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CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands
12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Cash flow from operating activities:      
Net income $ 5,342 $ 1,261 $ 38,856
Adjustments to reconcile net income to net cash provided by      
Net realized investment gains (8,548) (3,045) (3,616)
Amortization of investment premium or discount, net 3,909 5,346 5,645
Depreciation and amortization 1,166 869 624
Share-based compensation 2,846 4,420 4,527
Tax impact related to share-based compensation (193) 0 0
Changes in operating assets and liabilities:      
Prepaid reinsurance premiums 21,440 24,908 (84,875)
Premiums receivable, net 8,461 (16,260) (11,319)
Reinsurance recoverable, net (76,738) (35,149) 2,709
Deferred acquisition costs 999 (24,226) (3,748)
Income taxes receivable, net 4,361 (11,769) (2,445)
Deferred revenue (612) 1,074 2,220
Loss and loss adjustment expense reserves 72,405 60,404 19,119
Unearned premiums 401 40,062 61,535
Reinsurance payable (7,210) 18,085 18,606
Deferred income taxes, net of other comprehensive income 235 (4,716) 6,077
Other, net (15,158) 8,486 (1,024)
Net cash provided by operating activities 13,106 69,750 52,891
Cash flow from investing activities:      
Proceeds from sales of debt securities 249,584 198,676 140,101
Proceeds from sales of equity securities 57,125 30,621 17,118
Maturities and redemptions of debt securities 38,038 81,812 12,760
Purchases of debt securities (339,667) (325,397) (213,799)
Purchases of equity securities (35,811) (16,716) (18,085)
Purchases of property and equipment (976) (2,147) (1,736)
Net cash used in investing activities (31,707) (33,151) (63,641)
Cash flow from financing activities:      
Proceeds from issuance of long-term debt 45,000 0 5,000
Non-controlling interest equity investment 0 0 18,743
Purchases of Federated National Holding Company common stock (10,616) (11,317) 0
Issuance of common stock for share-based awards 103 361 171
Tax impact related to share-based compensation 0 589 1,564
Dividends paid (4,251) (4,677) (1,847)
Net cash provided by (used in) financing activities 30,236 (15,044) 23,631
Net increase in cash and cash equivalents 11,635 21,555 12,881
Cash and cash equivalents at beginning of period 74,593 53,038 40,157
Cash and cash equivalents at end of period 86,228 74,593 53,038
Cash paid during the period for:      
Income Taxes Paid (354) 14,360 15,662
Non-cash investing and financing activities:      
Accrued dividends payable $ 1,055 $ 1,115 $ 712