SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2012

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

 (22) SUBSEQUENT EVENTS

 On March 4, 2013, a total of 100,000 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, 25,000 shares were granted to the Company's Chief Executive Officer and President and 15,000 shares were granted to the Company's Chief Financial Officer. An aggregate of 20,000 shares were granted to the Company's directors and the remaining 40,000 shares were granted to other employees of the Company.

 

On February 15, 2013, Federated National entered into a Reimbursement Contract and Addendum No. 1 thereto (together, the "Reimbursement Contract") with the SBA for the 2013-2014 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, 2014.

Under this Reimbursement Contract, the FHCF will provide approximately $167.3 million of aggregate seasonal coverage for covered losses in excess of approximately $62.8 million, subject to a 10.0% Company participation. Federated National's premium for the FHCF reinsurance coverage will be approximately $11.2 million payable in three installments between August 2013 and December 2013. The actual attachment point, total coverage and cost will not be finalized until December 31, 2013.