SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2014

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

(22) SUBSEQUENT EVENTS

On March 10, 2015, a total of 66,140 restricted shares from the 2012 Plan were granted pursuant to the vesting requirements and other terms and conditions set forth in Restricted Stock Agreements.  Of the total, 32,997 shares were granted to the Company's Chief Executive Officer and President and 9,551 shares were granted to the Company's Chief Financial Officer.  An aggregate of 6,252 shares were granted to the Company's directors and the remaining 17,340 shares were granted to other employees of the Company.

On March 4, 2015, FNHC announced that Bruce F. Simberg, Chairman and a member of the Company’s Board of Directors, has resigned for personal reasons. Michael H. Braun, the Company’s Chief Executive Officer, President, and a member of the Board, will serve as interim Chairman of the Board.

On February 17, 2015, Federated National entered into a Reimbursement Contract with the SBA for the 2015-2016 hurricane season.  This Reimbursement Contract is part of the Company’s reinsurance program and will reimburse Federated National for covered property losses under its homeowners’ insurance policies resulting from hurricanes that cause damage in the State of Florida through May 31, 2016.

Under this Contract, the FHCF will provide about $591.4 million of aggregate seasonal coverage for covered losses in excess of approximately $222.6 million subject to a 10% Company participation. Federated National’s premium for the FHCF reinsurance coverage will be approximately $40.2 million payable in three installments between August 2015 and December 2015.  The actual attachment point, total coverage and cost may vary significantly as we continue to write new business and will not be finalized until December 31, 2015.