Item 8.01 Other Events

On October 4, 2012, Federated National Insurance Company, a wholly owned subsidiary of Federated National Holding Company, received approval of a rate increase for its homeowners' insurance program within the State of Florida. The rate increase, which will result in an average premium increase of approximately 4.8% statewide, was approved by the Florida Office of Insurance Regulation (the "Florida OIR"). The effective date for the rate increase is December 1, 2012 for new and renewal business.

In addition, the Florida OIR approved rates and various forms, including several forms that relate to the 2011 Florida insurance reform legislation known as Senate Bill 408. The approval of these rates and forms will enable the Company to market its homeowner's insurance in areas prone to catastrophic ground collapse in the State of Florida.

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