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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,
20212020
ASSETS
Cash and cash equivalents$169,157 $62,934 
Investments in subsidiaries and undistributed earnings317,166 357,375 
Income taxes recoverable16,960 30,545 
Deferred income tax asset, net3,466 6 
Intercompany note receivable20,415 — 
Other assets140 72 
Total assets$527,304 $450,932 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Accounts payable$17 $30 
Dividends payable143 138 
Long-term debt, net96,691 — 
Other accrued expenses751 1,085 
Total liabilities97,602 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 capital108,202 103,445 
Accumulated other comprehensive income (loss), net of taxes(15,568)3,343 
Retained earnings563,713 567,929 
Total stockholders’ equity429,702 449,679 
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,
202120202019
REVENUES
Net investment income$2 $273 $2,249 
Net realized gains (losses) on investments405 38 (1,908)
Net change in unrealized gains (losses) of equity securities— — 3,186 
Management fee137 166 166 
Interest income on intercompany note receivable415 — — 
Other revenue— 16 10 
Total revenues959 493 3,703 
OPERATING COSTS AND EXPENSES
General and administrative expenses11,077 15,448 21,526 
Total operating cost and expenses11,077 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 subsidiaries27,712 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,
202120202019
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 debt100,000 — — 
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 activities69,769 (54,793)(95,772)
Net increase (decrease) in cash and cash equivalents106,223 (23,574)(4,866)
Cash and cash equivalents at beginning of period62,934 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.