* May 2014 NASDAQ: FNHC

NASDAQ: FNHC SAFE HARBOR STATEMENT Safe harbor statement under the Private Securities Litigation Reform Act of 1995:Statements that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,” “might,” “plan,” “possibly,” “potential,” “predict,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” or “will” or the negative thereof or other variations thereon and similar words or phrases or comparable terminology are intended to identify forward-looking statements.Forward-looking statements might also include, but are not limited to, one or more of the following:Projections of revenues, income, earnings per share, dividends, capital structure or other financial items or measures;Descriptions of plans or objectives of management for future operations, insurance products, or services; Forecasts of future insurable events, economic performance, liquidity, need for funding and income; andDescriptions of assumptions or estimates underlying or relating to any of the foregoing.The risks and uncertainties include, without limitation, risks and uncertainties related to estimates, assumptions and projections generally; the nature of the Company’s business; the adequacy of its reserves for loss and loss adjustment expense; claims experience; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail) and other catastrophic losses; reinsurance costs and the ability of reinsurers to indemnify the Company; raising additional capital and our potential failure to meet minimum capital and surplus requirements; potential assessments that support property and casualty insurance pools and associations; the effectiveness of internal financial controls; the effectiveness of our underwriting, pricing and related loss limitation methods; changes in loss trends; court decisions and trends in litigation; our potential failure to pay claims accurately; ability to obtain regulatory approval applications for requested rate increases or to underwrite in additional jurisdictions, and the timing thereof; inflation and other changes in economic conditions (including changes in interest rates and financial markets); pricing competition and other initiatives by competitors; legislative and regulatory developments; the outcome of litigation pending against the Company, and any settlement thereof; dependence on investment income and the composition of the Company’s investment portfolio; insurance agents; ratings by industry services; the reliability of our information technology systems; reliance on key personnel; acts of war and terrorist activities; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission.In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including claims and litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a contingency. Reported results may therefore appear to be volatile in certain accounting periods.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We do not undertake any obligation to update publicly or revise any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. *

NASDAQ: FNHC 3-Year Stock Price Performance Headquarters: Sunrise, FloridaTicker: FNHC (NASDAQ-GM)Common Stock Offering: $30 million (Priced at $10.75 on 11/20/2013)Company Overview (As of 5/5/2014):Market Cap: $224.8 MillionStock Price: $20.46Common Shares Out: 11.0 MillionAnnual Dividend (LTM): $0.12“A” rating by Demotech since 1998Ownership / Valuation:Institutional / Insider Holdings: 40.3% / 9.3%P / Book of 1.9x and P / 2014 EPS of 13.2xFinancial Highlights (LTM): Direct Premiums Written (“DPW”): $279.1MNet Premiums Earned (“NPE”): $130.1MDiluted EPS: $1.90GAAP Equity (3/31/2014): $117.6M FEDERATED NATIONAL - KEY STATS * Source: Company Filings; SNL FinancialNote: Based on GAAP financial information LTM data as of March 31, 2014, Pricing as of May 5, 2014 $20.46

NASDAQ: FNHC COMPANY PHILOSOPHY * CustomersProvide best in class customer service for our policyholders, agents, reinsurance partners and business partners while creating long-term shareholder valueCorporateBe a well-regarded employer that is mindful of the well-being of our employees and allow them to develop in an impartial, challenging, rewarding and cooperative environmentFinancialGenerate sustainable annual growth and long-term value for our shareholders by expanding market share, increasing sales and improving product mix, optimizing the investment portfolio on a risk-adjusted basis and improving scale

NASDAQ: FNHC WHO WE ARE Federated National Holding Company, also known as FedNat, is a holding company that controls substantially all aspects of insurance underwriting, distribution and claims processes through:Federated National Insurance Company (“FNIC”): Florida domiciled insurance carrierFederated National Underwriters (“FNU”): managing general agentFederated National Adjusting (“FNA”): internal claims adjusting company Insure-Link: direct-to-consumer independent insurance agency Underwrite multi-peril homeowners’, commercial general liability, 100% ceded federal flood, personal non-standard auto and sell various other lines of insurance products Admitted carrier in FL, AL, GA, LA and TX, and a non-admitted carrier in AR, MO, NV and SCNetwork of approximately 3,500 independent agents, of which approximately 2,000 actively sell and service our productsHave a marketing arrangement with an affiliate of Allstate whose agents market our homeowners’ and commercial general liability policies in FloridaFocused on further diversifying geographic exposure in Florida and expanding selectively into other states in the Southeast region * Our Structure What We Insure Where We Insure Our Strategy

NASDAQ: FNHC EXCEPTIONAL MARKET OPPORTUNITY The Florida homeowners’ insurance market is large, highly fragmented and dominated by Citizens and small domestic carriers Under pressure to reduce its risk exposure, Citizens accelerated efforts to divest hundreds of thousands of homeowners’ policies in 2013, but accounted for approximately 17% of the market as of December 31, 2013Citizens’ contraction and SB 1770 creates opportunity for private carriers to write additional homeowners’ policiesNo CATs since 2005, contained sink hole exposure, shrinking Citizens, an improved rate environment and lower reinsurance costs offers an exceptional market opportunityFederated National joined the Property Insurance Clearinghouse in the 1st Quarter of 2014For the three months ended December 31, 2013, Federated National ranked 3rd based on the number of new personal residential homeowners’ policies written (1)With only approximately 2.2% (1) of the Florida market share, Federated National has an opportunity for significant growth * Note: Includes personal residential and excludes commercial residential business Top Personal Residential Homeowners’ Insurers in Florida (1)As of December 31, 2013 Source: Florida Office of Insurance Regulation

NASDAQ: FNHC DPW by Line of BusinessLast Twelve Months PREMIUM COMPOSITION * DPW in thousands. Last twelve months data as of March 31, 2014Admitted carrier in FL, AL, GA, LA and TX, and a non-admitted carrier in AR, MO, NV and SC Note: Based on GAAP financial information; March 31, 2014 financials reflect unaudited information DPW by Geography (2)March 31, 2014 Total LTM DPW: $279,143 (1) Primarily focused on homeowners’ insurance in Florida, but have product initiatives in Alabama, Georgia, Louisiana, South Carolina and TexasLicensed and prudently looking for growth opportunities in other states 96.3% 2.6% 1.2% 0.0% 0.0% TX LA AL GA FL

NASDAQ: FNHC HOMEOWNERS’ POLICY GROWTH * Policy In-Force Count Premium In-Force Y/Y Growth of 117.9% Y/Y Growth of 100.3% Note: Based on GAAP financial information

NASDAQ: FNHC We have diversified our risk concentration by increasing our policy count outside the Tri-County (Miami-Dade, Broward, Palm Beach counties) area from 54% at 12/31/2010 to 82% at 3/31/2014 FLORIDA GEOGRAPHIC DIVERSIFICATION * Florida HO Policy CompositionMarch 31, 2014 Total Policies: 134,100 Total Policies: 43,132 Florida Regions Florida HO Policy CompositionDecember 31, 2010

NASDAQ: FNHC UNDERWRITING PROCESS * Utilize point of sale software which ensures rate adequacyDelivers instantaneous risk analytics and quoting and binding capabilitiesProvides agents with access to numerous key data points essential to assessing risk factors Reduced geographic concentration in the Tri-County area and expanded in other counties in FloridaGreater diversification has enhanced underwriting results and reduced our risk exposureSelect expansion into Alabama, Georgia, Louisiana, South Carolina and Texas Sophisticated Analytics Geographic Diversification Underwriting Standards Focus on higher value propertiesEmphasis on newer properties which typically have more advanced wind / hurricane mitigation features and lower All Other Peril (non-catastrophe) losses, all of which mitigate expected lossesLargely avoided claims associated with sinkhole losses by carefully underwriting certain geographic areas in Florida

NASDAQ: FNHC QUALITY GROWTH IN HOMEOWNERS’ PORTFOLIO * 1-in-100 Year Probable Maximum Loss (1) / In-Force Premium Total modeled losses incurred in a 1-in-100 year catastrophe related eventNote: Probable Maximum Loss is modeled using RMS assuming LT, NoSS and NoLA Total Insured Value and Policies In-Force

NASDAQ: FNHC SINKHOLE PERFORMANCE * Largely avoided claims associated with sinkhole loses by selectively underwriting certain geographic areas in Florida After the Florida Legislature enacted stricter laws narrowing the definition of a sinkhole loss, FNIC established rates, forms and rules that allow us to market our property insurance to most regions of the State of Florida that we previously avoided

NASDAQ: FNHC ROBUST IN-HOUSE CLAIMS CAPABILITIES * 8 field adjusters and 32 onsite (desk) adjusters; 9 claims managers and supervisors; in-house litigation manager; all of whom are fully licensedAverage experience is over 10 yearsLong tenure with Federated National; over half of the homeowners’ adjusters served the Company during the storms of 2004 and 2005Training and knowledge is promoted and enhanced through on and off-site education 24/7 new claims reporting capacity with immediate emergency response available when warrantedLong standing relationships with water remediation companies, emergency services providers and loss causation analysts that provide rapid mitigation of damages and exceptional customer service In-House Claims Adjuster Efficient Claims Response Strategic Alliance with CAT Adjuster Owns 1/4 of Southeast Catastrophe Consulting Company, an independent CAT claims adjusterDedicated CAT adjusters available to Federated National when neededAll data and systems functionality is backed-up through a remote cloud-based computing system

NASDAQ: FNHC CATASTROPHE REINSURANCE PROGRAM * $563 million of total coverage for CAT losses and LAE at a cost of $68 million in premiumsMaximum single event coverage of $420 million$7 million pre-tax retention on the first 2 events36 highly rated private global reinsurers that are long-term partners and the FHCFMost reinsurance partners are rated “A-” or higher by A.M. Best2013-2014 reinsurance program was modeled to meet a 1:100 year catastrophe event using a RMS-Risklink model with loss amplification and without storm surge factors July 1, 2013 – June 30, 2014Reinstatement Premium Protection Paid for Second Event Wilma-Equivalent Storm Today$67 million $427 million1:108 YR (Actual) Andrew-Equivalent Storm Today$99 million Note: As of November 2013

NASDAQ: FNHC PROPOSED CATASTROPHE REINSURANCE PROGRAM * $1.23 billion of total coverage for CAT losses and LAE. The cost is not yet determined. Maximum single event coverage of $887.3 million$16 million pre-tax retention on the first 2 eventsMost are highly rated private global reinsurers that are long-term partners and the FHCF.Most reinsurance partners are expected to be rated “A-” or higher by A.M. Best.2014-2015 reinsurance program will be modeled to at least meet a 1:100 year catastrophe event using a RMS-Risklink model near-term with loss amplification and without storm surge factors. July 1, 2014 – June 30, 2015Reinstatement Premium Protection Paid for Second Event Wilma-Equivalent Storm Today$116 million $903.3 million Andrew-Equivalent Storm Today$225 million Note: As of May 2014 Company Retention Excess Catastrophe Layer 1$84,000,000 xs $16,000,000 Mandatory FHCF Layer Estimate90% of $607,000,000 xs $227,000,000*Amounts Subject to ChangeEstimated FHCF Premium: $41,400,000 ExcessCatastropheLayer 3 $60,700,000xs$227,000,000 Excess Catastrophe Layer 2$125,000,000 xs $100,000,000 Optional Excess Catastrophe Layer 4(Drops down to protect Federated to the 50 yr, post a 100 yr loss)$69,300,000 xs 287,700,000

NASDAQ: FNHC Designed to preserve capital, maximize after-tax investment income, maintain liquidity and minimize riskUtilize outside investment managers for the fixed income and equities portfoliosAs of March 31, 2014, 100% of the Company’s fixed income portfolio was rated investment gradeAverage duration: 3.81 yearsComposite rating: A+ (S&P)Average yield: 1.73%Historical total returns in cash and investments as of March 31, 20141 Year: 4.10%2 Year: 5.46%Actively increasing fixed income concentration in portfolio INVESTMENT STRATEGY * Investments and Cash As of March 31, 2014($296.0 Million)

NASDAQ: FNHC GAAP FINANCIAL HIGHLIGHTS * Note: Based on GAAP financial informationSource: Company Filings; SNL Financial; March 31, 2014 financials reflect unaudited information Loss & LAE Ratio Net Premiums Earned Dollars in Millions

NASDAQ: FNHC GAAP FINANCIAL HIGHLIGHTS (CONTINUED) * Note: Based on GAAP financial informationSource: Company Filings; SNL Financial; March 31, 2014 financials reflect unaudited information Reported BVPS & ROAE Diluted Earnings Per Share

NASDAQ: FNHC FINANCIAL UPDATE * For the recent quarter ended March 31, 2014, we experienced strong growth in written premiums, revenue and earned premium. Further, we continued to build our policy base while maintaining our stringent underwriting criteria. Note: Based on GAAP financial information; March 31, 2014 financials reflect unaudited information

NASDAQ: FNHC THE OPPORTUNITY * Attractive Valuation Experienced ManagementTeam Exceptional Market Opportunity Over Two Decades of Florida P&C Experience Strong Financial Performance

NASDAQ: FNHC CONTACT US Company ContactsMichael Braun, Chief Executive Officer & PresidentEmail: mbraun@FedNat.com Phone: 954-308-1322Peter Prygelski, Chief Financial Officer & TreasurerEmail: pprygelski@FedNat.comPhone: 954-308-1252 * Federated National Holding Company14050 N.W. 14th StreetSuite 180Sunrise, FL 33323Tel. (954) 581-9993 / (800) 293-2532www.FedNat.com