Insurance Operations (Tables)

12 Months Ended

Dec. 31, 2020

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 for the periods presented (in thousands):


	Years Ended December 31,
	2020		2019		2018
DPAC, beginning of year	$	91,882	$	84,686	$	73,059
Capitalized Costs	217,886		184,039		174,814
Amortization of DPAC	(199,154)		(176,843)		(163,187)
DPAC, end of year	$	110,614	$	91,882	$	84,686

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 capital and surplus calculated in accordance with statutory accounting principles, which differ from U.S. GAAP, and an amount representing ten percent of total liabilities for the Insurance Entities as of the dates presented (in thousands):


	As of December 31,
	2020 (1)		2019 (2)
Statutory capital and surplus
UPCIC	$	360,707	$	301,120
APPCIC	$	12,918	$	16,433
Ten percent of total liabilities
UPCIC	$	98,682	$	99,228
APPCIC	$	1,793	$	621


(1)			Statutory capital and surplus for UPCIC at December 31, 2020 includes a $77 million capital contribution funded in February 2021 by UVE through PSI, the Insurance Entities’ parent company, which the FLOIR permitted to be included in the statutory capital and surplus at December 31, 2020 under statutory accounting principles. This contribution was not recognized on a U.S. GAAP basis at December 31, 2020.

(2)			Statutory capital and surplus for UPCIC at December 31, 2019 includes a $30 million capital contribution funded in February 2020 by UVE through PSI, the Insurance Entities’ parent company, which the FLOIR permitted to be included in the statutory capital and surplus at December 31, 2019 under statutory accounting principles. This contribution was not recognized on a U.S. GAAP basis at December 31, 2019.

Through PSI, UVE recorded contributions for the periods presented (in thousands):


	Years Ended December 31,
	2020		2019		2018
Capital Contributions - UPCIC	$	114,000	$	—	$	—

The following table summarizes combined net income (loss) for the Insurance Entities determined in accordance with statutory accounting practices for the periods presented (in thousands):


	Years Ended December 31,
	2020		2019		2018
Combined net income (loss)	$	(104,339)	$	(49,917)	$	3,118

The Insurance Entities are 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 dates presented (in thousands):


	As of December 31,
	2020		2019
Restricted cash and cash equivalents	$	2,635	$	2,635
Investments	$	3,550	$	3,419

- 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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