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Schedule II - Condensed Financial Information
 12 Months Ended
Dec. 31, 2019
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,
 
2019
 
2018
Assets
 
 
 
Fixed maturities, available for sale, at fair value
$
15,020

 
$
45,372

Equity securities, at fair value
18,594

 
14,178

Cash and cash equivalents
3,160

 
4,567

Accrued investment income
79

 
192

Investment in subsidiaries
644,015

 
643,526

Goodwill
10,157

 
10,157

Property and equipment, net
12,010

 
8,054

Other assets
4,187

 
14,163

Total Assets
$
707,222

 
$
740,209

 
 
 
 
Liabilities
 
 
 
Intercompany payable
$
31,401

 
$
48,103

Accounts payable and accrued expenses
421

 
443

Lease Liabilities
64

 
—

Other Liabilities
186

 
—

Long-term notes payable
151,285

 
151,294

Total Liabilities
183,357

 
199,840

 
 
 
 
Stockholders’ Equity
 
 
 
Common stock
4

 
4

Additional paid-in capital
391,852

 
389,141

Treasury stock
(431
)
 
(431
)
Accumulated other comprehensive income (loss)
11,319

 
(9,030
)
Retained earnings
100,394

 
140,546

Total UIHC Stockholders’ Equity
503,138

 
520,230

Noncontrolling Interests
20,727

 
20,139

Total Stockholders’ Equity
523,865

 
540,369

Total Liabilities and Stockholders’ Equity
$
707,222

 
$
740,209


SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED
Condensed Statements of Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
 
2019
 
2018
 
2017
REVENUE:
 
 
 
 
 
 
Net income (loss) from subsidiaries (equity method)
 
$
(24,131
)
 
$
10,124

 
$
14,000

Net realized investment gain (loss)
 
63

 
(160
)
 
—

Net investment income
 
1,156

 
2,353

 
53

Net unrealized gain (loss) on equity securities
 
4,036

 
(1,223
)
 
—

Total revenues
 
(18,876
)
 
11,094

 
14,053

 
 
 
 
 
 
 
EXPENSES:
 
 
 
 
 
 
Operating and underwriting
 
219

 
198

 
348

General and administrative
 
3,042

 
3,416

 
9,078

Interest expense
 
9,499

 
9,557

 
2,939

Total expenses
 
12,760

 
13,171

 
12,365

Income (loss) before other income
 
(31,636
)
 
(2,077
)
 
1,688

Other income
 
—

 
11

 
75

Income (loss) before income taxes
 
(31,636
)
 
(2,066
)
 
1,763

Provision for income tax benefit
 
(2,151
)
 
(2,460
)
 
(8,382
)
Net income (loss)
 
$
(29,485
)
 
$
394

 
$
10,145

Less: Net income attributable to NCI
 
387

 
104

 
—

Net income (loss) attributable to UIHC
 
$
(29,872
)
 
$
290

 
$
10,145

Unrealized gain (loss) on investments
 
28,366

 
(22,264
)
 
10,647

Reclassification adjustments - gains
 
(1,228
)
 
(1,655
)
 
(67
)
Income tax benefit (expense) related to other items of comprehensive income
 
(6,588
)
 
5,703

 
(2,181
)
Total comprehensive income (loss)
 
$
(8,935
)
 
$
(17,822
)
 
$
18,544

Less: Comprehensive income attributable to NCI
 
588

 
139

 
—

Total comprehensive income (loss) attributable to UIHC
 
$
(9,523
)
 
$
(17,961
)
 
$
18,544


SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED
Condensed Statements of Cash Flows
 
 
 
 
 
 
 
Year Ended December 31,
 
2019
 
2018
 
2017
OPERATING ACTIVITIES
 
 
 
 
 
Net income (loss)
$
(29,485
)
 
$
394

 
$
10,145

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
Dividends received from (returned to) subsidiaries
(1,764
)
 
51,764

 
—

Depreciation and amortization
1,131

 
1,079

 
1,208

Bond amortization
66

 
(6
)
 
—

Unrealized losses (gains) on equities
(4,036
)
 
1,223

 
—

Net realized investment losses (gains)
(63
)
 
160

 
—

Deferred income taxes, net
(511
)
 
(570
)
 
(777
)
Stock based compensation
3,007

 
2,414

 
2,613

Changes in operating assets and liabilities:
 
 
 
 
 
Accrued investment income
113

 
(192
)
 
—

Other assets
9,976

 
(908
)
 
359

Accounts payable and accrued expenses
(22
)
 
(524
)
 
447

Intercompany payable
(16,702
)
 
21,975

 
11,597

Lease liabilities
64

 
—

 
—

Other liabilities
313

 
—

 
(1,905
)
Net cash provided by (used in) operating activities
(37,913
)
 
76,809

 
23,687

INVESTING ACTIVITIES
 
 
 
 
 
Proceeds from sales of investments available for sale
35,036

 
37,315

 
—

Purchases of investments available for sale
(3,567
)
 
(72,635
)
 
(26,584
)
Investment in subsidiaries
20,709

 
(104,125
)
 
(23,283
)
Cost of property and equipment acquired
(4,749
)
 
(1,032
)
 
(449
)
Net cash provided by (used) in investing activities
47,429

 
(140,477
)
 
(50,316
)
FINANCING ACTIVITIES
 
 
 
 
 
Tax withholding payment related to net settlement of equity awards
(296
)
 
(418
)
 
(287
)
Proceeds from borrowings
—

 
—

 
150,000

Repayments of borrowings
(347
)
 
(347
)
 
(38,897
)
Payments of debt issuance costs
—

 
(63
)
 
(3,264
)
Dividends
(10,280
)
 
(10,268
)
 
(8,991
)
Net cash provided by (used in) financing activities
(10,923
)
 
(11,096
)
 
98,561

Increase (decrease) in cash
(1,407
)
 
(74,764
)
 
71,932

Cash and cash equivalents at beginning of period
4,567

 
79,331

 
7,399

Cash and cash equivalents at end of period
$
3,160

 
$
4,567

 
$
79,331




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.