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Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2012
Condensed Financial Information of Registrant [Abstract] |
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | CONDENSED FINANCIAL INFORMATION OF REGISTRANT SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Universal Insurance Holdings, Inc. had no long term obligations, guarantees or material contingencies as of December 31, 2012 and 2011. The following summarizes the major categories of the parent company’s financial statements (in thousands, except per share data): CONDENSED BALANCE SHEETS
|  | As of December 31, |
|  | 2012 |  |  | 2011 |
ASSETS |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 17,733 |  |  | $ | 6,900 |
Restricted cash and cash equivalents |  |  | — |  |  |  | 30,220 |
Investments in subsidiaries and undistributed earnings |  |  | 121,496 |  |  |  | 94,249 |
Equity securities |  |  | 13,944 |  |  |  | 15,553 |
Receivable from securities |  |  | 175 |  |  |  | 1,019 |
Other receivables |  |  | 2,602 |  |  |  | — |
Deferred income taxes |  |  | 19,178 |  |  |  | 22,991 |
Other assets |  |  | 329 |  |  |  | 324 |
Total assets |  | $ | 175,457 |  |  | $ | 171,256 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |
LIABILITIES: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 339 |  |  | $ | 160 |
Payable for securities |  |  | 53 |  |  |  | 133 |
Income taxes payable |  |  | 699 |  |  |  | 12,740 |
Other accrued expenses |  |  | 10,852 |  |  |  | 8,218 |
Total liabilities |  |  | 11,943 |  |  |  | 21,251 |
STOCKHOLDERS’ EQUITY: |  |  |  |  |  |  |  |
Cumulative convertible preferred stock, $.01 par value |  |  | 1 |  |  |  | 1 |
Authorized shares - 1,000 |  |  |  |  |  |  |  |
Issued shares - 108 |  |  |  |  |  |  |  |
Outstanding shares - 108 |  |  |  |  |  |  |  |
Minimum liquidation preference - $2.66 per share |  |  |  |  |  |  |  |
Common stock, $.01 par value |  |  | 419 |  |  |  | 411 |
Authorized shares - 55,000 |  |  |  |  |  |  |  |
Issued shares - 41,889 and 41,100 |  |  |  |  |  |  |  |
Outstanding shares - 40,871 and 40,082 |  |  |  |  |  |  |  |
Treasury shares, at cost - 1,018 shares |  |  | (3,101 | ) |  |  | (3,101 | )
Additional paid-in capital |  |  | 38,684 |  |  |  | 36,536 |
Retained earnings |  |  | 127,511 |  |  |  | 116,158 |
Total stockholders’ equity |  |  | 163,514 |  |  |  | 150,005 |
Total liabilities and stockholders’ equity |  | $ | 175,457 |  |  | $ | 171,256 |
See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF INCOME
|  | For the Years Ended December 31, |
|  | 2012 |  |  | 2011 (Restated, see Note 1) |  |  | 2010 |
PREMIUMS EARNED AND OTHER REVENUES |  |  |  |  |  |  |  |  |  |  |  |
Assumed premiums written |  | $ | 10,686 |  |  | $ | 20,703 |  |  | $ | 4,534 |
Increase (decrease) in unearned assumed premiums |  |  | — |  |  |  | — |  |  |  | 7,292 |
Premiums earned, net |  |  | 10,686 |  |  |  | 20,703 |  |  |  | 11,826 |
Net investment income |  |  | 25 |  |  |  | 54 |  |  |  | 42 |
Net realized gains (losses) on investments |  |  | (1,880 | ) |  |  | (1,186 | ) |  |  | 1,379 |
Net change in unrealized gains (losses) on investments |  |  | 1,162 |  |  |  | (3,009 | ) |  |  | 223 |
Management fee |  |  | 142 |  |  |  | 142 |  |  |  | 41 |
Total premiums earned and other revenues |  |  | 10,135 |  |  |  | 16,704 |  |  |  | 13,511 |
OPERATING COSTS AND EXPENSES |  |  |  |  |  |  |  |  |  |  |  |
General and administrative expenses |  |  | 25,051 |  |  |  | 20,830 |  |  |  | 20,417 |
Total operating cost and expenses |  |  | 25,051 |  |  |  | 20,830 |  |  |  | 20,417 |
LOSS BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES |  |  | (14,916 | ) |  |  | (4,126 | ) |  |  | (6,906 | )
Benefit from income taxes |  |  | (6,312 | ) |  |  | (1,667 | ) |  |  | (2,664 | )
LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES |  |  | (8,604 | ) |  |  | (2,459 | ) |  |  | (4,242 | )
Equity in net income of subsidiaries |  |  | 38,916 |  |  |  | 22,568 |  |  |  | 41,226 |
CONSOLIDATED NET INCOME |  | $ | 30,312 |  |  | $ | 20,109 |  |  | $ | 36,984 |
See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF CASH FLOWS
|  | For the Years Ended December 31, |
|  | 2012 |  |  | 2011 (Restated, see Note 1) |  |  | 2010 (Restated, see Note 1) |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 30,312 |  |  | $ | 20,109 |  |  | $ | 36,984 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Equity in net income of subsidiaries |  |  | (38,916 | ) |  |  | (22,568 | ) |  |  | (41,226 | )
Amortization of stock-based compensation |  |  | 3,830 |  |  |  | 2,848 |  |  |  | 2,962 |
Net realized (gains) losses on investments |  |  | 1,880 |  |  |  | 1,186 |  |  |  | (1,379 | )
Net change in unrealized (gains) losses on investments |  |  | (1,162 | ) |  |  | 3,009 |  |  |  | (223 | )
Deferred income taxes |  |  | 3,813 |  |  |  | (9,543 | ) |  |  | (1,333 | )
Excess tax benefits from stock-based compensation |  |  | 1,760 |  |  |  | (195 | ) |  |  | (4,099 | )
Other |  |  | — |  |  |  | 5 |  |  |  | 16 |
Net changes in assets and liabilities relating to operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Restricted cash and cash equivalents |  |  | 30,220 |  |  |  | (18,880 | ) |  |  | 5,175 |
Premiums receivable |  |  | — |  |  |  | — |  |  |  | 8,721 |
Purchases of equity securities, trading |  |  | (58,836 | ) |  |  | (77,691 | ) |  |  | (12,760 | )
Proceeds from sale of equity securities, trading |  |  | 60,379 |  |  |  | 66,526 |  |  |  | 10,897 |
Income taxes recoverable |  |  | (2,594 | ) |  |  | — |  |  |  | 3,212 |
Income taxes payable |  |  | (13,801 | ) |  |  | 4,653 |  |  |  | 12,012 |
Unearned premiums |  |  | — |  |  |  | — |  |  |  | (7,292 | )
Other operating assets and liabilities |  |  | 2,911 |  |  |  | 1,405 |  |  |  | 604 |
Net cash provided by (used in) operating activities |  |  | 19,796 |  |  |  | (29,136 | ) |  |  | 12,271 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Capital contributions to subsidiaries |  |  | (28,555 | ) |  |  | (49,001 | ) |  |  | (31,134 | )
Distribution of income from subsidiaries |  |  | 40,222 |  |  |  | 89,322 |  |  |  | 30,455 |
Purchases of equity securities, available for sale |  |  | — |  |  |  | — |  |  |  | (3,578 | )
Proceeds from sale of equity securities, available for sale |  |  | — |  |  |  | — |  |  |  | 10,702 |
Net cash provided by (used in) investing activities |  |  | 11,667 |  |  |  | 40,321 |  |  |  | 6,445 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock dividend |  |  | (287 | ) |  |  | (20 | ) |  |  | (20 | )
Common stock dividend |  |  | (18,669 | ) |  |  | (12,750 | ) |  |  | (12,533 | )
Issuance of common stock |  |  | 207 |  |  |  | 5 |  |  |  | 14 |
Payments related to tax withholding for share-based compensation |  |  | (121 | ) |  |  | (172 | ) |  |  | (4,293 | )
Excess tax benefits (shortfall) from stock-based compensation |  |  | (1,760 | ) |  |  | 195 |  |  |  | 4,099 |
Net cash provided by (used in) financing activities |  |  | (20,630 | ) |  |  | (12,742 | ) |  |  | (12,733 | )
Net increase (decrease) in cash and cash equivalents |  |  | 10,833 |  |  |  | (1,557 | ) |  |  | 5,983 |
Cash and cash equivalents at beginning of period |  |  | 6,900 |  |  |  | 8,457 |  |  |  | 2,474 |
Cash and cash equivalents at end of period |  | $ | 17,733 |  |  | $ | 6,900 |  |  | $ | 8,457 |
See accompanying notes to condensed financial statements NOTE 1 – GENERAL The financial statements of the Registrant should be read in conjunction with the consolidated financial statements in Item 8. Nature of Operations and Basis of Presentation Universal Insurance Holdings, Inc. (the “Company”), is a Delaware corporation originally incorporated as Universal Heights, Inc. in November 1990. The Company is an insurance holding company whose wholly-owned subsidiaries perform all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, including Universal Property & Casualty Insurance Company and American Platinum Property and Casualty Insurance Company, collectively referred to as the (“Insurance Entities”), the Company is principally engaged in the property and casualty insurance business offered primarily through a network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company generates revenues from premiums earned on reinsurance contracts entered into with the Insurance Entities and earnings on investments. The Company also receives distributions of earnings from its insurance and non-insurance subsidiaries. Certain amounts in the prior periods’ condensed financial statements have been corrected. In addition, certain amounts in the prior periods’ condensed financial statements have been reclassified in order to conform to current period presentation. Such corrections and reclassifications (“adjustments”) were of immaterial amounts and had no effect on net income or stockholders’ equity. The following adjustments were made to the Condensed Statement of Income and the Condensed Statements of Cash Flows for the periods presented (in thousands): RESTATED CONDENSED STATEMENT OF INCOME
|  | For the Year Ended December 31, 2011 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
PREMIUMS EARNED AND OTHER REVENUES |  |  |  |  |  |  |  |  |  |  |  |
Assumed premiums written |  | $ | 20,703 |  |  | $ | — |  |  | $ | 20,703 |
(Increase) decrease in unearned assumed premiums |  |  | — |  |  |  | — |  |  |  | — |
Premiums earned, net |  |  | 20,703 |  |  |  | — |  |  |  | 20,703 |
Net investment income |  |  | 54 |  |  |  | — |  |  |  | 54 |
Net realized gains (losses) on investments |  |  | (1,186 | ) |  |  | — |  |  |  | (1,186 | )
Net change in unrealized gains (losses) on investments |  |  | (3,009 | ) |  |  | — |  |  |  | (3,009 | )
Management fee |  |  | 142 |  |  |  | — |  |  |  | 142 |
Commission revenue |  |  | — |  |  |  | — |  |  |  | — |
Total premiums earned and other revenues |  |  | 16,704 |  |  |  | — |  |  |  | 16,704 |
OPERATING COSTS AND EXPENSES |  |  |  |  |  |  |  |  |  |  |  |
General and administrative expenses |  |  | 20,830 |  |  |  | — |  |  |  | 20,830 |
Total operating cost and expenses |  |  | 20,830 |  |  |  | — |  |  |  | 20,830 |
LOSS BEFORE INCOME TAXES AND EQUITY IN NET INCOME OF SUBSIDIARIES |  |  | (4,126 | ) |  |  | — |  |  |  | (4,126 | )
Benefit from income taxes |  |  | (3,016 | ) |  |  | 1,349 |  |  |  | (1,667 | )
LOSS BEFORE EQUITY IN NET INCOME FROM SUBSIDIARIES |  |  | (1,110 | ) |  |  | (1,349 | ) |  |  | (2,459 | )
Equity in net income for subsidiaries |  |  | 21,219 |  |  |  | 1,349 |  |  |  | 22,568 |
CONSOLIDATED NET INCOME |  | $ | 20,109 |  |  | $ | — |  |  | $ | 20,109 |
RESTATED CONDENSED STATEMENT OF CASH FLOWS
|  | For the Years Ended December 31, 2011 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 20,109 |  |  | $ | — |  |  | $ | 20,109 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Equity in net income of subsidiaries |  |  | (20,219 | ) |  |  | (2,349 | ) |  |  | (22,568 | )
Amortization of stock-based compensation |  |  | 2,849 |  |  |  | (1 | ) |  |  | 2,848 |
Net realized (gains) losses on investments |  |  | 1,186 |  |  |  | — |  |  |  | 1,186 |
Net change in unrealized (gains) losses on investments |  |  | 3,010 |  |  |  | (1 | ) |  |  | 3,009 |
Deferred income taxes |  |  | (9,543 | ) |  |  | — |  |  |  | (9,543 | )
Excess tax benefits from stock-based compensation |  |  | (195 | ) |  |  | — |  |  |  | (195 | )
Other |  |  | 5 |  |  |  | — |  |  |  | 5 |
Net changes in assets and liabilities relating to operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Restricted cash and cash equivalents |  |  | (18,880 | ) |  |  | — |  |  |  | (18,880 | )
Purchases of equity securities, trading |  |  | (77,691 | ) |  |  | — |  |  |  | (77,691 | )
Proceeds from sale of equity securities, trading |  |  | 66,526 |  |  |  | — |  |  |  | 66,526 |
Income taxes payable |  |  | 4,653 |  |  |  | — |  |  |  | 4,653 |
Other operating assets and liabilities |  |  | 1,404 |  |  |  | 1 |  |  |  | 1,405 |
Net cash provided by (used in) operating activities |  |  | (27,182 | ) |  |  | (1,954 | ) |  |  | (29,136 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Capital contributions to subsidiaries |  |  | (49,001 | ) |  |  | — |  |  |  | (49,001 | )
Distribution of income from subsidiaries |  |  | — |  |  |  | 89,322 |  |  |  | 89,322 |
Net cash provided by (used in) investing activities |  |  | (49,001 | ) |  |  | 89,322 |  |  |  | 40,321 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock dividend |  |  | (20 | ) |  |  | — |  |  |  | (20 | )
Common stock dividend |  |  | (12,750 | ) |  |  | — |  |  |  | (12,750 | )
Issuance of common stock |  |  | 5 |  |  |  | — |  |  |  | 5 |
Tax withholding payments related to stock-based compensation |  |  | (172 | ) |  |  | — |  |  |  | (172 | )
Excess tax benefits from stock-based compensation |  |  | 195 |  |  |  | — |  |  |  | 195 |
Transfers from subsidiaries |  |  | 87,972 |  |  |  | (87,972 | ) |  |  | — |
Net cash provided by (used in) financing activities |  |  | 74,626 |  |  |  | (87,368 | ) |  |  | (12,742 | )
Net increase in cash and cash equivalents |  |  | (1,557 | ) |  |  | — |  |  |  | (1,557 | )
Cash and cash equivalents at beginning of period |  |  | 8,457 |  |  |  | — |  |  |  | 8,457 |
Cash and cash equivalents at end of period |  | $ | 6,900 |  |  | $ | — |  |  | $ | 6,900 |
|  | For the Years Ended December 31, 2010 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 36,984 |  |  | $ | — |  |  | $ | 36,984 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Equity in net income of subsidiaries |  |  | (41,226 | ) |  |  | — |  |  |  | (41,226 | )
Amortization of stock-based compensation |  |  | 2,962 |  |  |  | — |  |  |  | 2,962 |
Net realized (gains) losses on investments |  |  | (1,379 | ) |  |  | — |  |  |  | (1,379 | )
Net change in unrealized (gains) losses on investments |  |  | (223 | ) |  |  | — |  |  |  | (223 | )
Deferred income taxes |  |  | (1,333 | ) |  |  | — |  |  |  | (1,333 | )
Excess tax benefits from stock-based compensation |  |  | (4,099 | ) |  |  | — |  |  |  | (4,099 | )
Other |  |  | 16 |  |  |  | — |  |  |  | 16 |
Net changes in assets and liabilities relating to operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Restricted cash and cash equivalents |  |  | 5,175 |  |  |  | — |  |  |  | 5,175 |
Premiums receivable |  |  | 8,721 |  |  |  | — |  |  |  | 8,721 |
Purchases of equity securities, trading |  |  | (12,760 | ) |  |  | — |  |  |  | (12,760 | )
Proceeds from sale of equity securities, trading |  |  | 10,897 |  |  |  | — |  |  |  | 10,897 |
Income taxes recoverable |  |  | 3,212 |  |  |  | — |  |  |  | 3,212 |
Income taxes payable |  |  | 12,012 |  |  |  | — |  |  |  | 12,012 |
Unearned premiums |  |  | (7,292 | ) |  |  | — |  |  |  | (7,292 | )
Other operating assets and liabilities |  |  | 604 |  |  |  | — |  |  |  | 604 |
Net cash provided by (used in) operating activities |  |  | 12,271 |  |  |  | — |  |  |  | 12,271 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Capital contributions to subsidiaries |  |  | (39,161 | ) |  |  | 8,027 |  |  |  | (31,134 | )
Distribution of income from subsidiaries |  |  | — |  |  |  | 30,455 |  |  |  | 30,455 |
Purchases of equity securities, available for sale |  |  | (3,578 | ) |  |  | — |  |  |  | (3,578 | )
Proceeds from sale of equity securities, available for sale |  |  | 10,702 |  |  |  | — |  |  |  | 10,702 |
Net cash provided by (used in) investing activities |  |  | (32,037 | ) |  |  | 38,482 |  |  |  | 6,445 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock dividend |  |  | (20 | ) |  |  | — |  |  |  | (20 | )
Common stock dividend |  |  | (12,533 | ) |  |  | — |  |  |  | (12,533 | )
Issuance of common stock |  |  | 14 |  |  |  | — |  |  |  | 14 |
Tax withholding payments related to stock-based compensation |  |  | (4,293 | ) |  |  | — |  |  |  | (4,293 | )
Excess tax benefits from stock-based compensation |  |  | 4,099 |  |  |  | — |  |  |  | 4,099 |
Transfers from subsidiaries |  |  | 38,482 |  |  |  | (38,482 | ) |  |  | — |
Net cash provided by (used in) financing activities |  |  | 25,749 |  |  |  | (87,368 | ) |  |  | (12,733 | )
Net increase in cash and cash equivalents |  |  | 5,983 |  |  |  | — |  |  |  | 5,983 |
Cash and cash equivalents at beginning of period |  |  | 2,474 |  |  |  | — |  |  |  | 2,474 |
Cash and cash equivalents at end of period |  | $ | 8,457 |  |  | $ | — |  |  | $ | 8,457 |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph c -Article 7 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7656940&loc=d3e5283-111683 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24072-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 24 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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