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Schedule II - Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2014
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] |
Schedule II - 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, 2014 and 2013. 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, |
|  | 2014 |  |  | 2013 |
ASSETS |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 14,890 |  |  | $ | 4,878 |
Investments in subsidiaries and undistributed earnings |  |  | 216,656 |  |  |  | 174,068 |
Equity securities, at fair value |  |  | 627 |  |  |  | 10,474 |
Fixed maturities, at fair value |  |  | 2,967 |  |  |  | 750 |
Other receivables |  |  | — |  |  |  | 244 |
Income taxes recoverable |  |  | 5,675 |  |  |  | 8,152 |
Deferred income taxes |  |  | 11,850 |  |  |  | 12,052 |
Other assets |  |  | 1,040 |  |  |  | 346 |
Total assets |  | $ | 253,705 |  |  | $ | 210,964 |
LIABILITIES, CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |
LIABILITIES: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 169 |  |  | $ | 146 |
Income taxes payable |  |  | 1,799 |  |  |  | 2,566 |
Long-term debt |  |  | 13,330 |  |  |  | 18,490 |
Other accrued expenses |  |  | 19,491 |  |  |  | 14,153 |
Total liabilities |  |  | 34,789 |  |  |  | 35,355 |
Contingently redeemable common stock |  |  | 19,000 |  |  |  | — |
Issued shares - 1,000 |  |  |  |  |  |  |  |
Outstanding shares - 1,000 |  |  |  |  |  |  |  |
STOCKHOLDERS' EQUITY: |  |  |  |  |  |  |  |
Cumulative convertible preferred stock, $.01 par value |  |  | — |  |  |  | — |
Authorized shares - 1,000 |  |  |  |  |  |  |  |
Issued shares - 12 and 30 |  |  |  |  |  |  |  |
Outstanding shares - 12 and 30 |  |  |  |  |  |  |  |
Minimum liquidation preference - $8.49 and $6.98 per share |  |  |  |  |  |  |  |
Common stock, $.01 par value |  |  | 448 |  |  |  | 436 |
Authorized shares - 55,000 |  |  |  |  |  |  |  |
Issued shares - 43,769 and 43,641 |  |  |  |  |  |  |  |
Outstanding shares - 34,102 and 35,366 |  |  |  |  |  |  |  |
Treasury shares, at cost - 9,667 and 8,275 |  |  | (62,153 | ) |  |  | (35,467 | )
Additional paid-in capital |  |  | 40,987 |  |  |  | 42,282 |
Accumulated other comprehensive income (loss), net of taxes |  |  | (1,835 | ) |  |  | (376 | )
Retained earnings |  |  | 222,469 |  |  |  | 168,734 |
Total stockholders' equity |  |  | 199,916 |  |  |  | 175,609 |
Total liabilities, contingently redeemable common stock and stockholders' equity |  | $ | 253,705 |  |  | $ | 210,964 |
See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF INCOME
|  | For the Years Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
PREMIUMS EARNED AND OTHER REVENUES |  |  |  |  |  |  |  |  |  |  |  |
Assumed premiums written |  | $ | — |  |  | $ | — |  |  | $ | 10,686 |
Premiums earned |  |  | — |  |  |  | — |  |  |  | 10,686 |
Net investment income (expense) |  |  | (23 | ) |  |  | 207 |  |  |  | 25 |
Net realized gains (losses) on investments |  |  | 625 |  |  |  | (2,947 | ) |  |  | (1,880 | )
Net change in unrealized gains (losses) on investments |  |  | — |  |  |  | 1,625 |  |  |  | 1,162 |
Management fee |  |  | 121 |  |  |  | 134 |  |  |  | 142 |
Total premiums earned and other revenues |  |  | 723 |  |  |  | (981 | ) |  |  | 10,135 |
OPERATING COSTS AND EXPENSES |  |  |  |  |  |  |  |  |  |  |  |
General and administrative expenses |  |  | 39,062 |  |  |  | 32,476 |  |  |  | 25,051 |
Total operating cost and expenses |  |  | 39,062 |  |  |  | 32,476 |  |  |  | 25,051 |
LOSS BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES |  |  | (38,339 | ) |  |  | (33,457 | ) |  |  | (14,916 | )
Benefit from income taxes |  |  | (16,403 | ) |  |  | (13,834 | ) |  |  | (6,312 | )
LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES |  |  | (21,936 | ) |  |  | (19,623 | ) |  |  | (8,604 | )
Equity in net income of subsidiaries |  |  | 94,924 |  |  |  | 78,600 |  |  |  | 38,916 |
CONSOLIDATED NET INCOME |  | $ | 72,988 |  |  | $ | 58,977 |  |  | $ | 30,312 |
See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF CASH FLOWS
|  | For the Years Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 72,988 |  |  | $ | 58,977 |  |  | $ | 30,312 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Equity in net income of subsidiaries |  |  | (94,924 | ) |  |  | (78,600 | ) |  |  | (38,916 | )
Distribution of income from subsidiaries |  |  | 55,805 |  |  |  | 26,898 |  |  |  | 40,222 |
Depreciation |  |  | 2 |  |  |  | — |  |  |  | — |
Amortization of share-based compensation |  |  | 12,342 |  |  |  | 6,417 |  |  |  | 3,830 |
Amortization of original issue discount on debt |  |  | 840 |  |  |  | 601 |  |  |  | — |
Accretion of deferred credit |  |  | (840 | ) |  |  | (601 | ) |  |  | — |
Net realized (gains) losses on investments |  |  | (625 | ) |  |  | 2,947 |  |  |  | 1,880 |
Net change in unrealized (gains) losses on investments |  |  | — |  |  |  | (1,625 | ) |  |  | (1,162 | )
Deferred income taxes |  |  | 1,118 |  |  |  | 7,363 |  |  |  | 3,813 |
Excess tax benefits from share-based compensation |  |  | (7,006 | ) |  |  | (359 | ) |  |  | 1,760 |
Other |  |  | — |  |  |  | — |  |  |  | — |
Net changes in assets and liabilities relating to operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Restricted cash and cash equivalents |  |  | — |  |  |  | — |  |  |  | 30,220 |
Purchases of equity securities, trading |  |  | — |  |  |  | (3,972 | ) |  |  | (58,836 | )
Proceeds from sale of equity securities, trading |  |  | — |  |  |  | 16,712 |  |  |  | 60,379 |
Income taxes recoverable |  |  | 2,477 |  |  |  | (5,558 | ) |  |  | (2,594 | )
Income taxes payable |  |  | 6,239 |  |  |  | 2,226 |  |  |  | (13,801 | )
Other operating assets and liabilities |  |  | 5,752 |  |  |  | 1,347 |  |  |  | 2,911 |
Net cash provided by (used in) operating activities |  |  | 54,168 |  |  |  | 32,773 |  |  |  | 60,018 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Capital contributions to subsidiaries |  |  | (5,585 | ) |  |  | (1,600 | ) |  |  | (28,555 | )
Purchases of equity securities, available for sale |  |  | (15,836 | ) |  |  | (10,357 | ) |  |  | — |
Purchase of fixed maturities, available for sale |  |  | (3,000 | ) |  |  | (750 | ) |  |  | — |
Proceeds from sales of equity securities, available for sale |  |  | 26,060 |  |  |  | — |  |  |  | — |
Proceeds from sales of fixed maturities, available for sale |  |  | 770 |  |  |  | — |  |  |  | — |
Net cash provided by (used in) investing activities |  |  | 2,409 |  |  |  | (12,707 | ) |  |  | (28,555 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from borrowings |  |  | — |  |  |  | 20,000 |  |  |  | — |
Repayment of debt |  |  | (6,000 | ) |  |  | — |  |  |  | — |
Preferred stock dividend |  |  | (13 | ) |  |  | (29 | ) |  |  | (287 | )
Common stock dividend |  |  | (19,240 | ) |  |  | (17,725 | ) |  |  | (18,669 | )
Issuance of common stock |  |  | 73 |  |  |  | — |  |  |  | 207 |
Purchase of treasury stock |  |  | (29,736 | ) |  |  | (32,365 | ) |  |  | — |
Proceeds received from issuance of common and contingently redeemable common stock |  |  | 19,000 |  |  |  | — |  |  |  | — |
Payments related to tax withholding for share-based compensation |  |  | (17,655 | ) |  |  | (3,161 | ) |  |  | (121 | )
Excess tax benefits (shortfall) from share-based compensation |  |  | 7,006 |  |  |  | 359 |  |  |  | (1,760 | )
Net cash provided by (used in) financing activities |  |  | (46,565 | ) |  |  | (32,921 | ) |  |  | (20,630 | )
Net increase (decrease) in cash and cash equivalents |  |  | 10,012 |  |  |  | (12,855 | ) |  |  | 10,833 |
Cash and cash equivalents at beginning of period |  |  | 4,878 |  |  |  | 17,733 |  |  |  | 6,900 |
Cash and cash equivalents at end of period |  | $ | 14,890 |  |  | $ | 4,878 |  |  | $ | 17,733 |
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 reclassified in order to conform to current period presentation. Such reclassifications had no effect on net income or stockholders’ equity.

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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 06 -Article 9 Reference 2: 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=26873400&loc=d3e24072-122690 Reference 3: 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 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph c -Article 7 + Details
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