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Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021. 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,
20222021
ASSETS
Cash and cash equivalents$83,022 $169,157 
Investments in subsidiaries and undistributed earnings139,386 317,166 
Available-for-sale debt securities, at fair value3,997 — 
Equity securities, at fair value13,946 — 
Income taxes recoverable1,507 16,960 
Deferred income tax asset, net1,539 3,466 
Intercompany note receivable143,792 20,415 
Other assets398 140 
Total assets$387,587 $527,304 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Accounts payable$50 $17 
Dividends payable360 143 
Long-term debt, net97,254 96,691 
Other accrued expenses2,027 751 
Total liabilities99,691 97,602 
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
472 470 
Authorized shares - 55,000
Issued shares - 47,179 and 47,018
Outstanding shares - 30,389 and 31,221
Treasury shares, at cost - 16,790 and 15,797
(238,758)(227,115)
Additional paid-in capital112,509 108,202 
Accumulated other comprehensive income (loss), net of taxes(103,782)(15,568)
Retained earnings517,455 563,713 
Total stockholders’ equity287,896 429,702 
Total liabilities and stockholders’ equity$387,587 $527,304 
 
 
See accompanying notes to condensed financial statements
CONDENSED STATEMENTS OF INCOME
 
For the Years Ended December 31,
202220212020
REVENUES
Net investment income$930 $2 $273 
Net realized gains (losses) on investments1,462 405 38 
Net change in unrealized gains (losses) of equity securities(518)— — 
Management fee123 137 166 
Interest income on intercompany note receivable9,686 415 — 
Other revenue1 — 16 
Total revenues11,684 959 493 
OPERATING COSTS AND EXPENSES
General and administrative expenses12,223 10,552 15,448 
Total operating cost and expenses12,223 10,552 15,448 
Interest and amortization of debt issuance costs6,437 525 — 
LOSS BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY
   IN NET EARNINGS (LOSS) OF SUBSIDIARIES 		(6,976)(10,118)(14,955)
Income tax expense (benefit)(670)(2,800)(215)
LOSS BEFORE EQUITY IN NET EARNINGS (LOSS) OF SUBSIDIARIES(6,306)(7,318)(14,740)
Equity in net income (loss) of subsidiaries(15,951)27,712 33,828 
CONSOLIDATED NET INCOME (LOSS)$(22,257)$20,394 $19,088 
 
 



























See accompanying notes to condensed financial statements
CONDENSED STATEMENTS OF CASH FLOWS
 
For the Years Ended December 31,
202220212020
Cash flows from operating activities:
Net cash provided by (used in) operating activities$210,368 $151,952 $149,329 
Cash flows from investing activities:
Capital contributions to affiliates (1)(129,490)(95,498)(118,897)
Issuance of intercompany note receivable (1)(114,000)(20,000)— 
Purchases of equity securities(33,189)— — 
Purchase of available-for-sale debt securities(4,026)— — 
Proceeds from sales of equity securities20,187 — — 
Proceeds from sales of available-for-sale debt securities— — 787 
Net cash provided by (used in) investing activities(260,518)(115,498)(118,110)
Cash flows from financing activities:
Proceeds from issuance of long-term debt— 100,000 — 
Debt issuance costs paid(140)(3,365)— 
Preferred stock dividend(10)(10)(10)
Common stock dividend(23,774)(24,191)(24,547)
Purchase of treasury stock(11,643)(1,609)(28,921)
Payments related to tax withholding for share-based compensation(418)(1,056)(1,315)
Net cash provided by (used in) financing activities(35,985)69,769 (54,793)
Net increase (decrease) in cash and cash equivalents(86,135)106,223 (23,574)
Cash and cash equivalents at beginning of period169,157 62,934 86,508 
Cash and cash equivalents at end of period$83,022 $169,157 $62,934 
 
 
Supplemental information:
Interest paid$5,625 $— $— 


(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, 2022, 2021 and 2020, the Parent Company made capital contributions of $84.0 million, $92.0 million and $114.0 million, respectively, to UPCIC to increase UPCIC’s statutory capital and surplus.
During the years ended December 31, 2022, the Parent Company made a capital contribution of $3.0 million to APPCIC to increase APPCIC’s statutory capital and surplus. There were no capital contributions by the Parent Company to APPCIC during the year ended December 31, 2021 and 2020.
Dividends received from Subsidiaries
The Parent Company received distributions from the earnings of its non-insurance consolidated subsidiaries of $231.9 million, $149.9 million and $151.0 million during the years ended December 31, 2022, 2021 and 2020, respectively. There were no dividends paid by UPCIC and APPCIC to the Parent Company during the years ended December 31, 2022, 2021 and 2020.
NOTE 2 - INTERCOMPANY NOTE RECEIVABLE
During the years ended December 31, 2022 and 2021, the Parent Company funded a $110.0 million and $20.0 million, respectively, Subordinated Surplus Debenture (“Surplus Debenture”) through PSI, the Insurance Entities’ parent company, to UPCIC to increase UPCIC’s statutory capital and surplus.
During the year ended December 31, 2022, the Parent Company funded $4.0 million Surplus Debenture through PSI to APPCIC to increase APPCIC statutory capital and surplus. Intercompany note receivable is stated separately in the accompanying Condensed Consolidated Balance Sheets.
Effective in 2021 for UPCIC and 2022 for APPCIC, the holding company has put in place an ongoing surplus note arrangement with the Insurance Entities, which has been approved by the Florida Office of Insurance Regulation as the Insurance Entities’ domestic regulator. Surplus debentures are unsecured debt issued by the Insurance Entities that are subordinated to all claims by policyholders and creditors, with interest and principal payments on the surplus note to the holding company being made only upon the FLOIR’s express approval. Surplus debentures are considered bonds in function and payout structure, but are accounted for as equity in the statutory reporting of the Insurance Entities. The holding company has outstanding with the Insurance Entities $134.0 million in surplus notes. Under the arrangement, interest accrues at a variable rate (currently 8.27%) on the outstanding surplus note balances and, if approved by the FLOIR, is payable annually to the holding company. In 2022, UPCIC received approval from its Florida regulator to permit UPCIC to pay interest accruing from surplus notes outstanding during 2021.
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, 2022.
In February 2023, the Parent Company declared a quarterly cash dividend of $0.16 per share of common stock payable March 16, 2023, to shareholders of record on March 9, 2023.
In February 2023, the Parent Company made statutory capital contribution of $72.0 million to UPCIC to increase UPCIC’s statutory capital and surplus. UPCIC included this contribution in their statutory capital and surplus at December 31, 2022 with the permission of the FLOIR under statutory accounting principles.