XML 54 R28.htm IDEA: XBRL DOCUMENT v3.22.0.1
Schedule II - Condensed Financial Information
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Condensed Balance Sheets
December 31,
20212020
Assets
Fixed maturities, available-for-sale, at fair value$2,727 $2,971 
Equity securities, at fair value117 114 
Cash and cash equivalents4,321 17,828 
Accrued investment income9 9 
Investment in subsidiaries532,432 562,448 
Goodwill10,157 10,157 
Property and equipment, net8,568 9,144 
Other assets4,119 6,944 
     Total Assets$562,450 $609,615 
Liabilities
Intercompany payable$78,540 $37,401 
Accounts payable and accrued expenses392 1,352 
Lease liabilities32 46 
Other liabilities— 1,679 
Long-term notes payable151,267 151,276 
     Total Liabilities230,231 191,754 
Stockholders’ Equity
Common stock4 4 
Additional paid-in capital394,268 393,122 
Treasury stock(431)(431)
Accumulated other comprehensive income (6,531)9,693 
Retained earnings(74,642)(6,373)
Total UIHC Stockholders’ Equity312,668 396,015 
Noncontrolling Interests19,551 21,846 
     Total Stockholders’ Equity332,219 417,861 
Total Liabilities and Stockholders’ Equity$562,450 $609,615 
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED
Condensed Statements of Comprehensive Loss
Years Ended December 31,
202120202019
REVENUE:
Net loss from subsidiaries (equity method)$(52,492)$(83,434)$(24,131)
Net realized investment gain— 4,971 63 
Net investment income46 520 1,156 
Net unrealized gain (loss) on equity securities(1)(2,812)4,036 
Total revenues(52,447)(80,755)(18,876)
EXPENSES:
Operating and underwriting380 181 219 
General and administrative1,995 6,912 3,042 
Interest expense9,302 9,465 9,499 
Total expenses11,677 16,558 12,760 
Loss before other income(64,124)(97,313)(31,636)
Other income— — — 
Loss before income taxes(64,124)(97,313)(31,636)
Provision for income tax benefit(4,256)(1,815)(2,151)
Net loss$(59,868)$(95,498)$(29,485)
Less: Net income (loss) attributable to NCI(1,949)956 387 
Net loss attributable to UIHC$(57,919)$(96,454)$(29,872)
Unrealized gain (loss) on investments(18,267)64,726 28,366 
Reclassification adjustments - gains(3,567)(66,691)(1,228)
Income tax benefit (expense) related to other items of comprehensive income5,264 502 (6,588)
Total comprehensive loss$(76,438)$(96,961)$(8,935)
Less: Comprehensive income (loss) attributable to NCI(2,295)1,119 588 
Total comprehensive loss attributable to UIHC$(74,143)$(98,080)$(9,523)
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED
Condensed Statements of Cash Flows
Year Ended December 31,
202120202019
OPERATING ACTIVITIES
Net loss$(59,868)$(95,498)$(29,485)
Adjustments to reconcile net loss to net cash used in operating activities:
Dividends received from subsidiaries (1)
3,500 11,998 11,814 
Losses from subsidiaries (1)
52,492 83,434 24,131 
Depreciation and amortization1,222 2,054 1,131 
Bond amortization2 42 66 
Unrealized losses (gains) on equities1 2,812 (4,036)
Net realized investment losses (gains)— (4,971)(63)
Deferred income taxes, net314 644 (511)
Stock based compensation1,185 1,382 3,007 
 Disposal of fixed assets— 2,763 — 
Changes in operating assets and liabilities:
Accrued investment income — 70 113 
Other assets2,516 (3,682)9,976 
Accounts payable and accrued expenses(960)931 (22)
Intercompany payable (1)
6,139 3,232 4,503 
Lease liabilities(14)(18)64 
Other liabilities(1,972)966 313 
Net cash provided by operating activities4,557 6,159 21,001 
INVESTING ACTIVITIES
Proceeds from sales of investments available-for-sale1,112 32,518 35,036 
Purchases of investments available-for-sale(940)(317)(3,567)
Investment in subsidiaries (1)
(42,500)(15,000)(17,000)
Cost of property and equipment acquired— (688)(4,749)
Net cash provided by (used in) investing activities(42,328)16,513 9,720 
FINANCING ACTIVITIES
Tax withholding payment related to net settlement of equity awards(39)(112)(296)
Intercompany borrowings from our non-insurance subsidiaries (1)
37,000 10,768 12,300 
Repayments of intercompany borrowings to our non-insurance subsidiaries (1)
(2,000)(8,000)(33,505)
Repayments of borrowings(347)(347)(347)
Dividends(10,350)(10,313)(10,280)
Net cash provided by (used in) financing activities24,264 (8,004)(32,128)
Increase (decrease) in cash(13,507)14,668 (1,407)
Cash and cash equivalents at beginning of period17,828 3,160 4,567 
Cash and cash equivalents at end of period$4,321 $17,828 $3,160 
(1) Previously, dividends received and losses from subsidiaries were incorrectly reported net in “Investment in subsidiaries” in net cash provided by (used in) investing activities in 2020 and 2019. As a result, the Condensed Statements of Cash Flows has been revised to correctly present $11,998,000 and $11,814,000 as “Dividends received from subsidiaries” in 2020 and 2019, respectively, and $83,434,000 and $24,131,000 as “Losses from subsidiaries” in 2020 and 2019, respectively, in net cash provided by (used in) operating activities. Furthermore, the intercompany borrowings from (to) our non-insurance subsidiaries were incorrectly reported net in "Change in intercompany payable" in net cash provided by (used in) operating activities in 2020 and 2019. As a result, the Condensed Statements of Cash Flows has been revised to correctly present $10,768,000 and $12,300,000 as "Intercompany borrowings from our non-insurance
subsidiaries" in 2020 and 2019, respectively, and $8,000,000 and $33,505,000 as "Repayments of intercompany borrowings to our non-insurance subsidiaries" in 2020 and 2019, respectively, in net cash provided by (used in) financing activities."

Notes to Condensed Financial Statements - Basis of Presentation

The Company’s investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition. The Company’s share of net income of its subsidiaries is included in income using the equity method. These financial statements should be read in conjunction with UPC Insurance’s consolidated financial statements contained in Part II, Item 8 of this Form 10-K.