XML 44 R30.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Schedule II - Condensed Financial Information of Registrant | 12 Months Ended
--- | ---
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract] |
Schedule II - Condensed Financial Information of Registrant | CONDENSED FINANCIAL INFORMATION OF REGISTRANT Universal Insurance Holdings, Inc. (the “Parent Company”) had no guarantees or material contingencies as of December 31, 2021 and 2020. 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,
|  | 2021 |  | 2020
ASSETS |  |  |  |
Cash and cash equivalents |  | $ | 169,157 |  |  | $ | 62,934 |
Investments in subsidiaries and undistributed earnings |  | 317,166 |  |  | 357,375 |
Income taxes recoverable |  | 16,960 |  |  | 30,545 |
Deferred income tax asset, net |  | 3,466 |  |  | 6 |
Intercompany note receivable |  | 20,415 |  |  | — |
Other assets |  | 140 |  |  | 72 |
Total assets |  | $ | 527,304 |  |  | $ | 450,932 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |
LIABILITIES: |  |  |  |
Accounts payable |  | $ | 17 |  |  | $ | 30 |
Dividends payable |  | 143 |  |  | 138 |
Long-term debt, net |  | 96,691 |  |  | — |
Other accrued expenses |  | 751 |  |  | 1,085 |
Total liabilities |  | 97,602 |  |  | 1,253 |
STOCKHOLDERS’ EQUITY: |  |  |  |
Cumulative convertible preferred stock, $.01 par value |  | — |  |  | — |
Authorized shares - 1,000 |  |  |  |
Issued shares - 10 and 10 |  |  |  |
Outstanding shares - 10 and 10 |  |  |  |
Minimum liquidation preference - $9.99 and $9.99 per share |  |  |  |
Common stock, $.01 par value |  | 470 |  |  | 468 |
Authorized shares - 55,000 |  |  |  |
Issued shares - 47,018 and 46,817 |  |  |  |
Outstanding shares - 31,221 and 31,137 |  |  |  |
Treasury shares, at cost - 15,797 and 15,680 |  | (227,115) |  |  | (225,506) |
Additional paid-in capital |  | 108,202 |  |  | 103,445 |
Accumulated other comprehensive income (loss), net of taxes |  | (15,568) |  |  | 3,343 |
Retained earnings |  | 563,713 |  |  | 567,929 |
Total stockholders’ equity |  | 429,702 |  |  | 449,679 |
Total liabilities and stockholders’ equity |  | $ | 527,304 |  |  | $ | 450,932 |
See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF INCOME
|  | For the Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
REVENUES |  |  |  |  |  |
Net investment income |  | $ | 2 |  |  | $ | 273 |  |  | $ | 2,249 |
Net realized gains (losses) on investments |  | 405 |  |  | 38 |  |  | (1,908) |
Net change in unrealized gains (losses) of equity securities |  | — |  |  | — |  |  | 3,186 |
Management fee |  | 137 |  |  | 166 |  |  | 166 |
Interest income on intercompany note receivable |  | 415 |  |  | — |  |  | — |
Other revenue |  | — |  |  | 16 |  |  | 10 |
Total revenues |  | 959 |  |  | 493 |  |  | 3,703 |
OPERATING COSTS AND EXPENSES |  |  |  |  |  |
General and administrative expenses |  | 11,077 |  |  | 15,448 |  |  | 21,526 |
Total operating cost and expenses |  | 11,077 |  |  | 15,448 |  |  | 21,526 |
LOSS BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES |  | (10,118) |  |  | (14,955) |  |  | (17,823) |
Benefit from income taxes |  | (2,800) |  |  | (215) |  |  | (2,984) |
LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES |  | (7,318) |  |  | (14,740) |  |  | (14,839) |
Equity in net income of subsidiaries |  | 27,712 |  |  | 33,828 |  |  | 61,336 |
CONSOLIDATED NET INCOME |  | $ | 20,394 |  |  | $ | 19,088 |  |  | $ | 46,497 |
See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF CASH FLOWS
|  | For the Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Cash flows from operating activities: |  |  |  |  |  |
Net cash provided by (used in) operating activities |  | $ | 151,952 |  |  | $ | 149,329 |  |  | $ | 84,752 |
Cash flows from investing activities: |  |  |  |  |  |
Capital contributions to affiliates (1) |  | (95,498) |  |  | (118,897) |  |  | — |
Issuance of intercompany note receivable (1) |  | (20,000) |  |  | — |  |  | — |
Purchases of equity securities |  | — |  |  | — |  |  | (107) |
Purchase of available-for-sale debt securities |  | — |  |  | — |  |  | (3,750) |
Proceeds from sales of equity securities |  | — |  |  | — |  |  | 3,481 |
Proceeds from sales of available-for-sale debt securities |  | — |  |  | 787 |  |  | 6,530 |
Net cash provided by (used in) investing activities |  | (115,498) |  |  | (118,110) |  |  | 6,154 |
Cash flows from financing activities: |  |  |  |  |  |
Proceeds from issuance of long-term debt |  | 100,000 |  |  | — |  |  | — |
Debt issuance costs paid |  | (3,365) |  |  | — |  |  | — |
Preferred stock dividend |  | (10) |  |  | (10) |  |  | (10) |
Common stock dividend |  | (24,191) |  |  | (24,547) |  |  | (26,106) |
Issuance of common stock for stock option exercises |  | — |  |  | — |  |  | 239 |
Purchase of treasury stock |  | (1,609) |  |  | (28,921) |  |  | (66,186) |
Payments related to tax withholding for share-based compensation |  | (1,056) |  |  | (1,315) |  |  | (3,709) |
Net cash provided by (used in) financing activities |  | 69,769 |  |  | (54,793) |  |  | (95,772) |
Net increase (decrease) in cash and cash equivalents |  | 106,223 |  |  | (23,574) |  |  | (4,866) |
Cash and cash equivalents at beginning of period |  | 62,934 |  |  | 86,508 |  |  | 91,374 |
Cash and cash equivalents at end of period |  | $ | 169,157 |  |  | $ | 62,934 |  |  | $ | 86,508 |
(1) Eliminated in consolidation. 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. is a Delaware corporation incorporated in 1990. The Parent 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 (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), the Parent 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 Parent Company generates revenues from earnings on investments and management fees. The Parent Company also receives distributions of earnings from its insurance and non-insurance subsidiaries. Certain amounts in the prior periods’ consolidated financial statements have been reclassified in order to conform to current period presentation. Such reclassifications had no effect on net income or stockholders’ equity. Capital Contributions to Subsidiaries During the years ended December 31, 2021 and 2020, the Parent Company made capital contributions of $92.0 million and $114.0 million, respectively, to UPCIC to increase UPCIC’s statutory capital and surplus. There were no capital contributions by the Parent Company to UPCIC during the year ended December 31, 2019. Dividends received from Subsidiaries The Parent Company received distributions from the earnings of its non-insurance consolidated subsidiaries of $149.9 million, $151.0 million and $121.3 million during the years ended December 31, 2021, 2020 and 2019, respectively. There were no dividends paid by UPCIC and APPCIC to the Parent Company during the years ended December 31, 2021, 2020 and 2019. NOTE 2 - INTERCOMPANY NOTE RECEIVABLE In October 2021, the Parent Company funded a $20.0 million Subordinated Surplus Debenture (“Surplus Debenture”) through PSI, the Insurance Entities’ parent company, which the FLOIR permitted to be included in UPCIC’s statutory capital and surplus at December 31, 2021. Intercompany note receivable is stated separately in the accompanying Condensed Consolidated Balance Sheets. See “Part II—Item 8—Note 5 (Insurance Operations)” for information relating to the Surplus Debenture. NOTE 3 – LONG-TERM DEBT See “Part II—Item 8—Note 7 (Long-term debt)” for information relating to long-term debt. NOTE 4 – SUBSEQUENT EVENTS The Parent Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the consolidated financial statements as of December 31, 2021. In February 2022, the Parent Company declared a quarterly cash dividend of $0.16 per share of common stock payable March 17, 2022, to shareholders of record on March 10, 2022. In February 2022, the Parent Company funded a $90.0 million additional Surplus Debenture to UPCIC to increase UPCIC’s statutory capital and surplus. UPCIC included this contribution in their statutory capital and surplus at December 31, 2021 with the permission of the FLOIR under statutory accounting principles.

X
- References No definition available. + Details
Name: | srt_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | srt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI http://asc.fasb.org/extlink&oid=120391182&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123454820&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration