Insurance Operations (Tables)

12 Months Ended

Dec. 31, 2013

Composition of Insurance Entities' Aggregate Policies-in-Force

The following table provides the percentage of concentrations with respect to the Insurance Entities’ nationwide policies-in-force as of the periods presented:


	December 31, 2013			December 31, 2012
Percentage of Policies-In-Force:
In Florida		93	%		96	%
With wind coverage		98	%		98	%
With wind coverage in South Florida (1)		27	%		28	%

(1)	South Florida is comprised of Miami-Dade, Broward and Palm Beach counties.

Beginning and Ending Balances and Changes in DPAC, Net of DRCC

The following table presents the beginning and ending balances and the changes in DPAC, net of DRCC, for the periods presented (in thousands):


	For the years ended December 31,
	2013			2012			2011
DPAC, beginning of year (1)	$	54,431		$	50,200		$	50,127
Capitalized Costs		109,981			107,180			114,358
Amortization of DPAC		(110,313	)		(102,949	)		(107,003	)

DPAC, end of year	$	54,099		$	54,431		$	57,482


DRCC, beginning of year (1)	$	37,149		$	38,845		$	40,682
Ceding Commissions Written		89,679			85,063			89,330
Earned Ceding Commissions		(88,628	)		(86,759	)		(85,526	)

DRCC, end of year	$	38,200		$	37,149		$	44,486


DPAC (DRCC), net, beginning of year (1)	$	17,282		$	11,355		$	9,445
Capitalized Costs, net		20,302			22,117			25,028
Amortization of DPAC (DRCC), net		(21,685	)		(16,190	)		(21,477	)

DPAC (DRCC), net, end of year	$	15,899		$	17,282		$	12,996

(1)	The beginning balances for the twelve months ended December 31, 2012 have been adjusted in connection with the adoption of the FASB’s updated guidance related to deferred acquisition costs as discussed below.

Change in Liability for Unpaid Losses and LAE

Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):


	Year Ended December 31,
	2013			2012
Balance at beginning of year	$	193,241		$	187,215
Less reinsurance recoverable		(81,415	)		(88,002	)

Net balance at beginning of period		111,826			99,213

Incurred (recovered) related to:
Current year		111,560			119,458
Prior years		(2,945	)		6,729

Total incurred		108,615			126,187

Paid related to:
Current year		62,529			54,141
Prior years		67,274			59,433

Total paid		129,803			113,574

Net balance at end of period		90,638			111,826
Plus reinsurance recoverable		68,584			81,415

Balance at end of year	$	159,222		$	193,241

Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC

The following table presents the amount of statutory capital and surplus, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the periods presented (in thousands):


	As of December 31,
	2013		2012
Ten percent of total liabilities
UPCIC	$	39,179	$	39,260
APPCIC	$	625	$	694
Statutory capital and surplus
UPCIC	$	161,803	$	134,034
APPCIC	$	13,708	$	14,330

Recorded Capital Contributions

Through UIHCF, the Insurance Entities’ parent company, UIH recorded capital contributions for the periods presented (in thousands):


	For the Years Ended December 31,
	2013		2012		2011
Capital Contributions	$	—	$	28,550	$	49,000

Assets Held by Insurance Regulators

The Company is required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the periods presented (in thousands):


	As of		As of
	December 31,		December 31,
	2013		2012
Restricted cash and cash equivalents	$	2,600	$	33,009
Investments	$	3,707	$	4,009

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

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