Schedule II - Condensed Financial Information

12 Months Ended

Dec. 31, 2017

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,
	2017			2016
Assets
Fixed maturities, available for sale, at fair value	$	26,583		$	—
Cash and cash equivalents	79,331			7,399
Investment in subsidiaries	579,313			263,712
Goodwill	10,157			10,841
Property and equipment, net	7,761			7,993
Other assets	12,439			11,337
Total Assets	$	715,584		$	301,282
Liabilities
Intercompany payable	$	26,128		$	14,531
Accounts payable and accrued expenses	967			520
Other liabilities	—			1,906
Long-term notes payable	151,364			42,998
Total Liabilities	178,459			59,955
Stockholders’ Equity
Common stock	4			2
Additional paid-in capital	387,145			99,353
Treasury stock	(431		)	(431		)
Accumulated other comprehensive income	9,221			822
Retained earnings	141,186			141,581
Total Stockholders’ Equity	537,125			241,327
Total Liabilities and Stockholders’ Equity	$	715,584		$	301,282

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED

Condensed Statements of Comprehensive Income
	Years Ended December 31,
	2017			2016			2015
Revenues
Net income from subsidiaries (equity method)	$	14,000		$	13,296		$	27,562
Net realized investment (loss) gain	—			(14		)	951
Net investment income	53			88			239
Total revenues	14,053			13,370			28,752
Expenses
Operating and underwriting	348			337			138
General and administrative	9,078			11,805			1,252
Interest expense	2,939			496			—
Total expenses	12,365			12,638			1,390
Income before other income	1,688			732			27,362
Other income	75			60			245
Income before income taxes	1,763			792			27,607
Provision for income tax (benefit) expense	(8,382		)	(4,906		)	249
Net income	$	10,145		$	5,698		$	27,358
Unrealized gain (loss) on investments	10,647			(629		)	(3,070		)
Reclassification adjustments - losses (gains)	(67		)	(547		)	(827		)
Income tax (expense) benefit related to other items of comprehensive income	(2,181		)	378			1,506
Total Comprehensive Income	$	18,544		$	4,900		$	24,967

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED

Condensed Statements of Cash Flows
	Year Ended December 31,
	2017			2016			2015
OPERATING ACTIVITIES
Net income	$	10,145		$	5,698		$	27,358
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,208			682			74
Net realized investment gains	—			14			(951		)
Deferred income taxes, net	(777		)	382			126
Stock based compensation	2,613			1,947			1,974
Changes in operating assets and liabilities:
Accrued investment income	—			3			(3		)
Other assets	359			(22,553		)	450
Accounts payable and accrued expenses	447			—			—
Intercompany payable	11,597			5,874			2,557
Other liabilities	(1,905		)	1,969			918
Net cash provided by (used in) operating activities	23,687			(5,984		)	32,503
INVESTING ACTIVITIES
Proceeds from sales of investments available for sale	—			34,551			19,633
Purchases of investments available for sale	(26,584		)	(70		)	(53,212		)
Additional investment in subsidiaries	(23,283		)	(68,563		)	16,276
Cost of property and equipment acquired	(449		)	(1,797		)	(3,255		)
Net cash used in investing activities	(50,316		)	(35,879		)	(20,558		)
FINANCING ACTIVITIES
Tax withholding payment related to net settlement of equity awards	(287		)	(270		)	(185		)
Proceeds from borrowings	150,000			42,951			—
Repayments of borrowings	(38,897		)	—			—
Payments of debt issuance costs	(3,264		)	—			—
Dividends	(8,991		)	(4,974		)	(4,302		)
Net cash provided by (used in) financing activities	98,561			37,707			(4,487		)
Increase in cash	71,932			(4,156		)	7,458
Cash and cash equivalents at beginning of period	7,399			11,555			4,097
Cash and cash equivalents at end of period	$	79,331		$	7,399		$	11,555

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.