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Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Schedule II - Condensed Financial Information of Registrant CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Universal Insurance Holdings, Inc. had no long-term obligations, guarantees or material contingencies as of December 31, 2020 and 2019. 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,
20202019
ASSETS
Cash and cash equivalents$62,934 $86,508 
Investments in subsidiaries and undistributed earnings357,375 378,906 
Available-for-sale debt securities, at fair value— 808 
Income taxes recoverable30,545 34,253 
Deferred income tax asset, net6 — 
Other assets72 149 
Total assets$450,932 $500,624 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Accounts payable$30 $20 
Deferred income tax liability, net— 2,602 
Dividends payable138 80 
Other accrued expenses1,085 3,587 
Total liabilities1,253 6,289 
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
468 467 
Authorized shares - 55,000
Issued shares - 46,817 and 46,707
Outstanding shares - 31,137 and 32,638
Treasury shares, at cost - 15,680 and 14,069
(225,506)(196,585)
Additional paid-in capital103,445 96,036 
Accumulated other comprehensive income (loss), net of taxes3,343 20,364 
Retained earnings567,929 574,053 
Total stockholders’ equity449,679 494,335 
Total liabilities and stockholders’ equity$450,932 $500,624 
 
 
See accompanying notes to condensed financial statements
CONDENSED STATEMENTS OF INCOME
 
For the Years Ended December 31,
202020192018
REVENUES
Net investment income273 2,249 1,635 
Net realized gains (losses) on investments38 (1,908)— 
Net change in unrealized gains (losses) of equity securities— 3,186 (2,648)
Management fee166 166 157 
Other revenue16 10 — 
Total revenues493 3,703 (856)
OPERATING COSTS AND EXPENSES
General and administrative expenses15,448 21,526 32,063 
Total operating cost and expenses15,448 21,526 32,063 
LOSS BEFORE INCOME TAXES AND EQUITY IN NET
   EARNINGS OF SUBSIDIARIES		(14,955)(17,823)(32,919)
Benefit from income taxes(215)(2,984)(10,434)
LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES(14,740)(14,839)(22,485)
Equity in net income of subsidiaries33,828 61,336 139,987 
CONSOLIDATED NET INCOME$19,088 $46,497 $117,502 
 
 



























See accompanying notes to condensed financial statements
CONDENSED STATEMENTS OF CASH FLOWS
 
For the Years Ended December 31,
202020192018
Cash flows from operating activities:
Net cash provided by (used in) operating activities$149,329 $84,752 $87,306 
Cash flows from investing activities:
Capital contributions to affiliates(118,897)— — 
Purchases of equity securities— (107)(35)
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 securities787 6,530 — 
Net cash provided by (used in) investing activities(118,110)6,154 (35)
Cash flows from financing activities:
Preferred stock dividend(10)(10)(10)
Common stock dividend(24,547)(26,106)(25,508)
Issuance of common stock for stock option exercises— 239 102 
Purchase of treasury stock(28,921)(66,186)(25,276)
Payments related to tax withholding for share-based compensation(1,315)(3,709)(12,714)
Net cash provided by (used in) financing activities(54,793)(95,772)(63,406)
Net increase (decrease) in cash and cash equivalents(23,574)(4,866)23,865 
Cash and cash equivalents at beginning of period86,508 91,374 67,509 
Cash and cash equivalents at end of period$62,934 $86,508 $91,374 
 
 




























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. (the “Company”) is a Delaware corporation incorporated in 1990. The 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 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 Company generates revenues from earnings on investments and management fees. The 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 year ended December 31, 2020, the Company made a capital contribution of $114.0 million to UPCIC to increase UPCIC’s statutory capital and surplus. There were no capital contributions by the Company to UPCIC during the years ended December 31, 2019 and 2018.
Dividends received from Subsidiaries
The Company received distributions from the earnings of its non-insurance consolidated subsidiaries of $151.0 million, $121.3 million and $96.6 million during the years ended December 31, 2020, 2019 and 2018, respectively. There were no dividends paid by UPCIC and APPCIC to the Company during the years ended December 31, 2020, 2019 and 2018.
NOTE 2 – SUBSEQUENT EVENTS
The 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, 2020.
In February 2021, the Company funded a $77.0 million capital contribution to UPCIC to increase UPCIC’s statutory capital and surplus. UPCIC included this contribution in their statutory capital and surplus at December 31, 2020 with the permission of the FLOIR under statutory accounting principles.