available-for-sale, at fair value	28,319	27,100
Equity securities, available-for-sale, at fair value	1,559	1,604
Total investments	29,878	28,704
Cash and cash equivalents	13,952	15,668
Reinsurance recoverable	6,600
Prepaid reinsurance premiums	3,721	1,070
Premiums receivable, net	926	1,584
Deferred acquisition costs	1,296	1,539
Other asset	2,699	635
TOTAL ASSETS	59,072	49,200
LIABILITIES
Loss and loss adjustment expense reserves	12,969	1,659
Unearned premiums	7,135	8,406
Reinsurance Payable	3,868	863
Debt	4,925	4,909
Other liabilities	3,250	1,026
Total liabilities	$ 32,147	$ 16,863