Schedule II - Condensed Financial Information

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Condensed Balance Sheets
	December 31,
	2016			2015
Assets
Fixed maturities, available for sale, at fair value	$	—		$	8,157
Equity securities, available for sale, at fair value	—			26,343
Cash and cash equivalents	7,399			11,555
Accrued investment income	—			3
Investment in subsidiaries	263,712			195,940
Goodwill	10,841			—
Property and equipment, net	7,993			6,838
Other assets	11,337			2
Total Assets	$	301,282		$	248,838
Liabilities
Intercompany payable	$	14,531		$	8,657
Other liabilities	2,426			970
Long-term notes payable	42,998			—
Total Liabilities	59,955			9,627
Stockholders' Equity
Common stock	2			2
Additional paid-in capital	99,353			97,163
Treasury stock	(431		)	(431		)
Accumulated other comprehensive income	822			1,620
Retained earnings	141,581			140,857
Total Stockholders' Equity	241,327			239,211
Total Liabilities and Stockholders' Equity	$	301,282		$	248,838

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED

Condensed Statements of Comprehensive Income
	Years Ended December 31,
	2016			2015			2014
Revenues
Net income from subsidiaries (equity method)	$	13,296		$	27,562		$	40,108
Net realized investment gain (loss)	(14		)	951			—
Net investment income	88			239			—
Total revenues	13,370			28,752			40,108
Expenses
Operating and underwriting	337			138			86
General and administrative	11,805			1,252			130
Interest expense	496			—			—
Total expenses	12,638			1,390			216
Income before other income	732			27,362			39,892
Other income	60			245			61
Income before income taxes	792			27,607			39,953
Provision for income tax expense (benefit)	(4,906		)	249			(1,060		)
Net income	$	5,698		$	27,358		$	41,013
Unrealized gain (loss) on investments	(1,191)			25			—
Reclassification adjustments - losses (gains)	14			(951		)	—
Income tax benefit (expense) related to other items of comprehensive income	378			(357		)	—
Total Comprehensive Income	$	4,899		$	26,075		$	41,013

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED

Condensed Statements of Cash Flows
	Year Ended December 31,
	2016			2015			2014
OPERATING ACTIVITIES
Net income	$	5,698		$	27,358		$	41,013
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	682			74			—
Net realized investment gains	14			(951		)	—
Deferred income taxes, net	382			126			(44		)
Stock based compensation	1,947			1,974			649
Changes in operating assets and liabilities:
Accrued investment income	3			(3		)	—
Other assets	(22,553		)	450			(548		)
Intercompany payable	5,874			2,557			(47,033		)
Other liabilities	1,969			918			(352		)
Net cash provided by (used in) operating activities	(5,984		)	32,503			(6,315		)
INVESTING ACTIVITIES
Proceeds from sales of investments available for sale	34,551			19,633			—
Purchases of investments available for sale	(70		)	(53,212		)	—
Additional investment in subsidiaries	(68,563		)	16,276			(36,608		)
Cost of property and equipment acquired	(1,797		)	(3,255		)	(3,583		)
Net cash used in investing activities	(35,879		)	(20,558		)	(40,191		)
FINANCING ACTIVITIES
Tax withholding payment related to net settlement of equity awards	(270		)	(185		)	(110		)
Proceeds from borrowings	42,951			—			—
Dividends	(4,974		)	(4,302		)	(3,336		)
Proceeds from offering	—			—			54,041
Net cash provided by (used in) financing activities	37,707			(4,487		)	50,595
Increase in cash	(4,156		)	7,458			4,089
Cash and cash equivalents at beginning of period	11,555			4,097			8
Cash and cash equivalents at end of period	$	7,399		$	11,555		$	4,097

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.