falsedesktopUIHC2020-09-30000140152120000181{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☐\tAccelerated filer\t☑\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_1": "PART I. FINANCIAL INFORMATION\t\t\n\tItem 1. Financial Statements\t4\n\tCondensed Consolidated Balance Sheets (Unaudited)\t4\n\tCondensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)\t5\n\tCondensed Consolidated Statements of Stockholders' Equity (Unaudited)\t7\n\tCondensed Consolidated Statements of Cash Flows (Unaudited)\t8\n\tNotes to Unaudited Condensed Consolidated Financial Statements\t9\n\tItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t31\n\tItem 3. Quantitative and Qualitative Disclosures About Market Risk\t45\n\tItem 4. Controls and Procedures\t46\nPART II. OTHER INFORMATION\t\t\n\tItem 1. Legal Proceedings\t46\n\tItem 1A. Risk Factors\t46\n\tItem 2. Unregistered Sales of Equity Securities and Use of Proceeds\t47\n\tItem 3. Defaults Upon Senior Securities\t47\n\tItem 4. Mine Safety Disclosures\t47\n\tItem 5. Other Information\t48\n\tItem 6. Exhibits\t48\nSignatures\t\t49\n", "q10k_tbl_2": "\tSeptember 30 2020\tDecember 31 2019\nASSETS\t\t\nInvestments at fair value:\t\t\nFixed maturities available-for-sale (amortized cost of $984028 and $869598 respectively)\t1026438\t884861\nEquity securities\t36470\t116610\nOther investments (amortized cost of $37611 and $8067 respectively)\t38371\t10252\nTotal investments\t1101279\t1011723\nCash and cash equivalents\t323314\t215469\nRestricted cash\t53234\t71588\nTotal cash cash equivalents and restricted cash\t376548\t287057\nAccrued investment income\t5691\t5901\nProperty and equipment net\t34880\t32728\nPremiums receivable net (credit allowance of $132 and $165 respectively)\t98948\t86568\nReinsurance recoverable on paid and unpaid losses net (credit allowance of $368 and $256 respectively)\t780298\t550136\nCeded unearned premiums\t402804\t270034\nGoodwill\t73045\t73045\nDeferred policy acquisition costs net\t119089\t104572\nIntangible assets net\t22855\t26079\nOther assets net (credit allowance of $51 and $141 respectively)\t49350\t19375\nTotal Assets\t3064787\t2467218\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nLiabilities:\t\t\nUnpaid losses and loss adjustment expenses\t1082126\t760357\nUnearned premiums\t771959\t674055\nReinsurance payable on premiums\t347711\t166131\nPayments outstanding\t68505\t57555\nAccounts payable and accrued expenses\t89657\t78592\nOperating lease liability\t2242\t324\nOther liabilities\t69146\t47407\nNotes payable net\t158043\t158932\nTotal Liabilities\t2589389\t1943353\nCommitments and contingencies (Note 10)\t\t\nStockholders' Equity:\t\t\nPreferred stock $0.0001 par value; 1000000 shares authorized; none issued or outstanding\t0\t0\nCommon stock $0.0001 par value; 50000000 shares authorized; 43255798 and 43056310 issued respectively; 43080410 and 43028074 outstanding respectively\t4\t4\nAdditional paid-in capital\t392754\t391852\nTreasury shares at cost: 212083 shares\t(431)\t(431)\nAccumulated other comprehensive income\t31732\t11319\nRetained earnings\t29881\t100394\nTotal stockholders' equity attributable to United Insurance Holdings Corp. (UIHC) stockholders\t453940\t503138\nNoncontrolling interests (NCI)\t21458\t20727\nTotal Stockholders' Equity\t475398\t523865\nTotal Liabilities and Stockholders' Equity\t3064787\t2467218\n", "q10k_tbl_3": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nREVENUE:\t\t\t\t\nGross premiums written\t365819\t317184\t1140653\t1085505\nChange in gross unearned premiums\t(11828)\t27499\t(97904)\t(98984)\nGross premiums earned\t353991\t344683\t1042749\t986521\nCeded premiums earned\t(165250)\t(151763)\t(476930)\t(422475)\nNet premiums earned\t188741\t192920\t565819\t564046\nNet investment income\t6010\t7803\t18834\t22668\nNet realized investment gains\t24968\t18\t24959\t186\nNet unrealized gain (loss) on equity securities\t(11552)\t2609\t(17456)\t15519\nOther revenue\t4566\t4248\t13278\t12276\nTotal revenue\t212733\t207598\t605434\t614695\nEXPENSES:\t\t\t\t\nLosses and loss adjustment expenses\t218652\t148125\t423182\t368924\nPolicy acquisition costs\t58735\t61849\t170183\t178717\nOperating expenses\t14483\t12167\t38164\t33577\nGeneral and administrative expenses\t19224\t19105\t53646\t53488\nInterest expense\t2210\t2443\t7194\t7379\nTotal expenses\t313304\t243689\t692369\t642085\nLoss before other income\t(100571)\t(36091)\t(86935)\t(27390)\nOther income\t18\t17\t60\t44\nLoss before income taxes\t(100553)\t(36074)\t(86875)\t(27346)\nBenefit for income taxes\t(26685)\t(7859)\t(24933)\t(5912)\nNet Loss\t(73868)\t(28215)\t(61942)\t(21434)\nLess: Net income attributable to NCI\t204\t65\t579\t280\nNet loss attributable to UIHC\t(74072)\t(28280)\t(62521)\t(21714)\nOTHER COMPREHENSIVE INCOME:\t\t\t\t\nChange in net unrealized gains on investments\t27884\t5606\t52106\t30561\nReclassification adjustment for net realized investment gains\t(24968)\t(18)\t(24959)\t(186)\nIncome tax expense related to items of other comprehensive income\t(707)\t(1486)\t(6582)\t(7374)\nTotal comprehensive income (loss)\t(71659)\t(24113)\t(41377)\t1567\nLess: Comprehensive income attributable to NCI\t208\t101\t731\t537\nComprehensive income (loss) attributable to UIHC\t(71867)\t(24214)\t(42108)\t1030\nWeighted average shares outstanding\t\t\t\t\nBasic\t42893205\t42795414\t42853364\t42750710\nDiluted\t42893205\t42795414\t42853364\t42750710\nEarnings available to UIHC common stockholders per share\t\t\t\t\nBasic\t(1.73)\t(0.66)\t(1.46)\t(0.51)\nDiluted\t(1.73)\t(0.66)\t(1.46)\t(0.51)\n", "q10k_tbl_4": "\tCommon Stock\t\tAdditional Paid-in Capital\tTreasury Stock\tAccumulated Other Comprehensive Income\tRetained Earnings\tStockholders' Equity Attributable to UIHC\tNCI\tTotal Stockholders' Equity\n\tNumber of Shares\tDollars\t\t\t\nJune 30 2019\t43231184\t4\t390719\t(431)\t9648\t141973\t541913\t20575\t562488\nNet income (loss)\t0\t0\t0\t0\t0\t(28280)\t(28280)\t65\t(28215)\nOther comprehensive income net\t0\t0\t0\t0\t4066\t0\t4066\t36\t4102\nStock Compensation\t3304\t0\t714\t0\t0\t0\t714\t0\t714\nCash dividends on common stock ($0.06 per common share)\t0\t0\t0\t0\t0\t(2571)\t(2571)\t0\t(2571)\nSeptember 30 2019\t43234488\t4\t391433\t(431)\t13714\t111122\t515842\t20676\t536518\n", "q10k_tbl_5": "\tCommon Stock\t\tAdditional Paid-in Capital\tTreasury Stock\tAccumulated Other Comprehensive Income\tRetained Earnings\tStockholders' Equity Attributable to UIHC\tNCI\tTotal Stockholders' Equity\n\tNumber of Shares\tDollars\t\t\t\nJune 30 2020\t43068379\t4\t392633\t(431)\t29527\t106534\t528267\t21250\t549517\nNet income (loss)\t0\t0\t0\t0\t0\t(74072)\t(74072)\t204\t(73868)\nOther comprehensive income net\t0\t0\t0\t0\t2205\t0\t2205\t4\t2209\nStock Compensation\t12031\t0\t121\t0\t0\t0\t121\t0\t121\nCash dividends on common stock ($0.06 per common share)\t0\t0\t0\t0\t0\t(2581)\t(2581)\t0\t(2581)\nSeptember 30 2020\t43080410\t4\t392754\t(431)\t31732\t29881\t453940\t21458\t475398\n", "q10k_tbl_6": "\tCommon Stock\t\tAdditional Paid-in Capital\tTreasury Stock\tAccumulated Other Comprehensive Income (loss)\tRetained Earnings\tStockholders' Equity Attributable to UIHC\tNCI\tTotal Stockholders' Equity\n\tNumber of Shares\tDollars\t\t\t\nDecember 31 2018\t42984578\t4\t389141\t(431)\t(9030)\t140546\t520230\t20139\t540369\nNet income (loss)\t0\t0\t0\t0\t0\t(21714)\t(21714)\t280\t(21434)\nOther comprehensive income net\t0\t0\t0\t0\t22744\t0\t22744\t257\t23001\nStock Compensation\t249910\t0\t2292\t0\t0\t\t2292\t0\t2292\nCash dividends on common stock ($0.18 per common share)\t0\t0\t0\t0\t0\t(7710)\t(7710)\t0\t(7710)\nSeptember 30 2019\t43234488\t4\t391433\t(431)\t13714\t111122\t515842\t20676\t536518\n", "q10k_tbl_7": "\tCommon Stock\t\tAdditional Paid-in Capital\tTreasury Stock\tAccumulated Other Comprehensive Income\tRetained Earnings\tStockholders' Equity Attributable to UIHC\tNCI\tTotal Stockholders' Equity\n\tNumber of Shares\tDollars\t\t\t\nDecember 31 2019\t43028074\t4\t391852\t(431)\t11319\t100394\t503138\t20727\t523865\nNet income (loss)\t0\t0\t0\t0\t0\t(62521)\t(62521)\t579\t(61942)\nOther comprehensive income net\t0\t0\t0\t0\t20413\t0\t20413\t152\t20565\nReclassification due to adoption of ASU 2016-13\t0\t0\t0\t0\t0\t(262)\t(262)\t0\t(262)\nStock Compensation\t52336\t\t902\t0\t0\t0\t902\t0\t902\nCash dividends on common stock ($0.18 per common share)\t0\t0\t0\t0\t0\t(7730)\t(7730)\t0\t(7730)\nSeptember 30 2020\t43080410\t4\t392754\t(431)\t31732\t29881\t453940\t21458\t475398\n", "q10k_tbl_8": "\tNine Months Ended September 30\t\n\t2020\t2019\nOPERATING ACTIVITIES\t\t\nNet loss\t(61942)\t(21434)\nAdjustments to reconcile net losses to net cash used by operating activities:\t\t\nDepreciation and amortization\t7875\t8984\nBond amortization and accretion\t4686\t3884\nNet realized gains on investments\t(24959)\t(186)\nNet unrealized losses (gains) on equity securities\t17456\t(15519)\nProvision for uncollectable premiums\t(132)\t186\nProvision for uncollectable reinsurance recoverables\t(368)\t0\nProvision for uncollectable notes receivable\t(51)\t0\nDeferred income taxes net\t(1172)\t(4584)\nStock based compensation\t988\t2292\nChanges in operating assets and liabilities:\t\t\nAccrued investment income\t210\t(20)\nPremiums receivable\t(12113)\t9265\nReinsurance recoverable on paid and unpaid losses\t(230050)\t(22374)\nCeded unearned premiums\t(132770)\t(149665)\nDeferred policy acquisition costs net\t(14517)\t(9576)\nOther assets\t(30065)\t(8031)\nUnpaid losses and loss adjustment expenses\t321769\t162944\nUnearned premiums\t97904\t98984\nReinsurance payable on premiums\t181580\t146722\nPayments outstanding\t10950\t227\nAccounts payable and accrued expenses\t11065\t8153\nOperating lease liability\t1918\t356\nOther liabilities\t16330\t17513\nNet cash provided by operating activities\t164592\t228121\nINVESTING ACTIVITIES\t\t\nProceeds from sales maturities and repayments of:\t\t\nFixed maturities\t147551\t168342\nEquity securities\t114575\t1978\nOther investments\t2928\t5461\nPurchases of:\t\t\nFixed maturities\t(265685)\t(200208)\nEquity securities\t(26497)\t(11011)\nOther investments\t(32465)\t(6395)\nCost of property equipment and capitalized software acquired\t(9463)\t(16437)\nDisposal of property equipment and capitalized software\t2914\t0\nNet cash used in investing activities\t(66142)\t(58270)\nFINANCING ACTIVITIES\t\t\nRepayments of borrowings\t(1143)\t(849)\nDividends\t(7730)\t(7710)\nTax withholding payment related to net settlement of equity awards\t(86)\t0\nNet cash used in financing activities\t(8959)\t(8559)\nIncrease in cash cash equivalents and restricted cash\t89491\t161292\nCash cash equivalents and restricted cash at beginning of period\t287057\t184120\nCash cash equivalents and restricted cash at end of period\t376548\t345412\nSupplemental Cash Flows Information\t\t\nInterest paid\t4828\t4930\nIncome taxes paid\t1015\t284\n", "q10k_tbl_9": "\tDecember 31 2019\tProvision for expected credit losses\tWrite-offs\tSeptember 30 2020\nPremiums Receivable\t165\t(235)\t202\t132\nReinsurance Recoverables\t256\t112\t0\t368\nNote Receivable\t141\t(90)\t0\t51\nTotal\t562\t(213)\t202\t551\n", "q10k_tbl_10": "\tCost or Adjusted/Amortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nSeptember 30 2020\t\t\t\t\nU.S. government and agency securities\t118213\t4942\t25\t123130\nForeign government\t1725\t144\t0\t1869\nStates municipalities and political subdivisions\t157280\t5521\t120\t162681\nPublic utilities\t39083\t2872\t0\t41955\nCorporate securities\t331208\t17120\t662\t347666\nMortgage-backed securities\t267532\t12285\t400\t279417\nAsset-backed securities\t62623\t1055\t327\t63351\nRedeemable preferred stocks\t6364\t66\t61\t6369\nTotal fixed maturities\t984028\t44005\t1595\t1026438\nDecember 31 2019\t\t\t\t\nU.S. government and agency securities\t120260\t749\t193\t120816\nForeign government\t3975\t97\t1\t4071\nStates municipalities and political subdivisions\t131203\t2611\t63\t133751\nPublic utilities\t24660\t700\t26\t25334\nCorporate securities\t281892\t7123\t143\t288872\nMortgage-backed securities\t248206\t4174\t477\t251903\nAsset-backed securities\t56487\t683\t41\t57129\nRedeemable preferred stocks\t2915\t72\t2\t2985\nTotal fixed maturities\t869598\t16209\t946\t884861\n", "q10k_tbl_11": "\tSeptember 30 2020\t\tDecember 31 2019\t\n\tEstimated Fair Value\tPercent of Total\tEstimated Fair Value\tPercent of Total\nMutual funds\t7945\t21.8%\t65453\t56.1%\nPublic utilities\t0\t0\t3663\t3.1\nOther common stocks\t20343\t55.8\t44492\t38.2\nNonredeemable preferred stocks\t8182\t22.4\t3002\t2.6\nTotal equity securities\t36470\t100.0%\t116610\t100.0%\n", "q10k_tbl_12": "\t2020\t\t2019\t\n\tGains (Losses)\tFair Value at Sale\tGains (Losses)\tFair Value at Sale\nThree Months Ended September 30\t\t\t\t\nFixed maturities\t708\t47153\t66\t34282\nEquity securities\t26724\t97725\t3\t272\nShort-term investments\t0\t1275\t0\t2511\nTotal realized gains\t27432\t146153\t69\t37065\nFixed maturities\t(45)\t1203\t(48)\t2033\nEquity securities\t(2419)\t9509\t(3)\t14\nShort-term investments\t0\t0\t0\t10\nTotal realized losses\t(2464)\t10712\t(51)\t2057\nNet realized investment gains\t24968\t156865\t18\t39122\nNine Months Ended September 30\t\t\t\t\nFixed maturities\t1425\t139609\t597\t129364\nEquity securities\t27550\t101696\t94\t814\nShort-term investments\t0\t1346\t0\t3571\nTotal realized gains\t28975\t242651\t691\t133749\nFixed maturities\t(439)\t7942\t(287)\t36661\nEquity securities\t(3577)\t12879\t(217)\t1163\nShort-term investments\t0\t128\t(1)\t1035\nTotal realized losses\t(4016)\t20949\t(505)\t38859\nNet realized investment gains\t24959\t263600\t186\t172608\n", "q10k_tbl_13": "\tSeptember 30 2020\t\t\t\n\tCost or Amortized Cost\tPercent of Total\tFair Value\tPercent of Total\nDue in one year or less\t93973\t9.5%\t94650\t9.2%\nDue after one year through five years\t264627\t26.9\t276916\t27.0\nDue after five years through ten years\t279045\t28.4\t295069\t28.7\nDue after ten years\t16228\t1.6\t17035\t1.7\nAsset and mortgage backed securities\t330155\t33.6\t342768\t33.4\nTotal\t984028\t100.0%\t1026438\t100.0%\n", "q10k_tbl_14": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nFixed maturities\t5744\t5757\t16806\t17379\nEquity securities\t467\t614\t1966\t1728\nCash and cash equivalents\t30\t1611\t767\t3407\nOther investments\t62\t83\t17\t847\nOther assets\t12\t11\t114\t108\nInvestment income\t6315\t8076\t19670\t23469\nInvestment expenses\t(305)\t(273)\t(836)\t(801)\nNet investment income\t6010\t7803\t18834\t22668\n", "q10k_tbl_15": "\tLess Than Twelve Months\t\t\tTwelve Months or More\t\t\n\tNumber of Securities(1)\tGross Unrealized Losses\tFair Value\tNumber of Securities(1)\tGross Unrealized Losses\tFair Value\nSeptember 30 2020\t\t\t\t\t\t\nU.S. government and agency securities\t2\t1\t1490\t21\t24\t12126\nStates municipalities and political subdivisions\t20\t120\t15811\t0\t0\t0\nCorporate securities\t45\t659\t20229\t4\t3\t1004\nMortgage-backed securities\t51\t298\t27677\t7\t102\t3495\nAsset-backed securities\t16\t297\t5523\t1\t30\t970\nRedeemable preferred stocks\t28\t61\t3075\t0\t0\t0\nTotal fixed maturities\t162\t1436\t73805\t33\t159\t17595\nDecember 31 2019\t\t\t\t\t\t\nU.S. government and agency securities\t37\t89\t26372\t39\t104\t31364\nForeign governments\t0\t0\t0\t2\t1\t600\nStates municipalities and political subdivisions\t31\t61\t14508\t2\t2\t1262\nPublic utilities\t9\t25\t4626\t2\t1\t250\nCorporate securities\t42\t124\t22435\t27\t19\t9605\nMortgage-backed securities\t89\t322\t59101\t50\t155\t12738\nAsset-backed securities\t15\t34\t8447\t5\t7\t1259\nRedeemable preferred stocks\t0\t0\t0\t1\t2\t97\nTotal fixed maturities\t223\t655\t135489\t128\t291\t57175\n", "q10k_tbl_16": "\tTotal\tLevel 1\tLevel 2\tLevel 3\nSeptember 30 2020\t\t\t\t\nU.S. government and agency securities\t123130\t0\t123130\t0\nForeign government\t1869\t0\t1869\t0\nStates municipalities and political subdivisions\t162681\t0\t162681\t0\nPublic utilities\t41955\t0\t41955\t0\nCorporate securities\t347666\t0\t347666\t0\nMortgage-backed securities\t279417\t0\t279417\t0\nAsset-backed securities\t63351\t0\t63351\t0\nRedeemable preferred stocks\t6369\t1587\t4782\t0\nTotal fixed maturities\t1026438\t1587\t1024851\t0\nMutual funds\t7945\t7945\t0\t0\nOther common stocks\t20343\t20343\t0\t0\nNon-redeemable preferred stocks\t8182\t8182\t0\t0\nTotal equity securities\t36470\t36470\t0\t0\nOther investments (1)\t28100\t300\t27800\t0\nTotal investments\t1091008\t38357\t1052651\t0\nDecember 31 2019\t\t\t\t\nU.S. government and agency securities\t120816\t0\t120816\t0\nForeign government\t4071\t0\t4071\t0\nStates municipalities and political subdivisions\t133751\t0\t133751\t0\nPublic utilities\t25334\t0\t25334\t0\nCorporate securities\t288872\t0\t288872\t0\nMortgage-backed securities\t251903\t0\t251903\t0\nAsset-backed securities\t57129\t0\t57129\t0\nRedeemable preferred stocks\t2985\t747\t2238\t0\nTotal fixed maturities\t884861\t747\t884114\t0\nMutual Funds\t65453\t65453\t0\t0\nPublic utilities\t3663\t3663\t0\t0\nOther common stocks\t44492\t44492\t0\t0\nNon-redeemable preferred stocks\t3002\t3002\t0\t0\nTotal equity securities\t116610\t116610\t0\t0\nOther investments (1)\t499\t300\t199\t0\nTotal investments\t1001970\t117657\t884313\t0\n", "q10k_tbl_17": "\tBook Value\tUnrealized Gain\tUnrealized Loss\tFair Value\nLimited partnership investments (1)\t9510\t1088\t327\t10271\nCertificates of deposit\t300\t0\t0\t300\nShort-term investments\t27801\t0\t1\t27800\nTotal other investments\t37611\t1088\t328\t38371\n", "q10k_tbl_18": "\tSeptember 30 2020\tDecember 31 2019\nTrust funds\t52301\t70668\nCash on deposit (regulatory deposits)\t933\t920\nTotal restricted cash\t53234\t71588\n", "q10k_tbl_19": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNumerator:\t\t\t\t\nNet losses attributable to UIHC common stockholders\t(74072)\t(28280)\t(62521)\t(21714)\nDenominator:\t\t\t\t\nWeighted-average shares outstanding\t42893205\t42795414\t42853364\t42750710\nEffect of dilutive securities\t0\t0\t0\t0\nWeighted-average diluted shares\t42893205\t42795414\t42853364\t42750710\nEarnings available to UIHC common stockholders per share\t\t\t\t\nBasic\t(1.73)\t(0.66)\t(1.46)\t(0.51)\nDiluted\t(1.73)\t(0.66)\t(1.46)\t(0.51)\n", "q10k_tbl_20": "\tSeptember 30 2020\tDecember 31 2019\nLand\t2114\t2114\nBuilding and building improvements (construction in progress of $0 and $2180 respectively)\t9211\t11315\nComputer hardware and software (software in progress of $1542 and $6317 respectively)\t40676\t33219\nOffice furniture and equipment\t3204\t3260\nLeasehold improvements\t749\t20\nLeased vehicles(1)\t2216\t1693\nTotal at cost\t58170\t51621\nLess: accumulated depreciation and amortization\t(23290)\t(18893)\nProperty and equipment net\t34880\t32728\n", "q10k_tbl_21": "\tSeptember 30 2020\tDecember 31 2019\nIntangible assets subject to amortization\t19216\t22440\nIndefinite-lived intangible assets(1)\t3639\t3639\nTotal\t22855\t26079\n", "q10k_tbl_22": "\tWeighted-average remaining amortization period (in years)\tGross carrying amount\tAccumulated amortization\tNet carrying amount\nSeptember 30 2020\t\t\t\t\nValue of business acquired\t0\t42788\t(42788)\t0\nAgency agreements acquired\t6.3\t34661\t(18275)\t16386\nTrade names acquired\t3.5\t6381\t(3551)\t2830\nTotal\t\t83830\t(64614)\t19216\nDecember 31 2019\t\t\t\t\nValue of business acquired\t0\t42788\t(42788)\t0\nAgency agreements acquired\t6.8\t34661\t(15658)\t19003\nTrade names acquired\t4.3\t6381\t(2944)\t3437\nTotal\t\t83830\t(61390)\t22440\n", "q10k_tbl_23": "Year ending December 31\tEstimated Amortization Expense\nRemaining in 2020\t1043\n2021\t3555\n2022\t3246\n2023\t3246\n2024\t2640\n2025\t2438\n", "q10k_tbl_24": "\tSeptember 30\tDecember 31\n\t2020\t2019\nReinsurance recoverable on unpaid losses and loss adjustment expenses\t701715\t482315\nReinsurance recoverable on paid losses and loss adjustment expenses\t78583\t67821\nReinsurance recoverable\t780298\t550136\n", "q10k_tbl_25": "\tSeptember 30\t\n\t2020\t2019\nBalance at January 1\t760357\t661203\nLess: reinsurance recoverable on unpaid losses\t482315\t477870\nNet balance at January 1\t278042\t183333\nIncurred related to:\t\t\nCurrent year\t429347\t335708\nPrior years\t(6165)\t33216\nTotal incurred\t423182\t368924\nPaid related to:\t\t\nCurrent year\t195728\t185257\nPrior years\t125085\t115890\nTotal paid\t320813\t301147\nNet balance at September 30\t380411\t251110\nPlus: reinsurance recoverable on unpaid losses\t701715\t573037\nBalance at September 30\t1082126\t824147\nComposition of reserve for unpaid losses and LAE:\t\t\nCase reserves\t361672\t271073\nIBNR reserves\t720454\t553074\nBalance at September 30\t1082126\t824147\n", "q10k_tbl_26": "\t\tEffective Interest Rate\t\tCarrying Value at\t\t\n\tMaturity\t\tSeptember 30 2020\t\tDecember 31 2019\nSenior Notes Payable\tDecember 15 2027\t6.25%\t\t150000\t\t150000\nFlorida State Board of Administration Note Payable\tJuly 1 2026\t0.64%\t\t6764\t\t7647\nTruist Term Note Payable\tMay 26 2031\t1.88%\t\t3698\t\t3958\nTotal long-term debt\t\t\t\t160462\t\t161605\n", "q10k_tbl_27": "\t2020\t2019\nBalance at January 1\t2673\t3010\nAdditions\t0\t0\nAmortization\t(254)\t(254)\nBalance at September 30\t2419\t2756\n", "q10k_tbl_28": "\tFinancial Statement Line\tSeptember 30 2020\tDecember 31 2019\nAssets\t\t\t\nOperating lease assets\tOther assets\t2095\t335\nFinancing lease assets\tProperty and equipment net\t1275\t1263\nTotal lease assets\t\t3370\t1598\nLiabilities\t\t\t\nOperating lease liabilities\tOperating lease liability\t2242\t324\nFinancing lease liabilities\tOther liabilities\t36\t34\nTotal lease liabilities\t\t2278\t358\n", "q10k_tbl_29": "\tThree Months Ended\t\t\tNine Months Ended\t\n\tSeptember 30 2020\t\tSeptember 30 2019\tSeptember 30 2020\tSeptember 30 2019\nOperating lease expense\t174\t\t46\t469\t137\nFinancing lease expense:\t\t\t\t\t\nAmortization of leased assets\t184\t\t115\t511\t261\nInterest on lease liabilities\t0\t1\t1\t1\t1\nShort-term lease expense\t0\t\t9\t0\t133\nNet lease expense\t358\t\t171\t981\t532\n", "q10k_tbl_30": "\tOperating Leases\tFinance Leases\tTotal\nRemaining in 2020\t162\t6\t168\n2021\t619\t22\t641\n2022\t532\t12\t544\n2023\t517\t2\t519\n2024\t528\t0\t528\nThereafter\t1373\t0\t1373\nTotal undiscounted future minimum lease payments\t3731\t42\t3773\nLess: Imputed interest\t(1489)\t(6)\t(1495)\nPresent value of lease liabilities\t2242\t36\t2278\n", "q10k_tbl_31": "\tSeptember 30 2020\tDecember 31 2019\nWeighted average remaining lease term (months)\t\t\nOperating leases\t69\t176\nFinancing leases\t24\t28\nWeighted average discount rate\t\t\nOperating leases\t3.58%\t4.00%\nFinancing leases\t3.27%\t3.27%\n", "q10k_tbl_32": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30 2020\tSeptember 30 2019\tSeptember 30 2020\tSeptember 30 2019\nCash paid for amounts included in the measurement of lease liabilities\t\t\t\t\nInvesting cash flows from financing leases\t27\t414\t505\t891\nRight-of-use assets obtained in exchange for new operating lease liabilities\t0\t0\t2136\t0\nRight-of-use assets obtained in exchange for new financing lease liabilities\t28\t425\t522\t915\n", "q10k_tbl_33": "\tPre-Tax Amount\tTax (Expense) Benefit\tNet-of-Tax Amount\nDecember 31 2019\t14962\t(3643)\t11319\nChanges in net unrealized gains on investments\t51847\t(12758)\t39089\nReclassification adjustment for realized gains\t(24901)\t6225\t(18676)\nSeptember 30 2020\t41908\t(10176)\t31732\n", "q10k_tbl_34": "\tNine Months Ended September 30\t\t\t\n\t2020\t\t2019\t\n\tPer Share Amount\tAggregate Amount\tPer Share Amount\tAggregate Amount\nFirst Quarter\t0.06\t2571\t0.06\t2569\nSecond Quarter\t0.06\t2578\t0.06\t2570\nThird Quarter\t0.06\t2581\t0.06\t2571\n", "q10k_tbl_35": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nEmployee stock-based compensation expense\t\t\t\t\nPre-tax (1)\t108\t536\t582\t1482\nPost-tax (2)\t86\t424\t460\t1171\nDirector stock-based compensation expense\t\t\t\t\nPre-tax (1)\t99\t178\t406\t810\nPost-tax (2)\t78\t141\t321\t640\n", "q10k_tbl_36": "\tNumber of Restricted Shares\tWeighted Average Grant Date Fair Value\nOutstanding as of December 31 2019\t214495\t17.49\nGranted (1)\t384572\t9.35\nLess: Forfeited\t232323\t12.61\nLess: Vested (1)\t109267\t16.63\nOutstanding as of September 30 2020\t257477\t10.10\n", "q10k_tbl_37": "\tNumber of Stock Options\tWeighted Average Exercise Prices\tWeighted Average Remaining Contractual Term (years)\tAggregate Intrinsic Value\nOutstanding as of December 31 2019\t207069\t18.69\t9.00\t0\nGranted\t221541\t8.77\t0\t0\nLess: Forfeited\t234472\t12.76\t0\t0\nLess: Expired\t32098\t18.87\t0\t0\nLess: Exercised\t0\t0\t0\t0\nOutstanding as of September 30 2020\t162040\t13.67\t8.03\t0\nVested as of September 30 2020\t73956\t18.81\t2.69\t0\nExercisable as of September 30 2020\t41858\t18.77\t4.76\t0\n", "q10k_tbl_38": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nGross premiums written\t365819\t317184\t1140653\t1085505\nGross premiums earned\t353991\t344683\t1042749\t986521\nNet premiums earned\t188741\t192920\t565819\t564046\nTotal revenues\t212733\t207598\t605434\t614695\nLoss before income tax\t(100553)\t(36074)\t(86875)\t(27346)\nLoss attributable to UIHC\t(74072)\t(28280)\t(62521)\t(21714)\nNet loss available to UIHC stockholders per diluted share\t(1.73)\t(0.66)\t(1.46)\t(0.51)\nReconciliation of net loss to core loss:\t\t\t\t\nPlus: Non-cash amortization of intangible assets\t1043\t1326\t3224\t4030\nLess: Realized gains on investment portfolio\t24968\t18\t24959\t186\nLess: Unrealized gains (losses) on equity securities\t(11552)\t2609\t(17456)\t15519\nLess: Net tax impact (1)\t(2598)\t(359)\t(898)\t(3220)\nCore loss (2)\t(83847)\t(29222)\t(65902)\t(30169)\nCore loss per diluted share(2)\t(1.95)\t(0.68)\t(1.54)\t(0.71)\nBook value per share\t\t\t10.54\t11.93\n", "q10k_tbl_39": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nREVENUE:\t\t\t\t\nGross premiums written\t365819\t317184\t1140653\t1085505\nChange in gross unearned premiums\t(11828)\t27499\t(97904)\t(98984)\nGross premiums earned\t353991\t344683\t1042749\t986521\nCeded premiums earned\t(165250)\t(151763)\t(476930)\t(422475)\nNet premiums earned\t188741\t192920\t565819\t564046\nNet investment income\t6010\t7803\t18834\t22668\nNet realized investment gains\t24968\t18\t24959\t186\nNet unrealized gain (loss) on equity securities\t(11552)\t2609\t(17456)\t15519\nOther revenue\t4566\t4248\t13278\t12276\nTotal revenue\t212733\t207598\t605434\t614695\nEXPENSES:\t\t\t\t\nLosses and loss adjustment expenses\t218652\t148125\t423182\t368924\nPolicy acquisition costs\t58735\t61849\t170183\t178717\nOperating expenses\t14483\t12167\t38164\t33577\nGeneral and administrative expenses\t19224\t19105\t53646\t53488\nInterest expense\t2210\t2443\t7194\t7379\nTotal expenses\t313304\t243689\t692369\t642085\nLoss before other income\t(100571)\t(36091)\t(86935)\t(27390)\nOther income\t18\t17\t60\t44\nLoss before income taxes\t(100553)\t(36074)\t(86875)\t(27346)\nBenefit for income taxes\t(26685)\t(7859)\t(24933)\t(5912)\nNet loss\t(73868)\t(28215)\t(61942)\t(21434)\nLess: Net income attributable to noncontrolling interests\t204\t65\t579\t280\nNet loss attributable to UIHC\t(74072)\t(28280)\t(62521)\t(21714)\nEarnings available to UIHC common stockholders per diluted share\t(1.73)\t(0.66)\t(1.46)\t(0.51)\nBook value per share\t\t\t10.54\t11.93\nReturn on equity based on GAAP net loss\t\t\t(16.5)%\t(5.5)%\nLoss ratio net (1)\t115.8%\t76.8%\t74.8%\t65.4%\nExpense ratio (2)\t49.0%\t48.3%\t46.3%\t47.1%\nCombined ratio (3)\t164.8%\t125.1%\t121.1%\t112.5%\nEffect of current year catastrophe losses on combined ratio\t74.2%\t26.0%\t33.0%\t13.8%\nEffect of prior year development on combined ratio\t(2.2)%\t6.3%\t(1.1)%\t5.9%\nUnderlying combined ratio (4)\t92.8%\t92.8%\t89.2%\t92.8%\n", "q10k_tbl_40": "\tSeptember 30 2020\t\tDecember 31 2019\t\n\tEstimated Fair Value\tPercent of Total\tEstimated Fair Value\tPercent of Total\nU.S. government and agency securities\t123130\t8.3%\t120816\t9.3%\nForeign government\t1869\t0.1%\t4071\t0.3%\nStates municipalities and political subdivisions\t162681\t11.0%\t133751\t10.3%\nPublic utilities\t41955\t2.8%\t25334\t2.0%\nCorporate securities\t347666\t23.6%\t288872\t22.3%\nMortgage-backed securities\t279417\t18.9%\t251903\t19.4%\nAsset-backed securities\t63351\t4.3%\t57129\t4.4%\nRedeemable preferred stocks\t6369\t0.4%\t2985\t0.2%\nTotal fixed maturities\t1026438\t69.4%\t884861\t68.2%\nMutual funds\t7945\t0.5%\t65453\t5.0%\nPublic utilities\t0\t-%\t3663\t0.3%\nOther common stocks\t20343\t1.4%\t44492\t3.4%\nNon-redeemable preferred stocks\t8182\t0.6%\t3002\t0.2%\nTotal equity securities\t36470\t2.5%\t116610\t8.9%\nOther investments\t38371\t2.6%\t10252\t0.8%\nTotal investments\t1101279\t74.5%\t1011723\t77.9%\nCash and cash equivalents\t323314\t21.9%\t215469\t16.6%\nRestricted cash\t53234\t3.6%\t71588\t5.5%\nTotal cash cash equivalents restricted cash and investments\t1477827\t100.0%\t1298780\t100.0%\n", "q10k_tbl_41": "\t2020\t2019\nThree Months Ended September 30\t\t\nNon-at-Risk\t(2.2)%\t(2.3)%\nQuota Share\t(13.6)%\t(12.2)%\nAll Other\t(30.9)%\t(29.5)%\nTotal Ceding Ratio\t(46.7)%\t(44.0)%\nNine Months Ended September 30\t\t\nNon-at-Risk\t(2.2)%\t(2.3)%\nQuota Share\t(13.0)%\t(9.7)%\nAll Other\t(30.5)%\t(30.8)%\nTotal Ceding Ratio\t(45.7)%\t(42.8)%\n", "q10k_tbl_42": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nQuota Share\t(56006)\t(45352)\t(156234)\t(136254)\nExcess-of-loss\t(2295)\t(4611)\t(424680)\t(411413)\nEquipment identity theft and cyber security (1)\t(3938)\t(2714)\t(10360)\t(7700)\nFlood and inland flood (1)\t(6978)\t(6489)\t(18427)\t(16773)\nCeded premiums written\t(69217)\t(59166)\t(609701)\t(572140)\nChange in ceded unearned premiums\t(96033)\t(92597)\t132771\t149665\nCeded premiums earned\t(165250)\t(151763)\t(476930)\t(422475)\n", "q10k_tbl_43": "\t2020\t\t\t2019\t\t\n\tNumber of Events\tIncurred Loss and LAE (1)\tCombined Ratio Impact\tNumber of Events\tIncurred Loss and LAE (1)\tCombined Ratio Impact\nThree Months Ended September 30\t\t\t\t\t\t\nCurrent period catastrophe losses incurred\t\t\t\t\t\t\nNamed and numbered storms\t7\t125122\t66.3%\t3\t31295\t16.2%\nAll other catastrophe loss events\t6\t14880\t7.9%\t2\t18873\t9.8%\nTotal\t13\t140002\t74.2%\t5\t50168\t26.0%\nNine Months Ended September 30\t\t\t\t\t\t\nCurrent period catastrophe losses incurred\t\t\t\t\t\t\nNamed and numbered storms\t10\t130446\t23.0%\t3\t31295\t5.6%\nAll other catastrophe loss events\t29\t56473\t10.0%\t26\t46332\t8.2%\nTotal\t39\t186919\t33.0%\t29\t77627\t13.8%\n", "q10k_tbl_44": "($ in thousands)\tThree Months Ended September 30\t\t\n\t2020\t2019\tChange\nDirect Written and Assumed Premium by Region (1)\t\t\t\nFlorida\t191858\t157278\t34580\nGulf\t73804\t62970\t10834\nNortheast\t55871\t55665\t206\nSoutheast\t36496\t32047\t4449\nTotal direct written premium by region\t358029\t307960\t50069\nAssumed premium (2)\t7790\t9224\t(1434)\nTotal gross written premium by region\t365819\t317184\t48635\nGross Written Premium by Line of Business\t\t\t\nPersonal property\t302078\t259187\t42891\nCommercial property\t63741\t57997\t5744\nTotal gross written premium by line of business\t365819\t317184\t48635\n", "q10k_tbl_45": "\tThree Months Ended September 30\t\t\nNew and Renewal Policies by Region (1)\t2020\t2019\tChange\nFlorida\t72268\t65589\t6679\nGulf\t42734\t38303\t4431\nNortheast\t40896\t41949\t(1053)\nSoutheast\t28154\t26014\t2140\nTotal\t184052\t171855\t12197\n", "q10k_tbl_46": "\tThree Months Ended September 30\t\t\t\t\n2020\t\t2019\t\tChange\nNet loss and LAE\t218652\t\t148125\t\t70527\n% of Gross earned premiums\t61.8%\t\t43.0%\t\t18.8 pts\n% of Net earned premiums\t115.8%\t\t76.8%\t\t39.0 pts\nLess:\t\t\t\t\t\nCurrent year catastrophe losses\t140002\t\t50168\t\t89834\nPrior year reserve (favorable) development\t(4213)\t\t12249\t\t(16462)\nUnderlying loss and LAE (1)\t82863\t\t85708\t\t(2845)\n% of Gross earned premiums\t23.4%\t\t24.9%\t\t(1.5) pts\n% of Net earned premiums\t43.9%\t\t44.4%\t\t(0.5) pts\n", "q10k_tbl_47": "\tThree Months Ended September 30\t\t\t\t\n2020\t\t2019\t\tChange\nPolicy acquisition costs\t58735\t\t61849\t\t(3114)\nOperating and underwriting\t14483\t\t12167\t\t2316\nGeneral and administrative\t19224\t\t19105\t\t119\nTotal Operating Expenses\t92442\t\t93121\t\t(679)\n% of Gross earned premiums\t26.1%\t\t27.0%\t\t(0.9) pts\n% of Net earned premiums\t49.0%\t\t48.3%\t\t0.7 pts\n", "q10k_tbl_48": "($ in thousands)\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\nDirect Written and Assumed Premium by Region (1)\t\t\t\nFlorida\t648662\t576028\t72634\nGulf\t200603\t174070\t26533\nNortheast\t153857\t153234\t623\nSoutheast\t98574\t89059\t9515\nTotal direct written premium by region\t1101696\t992391\t109305\nAssumed premium (2)\t38957\t93114\t(54157)\nTotal gross written premium by region\t1140653\t1085505\t55148\nGross Written Premium by Line of Business\t\t\t\nPersonal property\t834659\t755974\t78685\nCommercial property\t305994\t329531\t(23537)\nTotal gross written premium by line of business\t1140653\t1085505\t55148\n", "q10k_tbl_49": "\tNine Months Ended September 30\t\t\nNew and Renewal Policies By Region (1)\t2020\t2019\tChange\nFlorida\t208432\t209580\t(1148)\nGulf\t119280\t106762\t12518\nNortheast\t115135\t117485\t(2350)\nSoutheast\t77807\t72880\t4927\nTotal\t520654\t506707\t13947\n", "q10k_tbl_50": "\tNine Months Ended September 30\t\t\t\t\n2020\t\t2019\t\tChange\nNet loss and LAE\t423182\t\t368924\t\t54258\n% of Gross earned premiums\t40.6%\t\t37.4%\t\t3.2 pts\n% of Net earned premiums\t74.8%\t\t65.4%\t\t9.4 pts\nLess:\t\t\t\t\t\nCurrent year catastrophe losses\t186919\t\t77627\t\t109292\nPrior year reserve (favorable) development\t(6165)\t\t33216\t\t(39381)\nUnderlying loss and LAE (1)\t242428\t\t258081\t\t(15653)\n% of Gross earned premiums\t23.2%\t\t26.2%\t\t(3.0) pts\n% of Net earned premiums\t42.8%\t\t45.8%\t\t(3.0) pts\n", "q10k_tbl_51": "\tNine Months Ended September 30\t\t\t\t\n2020\t\t2019\t\tChange\nPolicy acquisition costs\t170183\t\t178717\t\t(8534)\nOperating and underwriting\t38164\t\t33577\t\t4587\nGeneral and administrative\t53646\t\t53488\t\t158\nTotal operating expenses\t261993\t\t265782\t\t(3789)\n% of Gross earned premiums\t25.1%\t\t26.9%\t\t(1.8) pts\n% of Net earned premiums\t46.3%\t\t47.1%\t\t(0.8) pts\n", "q10k_tbl_52": "Stocks by Sector\tFair Value\t% of Total Fair Value\nSeptember 30 2020\t\t\nFunds\t7945\t21.7%\nFinancial\t7900\t21.7\nCommunications\t6044\t16.6\nConsumer Non-cyclical\t4794\t13.1\nTechnology\t3686\t10.1\nIndustrial\t3017\t8.3\nConsumer Cyclical\t1711\t4.7\nUtilities\t1373\t3.8\nTotal\t36470\t100.0%\nDecember 31 2019\t\t\nFunds\t65453\t56.0%\nIndustrial\t11491\t9.9\nConsumer Non-cyclical\t10928\t9.4\nFinancial\t8438\t7.2\nTechnology\t5555\t4.8\nUtilities\t4002\t3.4\nCommunications\t3690\t3.2\nConsumer Cyclical\t3597\t3.1\nEnergy\t2094\t1.8\nBasic Materials\t1362\t1.2\nTotal\t116610\t100.0%\n", "q10k_tbl_53": "Exhibit\tDescription\n10.1\tRelease Agreement dated as of September 29 2020 by and between United Insurance Holdings Corp. and Deepak Menon (included as Exhibit 10.1 to the Form 8-K/A filed on October 1 2020 and incorporated herein by reference).\n10.2\tForm of Indemnification Agreement dated as of September 1 2020 by and between United Insurance Holdings Corp. and the members of the Board of Directors.\n10.3\tSecond Amended and Restated Employment Agreement dated as of October 23 2020 by and between United Insurance Holdings Corp. and Bennett Bradford Martz (included as Exhibit 10.1 to the Form 8-K filed on October 28 2020 and incorporated herein by reference).\n10.4\tSecond Amended and Restated Employment Agreement dated as of October 23 2020 by and between United Insurance Holdings Corp. and Scott St. John (included as Exhibit 10.2 to the Form 8-K filed on October 28 2020 and incorporated herein by reference).\n31.1\tCertification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act.\n31.2\tCertification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act.\n32.1\tCertification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act.\n32.2\tCertification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act.\n101.INS\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document\n101.SCH\tInline XBRL Taxonomy Extension Schema\n101.CAL\tInline XBRL Taxonomy Extension Calculation Linkbase\n101.DEF\tInline XBRL Taxonomy Extension Definition Linkbase\n101.LAB\tInline XBRL Taxonomy Extension Label Linkbase\n101.PRE\tInline XBRL Taxonomy Extension Presentation Linkbase\n104\tCover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_3", "cf": "q10k_tbl_8"}None
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File Number 001-35761
____________________
United Insurance Holdings Corp.
(Exact Name of Registrant as Specified in its Charter)
Delaware
75-3241967
(State or Other Jurisdiction of Incorporation or Organization)
(IRS Employer Identification Number)
800 2nd Avenue S.
33701
St. Petersburg,
Florida
(Address of Principle Executive Offices)
(Zip Code)
727-895-7737
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, $0.0001 par value per share
UIHC
Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☑
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No R
As of November 3, 2020, 43,080,410 shares of common stock, par value $0.0001 per share, were outstanding.
Throughout this Quarterly Report on Form 10-Q (Form 10-Q), we present amounts in all tables in thousands, except for share amounts, per share amounts, policy counts or where more specific language or context indicates a different presentation. In the narrative sections of this Form 10-Q, we show full values rounded to the nearest thousand.
2
UNITED INSURANCE HOLDINGS CORP.
FORWARD-LOOKING STATEMENTS
This Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about anticipated growth in revenues, gross written premium, earnings per share, estimated unpaid losses on insurance policies, investment returns, and diversification and expectations about our liquidity, our ability to meet our investment objectives and our ability to manage and mitigate market risk with respect to our investments. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “endeavor,” “project,” “believe,” “plan,” “anticipate,” “intend,” “could,” “would,” “estimate,” or “continue” or the negative variations thereof or comparable terminology are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections about the industry and market in which we operate, and management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties include, without limitation:
•our exposure to catastrophic events and severe weather conditions;
•the regulatory, economic and weather conditions present in Florida, the state in which we are most concentrated;
•our ability to cultivate and maintain agent relationships, particularly our relationship with AmRisc, LLC (AmRisc);
•the possibility that actual claims incurred may exceed our loss reserves for claims;
•assessments charged by various governmental agencies;
•our ability to implement and maintain adequate internal controls over financial reporting;
•our ability to maintain information technology and data security systems, and to outsource relationships;
•our reliance on key vendor relationships, and the ability of our vendors to protect the personally identifiable information of our customers, claimants or employees;
•our ability to attract and retain the services of senior management;
•risks and uncertainties relating to our acquisitions, mergers and other strategic transactions;
•risks associated with joint ventures and investments in which we share ownership or management with third parties;
•our ability to generate sufficient cash to service all of our indebtedness and comply with covenants and other requirements related to our indebtedness;
•our ability to increase or maintain our market share;
•changes in the regulatory environment present in the states in which we operate;
•the impact of new federal or state regulations that affect the insurance industry;
•the cost, variability and availability of reinsurance;
•our ability to collect from our reinsurers on our reinsurance claims;
•dependence on investment income and the composition of our investment portfolio and related market risks;
•the possibility of the pricing and terms for our products to decline due to the historically cyclical nature of the property and casualty insurance and reinsurance industry;
•the outcome of legal actions pending against us, including the terms of any settlements;
•downgrades in our financial strength or stability ratings;
•the impact of future sales of substantial amounts of our common stock by us or our significant stockholders on our stock price;
•our ability to pay dividends in the future, which may be constrained by our holding company structure;
•the ability of our subsidiaries to pay dividends in the future, which may affect our liquidity and our ability to meet our obligations;
•the ability of R. Daniel Peed and his affiliates to exert significant control over us due to substantial ownership of our common stock, subject to certain restrictive covenants that may restrict our ability to pursue certain opportunities;
•the impact of transactions by R. Daniel Peed and his affiliates on the price of our common stock;
•provisions in our charter documents that may make it harder for others to obtain control of us;
•the impact of the novel strain of coronavirus (COVID-19) and related business disruption and economic uncertainty on our business, results of operations and financial condition; and
•other risks and uncertainties described in the section entitled "Risk Factors" in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2019 and in Part II, Item 1A of this Form 10-Q.
We caution you not to place undue reliance on these forward-looking statements, which are valid only as of the date they were made. Except as may be required by applicable law, we undertake no obligation to update or revise any forward-looking statements to reflect new information, the occurrence of unanticipated events or otherwise.
3
UNITED INSURANCE HOLDINGS CORP.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets (Unaudited)
September 30, 2020
December 31, 2019
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale (amortized cost of $984,028 and $869,598, respectively)
$
1,026,438
$
884,861
Equity securities
36,470
116,610
Other investments (amortized cost of $37,611 and $8,067, respectively)
38,371
10,252
Total investments
$
1,101,279
$
1,011,723
Cash and cash equivalents
323,314
215,469
Restricted cash
53,234
71,588
Total cash, cash equivalents and restricted cash
$
376,548
$
287,057
Accrued investment income
5,691
5,901
Property and equipment, net
34,880
32,728
Premiums receivable, net (credit allowance of $132 and $165, respectively)
98,948
86,568
Reinsurance recoverable on paid and unpaid losses, net (credit allowance of $368 and $256, respectively)
780,298
550,136
Ceded unearned premiums
402,804
270,034
Goodwill
73,045
73,045
Deferred policy acquisition costs, net
119,089
104,572
Intangible assets, net
22,855
26,079
Other assets, net (credit allowance of $51 and $141, respectively)
49,350
19,375
Total Assets
$
3,064,787
$
2,467,218
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses
$
1,082,126
$
760,357
Unearned premiums
771,959
674,055
Reinsurance payable on premiums
347,711
166,131
Payments outstanding
68,505
57,555
Accounts payable and accrued expenses
89,657
78,592
Operating lease liability
2,242
324
Other liabilities
69,146
47,407
Notes payable, net
158,043
158,932
Total Liabilities
$
2,589,389
$
1,943,353
Commitments and contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding
$
—
$
—
Common stock, $0.0001 par value; 50,000,000 shares authorized; 43,255,798 and 43,056,310 issued, respectively; 43,080,410 and 43,028,074 outstanding, respectively
4
4
Additional paid-in capital
392,754
391,852
Treasury shares, at cost: 212,083 shares
(431)
(431)
Accumulated other comprehensive income
31,732
11,319
Retained earnings
29,881
100,394
Total stockholders' equity attributable to United Insurance Holdings Corp. (UIHC) stockholders
$
453,940
$
503,138
Noncontrolling interests (NCI)
21,458
20,727
Total Stockholders' Equity
$
475,398
$
523,865
Total Liabilities and Stockholders' Equity
$
3,064,787
$
2,467,218
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
4
UNITED INSURANCE HOLDINGS CORP.
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
REVENUE:
Gross premiums written
$
365,819
$
317,184
$
1,140,653
$
1,085,505
Change in gross unearned premiums
(11,828)
27,499
(97,904)
(98,984)
Gross premiums earned
353,991
344,683
1,042,749
986,521
Ceded premiums earned
(165,250)
(151,763)
(476,930)
(422,475)
Net premiums earned
188,741
192,920
565,819
564,046
Net investment income
6,010
7,803
18,834
22,668
Net realized investment gains
24,968
18
24,959
186
Net unrealized gain (loss) on equity securities
(11,552)
2,609
(17,456)
15,519
Other revenue
4,566
4,248
13,278
12,276
Total revenue
212,733
207,598
605,434
614,695
EXPENSES:
Losses and loss adjustment expenses
218,652
148,125
423,182
368,924
Policy acquisition costs
58,735
61,849
170,183
178,717
Operating expenses
14,483
12,167
38,164
33,577
General and administrative expenses
19,224
19,105
53,646
53,488
Interest expense
2,210
2,443
7,194
7,379
Total expenses
313,304
243,689
692,369
642,085
Loss before other income
(100,571)
(36,091)
(86,935)
(27,390)
Other income
18
17
60
44
Loss before income taxes
(100,553)
(36,074)
(86,875)
(27,346)
Benefit for income taxes
(26,685)
(7,859)
(24,933)
(5,912)
Net Loss
$
(73,868)
$
(28,215)
$
(61,942)
$
(21,434)
Less: Net income attributable to NCI
204
65
579
280
Net loss attributable to UIHC
$
(74,072)
$
(28,280)
$
(62,521)
$
(21,714)
OTHER COMPREHENSIVE INCOME:
Change in net unrealized gains on investments
27,884
5,606
52,106
30,561
Reclassification adjustment for net realized investment gains
(24,968)
(18)
(24,959)
(186)
Income tax expense related to items of other comprehensive income
(707)
(1,486)
(6,582)
(7,374)
Total comprehensive income (loss)
$
(71,659)
$
(24,113)
$
(41,377)
$
1,567
Less: Comprehensive income attributable to NCI
208
101
731
537
Comprehensive income (loss) attributable to UIHC
$
(71,867)
$
(24,214)
$
(42,108)
$
1,030
Weighted average shares outstanding
Basic
42,893,205
42,795,414
42,853,364
42,750,710
Diluted
42,893,205
42,795,414
42,853,364
42,750,710
Earnings available to UIHC common stockholders per share
Basic
$
(1.73)
$
(0.66)
$
(1.46)
$
(0.51)
Diluted
$
(1.73)
$
(0.66)
$
(1.46)
$
(0.51)
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Statements include related party transactions as detailed in Note 12.
5
UNITED INSURANCE HOLDINGS CORP.
Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended
(Unaudited)
Common Stock
Additional Paid-in Capital
Treasury Stock
Accumulated Other Comprehensive Income
Retained Earnings
Stockholders' Equity Attributable to UIHC
NCI
Total Stockholders’ Equity
Number of Shares
Dollars
June 30, 2019
43,231,184
$
4
$
390,719
$
(431)
$
9,648
$
141,973
$
541,913
$
20,575
$
562,488
Net income (loss)
—
—
—
—
—
(28,280)
(28,280)
65
(28,215)
Other comprehensive income, net
—
—
—
—
4,066
—
4,066
36
4,102
Stock Compensation
3,304
—
714
—
—
—
714
—
714
Cash dividends on common stock ($0.06 per common share)
—
—
—
—
—
(2,571)
(2,571)
—
(2,571)
September 30, 2019
43,234,488
$
4
$
391,433
$
(431)
$
13,714
$
111,122
$
515,842
$
20,676
$
536,518
Common Stock
Additional Paid-in Capital
Treasury Stock
Accumulated Other Comprehensive Income
Retained Earnings
Stockholders' Equity Attributable to UIHC
NCI
Total Stockholders’ Equity
Number of Shares
Dollars
June 30, 2020
43,068,379
$
4
$
392,633
$
(431)
$
29,527
$
106,534
$
528,267
$
21,250
$
549,517
Net income (loss)
—
—
—
—
—
(74,072)
(74,072)
204
(73,868)
Other comprehensive income, net
—
—
—
—
2,205
—
2,205
4
2,209
Stock Compensation
12,031
—
121
—
—
—
121
—
121
Cash dividends on common stock ($0.06 per common share)
—
—
—
—
—
(2,581)
(2,581)
—
(2,581)
September 30, 2020
43,080,410
$
4
$
392,754
$
(431)
$
31,732
$
29,881
$
453,940
$
21,458
$
475,398
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
6
UNITED INSURANCE HOLDINGS CORP.
Condensed Consolidated Statements of Stockholders’ Equity For the Nine Months Ended
(Unaudited)
Common Stock
Additional Paid-in Capital
Treasury Stock
Accumulated Other Comprehensive Income (loss)
Retained Earnings
Stockholders' Equity Attributable to UIHC
NCI
Total Stockholders’ Equity
Number of Shares
Dollars
December 31, 2018
42,984,578
$
4
$
389,141
$
(431)
$
(9,030)
$
140,546
$
520,230
$
20,139
$
540,369
Net income (loss)
—
—
—
—
—
(21,714)
(21,714)
280
(21,434)
Other comprehensive income, net
—
—
—
—
22,744
—
22,744
257
23,001
Stock Compensation
249,910
—
2,292
—
—
2,292
—
2,292
Cash dividends on common stock ($0.18 per common share)
—
—
—
—
—
(7,710)
(7,710)
—
(7,710)
September 30, 2019
43,234,488
$
4
$
391,433
$
(431)
$
13,714
$
111,122
$
515,842
$
20,676
$
536,518
Common Stock
Additional Paid-in Capital
Treasury Stock
Accumulated Other Comprehensive Income
Retained Earnings
Stockholders' Equity Attributable to UIHC
NCI
Total Stockholders’ Equity
Number of Shares
Dollars
December 31, 2019
43,028,074
$
4
$
391,852
$
(431)
$
11,319
$
100,394
$
503,138
$
20,727
$
523,865
Net income (loss)
—
—
—
—
—
(62,521)
(62,521)
579
(61,942)
Other comprehensive income, net
—
—
—
—
20,413
—
20,413
152
20,565
Reclassification due to adoption of ASU 2016-13
—
—
—
—
—
(262)
(262)
—
(262)
Stock Compensation
52,336
902
—
—
—
902
—
902
Cash dividends on common stock ($0.18 per common share)
—
—
—
—
—
(7,730)
(7,730)
—
(7,730)
September 30, 2020
43,080,410
$
4
$
392,754
$
(431)
$
31,732
$
29,881
$
453,940
$
21,458
$
475,398
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
7
UNITED INSURANCE HOLDINGS CORP.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30,
2020
2019
OPERATING ACTIVITIES
Net loss
$
(61,942)
$
(21,434)
Adjustments to reconcile net losses to net cash used by operating activities:
Depreciation and amortization
7,875
8,984
Bond amortization and accretion
4,686
3,884
Net realized gains on investments
(24,959)
(186)
Net unrealized losses (gains) on equity securities
17,456
(15,519)
Provision for uncollectable premiums
(132)
186
Provision for uncollectable reinsurance recoverables
(368)
—
Provision for uncollectable notes receivable
(51)
—
Deferred income taxes, net
(1,172)
(4,584)
Stock based compensation
988
2,292
Changes in operating assets and liabilities:
Accrued investment income
210
(20)
Premiums receivable
(12,113)
9,265
Reinsurance recoverable on paid and unpaid losses
(230,050)
(22,374)
Ceded unearned premiums
(132,770)
(149,665)
Deferred policy acquisition costs, net
(14,517)
(9,576)
Other assets
(30,065)
(8,031)
Unpaid losses and loss adjustment expenses
321,769
162,944
Unearned premiums
97,904
98,984
Reinsurance payable on premiums
181,580
146,722
Payments outstanding
10,950
227
Accounts payable and accrued expenses
11,065
8,153
Operating lease liability
1,918
356
Other liabilities
16,330
17,513
Net cash provided by operating activities
$
164,592
$
228,121
INVESTING ACTIVITIES
Proceeds from sales, maturities and repayments of:
Fixed maturities
147,551
168,342
Equity securities
114,575
1,978
Other investments
2,928
5,461
Purchases of:
Fixed maturities
(265,685)
(200,208)
Equity securities
(26,497)
(11,011)
Other investments
(32,465)
(6,395)
Cost of property, equipment and capitalized software acquired
(9,463)
(16,437)
Disposal of property, equipment and capitalized software
2,914
—
Net cash used in investing activities
$
(66,142)
$
(58,270)
FINANCING ACTIVITIES
Repayments of borrowings
(1,143)
(849)
Dividends
(7,730)
(7,710)
Tax withholding payment related to net settlement of equity awards
(86)
—
Net cash used in financing activities
$
(8,959)
$
(8,559)
Increase in cash, cash equivalents and restricted cash
89,491
161,292
Cash, cash equivalents and restricted cash at beginning of period
287,057
184,120
Cash, cash equivalents and restricted cash at end of period
$
376,548
$
345,412
Supplemental Cash Flows Information
Interest paid
$
4,828
$
4,930
Income taxes paid
$
1,015
$
284
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
8
UNITED INSURANCE HOLDINGS CORP.
Notes to Unaudited Condensed Consolidated Financial Statements
September 30, 2020
1) ORGANIZATION, CONSOLIDATION AND PRESENTATION
(a)Business
United Insurance Holdings Corp. (referred to in this document as we, our, us, the Company or UPC Insurance) is a property and casualty insurance holding company that sources, writes and services residential personal and commercial property and casualty insurance policies using a network of agents, four wholly-owned insurance subsidiaries, and one majority-owned insurance subsidiary. Our largest insurance subsidiary is United Property & Casualty Insurance Company (UPC), which was formed in Florida in 1999 and has operated continuously since that time. Our four other insurance subsidiaries are Family Security Insurance Company, Inc. (FSIC), acquired via merger on February 3, 2015; Interboro Insurance Company (IIC), acquired via merger on April 29, 2016; American Coastal Insurance Company (ACIC), acquired via merger on April 3, 2017; and Journey Insurance Company (JIC). JIC was formed in strategic partnership with a subsidiary of Tokio Marine Kiln Group Limited (Kiln) on August 30, 2018. The Kiln subsidiary holds a noncontrolling interest in JIC.
Our other subsidiaries include United Insurance Management, L.C. (UIM), a managing general agent that manages
substantially all aspects of UPC and FSIC's business, as well as JIC's personal residential business; Skyway Claims Services, LLC, which provides claims adjusting services to UPC, FSIC, ACIC and IIC; AmCo Holding Company, LLC (AmCo) and Family Security Holdings, LLC (FSH), which are holding company subsidiaries that consolidate their respective insurance companies; BlueLine Cayman Holdings (BlueLine), which reinsures portfolios of excess and surplus policies; UPC Re, which provides a portion of the reinsurance protection purchased by our insurance subsidiaries when needed; Skyway Reinsurance Services, LLC, which provides reinsurance brokerage services for our insurance companies; and Skyway Legal Services, LLC, which provides claims litigation services to our insurance companies.
Our primary product is homeowners' insurance, which we currently offer in 12 states, under authorization from the insurance regulatory authorities in each state. In addition, we write commercial residential insurance in the state of Florida. We are also licensed to write property and casualty insurance in an additional six states; however, we have not commenced writing in these states.
We conduct our operations under one reportable segment, property and casualty insurance policies. Our chief operating decision maker is our President, who makes decisions to allocate resources and assesses performance at the corporate level.
(b)Consolidation and Presentation
We prepare our unaudited condensed consolidated interim financial statements in conformity with U.S. generally accepted accounting principles (GAAP). We have condensed or omitted certain information and footnote disclosures normally included in the annual consolidated financial statements presented in accordance with GAAP. In management's opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of interim periods. We include all of our subsidiaries in our consolidated financial statements, eliminating intercompany balances and transactions during consolidation. Our unaudited condensed consolidated interim financial statements and footnotes should be read in conjunction with our consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2019.
While preparing our unaudited condensed consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include our reserves for unpaid losses and loss adjustment expenses, investments and goodwill. Except for the captions on our Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Comprehensive Income, we generally use the term loss(es) to collectively refer to both loss and loss adjustment expenses.
We reclassified certain amounts in the 2019 financial statements to conform to the 2020 presentation. These reclassifications had no impact on our results of operations or stockholders' equity, as previously reported.
Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate our results for the remainder of the year or for any other future period.
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UNITED INSURANCE HOLDINGS CORP.
Notes to Unaudited Condensed Consolidated Financial Statements