Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 20, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-33251 | |
Entity Registrant Name | UNIVERSAL INSURANCE HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 65-0231984 | |
Entity Address, Address Line One | 1110 W. Commercial Blvd. | |
Entity Address, City or Town | Fort Lauderdale | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33309 | |
City Area Code | 954 | |
Local Phone Number | 958-1200 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | UVE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 31,167,628 | |
Entity Central Index Key | 0000891166 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Available-for-sale debt securities, at fair value, net of allowance for credit loss of $290 and $186 (amortized cost: $1,039,042 and $815,647) | $ 1,029,157 | $ 819,861 | |
Equity securities, at fair value (cost: $79,947 and $84,667) | 77,099 | 84,887 | |
Assets held for sale | 253 | 0 | |
Investment real estate, net | 5,934 | 15,176 | |
Total invested assets | 1,112,443 | 919,924 | |
Cash and cash equivalents | 224,822 | 167,156 | |
Restricted cash and cash equivalents | [1] | 15,836 | 12,715 |
Prepaid reinsurance premiums | 386,466 | 215,723 | |
Reinsurance recoverable | 134,935 | 160,417 | |
Premiums receivable, net | 71,132 | 66,883 | |
Property and equipment, net | 53,222 | 53,572 | |
Deferred policy acquisition costs | 113,979 | 110,614 | |
Income taxes recoverable | 9,209 | 30,576 | |
Deferred income tax asset, net | 5,249 | 6,284 | |
Other assets | 15,935 | 14,877 | |
Total assets | 2,143,228 | 1,758,741 | |
LIABILITIES: | |||
Unpaid losses and loss adjustment expenses | 212,488 | 322,465 | |
Unearned premiums | 876,259 | 783,135 | |
Advance premium | 71,069 | 49,562 | |
Book overdraft | 0 | 59,399 | |
Reinsurance payable, net | 399,905 | 10,312 | |
Commission payable | 23,857 | 23,809 | |
Other liabilities and accrued expenses | 58,022 | 52,341 | |
Debt | 7,353 | 8,456 | |
Total liabilities | 1,648,953 | 1,309,479 | |
Commitments and Contingencies (Note 12) | |||
STOCKHOLDERS’ EQUITY: | |||
Cumulative convertible preferred stock | 0 | 0 | |
Common stock | 470 | 468 | |
Treasury shares, at cost - 15,797 and 15,680 | (227,115) | (225,506) | |
Additional paid-in capital | 107,382 | 103,445 | |
Accumulated other comprehensive income (loss), net of taxes | (7,398) | 3,343 | |
Retained earnings | 620,936 | 567,512 | |
Total stockholders’ equity | 494,275 | 449,262 | |
Total liabilities and stockholders’ equity | $ 2,143,228 | $ 1,758,741 | |
[1] | See “—Note 5 (Insurance Operations)” for a discussion of the nature of the restrictions for restricted cash and cash equivalents and “—Note 14 (Variable Interest Entities)” for a discussion of restricted cash held in a trust account. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, allowance for credit loss | $ 290 | $ 186 |
Available for sale debt securities, amortized cost | 1,039,042 | 815,647 |
Equity securities, amortized cost | $ 79,947 | $ 84,667 |
Cumulative convertible preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Cumulative convertible preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Cumulative convertible preferred stock, shares issued (in shares) | 10,000 | 10,000 |
Cumulative convertible preferred stock, shares outstanding (in shares) | 10,000 | 10,000 |
Cumulative convertible preferred stock, minimum liquidation preference (in USD per share) | $ 9.99 | $ 9.99 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 55,000,000 | 55,000,000 |
Common stock, shares issued (in shares) | 46,964,000 | 46,817,000 |
Common stock, shares outstanding (in shares) | 31,167,000 | 31,137,000 |
Treasury stock, shares (in shares) | 15,797,000 | 15,680,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
PREMIUMS EARNED AND OTHER REVENUES | ||||
Direct premiums written | $ 432,984 | $ 409,418 | $ 1,271,925 | $ 1,148,656 |
Change in unearned premium | (22,363) | (52,210) | (93,124) | (127,858) |
Direct premium earned | 410,621 | 357,208 | 1,178,801 | 1,020,798 |
Ceded premium earned | (145,967) | (123,017) | (414,670) | (339,408) |
Premiums earned, net | 264,654 | 234,191 | 764,131 | 681,390 |
Net investment income | 2,797 | 4,557 | 8,641 | 17,570 |
Net realized gains (losses) on investments | 4,319 | 53,827 | 5,357 | 54,294 |
Net change in unrealized gains (losses) of equity securities | (3,759) | 1,991 | (3,024) | (2,162) |
Commission revenue | 11,418 | 8,997 | 30,404 | 23,770 |
Policy fees | 5,859 | 6,167 | 17,821 | 18,253 |
Other revenue | 1,966 | 1,935 | 5,862 | 6,529 |
Total premiums earned and other revenues | 287,254 | 311,665 | 829,192 | 799,644 |
OPERATING COSTS AND EXPENSES | ||||
Losses and loss adjustment expenses | 187,581 | 238,477 | 498,765 | 524,870 |
General and administrative expenses | 73,209 | 76,980 | 237,553 | 223,544 |
Total operating costs and expenses | 260,790 | 315,457 | 736,318 | 748,414 |
INCOME BEFORE INCOME (LOSS) TAXES | 26,464 | (3,792) | 92,874 | 51,230 |
Income tax expense (benefit) | 6,281 | (623) | 24,342 | 14,450 |
NET INCOME (LOSS) | $ 20,183 | $ (3,169) | $ 68,532 | $ 36,780 |
Basic earnings (loss) per common share (in USD per share) | $ 0.65 | $ (0.10) | $ 2.19 | $ 1.14 |
Weighted average common shares outstanding - Basic (in shares) | 31,247 | 31,659 | 31,232 | 32,116 |
Diluted earnings (loss) per common share (in USD per share) | $ 0.64 | $ (0.10) | $ 2.19 | $ 1.14 |
Weighted average common shares outstanding - Diluted (in shares) | 31,337 | 31,659 | 31,302 | 32,202 |
Cash dividend declared per common share (in USD per share) | $ 0.16 | $ 0.16 | $ 0.48 | $ 0.48 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 20,183 | $ (3,169) | $ 68,532 | $ 36,780 |
Other comprehensive income (loss), net of taxes | (1,827) | (36,421) | (10,741) | (19,299) |
Comprehensive income (loss) | $ 18,356 | $ (39,590) | $ 57,791 | $ 17,481 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Change in accumulated other comprehensive income (loss) | Treasury Shares | Treasury SharesChange in accumulated other comprehensive income (loss) | Common stock | Common stockChange in accumulated other comprehensive income (loss) | Preferred Shares Issued | Preferred Shares IssuedChange in accumulated other comprehensive income (loss) | Additional Paid-In Capital | Additional Paid-In CapitalChange in accumulated other comprehensive income (loss) | Retained Earnings | Retained EarningsCumulative effect of change in accounting principle (ASU 2016-13) | Retained EarningsChange in accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative effect of change in accounting principle (ASU 2016-13) | Accumulated Other Comprehensive Income (Loss)Change in accumulated other comprehensive income (loss) | |
Beginning balance (in shares) at Dec. 31, 2019 | 14,069 | 14,069 | 46,707 | 46,707 | 10 | 10 | |||||||||||
Beginning balance at Dec. 31, 2019 | $ 493,901 | $ 493,901 | $ (196,585) | $ (196,585) | $ 467 | $ 467 | $ 0 | $ 0 | $ 96,036 | $ 96,036 | $ 573,619 | $ (597) | $ 573,022 | $ 20,364 | $ 597 | $ 20,961 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Vesting of performance share units (in shares) | 25 | [1] | 83 | ||||||||||||||
Vesting of performance share units | (646) | $ (646) | $ 1 | (1) | |||||||||||||
Grant and issue of stock award (in shares) | 1 | ||||||||||||||||
Grant and issue of stock award | 30 | 30 | |||||||||||||||
Retirement of treasury shares (in shares) | 25 | [1] | 25 | ||||||||||||||
Retirement of treasury shares | 0 | $ 646 | (646) | ||||||||||||||
Purchases of treasury stock (in shares) | (312) | ||||||||||||||||
Purchases of treasury stock | (6,587) | $ (6,587) | |||||||||||||||
Share-based compensation | 1,691 | 1,691 | |||||||||||||||
Net income (loss) | 20,067 | 20,067 | |||||||||||||||
Other comprehensive loss, net of taxes | (8,946) | (8,946) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (5,222) | (5,222) | |||||||||||||||
Ending balance (in shares) at Mar. 31, 2020 | 14,381 | 46,766 | 10 | ||||||||||||||
Ending balance at Mar. 31, 2020 | 494,288 | $ (203,172) | $ 468 | $ 0 | 97,110 | 587,867 | 12,015 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 14,069 | 14,069 | 46,707 | 46,707 | 10 | 10 | |||||||||||
Beginning balance at Dec. 31, 2019 | 493,901 | $ 493,901 | $ (196,585) | $ (196,585) | $ 467 | $ 467 | $ 0 | $ 0 | 96,036 | $ 96,036 | 573,619 | $ (597) | $ 573,022 | 20,364 | $ 597 | $ 20,961 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income (loss) | 36,780 | ||||||||||||||||
Other comprehensive loss, net of taxes | (19,299) | ||||||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 15,487 | 46,821 | 10 | ||||||||||||||
Ending balance at Sep. 30, 2020 | 474,763 | $ (223,086) | $ 468 | $ 0 | 101,438 | 594,281 | 1,662 | ||||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 14,381 | 46,766 | 10 | ||||||||||||||
Beginning balance at Mar. 31, 2020 | 494,288 | $ (203,172) | $ 468 | $ 0 | 97,110 | 587,867 | 12,015 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Vesting of restricted stock units (in shares) | 25 | [1] | 65 | ||||||||||||||
Vesting of restricted stock units | (424) | $ (424) | |||||||||||||||
Retirement of treasury shares (in shares) | 25 | [1] | 25 | ||||||||||||||
Retirement of treasury shares | 0 | $ 424 | (424) | ||||||||||||||
Purchases of treasury stock (in shares) | (572) | ||||||||||||||||
Purchases of treasury stock | (10,029) | $ (10,029) | |||||||||||||||
Share-based compensation | 3,082 | 3,082 | |||||||||||||||
Net income (loss) | 19,882 | 19,882 | |||||||||||||||
Other comprehensive loss, net of taxes | 26,068 | 26,068 | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (5,166) | (5,166) | |||||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 14,953 | 46,806 | 10 | ||||||||||||||
Ending balance at Jun. 30, 2020 | 527,701 | $ (213,201) | $ 468 | $ 0 | 99,768 | 602,583 | 38,083 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Vesting of restricted stock units (in shares) | 10 | [1] | 25 | ||||||||||||||
Vesting of restricted stock units | (184) | $ (184) | |||||||||||||||
Retirement of treasury shares (in shares) | 10 | [1] | 10 | ||||||||||||||
Retirement of treasury shares | 0 | $ 184 | (184) | ||||||||||||||
Purchases of treasury stock (in shares) | (534) | ||||||||||||||||
Purchases of treasury stock | (9,885) | $ (9,885) | |||||||||||||||
Share-based compensation | 1,854 | 1,854 | |||||||||||||||
Net income (loss) | (3,169) | (3,169) | |||||||||||||||
Other comprehensive loss, net of taxes | (36,421) | (36,421) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (5,133) | ||||||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 15,487 | 46,821 | 10 | ||||||||||||||
Ending balance at Sep. 30, 2020 | 474,763 | $ (223,086) | $ 468 | $ 0 | 101,438 | 594,281 | 1,662 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 15,680 | 46,817 | 10 | ||||||||||||||
Beginning balance at Dec. 31, 2020 | 449,262 | $ (225,506) | $ 468 | $ 0 | 103,445 | 567,512 | 3,343 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Vesting of performance share units (in shares) | 16 | [2] | 62 | ||||||||||||||
Vesting of performance share units | (241) | $ (241) | |||||||||||||||
Vesting of restricted stock units (in shares) | 17 | [2] | 65 | ||||||||||||||
Vesting of restricted stock units | (254) | $ (254) | $ 1 | (1) | |||||||||||||
Retirement of treasury shares (in shares) | 33 | [2] | 33 | ||||||||||||||
Retirement of treasury shares | 0 | $ 495 | (495) | ||||||||||||||
Purchases of treasury stock (in shares) | (15) | ||||||||||||||||
Purchases of treasury stock | (245) | $ (245) | |||||||||||||||
Share-based compensation | 1,675 | 1,675 | |||||||||||||||
Net income (loss) | 26,408 | 26,408 | |||||||||||||||
Other comprehensive loss, net of taxes | (16,910) | (16,910) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (5,030) | (5,030) | |||||||||||||||
Ending balance (in shares) at Mar. 31, 2021 | 15,695 | 46,911 | 10 | ||||||||||||||
Ending balance at Mar. 31, 2021 | 454,665 | $ (225,751) | $ 469 | $ 0 | 104,624 | 588,890 | (13,567) | ||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 15,680 | 46,817 | 10 | ||||||||||||||
Beginning balance at Dec. 31, 2020 | 449,262 | $ (225,506) | $ 468 | $ 0 | 103,445 | 567,512 | 3,343 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income (loss) | 68,532 | ||||||||||||||||
Other comprehensive loss, net of taxes | (10,741) | ||||||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 15,797 | 46,964 | 10 | ||||||||||||||
Ending balance at Sep. 30, 2021 | 494,275 | $ (227,115) | $ 470 | $ 0 | 107,382 | 620,936 | (7,398) | ||||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 15,695 | 46,911 | 10 | ||||||||||||||
Beginning balance at Mar. 31, 2021 | 454,665 | $ (225,751) | $ 469 | $ 0 | 104,624 | 588,890 | (13,567) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Vesting of restricted stock units (in shares) | 20 | [2] | 73 | ||||||||||||||
Vesting of restricted stock units | (288) | $ (288) | $ 1 | (1) | |||||||||||||
Retirement of treasury shares (in shares) | 20 | [2] | 20 | ||||||||||||||
Retirement of treasury shares | 0 | $ 288 | (288) | ||||||||||||||
Share-based compensation | 1,569 | 1,569 | |||||||||||||||
Net income (loss) | 21,941 | 21,941 | |||||||||||||||
Other comprehensive loss, net of taxes | 7,996 | 7,996 | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (5,041) | (5,041) | |||||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 15,695 | 46,964 | 10 | ||||||||||||||
Ending balance at Jun. 30, 2021 | 480,842 | $ (225,751) | $ 470 | $ 0 | 105,904 | 605,790 | (5,571) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Purchases of treasury stock (in shares) | (102) | ||||||||||||||||
Purchases of treasury stock | (1,364) | $ (1,364) | |||||||||||||||
Share-based compensation | 1,478 | 1,478 | |||||||||||||||
Net income (loss) | 20,183 | 20,183 | |||||||||||||||
Other comprehensive loss, net of taxes | (1,827) | (1,827) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (5,037) | (5,037) | |||||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 15,797 | 46,964 | 10 | ||||||||||||||
Ending balance at Sep. 30, 2021 | $ 494,275 | $ (227,115) | $ 470 | $ 0 | $ 107,382 | $ 620,936 | $ (7,398) | ||||||||||
[1] | All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised, restricted stock vested, performance share units vested, or restricted stock units vested. These shares have been cancelled by the Company. | ||||||||||||||||
[2] | All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised, restricted stock vested, performance share units vested, or restricted stock units vested. These shares have been cancelled by the Company. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividend declared per common share (in USD per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 |
Cash dividend declared per preferred share (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |||
Cash flows from operating activities: | |||||
Net cash provided by operating activities | $ 273,980 | $ 173,545 | |||
Cash flows from investing activities: | |||||
Proceeds from sale of property and equipment | 32 | 141 | |||
Purchases of property and equipment | (4,880) | (14,580) | |||
Purchases of equity securities | (46,532) | (11,145) | |||
Purchases of available-for-sale debt securities | (354,907) | (735,426) | |||
Purchases of investment real estate, net | (7) | (6) | |||
Proceeds from sales of equity securities | $ 48,486 | 53,651 | 0 | ||
Proceeds from sales of available-for-sale debt securities | 76,516 | 757,812 | |||
Proceeds from sales of investment real estate | 2,591 | 0 | |||
Proceeds from sale of assets held for sale | 8,856 | 0 | |||
Maturities of available-for-sale debt securities | 70,095 | 115,543 | |||
Net cash provided by (used in) investing activities | (194,585) | 112,339 | |||
Cash flows from financing activities: | |||||
Preferred stock dividend | (8) | (8) | |||
Common stock dividend | (15,104) | (15,516) | |||
Purchase of treasury stock | (1,609) | (26,501) | |||
Payments related to tax withholding for share-based compensation | (784) | (1,253) | |||
Repayment of debt | (1,103) | (1,103) | |||
Net cash provided by (used in) financing activities | (18,608) | (44,381) | |||
Cash and cash equivalents, and restricted cash and cash equivalents: | |||||
Net increase (decrease) during the period | 60,787 | 241,503 | |||
Balance, beginning of period | 179,871 | 184,744 | |||
Balance, end of period | 240,658 | 240,658 | 426,247 | ||
Cash and cash equivalents, and restricted cash and cash equivalents within the Consolidated Balance Sheets | |||||
Cash and cash equivalents | 224,822 | 224,822 | |||
Restricted cash and cash equivalents | 15,836 | [1] | 15,836 | [1] | |
Total cash and cash equivalents and restricted cash and cash equivalents | $ 240,658 | $ 240,658 | $ 426,247 | ||
[1] | See “—Note 5 (Insurance Operations)” for a discussion of the nature of the restrictions for restricted cash and cash equivalents and “—Note 14 (Variable Interest Entities)” for a discussion of restricted cash held in a trust account. |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations Universal Insurance Holdings, Inc. (“UIH”, and together with its wholly-owned subsidiaries, “the Company”) is a Delaware corporation incorporated in 1990. The Company is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned insurance company subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”, and together with UPCIC, the “Insurance Entities”), the Company is principally engaged in the property and casualty insurance business offered primarily through its network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is residential homeowners’ insurance offered in 19 states as of September 30, 2021, including Florida, which comprises the majority of the Company’s policies in force. See “—Note 5 (Insurance Operations)” for more information regarding the Company’s insurance operations. The Company generates revenues primarily from the collection of premiums and investment returns on funds invested on cash flows in excess of those retained and used for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers on certain reinsurance programs placed on behalf of the Insurance Entities, policy fees collected from policyholders by the Company’s wholly-owned managing general agent subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The Company’s wholly-owned adjusting company receives claims-handling fees from the Insurance Entities. The Insurance Entities are reimbursed for these fees on claims that are subject to recovery under the Insurance Entities’ respective reinsurance programs. These fees, after expenses, are recorded in the Condensed Consolidated Financial Statements as an adjustment to losses and loss adjustment expense (“LAE”). Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the Financial Statements do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) for annual financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on February 26, 2021. The Condensed Consolidated Balance Sheet at December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. To conform to the current period presentation, certain amounts in the prior periods’ condensed consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. The Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, as well as variable interest entities (“VIE”) in which the Company is determined to be the primary beneficiary. All material intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary use of estimates is in the recognition of liabilities for unpaid losses, loss adjustment expenses, subrogation recoveries and reinsurance recoveries. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The Company reported Significant Accounting Policies in its Annual Report on Form 10-K for the year ended December 31, 2020. The following are new or revised disclosures or disclosures required on a quarterly basis. Accounting Policies Assets Held for Sale. The Company considers properties, including land, to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and the Company expects the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property’s value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and the Company ceases depreciation. Assets held for sale are stated separately in the accompanying Condensed Consolidated Balance Sheets. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-Sale Securities The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands): September 30, 2021 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 37,291 $ — $ 102 $ (277) $ 37,116 Corporate bonds 640,855 (236) 1,435 (7,562) 634,492 Mortgage-backed and asset-backed securities 336,881 — 493 (3,620) 333,754 Municipal bonds 14,925 (1) 1 (244) 14,681 Redeemable preferred stock 9,090 (53) 90 (13) 9,114 Total $ 1,039,042 $ (290) $ 2,121 $ (11,716) $ 1,029,157 December 31, 2020 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 59,529 $ — $ 157 $ (55) $ 59,631 Corporate bonds 416,758 (148) 3,571 (337) 419,844 Mortgage-backed and asset-backed securities 319,377 — 1,175 (615) 319,937 Municipal bonds 11,990 — 138 — 12,128 Redeemable preferred stock 7,993 (38) 424 (58) 8,321 Total $ 815,647 $ (186) $ 5,465 $ (1,065) $ 819,861 The following table provides the credit quality of available-for-sale debt securities as of the dates presented (dollars in thousands): September 30, 2021 December 31, 2020 Equivalent S&P Credit Ratings Fair Value % of Total Fair Value % of Total AAA $ 330,344 32.1 % $ 337,462 41.2 % AA 143,806 14.0 % 89,681 10.9 % A 315,761 30.7 % 230,290 28.1 % BBB 229,208 22.2 % 160,662 19.6 % BB and Below — — % 233 — % No Rating Available 10,038 1.0 % 1,533 0.2 % Total $ 1,029,157 100.0 % $ 819,861 100.0 % The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc. (“S&P”), Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position. The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Amortized Fair Value Amortized Fair Value Mortgage-backed Securities: Agency $ 149,850 $ 147,723 $ 153,937 $ 153,758 Non-agency 68,025 66,940 54,231 54,666 Asset-backed Securities: Auto loan receivables 71,716 71,764 68,188 68,440 Credit card receivables 4,756 4,749 7,878 7,891 Other receivables 42,534 42,578 35,143 35,182 Total $ 336,881 $ 333,754 $ 319,377 $ 319,937 The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands): September 30, 2021 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 5 $ 21,069 $ (145) 2 $ 1,981 $ (132) Corporate bonds 216 304,464 (4,143) 7 12,896 (339) Mortgage-backed and asset-backed securities 108 232,904 (3,425) 5 5,320 (195) Municipal bonds 4 8,881 (199) — — — Redeemable preferred stock 1 498 (2) — — — Total 334 $ 567,816 $ (7,914) 14 $ 20,197 $ (666) December 31, 2020 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 8 $ 31,729 $ (55) — $ — $ — Corporate bonds 27 28,791 (162) — — — Mortgage-backed and asset-backed securities 42 112,462 (615) — — — Municipal bonds — — — — — — Redeemable preferred stock 2 688 (12) — — — Total 79 $ 173,670 $ (844) — $ — $ — Unrealized losses on available-for-sale debt securities in the above table as of September 30, 2021 have not been recognized into income as credit losses because the issuers are of high credit quality (investment grade securities), management does not intend to sell and it is likely management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There were no material factors impacting any one category or specific security requiring an accrual for credit loss. The issuers continue to make principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity. The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands): Corporate Bonds Municipal Bonds Redeemable Total Balance, December 31, 2019 $ — $ — $ — $ — Cumulative effect adjustment as of January 1, 2020 665 — 126 791 Increase (decrease) (517) — (88) (605) Balance, December 31, 2020 148 — 38 186 Increase (decrease) 88 1 15 104 Balance, September 30, 2021 $ 236 $ 1 $ 53 $ 290 For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agencies, market sentiment and trends and adverse conditions specifically related to the security, among other quantitative and qualitative factors utilized for establishing an estimate for credit losses. If the assessment indicates that a credit loss exists, the present values of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes an available-for-sale debt security is confirmed as uncollected or when either of the criteria regarding intent or requirement to sell is met. The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands): September 30, 2021 Amortized Cost Fair Value Due in one year or less $ 31,202 $ 31,275 Due after one year through five years 609,963 606,996 Due after five years through ten years 370,677 363,943 Due after ten years 26,301 26,046 Perpetual maturity securities 899 897 Total $ 1,039,042 $ 1,029,157 All securities, except those with perpetual maturities, were categorized in the table above utilizing years to effective maturity. Effective maturity takes into consideration all forms of potential prepayment, such as call features or prepayment schedules, that shorten the lifespan of contractual maturity dates. The following table provides certain information related to available-for-sale debt securities, equity securities and investment in real estate during the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Proceeds from sales and maturities (fair value): Available-for-sale debt securities (1) $ 32,320 $ 773,673 $ 146,611 $ 873,355 Equity securities $ 48,486 $ — $ 53,651 $ — Gross realized gains on sale of securities: Available-for-sale debt securities (1) $ 882 $ 53,893 $ 1,899 $ 54,779 Equity securities $ 1,315 $ — $ 2,399 $ — Gross realized losses on sale of securities: Available-for-sale debt securities (1) $ (192) $ (66) $ (1,656) $ (485) Equity securities $ — $ — $ — $ — Realized gains on sales of investment real estate (2) $ — $ — $ 401 $ — (1) In the third quarter of 2020, the Company took advantage of the market recovery and recognized $53.8 million of net realized gains on the sale of our available-for-sale debt securities that were in an unrealized gain position. (2) See the discussion below for “Investment Real Estate” sold. The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Available-for-sale debt securities $ 2,799 $ 4,394 $ 8,393 $ 16,425 Equity securities 544 583 1,787 1,732 Cash and cash equivalents (1) 2 49 28 935 Other (2) 274 268 809 782 Total investment income 3,619 5,294 11,017 19,874 Less: Investment expenses (3) (822) (737) (2,376) (2,304) Net investment income $ 2,797 $ 4,557 $ 8,641 $ 17,570 (1) Includes interest earned on restricted cash and cash equivalents. (2) Includes investment income earned on real estate investments. (3) Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments. Equity Securities The following table provides the unrealized gains and losses recognized for the periods presented on equity securities still held at the end of the reported period (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period $ (3,418) $ 1,991 $ (2,391) $ (2,162) Assets Held for Sale as of September 30, 2021 During the second quarter of 2021, the Company committed to a plan to actively market the sale of a real estate property previously included in property and equipment, net. The real estate property is located in Pompano Beach, Florida. Proceeds from the sale are expected to exceed the property’s carrying value of $0.3 million and, accordingly, no impairment loss was recognized on the classification of this real estate property as held for sale. During the first quarter of 2021, the Company committed to a plan to actively market an income-producing investment real estate property and classified the investment property to assets held for sale. On September 30, 2021, the Company completed the sale and received net cash proceeds of approximately $8.9 million and recognized a pre-tax gain of approximately $2.3 million that is included in net realized gains (losses) on investments in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021. Investment Real Estate Investment real estate consisted of the following as of the dates presented (in thousands): September 30, December 31, 2021 2020 Income Producing: Investment real estate $ 7,087 $ 14,685 Less: Accumulated depreciation (1,153) (1,699) 5,934 12,986 Non-Income Producing: Investment real estate — 2,190 Investment real estate, net $ 5,934 $ 15,176 During the first quarter of 2021, the Company completed the sale of a non-income producing investment real estate property. The Company received net cash proceeds of approximately $2.6 million and recognized a pre-tax gain of approximately $0.4 million that is included in net realized gains (losses) on investments in the Condensed Consolidated Statements of Income for the nine months ended September 30, 2021. Depreciation expense related to investment real estate for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Depreciation expense on investment real estate $ 47 $ 103 $ 139 $ 311 |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally as of the beginning of the hurricane season on June 1 st of each year. The Company’s current reinsurance programs consist principally of catastrophe excess of loss reinsurance, subject to the terms and conditions of the applicable agreements. Notwithstanding the purchase of such reinsurance, the Company is responsible for certain retained loss amounts before reinsurance attaches and for insured losses related to catastrophes and other events that exceed coverage provided by the reinsurance programs. The Company remains responsible for the settlement of insured losses irrespective of whether any of the reinsurers fail to make payments otherwise due. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance contracts and consistent with the establishment of the gross liability for losses, LAE and other expenses. Reinsurance premiums, losses and LAE are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. To reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used. The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of September 30, 2021 Due from as of Reinsurer AM Best Standard Moody’s September 30, 2021 December 31, 2020 Florida Hurricane Catastrophe Fund (1) n/a n/a n/a $ 52,992 $ 121,298 Allianz Risk Transfer (Bermuda) Ltd. A+ AA Aa3 41,553 96,652 Allianz Risk Transfer — — — — 21,087 Renaissance Reinsurance Ltd. — — — — 18,285 Total (2) $ 94,545 $ 257,322 (1) No rating is available because the fund is not rated. (2) Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses. The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): Three Months Ended September 30, 2021 2020 Premiums Premiums Losses and Loss Premiums Premiums Losses and Loss Direct $ 432,984 $ 410,621 $ 264,068 $ 409,418 $ 357,208 $ 347,207 Ceded (124) (145,967) (76,487) (3,062) (123,017) (108,730) Net $ 432,860 $ 264,654 $ 187,581 $ 406,356 $ 234,191 $ 238,477 Nine Months Ended September 30, 2021 2020 Premiums Premiums Losses and Loss Premiums Premiums Losses and Loss Direct $ 1,271,925 $ 1,178,801 $ 777,668 $ 1,148,656 $ 1,020,798 $ 682,896 Ceded (585,413) (414,670) (278,903) (497,263) (339,408) (158,026) Net $ 686,512 $ 764,131 $ 498,765 $ 651,393 $ 681,390 $ 524,870 The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): September 30, December 31, 2021 2020 Prepaid reinsurance premiums $ 386,466 $ 215,723 Reinsurance recoverable on paid losses and LAE $ 52,215 $ 40,895 Reinsurance recoverable on unpaid losses and LAE 82,720 119,522 Reinsurance recoverable $ 134,935 $ 160,417 |
Insurance Operations
Insurance Operations | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Insurance Operations | Insurance Operations Deferred Policy Acquisition Costs The Company defers certain costs in connection with written premium, called Deferred Policy Acquisition Costs (“DPAC”). DPAC is amortized over the effective period of the related insurance policies. The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 DPAC, beginning of period $ 115,971 $ 103,527 $ 110,614 $ 91,882 Capitalized Costs 55,054 58,727 170,996 164,700 Amortization of DPAC (57,046) (50,959) (167,631) (145,287) DPAC, end of period $ 113,979 $ 111,295 $ 113,979 $ 111,295 Regulatory Requirements and Restrictions The Insurance Entities are subject to regulations and standards of the Florida Office of Insurance Regulation (“FLOIR”). The Insurance Entities are also subject to regulations and standards of regulatory authorities in other states where they are licensed, although as Florida-domiciled insurers, their principal regulatory authority is the FLOIR. These standards and regulations require the Insurance Entities to maintain specified levels of statutory capital and restrict the timing and amount of dividends and other distributions that may be paid by the Insurance Entities to the parent company. Except in the case of extraordinary dividends, these standards generally permit dividends to be paid from statutory unassigned funds of the regulated subsidiary and are limited based on the regulated subsidiary’s level of statutory net income and statutory capital and surplus. The maximum dividend that may be paid by the Insurance Entities to their immediate parent company, Protection Solutions, Inc. (“PSI”, formerly known as Universal Insurance Holding Company of Florida), without prior regulatory approval is limited by the provisions of the Florida Insurance Code. These dividends are referred to as “ordinary dividends.” However, if the dividend, together with other dividends paid within the preceding twelve months, exceeds this statutory limit or is paid from sources other than earned surplus, the entire dividend is generally considered an “extraordinary dividend” and must receive prior regulatory approval. In accordance with Florida Insurance Code, and based on the calculations performed by the Company as of September 30, 2021, UPCIC and APPCIC currently are not able to pay any ordinary dividends . For the three and nine months ended September 30, 2021 and 2020, no dividends were paid from the Insurance Entities to PSI. Effective July 1, 2021, the Florida Insurance Code requires a residential property insurance company to maintain statutory surplus as to policyholders of at least $15.0 million or ten percent of the insurer’s total liabilities, whichever is greater. As of December 31, 2020, this minimum requirement was the greater of $10.0 million or ten percent of the insurer’s total liabilities. The following table presents the amount of capital and surplus calculated in accordance with statutory accounting principles, which differ from U.S. GAAP, and an amount representing ten percent of total liabilities for each of the Insurance Entities as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Statutory capital and surplus UPCIC (1) (2) $ 363,465 $ 360,707 APPCIC $ 16,417 $ 12,918 Ten percent of total liabilities UPCIC $ 129,593 $ 98,682 APPCIC $ 7,365 $ 1,793 (1) As of the dates in the table above, statutory capital and surplus for UPCIC includes a $77 million capital contribution funded in February 2021 by UIH through PSI, the Insurance Entities’ parent company, which the FLOIR permitted to be included in the statutory capital and surplus at December 31, 2020 under statutory accounting principles. This contribution was not recognized on a U.S. GAAP basis at December 31, 2020. (2) As of the dates in the table above, statutory capital and surplus for UPCIC includes a $20 million Subordinated Surplus Debenture funded in October 2021 by UIH through PSI, the Insurance Entities’ parent company, which the FLOIR permitted to be included in UPCIC’s statutory capital and surplus at September 30, 2021 under statutory accounting principles. This contribution was not recognized on a U.S. GAAP basis at September 30, 2021. As of the dates in the table above, the Insurance Entities each exceeded the minimum statutory capitalization requirement. The Insurance Entities also met the capitalization requirements of the other states in which they were licensed as of September 30, 2021. The Insurance Entities are also required to adhere to prescribed premium-to-capital surplus ratios and each met those requirements at such dates. Through PSI, UIH recorded contributions for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Capital contributions - UPCIC $ 15,000 $ 44,000 $ 92,000 $ 74,000 The following table summarizes combined net income (loss) for the Insurance Entities determined in accordance with statutory accounting practices for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Combined net income (loss) $ (22,903) $ (41,436) $ (21,723) $ (37,034) The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,484 $ 3,550 |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | Liability for Unpaid Losses and Loss Adjustment Expenses Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Balance at beginning of period $ 278,658 $ 147,659 $ 322,465 $ 267,760 Less: Reinsurance recoverable (113,157) (26,107) (119,522) (123,221) Net balance at beginning of period 165,501 121,552 202,943 144,539 Incurred related to: Current year 176,092 208,392 480,782 489,966 Prior years 11,489 30,085 17,983 34,904 Total incurred 187,581 238,477 498,765 524,870 Paid related to: Current year 180,473 172,977 386,302 355,479 Prior years 42,841 43,661 185,638 170,539 Total paid 223,314 216,638 571,940 526,018 Net balance at end of period 129,768 143,391 129,768 143,391 Plus: Reinsurance recoverable 82,720 59,329 82,720 59,329 Balance at end of period $ 212,488 $ 202,720 $ 212,488 $ 202,720 During the three months ended September 30, 2021, there was adverse prior years’ reserve development of $87.9 million gross, less $76.4 million ceded, resulting in $11.5 million net development. The direct and net prior years’ reserve development for the quarter ended September 30, 2021 was principally due to a direct increase in the ultimate losses for hurricanes of $81.7 million offset by ceded hurricane losses of $76.4 million resulting in net unfavorable development of $5.3 million. Direct losses increased for Hurricanes Irma and Sally. Excluding hurricanes, there was $6.2 million of direct and net prior years’ reserve development for the quarter ended September 30, 2021. This development, primarily from the 2019 and prior accident years, resulted from settlements on litigated claims exceeding prior estimated amounts. During the three months ended September 30, 2020, there was adverse prior years’ reserve development of $136.7 million gross, less $106.7 million ceded, resulting in $30.1 million net development. The net prior years’ reserve development for the quarter ended September 30, 2020 was principally due to increased ultimate losses and LAE for Hurricane Irma not recoverable from the Florida Hurricane Catastrophe Fund (”FHCF”) and increased prior years’ companion claims in the run-up to the expiration of the statutory limitations period for filing Hurricane Irma claims. During the nine months ended September 30, 2021, there was adverse prior years’ reserve development of $296.9 million gross, less $278.9 million ceded, resulting in $18.0 million net development. The direct and net prior year reserve development for the nine months ended September 30, 2021 was principally due to a direct increase in the ultimate losses for several hurricanes of $282.9 million, offset by ceded hurricane losses of $278.9 million, resulting in net unfavorable reserve development of $4.0 million. Direct losses increased for Hurricanes Irma, Sally, Michael and Matthew. Excluding hurricanes, there was $14.0 million of direct and net prior years’ reserve development for the nine months ended September 30, 2021. This development, primarily from the 2019 and prior accident years, resulted from settlements on litigated claims exceeding prior estimated amounts. During the nine months ended September 30, 2020, there was adverse prior years’ reserve development of $190.8 million gross, less $155.9 million ceded, resulting in $34.9 million net unfavorable development. The direct and net prior years’ reserve development for the nine months ended September 30, 2020 was principally due to increased ultimate losses and LAE for Hurricane Irma not recoverable from the FHCF and increased prior years’ companion claims in the run-up to the expiration of the statutory limitations period for Hurricane Irma. With respect to hurricanes occurring prior to July 1, 2020, Florida law barred new, supplemental or reopened claims for losses caused by the perils of windstorms or hurricanes unless notice was provided within three years of the event. In September 2020, the three-year period following Hurricane Irma expired. The Company continues to adjust and settle Hurricane Irma claims that were reported prior to the expiration of the three-year period. Effective July 1, 2021, the Florida legislature amended the law to require a new or reopened claim, whether or not attributable to a hurricane, to be filed within two years of the date of loss. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Surplus Note Consists of the following as of the dates presented (in thousands): September 30, December 31, 2021 2020 Surplus note $ 7,353 $ 8,456 In 2006, UPCIC entered into a $25.0 million surplus note with the State Board of Administration of Florida (the “SBA”) under Florida’s Insurance Capital Build-Up Incentive Program. The surplus note has a twenty-year term and accrues interest, adjusted quarterly based on the 10-year Constant Maturity Treasury Index. Principal and interest are paid periodically pursuant to terms of the surplus note. UPCIC was in compliance with the terms of the surplus note as of September 30, 2021. Unsecured Revolving Loan In August 2021, the Company entered into a credit agreement and related revolving loan (“Revolving Loan”) with JPMorgan Chase Bank, N.A. (“JPMorgan”). The Revolving Loan makes available to the Company an unsecured revolving credit facility with an aggregate commitment not to exceed $35.0 million and carries an interest rate of prime rate plus a margin of 2%. The Company must pay an annual commitment of 0.50% of the unused portion of the commitment. Borrowings under the Revolving Loan mature 364 days after the date of the loan. The Revolving Loan contains customary financial covenants. As of September 30, 2021, the Company was in compliance with all applicable covenants, including financial covenants. The Company has not drawn any amount under the Revolving Loan as of September 30, 2021. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity From time to time, the Company’s Board of Directors may authorize share repurchase programs under which the Company may repurchase shares of the Company’s common stock in the open market. The following table presents repurchases of the Company’s common stock for the periods presented (in thousands, except total number of shares repurchased and per share data): Total Number of Shares Average Repurchased During the Aggregate Price Per Dollar Amount Nine Months Ended September 30, Purchase Share Date Authorized Expiration Date Authorized 2021 2020 Price Repurchased Plan Completed November 3, 2020 November 3, 2022 $ 20,000 116,886 — $ 1,609 $ 13.77 November 6, 2019 December 31, 2021 $ 40,000 — 1,418,087 $ 26,501 $ 18.69 November 2020 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended September 30, 2021 , the Company recorded approximately $6.3 million of income tax expense compared to $0.6 million of income tax benefit for the three months ended September 30, 2020. The effective tax rate (“ETR”) for the three months ended September 30, 2021 was 23.7% compared to a 16.4% ETR for the same period in 2020. During the nine months ended September 30, 2021 and 2020, the Company recorded approximately $24.3 million and $14.5 million of income tax expense, respectively. The ETR for the nine months ended September 30, 2021 was 26.2% compared to a 28.2% ETR for the same period in 2020. In calculating these rates, the Company considered a variety of factors including the forecasted full year pre-tax results, the U.S. federal tax rate, expected non-deductible expenses and estimated state income taxes. The Company’s final ETR for the full year will be dependent on the level of pre-tax income, discrete items, the apportionment of taxable income among state tax jurisdictions and the extent of non-deductible expenses in relation to pre-tax income. The Company’s income tax provision reflects an estimated annual ETR of 26.9% for 2021, calculated before the impact of discrete items. The effect of reporting discrete items through September 30, 2021 amounts to an increase to the annual estimated ETR of 10 basis points, resulting in a total annual estimated ETR of 27.0%. The annual estimated ETR includes a federal income tax rate of 21% and a state income tax rate, net of federal benefit, of 2.4%. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The Company reviews its deferred tax assets regularly for recoverability. Management has reviewed all available evidence, both positive and negative, in determining the need for a valuation allowance with respect to the gross deferred tax assets. In reviewing the gross deferred tax assets, management has concluded that the likelihood for utilization of these deferred tax assets is certain (greater than 50%) and determined that a valuation allowance on any of the deferred tax assets is not required. Management will continue to analyze the gross deferred tax assets on a quarterly basis to determine whether there is a need for a valuation allowance in the future. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from exercises of stock options, vesting of performance share units, vesting of restricted stock, vesting of restricted stock units, and conversion of preferred stock. The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted EPS computations for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator for EPS: Net income (loss) $ 20,183 $ (3,169) $ 68,532 $ 36,780 Less: Preferred stock dividends (3) (3) (8) (8) Income (loss) available to common stockholders $ 20,180 $ (3,172) $ 68,524 $ 36,772 Denominator for EPS: Weighted average common shares outstanding 31,247 31,659 31,232 32,116 Plus: Assumed conversion of share-based compensation (1) 65 — 45 61 Assumed conversion of preferred stock 25 — 25 25 Weighted average diluted common shares outstanding 31,337 31,659 31,302 32,202 Basic earnings (loss) per common share $ 0.65 $ (0.10) $ 2.19 $ 1.14 Diluted earnings (loss) per common share $ 0.64 $ (0.10) $ 2.19 $ 1.14 (1) Represents the dilutive effect of unexercised stock options, unvested performance share units, unvested restricted stock units and unvested restricted stock. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Three Months Ended September 30, 2021 2020 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (1,635) $ (334) $ (1,301) $ 5,518 $ 1,359 $ 4,159 Less: Reclassification adjustments for (gains) losses realized in net income (loss) (690) (164) (526) (53,827) (13,247) (40,580) Other comprehensive income (loss) $ (2,325) $ (498) $ (1,827) $ (48,309) $ (11,888) $ (36,421) Nine Months Ended September 30, 2021 2020 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (13,796) $ (3,241) $ (10,555) $ 28,953 $ 7,320 $ 21,633 Less: Reclassification adjustments for (gains) losses realized in net income (loss) (243) (57) (186) (54,294) (13,362) (40,932) Other comprehensive income (loss) (14,039) (3,298) (10,741) (25,341) (6,042) (19,299) Reclassification adjustment to retained earnings (1) — — — 791 194 597 Change in accumulated other comprehensive income (loss) $ (14,039) $ (3,298) $ (10,741) $ (24,550) $ (5,848) $ (18,702) (1) Effective January 1, 2020, the Company adopted Accounting Standard Update 2016-13. This amount represents reclassifications to retained earnings associated with the allowance for expected credit losses within accumulated other comprehensive income relating to available-for-sale debt security investments. The following table provides the reclassification adjustments for gains (losses) out of accumulated other comprehensive income for the periods presented (in thousands): Details about Accumulated Amount Reclassified from Accumulated Affected Line Item in the Statement Where Net Three Months Ended Nine Months Ended 2021 2020 2021 2020 Unrealized gains (losses) on $ 690 $ 53,827 $ 243 $ 54,294 Net realized gains (losses) on sale of securities (164) (13,247) (57) (13,362) Income taxes Total reclassification for the period $ 526 $ 40,580 $ 186 $ 40,932 Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts The Company purchases reinsurance coverage to protect its capital and to limit its losses when certain major events occur. The majority of the Company’s reinsurance commitments run from June 1 st of the current year to May 31 st of the following year. Some of the Company’s reinsurance agreements are for periods longer than one year. Amounts payable for coverage during the current June 1 st to May 31 st contract period are recorded as “Reinsurance Payable, net” in the Condensed Consolidated Balance Sheet. Effective March 26, 2021, UPCIC entered into a three-year reinsurance agreement with Cosaint Re Pte. Ltd., a reinsurance entity incorporated in Singapore that correspondingly issued notes in a Rule 144A offering to raise proceeds to collateralize its obligations under this agreement. Amounts payable for coverage for the first year of the reinsurance agreement with Cosaint Re Pte. Ltd. are also recorded as “Reinsurance Payable, net.” Multi-year contract commitments for future years will be recorded at the commencement of the coverage period. Amounts payable for future reinsurance contract years that the Company is obligated to pay are: (1) $94.3 million in 2022; (2) $138.2 million in 2023 and (3) $72.1 million in 2024. Litigation Lawsuits are filed against the Company from time to time. Many of these lawsuits involve claims under policies that the Company underwrites and reserves for as an insurer. The Company is also involved in various other legal proceedings and litigation unrelated to claims under the Company’s policies that arise in the ordinary course of business operations. Management believes that any liabilities that may arise as a result of these legal matters will not have a material adverse effect on the Company’s financial condition or results of operations. The Company contests liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal matters when those matters present loss contingencies that are both probable and estimable. Legal proceedings are subject to many uncertain factors that generally cannot be predicted with certainty, and the Company may be exposed to losses in excess of any amounts accrued. The Company currently estimates that the reasonably possible losses for legal proceedings, whether in excess of a related accrued liability or where there is no accrued liability, and for which the Company is able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. These estimates of possible loss do not represent our maximum loss exposure, and actual results may vary significantly from current estimates. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. U.S. GAAP describes three approaches to measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach. Each approach includes multiple valuation techniques. U.S. GAAP does not prescribe which valuation technique should be used when measuring fair value, but does establish a fair value hierarchy that prioritizes the inputs used in applying the various techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the hierarchy while Level 3 inputs are given the lowest priority. Assets and liabilities carried at fair value are classified in one of the following three categories based on the nature of the inputs to the valuation technique used: • Level 1 — Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 — Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3 — Unobservable inputs that are not corroborated by market data. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Summary of Significant Valuation Techniques for Assets Measured at Fair Value on a Recurring Basis Level 1 Common stock: Comprise actively traded, exchange-listed U.S. and international equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access. Mutual funds and other: Comprise actively traded funds. Valuation is based on daily quoted net asset values for identical assets in active markets that the Company can access. Level 2 U.S. government obligations and agencies: Comprise U.S. Treasury Bills or Notes or U.S. Treasury Inflation Protected Securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Corporate bonds: Comprise investment-grade debt securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Mortgage-backed and asset-backed securities: Comprise securities that are collateralized by mortgage obligations and other assets. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields, collateral performance and credit spreads. Municipal bonds: Comprise debt securities issued by a state, municipality or county. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Redeemable preferred stock: Comprise preferred stock securities that are redeemable. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. As required by U.S. GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the placement of the asset or liability within the fair value hierarchy levels. The following tables set forth by level within the fair value hierarchy the Company’s assets measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements September 30, 2021 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 37,116 $ — $ 37,116 Corporate bonds — 634,492 — 634,492 Mortgage-backed and asset-backed securities — 333,754 — 333,754 Municipal bonds — 14,681 — 14,681 Redeemable preferred stock — 9,114 — 9,114 Equity Securities: Common stock 5,842 — — 5,842 Mutual funds and other 71,257 — — 71,257 Total assets accounted for at fair value $ 77,099 $ 1,029,157 $ — $ 1,106,256 Fair Value Measurements December 31, 2020 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 59,631 $ — $ 59,631 Corporate bonds — 419,844 — 419,844 Mortgage-backed and asset-backed securities — 319,937 — 319,937 Municipal bonds — 12,128 — 12,128 Redeemable preferred stock — 8,321 — 8,321 Equity Securities: Common stock 2,435 — — 2,435 Mutual funds 82,452 — — 82,452 Total assets accounted for at fair value $ 84,887 $ 819,861 $ — $ 904,748 The Company utilizes third-party independent pricing services that provide a price quote for each available-for-sale debt security and equity security. Management reviews the methodology used by the pricing services. If management believes that the price used by the pricing service does not reflect an orderly transaction between participants, management will use an alternative valuation methodology. There were no adjustments made by the Company to the prices obtained from the independent pricing source for any available-for-sale debt security or equity security included in the tables above. The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Carrying Value (Level 3) Carrying Value (Level 3) Liabilities (debt): Surplus note $ 7,353 $ 7,074 $ 8,456 $ 8,291 Level 3 Debt: The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The SBA is the holder of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for purposes of establishing the fair value of the note. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company entered into a reinsurance captive arrangement with Isosceles Insurance Ltd. acting in respect of “Separate Account UVE-01”, a VIE in the normal course of business and consolidated the VIE since the Company is the primary beneficiary. The primary beneficiary analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and the Company’s involvement with the entity. When assessing the need to consolidate a VIE, the Company evaluates the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders. The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the Company’s decision-making ability and its ability to influence activities that significantly affect the economic performance of the VIE. The following table presents, on a consolidated basis, the balance sheet classification and exposure of restricted cash held in a reinsurance trust account, which can be used only to settle specific reinsurance obligations of the VIE as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Restricted cash and cash equivalents $ 13,200 $ 10,100 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe 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 condensed consolidated financial statements as of September 30, 2021. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the Financial Statements do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) for annual financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on February 26, 2021. The Condensed Consolidated Balance Sheet at December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. To conform to the current period presentation, certain amounts in the prior periods’ condensed consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. The Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, as well as variable interest entities (“VIE”) in which the Company is determined to be the primary beneficiary. All material intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary use of estimates is in the recognition of liabilities for unpaid losses, loss adjustment expenses, subrogation recoveries and reinsurance recoveries. Actual results could differ from those estimates. |
Assets Held for Sale | Assets Held for Sale. The Company considers properties, including land, to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and the Company expects the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property’s value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and the Company ceases depreciation. Assets held for sale are stated separately in the accompanying Condensed Consolidated Balance Sheets. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Cost or Amortized Cost and Fair Value of Securities Available for Sale | The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands): September 30, 2021 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 37,291 $ — $ 102 $ (277) $ 37,116 Corporate bonds 640,855 (236) 1,435 (7,562) 634,492 Mortgage-backed and asset-backed securities 336,881 — 493 (3,620) 333,754 Municipal bonds 14,925 (1) 1 (244) 14,681 Redeemable preferred stock 9,090 (53) 90 (13) 9,114 Total $ 1,039,042 $ (290) $ 2,121 $ (11,716) $ 1,029,157 December 31, 2020 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 59,529 $ — $ 157 $ (55) $ 59,631 Corporate bonds 416,758 (148) 3,571 (337) 419,844 Mortgage-backed and asset-backed securities 319,377 — 1,175 (615) 319,937 Municipal bonds 11,990 — 138 — 12,128 Redeemable preferred stock 7,993 (38) 424 (58) 8,321 Total $ 815,647 $ (186) $ 5,465 $ (1,065) $ 819,861 |
Schedule of Credit Quality of Investment Securities | The following table provides the credit quality of available-for-sale debt securities as of the dates presented (dollars in thousands): September 30, 2021 December 31, 2020 Equivalent S&P Credit Ratings Fair Value % of Total Fair Value % of Total AAA $ 330,344 32.1 % $ 337,462 41.2 % AA 143,806 14.0 % 89,681 10.9 % A 315,761 30.7 % 230,290 28.1 % BBB 229,208 22.2 % 160,662 19.6 % BB and Below — — % 233 — % No Rating Available 10,038 1.0 % 1,533 0.2 % Total $ 1,029,157 100.0 % $ 819,861 100.0 % |
Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities | The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Amortized Fair Value Amortized Fair Value Mortgage-backed Securities: Agency $ 149,850 $ 147,723 $ 153,937 $ 153,758 Non-agency 68,025 66,940 54,231 54,666 Asset-backed Securities: Auto loan receivables 71,716 71,764 68,188 68,440 Credit card receivables 4,756 4,749 7,878 7,891 Other receivables 42,534 42,578 35,143 35,182 Total $ 336,881 $ 333,754 $ 319,377 $ 319,937 |
Schedule of Fair Value and Gross Unrealized Losses on Securities Available for Sale | The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands): September 30, 2021 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 5 $ 21,069 $ (145) 2 $ 1,981 $ (132) Corporate bonds 216 304,464 (4,143) 7 12,896 (339) Mortgage-backed and asset-backed securities 108 232,904 (3,425) 5 5,320 (195) Municipal bonds 4 8,881 (199) — — — Redeemable preferred stock 1 498 (2) — — — Total 334 $ 567,816 $ (7,914) 14 $ 20,197 $ (666) December 31, 2020 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 8 $ 31,729 $ (55) — $ — $ — Corporate bonds 27 28,791 (162) — — — Mortgage-backed and asset-backed securities 42 112,462 (615) — — — Municipal bonds — — — — — — Redeemable preferred stock 2 688 (12) — — — Total 79 $ 173,670 $ (844) — $ — $ — |
Schedule of Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands): Corporate Bonds Municipal Bonds Redeemable Total Balance, December 31, 2019 $ — $ — $ — $ — Cumulative effect adjustment as of January 1, 2020 665 — 126 791 Increase (decrease) (517) — (88) (605) Balance, December 31, 2020 148 — 38 186 Increase (decrease) 88 1 15 104 Balance, September 30, 2021 $ 236 $ 1 $ 53 $ 290 |
Schedule of Amortized Cost and Fair Value of Investments With Contractual Maturities | The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands): September 30, 2021 Amortized Cost Fair Value Due in one year or less $ 31,202 $ 31,275 Due after one year through five years 609,963 606,996 Due after five years through ten years 370,677 363,943 Due after ten years 26,301 26,046 Perpetual maturity securities 899 897 Total $ 1,039,042 $ 1,029,157 |
Schedule of Securities Available for Sale | The following table provides certain information related to available-for-sale debt securities, equity securities and investment in real estate during the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Proceeds from sales and maturities (fair value): Available-for-sale debt securities (1) $ 32,320 $ 773,673 $ 146,611 $ 873,355 Equity securities $ 48,486 $ — $ 53,651 $ — Gross realized gains on sale of securities: Available-for-sale debt securities (1) $ 882 $ 53,893 $ 1,899 $ 54,779 Equity securities $ 1,315 $ — $ 2,399 $ — Gross realized losses on sale of securities: Available-for-sale debt securities (1) $ (192) $ (66) $ (1,656) $ (485) Equity securities $ — $ — $ — $ — Realized gains on sales of investment real estate (2) $ — $ — $ 401 $ — (1) In the third quarter of 2020, the Company took advantage of the market recovery and recognized $53.8 million of net realized gains on the sale of our available-for-sale debt securities that were in an unrealized gain position. (2) See the discussion below for “Investment Real Estate” sold. |
Schedule of Investment Income (Expense) Comprised Primarily of Interest and Dividends | The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Available-for-sale debt securities $ 2,799 $ 4,394 $ 8,393 $ 16,425 Equity securities 544 583 1,787 1,732 Cash and cash equivalents (1) 2 49 28 935 Other (2) 274 268 809 782 Total investment income 3,619 5,294 11,017 19,874 Less: Investment expenses (3) (822) (737) (2,376) (2,304) Net investment income $ 2,797 $ 4,557 $ 8,641 $ 17,570 (1) Includes interest earned on restricted cash and cash equivalents. (2) Includes investment income earned on real estate investments. (3) Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments. |
Schedule of Details on Realized and Unrealized Gains and Losses Related to Equity Securities | The following table provides the unrealized gains and losses recognized for the periods presented on equity securities still held at the end of the reported period (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period $ (3,418) $ 1,991 $ (2,391) $ (2,162) |
Schedule of Real Estate Investment | Investment real estate consisted of the following as of the dates presented (in thousands): September 30, December 31, 2021 2020 Income Producing: Investment real estate $ 7,087 $ 14,685 Less: Accumulated depreciation (1,153) (1,699) 5,934 12,986 Non-Income Producing: Investment real estate — 2,190 Investment real estate, net $ 5,934 $ 15,176 |
Schedule of Depreciation Expense Related to Investment Real Estate | Depreciation expense related to investment real estate for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Depreciation expense on investment real estate $ 47 $ 103 $ 139 $ 311 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Ratings from Rating Agencies and Unsecured Amounts Due from Reinsurers Exceeded 3% of Stockholders' Equity | The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of September 30, 2021 Due from as of Reinsurer AM Best Standard Moody’s September 30, 2021 December 31, 2020 Florida Hurricane Catastrophe Fund (1) n/a n/a n/a $ 52,992 $ 121,298 Allianz Risk Transfer (Bermuda) Ltd. A+ AA Aa3 41,553 96,652 Allianz Risk Transfer — — — — 21,087 Renaissance Reinsurance Ltd. — — — — 18,285 Total (2) $ 94,545 $ 257,322 (1) No rating is available because the fund is not rated. (2) Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses. |
Schedule of Effects of Reinsurance Arrangements | The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): Three Months Ended September 30, 2021 2020 Premiums Premiums Losses and Loss Premiums Premiums Losses and Loss Direct $ 432,984 $ 410,621 $ 264,068 $ 409,418 $ 357,208 $ 347,207 Ceded (124) (145,967) (76,487) (3,062) (123,017) (108,730) Net $ 432,860 $ 264,654 $ 187,581 $ 406,356 $ 234,191 $ 238,477 Nine Months Ended September 30, 2021 2020 Premiums Premiums Losses and Loss Premiums Premiums Losses and Loss Direct $ 1,271,925 $ 1,178,801 $ 777,668 $ 1,148,656 $ 1,020,798 $ 682,896 Ceded (585,413) (414,670) (278,903) (497,263) (339,408) (158,026) Net $ 686,512 $ 764,131 $ 498,765 $ 651,393 $ 681,390 $ 524,870 |
Schedule of Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable | The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): September 30, December 31, 2021 2020 Prepaid reinsurance premiums $ 386,466 $ 215,723 Reinsurance recoverable on paid losses and LAE $ 52,215 $ 40,895 Reinsurance recoverable on unpaid losses and LAE 82,720 119,522 Reinsurance recoverable $ 134,935 $ 160,417 |
Insurance Operations (Tables)
Insurance Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Schedule of Beginning and Ending Balances and Changes in DPAC, Net of DRCC | The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 DPAC, beginning of period $ 115,971 $ 103,527 $ 110,614 $ 91,882 Capitalized Costs 55,054 58,727 170,996 164,700 Amortization of DPAC (57,046) (50,959) (167,631) (145,287) DPAC, end of period $ 113,979 $ 111,295 $ 113,979 $ 111,295 |
Schedule of Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC | The following table presents the amount of capital and surplus calculated in accordance with statutory accounting principles, which differ from U.S. GAAP, and an amount representing ten percent of total liabilities for each of the Insurance Entities as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Statutory capital and surplus UPCIC (1) (2) $ 363,465 $ 360,707 APPCIC $ 16,417 $ 12,918 Ten percent of total liabilities UPCIC $ 129,593 $ 98,682 APPCIC $ 7,365 $ 1,793 (1) As of the dates in the table above, statutory capital and surplus for UPCIC includes a $77 million capital contribution funded in February 2021 by UIH through PSI, the Insurance Entities’ parent company, which the FLOIR permitted to be included in the statutory capital and surplus at December 31, 2020 under statutory accounting principles. This contribution was not recognized on a U.S. GAAP basis at December 31, 2020. (2) As of the dates in the table above, statutory capital and surplus for UPCIC includes a $20 million Subordinated Surplus Debenture funded in October 2021 by UIH through PSI, the Insurance Entities’ parent company, which the FLOIR permitted to be included in UPCIC’s statutory capital and surplus at September 30, 2021 under statutory accounting principles. This contribution was not recognized on a U.S. GAAP basis at September 30, 2021. Through PSI, UIH recorded contributions for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Capital contributions - UPCIC $ 15,000 $ 44,000 $ 92,000 $ 74,000 The following table summarizes combined net income (loss) for the Insurance Entities determined in accordance with statutory accounting practices for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Combined net income (loss) $ (22,903) $ (41,436) $ (21,723) $ (37,034) The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,484 $ 3,550 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Schedule of Changes in Liability for Unpaid Losses and LAE | Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Balance at beginning of period $ 278,658 $ 147,659 $ 322,465 $ 267,760 Less: Reinsurance recoverable (113,157) (26,107) (119,522) (123,221) Net balance at beginning of period 165,501 121,552 202,943 144,539 Incurred related to: Current year 176,092 208,392 480,782 489,966 Prior years 11,489 30,085 17,983 34,904 Total incurred 187,581 238,477 498,765 524,870 Paid related to: Current year 180,473 172,977 386,302 355,479 Prior years 42,841 43,661 185,638 170,539 Total paid 223,314 216,638 571,940 526,018 Net balance at end of period 129,768 143,391 129,768 143,391 Plus: Reinsurance recoverable 82,720 59,329 82,720 59,329 Balance at end of period $ 212,488 $ 202,720 $ 212,488 $ 202,720 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Consists of the following as of the dates presented (in thousands): September 30, December 31, 2021 2020 Surplus note $ 7,353 $ 8,456 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | The following table presents repurchases of the Company’s common stock for the periods presented (in thousands, except total number of shares repurchased and per share data): Total Number of Shares Average Repurchased During the Aggregate Price Per Dollar Amount Nine Months Ended September 30, Purchase Share Date Authorized Expiration Date Authorized 2021 2020 Price Repurchased Plan Completed November 3, 2020 November 3, 2022 $ 20,000 116,886 — $ 1,609 $ 13.77 November 6, 2019 December 31, 2021 $ 40,000 — 1,418,087 $ 26,501 $ 18.69 November 2020 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share Computations | The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted EPS computations for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator for EPS: Net income (loss) $ 20,183 $ (3,169) $ 68,532 $ 36,780 Less: Preferred stock dividends (3) (3) (8) (8) Income (loss) available to common stockholders $ 20,180 $ (3,172) $ 68,524 $ 36,772 Denominator for EPS: Weighted average common shares outstanding 31,247 31,659 31,232 32,116 Plus: Assumed conversion of share-based compensation (1) 65 — 45 61 Assumed conversion of preferred stock 25 — 25 25 Weighted average diluted common shares outstanding 31,337 31,659 31,302 32,202 Basic earnings (loss) per common share $ 0.65 $ (0.10) $ 2.19 $ 1.14 Diluted earnings (loss) per common share $ 0.64 $ (0.10) $ 2.19 $ 1.14 (1) Represents the dilutive effect of unexercised stock options, unvested performance share units, unvested restricted stock units and unvested restricted stock. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Three Months Ended September 30, 2021 2020 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (1,635) $ (334) $ (1,301) $ 5,518 $ 1,359 $ 4,159 Less: Reclassification adjustments for (gains) losses realized in net income (loss) (690) (164) (526) (53,827) (13,247) (40,580) Other comprehensive income (loss) $ (2,325) $ (498) $ (1,827) $ (48,309) $ (11,888) $ (36,421) Nine Months Ended September 30, 2021 2020 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (13,796) $ (3,241) $ (10,555) $ 28,953 $ 7,320 $ 21,633 Less: Reclassification adjustments for (gains) losses realized in net income (loss) (243) (57) (186) (54,294) (13,362) (40,932) Other comprehensive income (loss) (14,039) (3,298) (10,741) (25,341) (6,042) (19,299) Reclassification adjustment to retained earnings (1) — — — 791 194 597 Change in accumulated other comprehensive income (loss) $ (14,039) $ (3,298) $ (10,741) $ (24,550) $ (5,848) $ (18,702) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | The following table provides the reclassification adjustments for gains (losses) out of accumulated other comprehensive income for the periods presented (in thousands): Details about Accumulated Amount Reclassified from Accumulated Affected Line Item in the Statement Where Net Three Months Ended Nine Months Ended 2021 2020 2021 2020 Unrealized gains (losses) on $ 690 $ 53,827 $ 243 $ 54,294 Net realized gains (losses) on sale of securities (164) (13,247) (57) (13,362) Income taxes Total reclassification for the period $ 526 $ 40,580 $ 186 $ 40,932 Net of tax |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured for at Fair Value on Recurring Basis | The following tables set forth by level within the fair value hierarchy the Company’s assets measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements September 30, 2021 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 37,116 $ — $ 37,116 Corporate bonds — 634,492 — 634,492 Mortgage-backed and asset-backed securities — 333,754 — 333,754 Municipal bonds — 14,681 — 14,681 Redeemable preferred stock — 9,114 — 9,114 Equity Securities: Common stock 5,842 — — 5,842 Mutual funds and other 71,257 — — 71,257 Total assets accounted for at fair value $ 77,099 $ 1,029,157 $ — $ 1,106,256 Fair Value Measurements December 31, 2020 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 59,631 $ — $ 59,631 Corporate bonds — 419,844 — 419,844 Mortgage-backed and asset-backed securities — 319,937 — 319,937 Municipal bonds — 12,128 — 12,128 Redeemable preferred stock — 8,321 — 8,321 Equity Securities: Common stock 2,435 — — 2,435 Mutual funds 82,452 — — 82,452 Total assets accounted for at fair value $ 84,887 $ 819,861 $ — $ 904,748 |
Schedule of Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value | The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Carrying Value (Level 3) Carrying Value (Level 3) Liabilities (debt): Surplus note $ 7,353 $ 7,074 $ 8,456 $ 8,291 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents, on a consolidated basis, the balance sheet classification and exposure of restricted cash held in a reinsurance trust account, which can be used only to settle specific reinsurance obligations of the VIE as of the dates presented (in thousands): September 30, 2021 December 31, 2020 Restricted cash and cash equivalents $ 13,200 $ 10,100 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Detail) | Sep. 30, 2021state |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states | 19 |
Investments - Cost or Amortized
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 1,039,042 | $ 815,647 | |
Allowance for Expected Credit Losses | (290) | (186) | $ 0 |
Gross Unrealized Gains | 2,121 | 5,465 | |
Gross Unrealized Losses | (11,716) | (1,065) | |
Fair Value | 1,029,157 | 819,861 | |
U.S. government obligations and agencies | Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 37,291 | 59,529 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 102 | 157 | |
Gross Unrealized Losses | (277) | (55) | |
Fair Value | 37,116 | 59,631 | |
Corporate bonds | Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 640,855 | 416,758 | |
Allowance for Expected Credit Losses | (236) | (148) | |
Gross Unrealized Gains | 1,435 | 3,571 | |
Gross Unrealized Losses | (7,562) | (337) | |
Fair Value | 634,492 | 419,844 | |
Mortgage-backed and asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 336,881 | 319,377 | |
Fair Value | 333,754 | 319,937 | |
Mortgage-backed and asset-backed securities | Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 336,881 | 319,377 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 493 | 1,175 | |
Gross Unrealized Losses | (3,620) | (615) | |
Fair Value | 333,754 | 319,937 | |
Municipal bonds | Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 14,925 | 11,990 | |
Allowance for Expected Credit Losses | (1) | 0 | |
Gross Unrealized Gains | 1 | 138 | |
Gross Unrealized Losses | (244) | 0 | |
Fair Value | 14,681 | 12,128 | |
Redeemable preferred stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Allowance for Expected Credit Losses | (53) | (38) | $ 0 |
Redeemable preferred stock | Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 9,090 | 7,993 | |
Allowance for Expected Credit Losses | (53) | (38) | |
Gross Unrealized Gains | 90 | 424 | |
Gross Unrealized Losses | (13) | (58) | |
Fair Value | $ 9,114 | $ 8,321 |
Investments - Schedule of Credi
Investments - Schedule of Credit Quality of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 1,029,157 | $ 819,861 |
% of Total Fair Value | 100.00% | 100.00% |
AAA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 330,344 | $ 337,462 |
% of Total Fair Value | 32.10% | 41.20% |
AA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 143,806 | $ 89,681 |
% of Total Fair Value | 14.00% | 10.90% |
A | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 315,761 | $ 230,290 |
% of Total Fair Value | 30.70% | 28.10% |
BBB | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 229,208 | $ 160,662 |
% of Total Fair Value | 22.20% | 19.60% |
BB and Below | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 0 | $ 233 |
% of Total Fair Value | 0.00% | 0.00% |
No Rating Available | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 10,038 | $ 1,533 |
% of Total Fair Value | 1.00% | 0.20% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,039,042 | $ 815,647 |
Fair Value | 1,029,157 | 819,861 |
Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 336,881 | 319,377 |
Fair Value | 333,754 | 319,937 |
Agency | Mortgage-backed Securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 149,850 | 153,937 |
Fair Value | 147,723 | 153,758 |
Non-agency | Mortgage-backed Securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 68,025 | 54,231 |
Fair Value | 66,940 | 54,666 |
Auto loan receivables | Asset-backed Securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 71,716 | 68,188 |
Fair Value | 71,764 | 68,440 |
Credit card receivables | Asset-backed Securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,756 | 7,878 |
Fair Value | 4,749 | 7,891 |
Other receivables | Asset-backed Securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 42,534 | 35,143 |
Fair Value | $ 42,578 | $ 35,182 |
Investments - Summarized Fair V
Investments - Summarized Fair Value and Gross Unrealized Losses on Available-for-sale Debt Securities (Detail) $ in Thousands | Sep. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 334 | 79 |
Less than 12 months, Fair value | $ 567,816 | $ 173,670 |
Less than 12 months, Unrealized losses | $ (7,914) | $ (844) |
12 months or longer, Number of issues | security | 14 | 0 |
12 months or longer, Fair value | $ 20,197 | $ 0 |
12 months or longer, Unrealized losses | $ (666) | $ 0 |
Fixed Maturities | U.S. government obligations and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 5 | 8 |
Less than 12 months, Fair value | $ 21,069 | $ 31,729 |
Less than 12 months, Unrealized losses | $ (145) | $ (55) |
12 months or longer, Number of issues | security | 2 | 0 |
12 months or longer, Fair value | $ 1,981 | $ 0 |
12 months or longer, Unrealized losses | $ (132) | $ 0 |
Fixed Maturities | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 216 | 27 |
Less than 12 months, Fair value | $ 304,464 | $ 28,791 |
Less than 12 months, Unrealized losses | $ (4,143) | $ (162) |
12 months or longer, Number of issues | security | 7 | 0 |
12 months or longer, Fair value | $ 12,896 | $ 0 |
12 months or longer, Unrealized losses | $ (339) | $ 0 |
Fixed Maturities | Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 108 | 42 |
Less than 12 months, Fair value | $ 232,904 | $ 112,462 |
Less than 12 months, Unrealized losses | $ (3,425) | $ (615) |
12 months or longer, Number of issues | security | 5 | 0 |
12 months or longer, Fair value | $ 5,320 | $ 0 |
12 months or longer, Unrealized losses | $ (195) | $ 0 |
Fixed Maturities | Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 4 | 0 |
Less than 12 months, Fair value | $ 8,881 | $ 0 |
Less than 12 months, Unrealized losses | $ (199) | $ 0 |
12 months or longer, Number of issues | security | 0 | 0 |
12 months or longer, Fair value | $ 0 | $ 0 |
12 months or longer, Unrealized losses | $ 0 | $ 0 |
Fixed Maturities | Redeemable preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 1 | 2 |
Less than 12 months, Fair value | $ 498 | $ 688 |
Less than 12 months, Unrealized losses | $ (2) | $ (12) |
12 months or longer, Number of issues | security | 0 | 0 |
12 months or longer, Fair value | $ 0 | $ 0 |
12 months or longer, Unrealized losses | $ 0 | $ 0 |
Investments - AFS Allowance for
Investments - AFS Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | $ 186 | $ 0 |
Increase (decrease) | 104 | (605) |
Expected credit loss on available-for-sale debt securities at end of period | 290 | 186 |
Corporate Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 148 | 0 |
Increase (decrease) | 88 | (517) |
Expected credit loss on available-for-sale debt securities at end of period | 236 | 148 |
Municipal Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 0 | 0 |
Increase (decrease) | 1 | 0 |
Expected credit loss on available-for-sale debt securities at end of period | 1 | 0 |
Redeemable preferred stock | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 38 | 0 |
Increase (decrease) | 15 | (88) |
Expected credit loss on available-for-sale debt securities at end of period | $ 53 | 38 |
Cumulative effect adjustment as of January 1, 2020 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 791 | |
Cumulative effect adjustment as of January 1, 2020 | Corporate Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 665 | |
Cumulative effect adjustment as of January 1, 2020 | Municipal Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 0 | |
Cumulative effect adjustment as of January 1, 2020 | Redeemable preferred stock | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | $ 126 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Investments With Contractual Maturities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 31,202 | |
Due after one year through five years | 609,963 | |
Due after five years through ten years | 370,677 | |
Due after ten years | 26,301 | |
Perpetual maturity securities | 899 | |
Amortized Cost | 1,039,042 | $ 815,647 |
Fair Value | ||
Due in one year or less | 31,275 | |
Due after one year through five years | 606,996 | |
Due after five years through ten years | 363,943 | |
Due after ten years | 26,046 | |
Perpetual maturity securities | 897 | |
Fair Value | $ 1,029,157 | $ 819,861 |
Investments - Summary of Availa
Investments - Summary of Available-for-Sale Debt Securities and Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales and maturities (fair value) | $ 32,320 | $ 773,673 | $ 146,611 | $ 873,355 |
Proceeds from sales of equity securities | 48,486 | 0 | 53,651 | 0 |
Gross realized gains on sale of securities | 882 | 53,893 | 1,899 | 54,779 |
Equity securities, FV-NI, Realized Gain | 1,315 | 0 | 2,399 | 0 |
Gross realized losses on sale of securities | (192) | (66) | (1,656) | (485) |
Equity securities, FV-NI, Realized Loss | 0 | 0 | 0 | 0 |
Realized gains on sales of investment real estate | $ 0 | 0 | $ 401 | $ 0 |
Net realized gains on sales of AFS securities | $ 53,800 |
Investments - Investment Income
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Investment Income [Line Items] | ||||
Total investment income | $ 3,619 | $ 5,294 | $ 11,017 | $ 19,874 |
Less: Investment expenses | (822) | (737) | (2,376) | (2,304) |
Net investment income | 2,797 | 4,557 | 8,641 | 17,570 |
Available-for-sale debt securities | ||||
Net Investment Income [Line Items] | ||||
Investment income | 2,799 | 4,394 | 8,393 | 16,425 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Investment income | 544 | 583 | 1,787 | 1,732 |
Cash and Cash Equivalents | ||||
Net Investment Income [Line Items] | ||||
Investment income | 2 | 49 | 28 | 935 |
Other | ||||
Net Investment Income [Line Items] | ||||
Investment income | $ 274 | $ 268 | $ 809 | $ 782 |
Investments - Summary of Detail
Investments - Summary of Details on Realized and Unrealized Gains and Losses Related to Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period | $ (3,418) | $ 1,991 | $ (2,391) | $ (2,162) |
Investments - Schedule of Real
Investments - Schedule of Real Estate Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate [Line Items] | ||
Investment real estate, net | $ 5,934 | $ 15,176 |
Income Producing: | ||
Real Estate [Line Items] | ||
Investment real estate | 7,087 | 14,685 |
Less: Accumulated depreciation | (1,153) | (1,699) |
Investment real estate, net | 5,934 | 12,986 |
Non-Income Producing: | ||
Real Estate [Line Items] | ||
Investment real estate | $ 0 | $ 2,190 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Real Estate [Line Items] | |||||
Assets held for sale | $ 253 | $ 253 | $ 0 | ||
Proceeds from sales of investment real estate | 2,591 | $ 0 | |||
Realized gains on sales of investment real estate | 0 | $ 0 | 401 | $ 0 | |
Income Producing | |||||
Real Estate [Line Items] | |||||
Proceeds from Sale of Property Held-for-sale | 8,900 | ||||
Realized gains on sales of investment real estate | $ 2,300 | 2,300 | |||
Non Income Producing | |||||
Real Estate [Line Items] | |||||
Proceeds from sales of investment real estate | 2,600 | ||||
Realized gains on sales of investment real estate | $ 400 |
Investments - Schedule of Depre
Investments - Schedule of Depreciation Expense Related to Investment Real Estate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Real Estate Investment | ||||
Real Estate [Line Items] | ||||
Depreciation expense on investment real estate | $ 47 | $ 103 | $ 139 | $ 311 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity, Total | Amounts Due From Reinsurers | Customers with Greater than 3% of Equity | |
Effects of Reinsurance [Line Items] | |
Unsecured amounts due from reinsurers exceeding a fixed percentage of stockholders equity | 3.00% |
Reinsurance - Current Ratings f
Reinsurance - Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | $ 94,545 | $ 257,322 |
Florida Hurricane Catastrophe Fund | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 52,992 | 121,298 |
Allianz Risk Transfer (Bermuda) Ltd. | AM Best Company A Plus Rating | Standard & Poor's, AA- Rating | Moody's, Aa3 Rating | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 41,553 | 96,652 |
Allianz Risk Transfer | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 0 | 21,087 |
Renaissance Reinsurance Ltd. | AM Best Company A Plus Rating | Standard & Poor's, A Plus Rating | Moody's A1 Rating | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | $ 0 | $ 18,285 |
Reinsurance - Insurance Entitie
Reinsurance - Insurance Entities' Reinsurance Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reinsurance Disclosures [Abstract] | ||||
Direct premiums written | $ 432,984 | $ 409,418 | $ 1,271,925 | $ 1,148,656 |
Ceded premiums written | (124) | (3,062) | (585,413) | (497,263) |
Net premiums written | 432,860 | 406,356 | 686,512 | 651,393 |
Direct premiums earned | 410,621 | 357,208 | 1,178,801 | 1,020,798 |
Ceded premiums earned | (145,967) | (123,017) | (414,670) | (339,408) |
Premiums earned, net | 264,654 | 234,191 | 764,131 | 681,390 |
Direct losses and loss adjustment expenses | 264,068 | 347,207 | 777,668 | 682,896 |
Ceded losses and loss adjustment expenses | (76,487) | (108,730) | (278,903) | (158,026) |
Net Losses and Loss Adjustment Expenses | $ 187,581 | $ 238,477 | $ 498,765 | $ 524,870 |
Reinsurance - Prepaid Reinsuran
Reinsurance - Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Reinsurance Disclosures [Abstract] | ||||||
Prepaid reinsurance premiums | $ 386,466 | $ 215,723 | ||||
Reinsurance recoverable on paid losses and LAE | 52,215 | 40,895 | ||||
Reinsurance recoverable on unpaid losses and LAE | 82,720 | $ 113,157 | 119,522 | $ 59,329 | $ 26,107 | $ 123,221 |
Reinsurance recoverable | $ 134,935 | $ 160,417 |
Insurance Operations - Beginnin
Insurance Operations - Beginning and Ending Balances and Changes in DPAC, Net of DRCC (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Deferred Policy Acquisition Costs [Roll Forward] | ||||
DPAC, beginning of period | $ 115,971 | $ 103,527 | $ 110,614 | $ 91,882 |
Capitalized Costs | 55,054 | 58,727 | 170,996 | 164,700 |
Amortization of DPAC | (57,046) | (50,959) | (167,631) | (145,287) |
DPAC, end of period | $ 113,979 | $ 111,295 | $ 113,979 | $ 111,295 |
Insurance Operations - Addition
Insurance Operations - Additional Information (Detail) - USD ($) | Jul. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
UPCIC | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Dividends | $ 0 | $ 0 | ||||
APPCIC | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Dividends | $ 0 | $ 0 | ||||
UPCIC and APPCIC | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Minimum capitalization rate | 10.00% | 10.00% | ||||
UPCIC and APPCIC | Minimum | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Minimum capitalization amount | $ 15,000,000 | $ 10,000,000 |
Insurance Operations - Statutor
Insurance Operations - Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Feb. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 27, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | |||||||
Capital contributions - UPCIC | $ 15,000 | $ 44,000 | $ 92,000 | $ 74,000 | |||
Subsequent Event | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Subordinated surplus debenture | $ 20,000 | ||||||
UPCIC | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Statutory capital and surplus | 363,465 | 363,465 | $ 360,707 | ||||
Ten percent of total liabilities | 129,593 | 129,593 | 98,682 | ||||
Capital contributions - UPCIC | $ 77,000 | ||||||
APPCIC | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Statutory capital and surplus | 16,417 | 16,417 | 12,918 | ||||
Ten percent of total liabilities | $ 7,365 | $ 7,365 | $ 1,793 |
Insurance Operations - Capital
Insurance Operations - Capital Contributions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Insurance [Abstract] | ||||
Capital contributions - UPCIC | $ 15,000 | $ 44,000 | $ 92,000 | $ 74,000 |
Insurance Operations - Summary
Insurance Operations - Summary of Combined Net Income for UPCIC and APPCIC (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Insurance [Abstract] | ||||
Combined net income (loss) | $ (22,903) | $ (41,436) | $ (21,723) | $ (37,034) |
Insurance Operations - Assets H
Insurance Operations - Assets Held by Insurance Regulators (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investments | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 3,484 | $ 3,550 |
Restricted cash and cash equivalents | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 2,635 | $ 2,635 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Change in Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance at beginning of period | $ 278,658 | $ 147,659 | $ 322,465 | $ 267,760 |
Less: Reinsurance recoverable | (113,157) | (26,107) | (119,522) | (123,221) |
Net balance at beginning of period | 165,501 | 121,552 | 202,943 | 144,539 |
Incurred related to current year | 176,092 | 208,392 | 480,782 | 489,966 |
Incurred related to prior years | 11,489 | 30,085 | 17,983 | 34,904 |
Total incurred | 187,581 | 238,477 | 498,765 | 524,870 |
Paid related to current year | 180,473 | 172,977 | 386,302 | 355,479 |
Paid related to prior years | 42,841 | 43,661 | 185,638 | 170,539 |
Total paid | 223,314 | 216,638 | 571,940 | 526,018 |
Net balance at end of period | 129,768 | 143,391 | 129,768 | 143,391 |
Plus: Reinsurance recoverable | 82,720 | 59,329 | 82,720 | 59,329 |
Balance at end of period | $ 212,488 | $ 202,720 | $ 212,488 | $ 202,720 |
Liability for Unpaid Losses a_4
Liability for Unpaid Losses and Loss Adjustment Expenses - Narrative (Detail) - USD ($) $ in Thousands | Jul. 01, 2021 | Jul. 01, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||
Direct losses and loss adjustment expenses | $ 264,068 | $ 347,207 | $ 777,668 | $ 682,896 | ||
Incurred related to prior years | 11,489 | 30,085 | 17,983 | 34,904 | ||
Ceded losses and loss adjustment expenses | 76,487 | 108,730 | 278,903 | 158,026 | ||
Term of notice | 2 years | 3 years | ||||
Adverse Prior Years' Reserve Development | ||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||
Direct losses and loss adjustment expenses | 87,900 | 296,900 | ||||
Incurred related to prior years | 11,500 | 18,000 | ||||
Ceded losses and loss adjustment expenses | 76,400 | 278,900 | ||||
Hurricane | ||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||
Direct losses and loss adjustment expenses | 81,700 | 136,700 | 282,900 | 190,800 | ||
Incurred related to prior years | 5,300 | 30,100 | 4,000 | 34,900 | ||
Ceded losses and loss adjustment expenses | 76,400 | $ 106,700 | 278,900 | $ 155,900 | ||
Settlement on Litigated Claims | ||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||
Incurred related to prior years | $ 6,200 | $ 14,000 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Surplus note | $ 7,353 | $ 8,456 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Surplus Note | Dec. 31, 2006USD ($) |
Debt Instrument [Line Items] | |
Unsecured term loan agreement | $ 25,000,000 |
Note term | 20 years |
Debt - Unsecured Revolving Loan
Debt - Unsecured Revolving Loan Narrative (Detail) | 1 Months Ended |
Aug. 31, 2020USD ($) | |
Credit Agreement | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 35,000,000 |
Line of credit facility, unused capacity, commitment fee percentage | 0.50% |
Credit Agreement | Prime Rate | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.00% |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, expiration period | 364 days |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Shares Repurchased (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Nov. 03, 2020 | Nov. 06, 2019 | |
Equity [Line Items] | |||||||||
Shares repurchased during the period | $ 1,364,000 | $ 245,000 | $ 9,885,000 | $ 10,029,000 | $ 6,587,000 | ||||
November 3, 2020 | |||||||||
Equity [Line Items] | |||||||||
Shares repurchased (in shares) | 116,886 | 0 | |||||||
Shares repurchased during the period | $ 1,609,000 | ||||||||
Shares repurchased during period (in USD per share) | $ 13.77 | ||||||||
November 3, 2020 | Maximum | |||||||||
Equity [Line Items] | |||||||||
Amount of stock repurchase plan authorized | $ 20,000,000 | ||||||||
November 6, 2019 | |||||||||
Equity [Line Items] | |||||||||
Shares repurchased (in shares) | 0 | 1,418,087 | |||||||
Shares repurchased during the period | $ 26,501,000 | ||||||||
Shares repurchased during period (in USD per share) | $ 18.69 | ||||||||
November 6, 2019 | Maximum | |||||||||
Equity [Line Items] | |||||||||
Amount of stock repurchase plan authorized | $ 40,000,000 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | |
Income Taxes [Line Items] | |||||
Income tax expense | $ 6,281 | $ (623) | $ 24,342 | $ 14,450 | |
Effective tax rate | 23.70% | 16.40% | 26.20% | 28.20% | |
Increase in effective tax rate | 0.10% | ||||
Forecast | |||||
Income Taxes [Line Items] | |||||
Effective tax rate | 27.00% | ||||
ETR, before discrete items | 26.90% | ||||
Forecast | Statutory Effective Tax Rate | |||||
Income Taxes [Line Items] | |||||
U.S. federal statutory rate | 21.00% | ||||
State income tax rate, net of federal benefit | 2.40% |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator for EPS: | ||||||||
Net income (loss) | $ 20,183 | $ 21,941 | $ 26,408 | $ (3,169) | $ 19,882 | $ 20,067 | $ 68,532 | $ 36,780 |
Less: Preferred stock dividends | (3) | (3) | (8) | (8) | ||||
Income (loss) available to common stockholders | $ 20,180 | $ (3,172) | $ 68,524 | $ 36,772 | ||||
Denominator for EPS: | ||||||||
Weighted average common shares outstanding (in shares) | 31,247 | 31,659 | 31,232 | 32,116 | ||||
Plus: Assumed conversion of share-based compensation (in shares) | 65 | 0 | 45 | 61 | ||||
Assumed conversion of preferred stock (in shares) | 25 | 0 | 25 | 25 | ||||
Weighted average diluted common shares outstanding (in shares) | 31,337 | 31,659 | 31,302 | 32,202 | ||||
Basic earnings (loss) per common share (in USD per share) | $ 0.65 | $ (0.10) | $ 2.19 | $ 1.14 | ||||
Diluted earnings (loss) per common share (in USD per share) | $ 0.64 | $ (0.10) | $ 2.19 | $ 1.14 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
After-tax | ||||||||
Other comprehensive income (loss) | $ (1,827) | $ 7,996 | $ (16,910) | $ (36,421) | $ 26,068 | $ (8,946) | $ (10,741) | $ (19,299) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||||||
Pre-tax | ||||||||
Unrealized holding gains (losses) arising during the period | (1,635) | 5,518 | (13,796) | 28,953 | ||||
Less: Reclassification adjustments for (gains) losses realized in net income (loss) | (690) | (53,827) | (243) | (54,294) | ||||
Other comprehensive income (loss) | (2,325) | (48,309) | (14,039) | (25,341) | ||||
Tax | ||||||||
Unrealized holding gains (losses) arising during the period | (334) | 1,359 | (3,241) | 7,320 | ||||
Income taxes | (164) | (13,247) | (57) | (13,362) | ||||
Other comprehensive income (loss) | (498) | (11,888) | (3,298) | (6,042) | ||||
After-tax | ||||||||
Unrealized holding gains (losses) arising during the period | (1,301) | 4,159 | (10,555) | 21,633 | ||||
Less: Reclassification adjustments for (gains) losses realized in net income (loss) | (526) | (40,580) | (186) | (40,932) | ||||
Other comprehensive income (loss) | $ (1,827) | $ (36,421) | (10,741) | (19,299) | ||||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Cumulative effect of change in accounting principle (ASU 2016-13) | ||||||||
Pre-tax | ||||||||
Other comprehensive income (loss) | 0 | 791 | ||||||
Tax | ||||||||
Other comprehensive income (loss) | 0 | 194 | ||||||
After-tax | ||||||||
Other comprehensive income (loss) | 0 | 597 | ||||||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Change in accumulated other comprehensive income (loss) | ||||||||
Pre-tax | ||||||||
Other comprehensive income (loss) | (14,039) | (24,550) | ||||||
Tax | ||||||||
Other comprehensive income (loss) | (3,298) | (5,848) | ||||||
After-tax | ||||||||
Other comprehensive income (loss) | $ (10,741) | $ (18,702) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Reclassifications Adjustment for Gains (Losses) Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net realized gains (losses) on investments | $ 4,319 | $ 53,827 | $ 5,357 | $ 54,294 | ||||
Income tax expense (benefit) | (6,281) | 623 | (24,342) | (14,450) | ||||
Net income (loss) | 20,183 | $ 21,941 | $ 26,408 | (3,169) | $ 19,882 | $ 20,067 | 68,532 | 36,780 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net realized gains (losses) on investments | 690 | 53,827 | 243 | 54,294 | ||||
Income tax expense (benefit) | (164) | (13,247) | (57) | (13,362) | ||||
Net income (loss) | $ 526 | $ 40,580 | $ 186 | $ 40,932 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - Multi-Year Reinsurance Contracts - USD ($) $ in Millions | Mar. 26, 2021 | Sep. 30, 2021 |
Reinsurance Retention Policy [Line Items] | ||
Term of reinsurance agreement | 3 years | |
Reinsurance payable, due in fiscal year | $ 94.3 | |
Reinsurance payable, due in second year | 138.2 | |
Reinsurance payable, due in third year | $ 72.1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,029,157 | $ 819,861 |
Equity Securities: | 77,099 | 84,887 |
Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 333,754 | 319,937 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 1,106,256 | 904,748 |
Fair Value, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 37,116 | 59,631 |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 634,492 | 419,844 |
Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 333,754 | 319,937 |
Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,681 | 12,128 |
Fair Value, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,114 | 8,321 |
Fair Value, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 5,842 | 2,435 |
Fair Value, Recurring | Mutual funds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 71,257 | 82,452 |
Level 1 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 77,099 | 84,887 |
Level 1 | Fair Value, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 5,842 | 2,435 |
Level 1 | Fair Value, Recurring | Mutual funds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 71,257 | 82,452 |
Level 2 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 1,029,157 | 819,861 |
Level 2 | Fair Value, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 37,116 | 59,631 |
Level 2 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 634,492 | 419,844 |
Level 2 | Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 333,754 | 319,937 |
Level 2 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,681 | 12,128 |
Level 2 | Fair Value, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,114 | 8,321 |
Level 2 | Fair Value, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 0 | 0 |
Level 2 | Fair Value, Recurring | Mutual funds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 0 | 0 |
Level 3 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 0 | 0 |
Level 3 | Fair Value, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 0 | 0 |
Level 3 | Fair Value, Recurring | Mutual funds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Surplus note | $ 7,353 | $ 8,456 |
Surplus Note | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 7,074 | $ 8,291 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Restricted cash and cash equivalents | [1] | $ 15,836 | $ 12,715 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Restricted cash and cash equivalents | $ 13,200 | $ 10,100 | |
[1] | See “—Note 5 (Insurance Operations)” for a discussion of the nature of the restrictions for restricted cash and cash equivalents and “—Note 14 (Variable Interest Entities)” for a discussion of restricted cash held in a trust account. |
Uncategorized Items - uve-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |