FORT LAUDERDALE, CA -- (Marketwire) -- 08/10/10 -- Universal Insurance Holdings, Inc. (the Company or Universal) (NYSE Amex: UVE), a vertically integrated insurance holding company, announced second-quarter 2010 net income of $10.8 million, or $0.27 per diluted share, compared to $7.6 million, or $0.19 per diluted share, in the second quarter of 2009.

The Company's net income and diluted earnings per share increased by 41.0 and 42.1 percent, respectively, for the 2010 second quarter compared to the same period last year. The increases were primarily attributable to growth in net premiums earned and higher realized gains on investments, but were mitigated by state-mandated wind mitigation credits and increased general and administrative expenses. The Company's investment portfolio generated $4.5 million in realized gains on investments in the second quarter of 2010.

The number of homeowners' and dwelling fire insurance policies serviced by Universal Property & Casualty Insurance Company (UPCIC), the Company's wholly-owned subsidiary, and the related direct premiums written increased during the second quarter of 2010. UPCIC's recent premium rate increases, 14.6 percent statewide for its homeowners' program and 14.8 percent statewide for its dwelling fire policies, positively affected premiums and profitability. UPCIC continued to recoup the mandatory Florida Insurance Guaranty Association (FIGA) assessment of $4.1 million, which contributed to the improved second quarter 2010 results. As 2010 progresses, the Company believes that the premium rate increases and FIGA assessment recovery will continue to have a positive effect on profitability.

UPCIC's policy count continued to grow, servicing approximately 566,000 homeowners' and dwelling fire insurance policies as of June 30, 2010, up from 544,000 policies at March 31, 2010, and 520,000 policies at June 30, 2009. The increase in the number of policies in-force is the result of heightened relationships with existing agents, an increase in the number of new agents, and continued expansion within Florida and in South Carolina, North Carolina, and Hawaii. Within South Carolina, North Carolina, and Hawaii, UPCIC had approximately 6,800 policies totaling approximately $9.5 million of in-force premiums at June 30, 2010.

Net premiums earned increased 10.7 percent in the second quarter of 2010 compared to the same quarter in 2009. Meanwhile, second-quarter 2010 general and administrative expenses increased 26.3 percent to $13.4 million from $10.6 million in the 2009 second quarter. The increase in general and administrative expenses was primarily attributable to higher direct and ceded commissions paid, and increased insurance premium taxes, all of which are related to growth in direct written premiums.

At June 30, 2010, stockholders' equity increased to $123.6 million from $114.8 million at March 31, 2010, representing growth of 7.7 percent.

Investment Portfolio Update
Realized gains on investments increased to $4.5 million for the three-month period ended June 30, 2010, from $0.3 million for the same period ended June 30, 2009. The increase in realized gains on investments is the result of the expansion of the Company's investment portfolio into fixed securities and equity securities and the related sales of certain of these securities.

As of June 30, 2010, the Company's investments in equity securities and fixed maturities totaled $137.9 million, compared to $132.5 million at March 31, 2010. At June 30, 2010, approximately 56.2 percent of the investments were in equity securities considered available for sale and 43.8 percent were in fixed maturities available for sale. As of June 30, 2010, the Company's investment portfolio contained $0.6 million of pre-tax net unrealized losses.

The Company restated its financial statements for the quarter ended March 31, 2010 to reflect the correction of an error in the accounting for an other-than-temporary impairment of an investment security.

The Company's results for the second quarter reported herein and in the Form 10-Q for the quarter ended June 30, 2010 are inclusive of the Company's restatement of its Condensed Consolidated Financial Statements for the three-month period ended March 31, 2010, as filed in the Company's Form 10-Q/A for the quarter ended March 31, 2010.

Cash Dividend
On May 24, 2010, Universal's board of directors declared a cash dividend of $0.10 per share payable on July 15, 2010, to shareholders of record as of June 17, 2010.

About Universal Insurance Holdings, Inc.
Universal Insurance Holdings, Inc. is a vertically integrated insurance holding company, which through its subsidiaries, covers substantially all aspects of insurance underwriting, distribution, claims processing and exposure management. Universal Property & Casualty Insurance Company (UPCIC), a wholly owned subsidiary of the Company, is one of the five leading writers of homeowners' insurance in Florida and is now fully licensed and has commenced its operations in Hawaii, North Carolina and South Carolina. For additional information on the Company, please visit our investor relations website at www.universalinsuranceholdings.com.

Readers should refer generally to reports filed by the Company with the Securities and Exchange Commission (SEC), specifically the Company's Form 10-K for the year ended December 31, 2009, and the Company's Form 10-Q/A for the quarterly period ended March 31, 2010 and Form 10-Q for the quarterly period ended June 30, 2010, for a discussion of the risk factors that could affect its operations. Such factors include, without limitation, exposure to catastrophic losses; reliance on the Company's reinsurance program; underwriting performance on catastrophe and non-catastrophe risks; the ability to maintain relationships with customers, employees or suppliers; competition and its effect on pricing, spending and third-party relationships; the Company's financial stability rating; product pricing and revenues; and the effect of Federal or state laws and regulations. Additional factors that may affect future results are contained in the Company's filings with the SEC, which are available on the SEC's web site at http://www.sec.gov. The Company disclaims any obligation to update and revise statements contained in this press release based on new information or otherwise.

Cautionary Language Concerning Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," and "project," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include, but not be limited to, projections of revenues, income or loss, expenses, plans, and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described in forward-looking statements.

            UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)

                          For the Six                  For the Three
                     Months Ended June 30,         Months Ended June 30,
                 ----------------------------  ----------------------------
                      2010           2009           2010           2009
                 -------------  -------------  -------------  -------------
PREMIUMS EARNED
 AND OTHER
 REVENUES
  Direct
   premiums
   written       $ 368,119,332  $ 301,984,289  $ 208,019,687  $ 156,772,144
  Ceded premiums
   written        (248,872,199)  (224,366,164)  (121,304,233)  (128,638,307)
                 -------------  -------------  -------------  -------------
    Net premiums
     written       119,247,133     77,618,125     86,715,454     28,133,837
  (Increase)
   decrease in
   net unearned
   premium         (44,572,783)    (2,483,735)   (45,354,667)     9,242,901
                 -------------  -------------  -------------  -------------
  Premiums
   earned, net      74,674,350     75,134,390     41,360,787     37,376,738
  Net investment
   income              310,571        798,482        117,619        461,774
  Realized gains
   on
   investments       8,152,024      1,452,609      4,457,307        341,276
  Foreign
   currency
   transaction
   gains               809,050         72,316        124,803         84,435
  Other-than-
   temporary
   impairment of
   investments      (2,407,680)             -              -              -
  Commission
   revenue          17,521,299     15,307,618      8,783,428      7,862,769
  Other revenue      2,020,332      2,901,730      1,016,078      1,422,353
                 -------------  -------------  -------------  -------------

Total premiums
 earned and
 other revenues    101,079,946     95,667,145     55,860,022     47,549,345
                 -------------  -------------  -------------  -------------

OPERATING COSTS
 AND EXPENSES
  Losses and
   loss
   adjustment
   expenses         48,486,605     44,926,823     24,834,893     24,506,159
  General and
   administrative
   expenses         23,577,980     18,114,424     13,389,331     10,599,196
                 -------------  -------------  -------------  -------------

    Total
     operating
     costs and
     expenses       72,064,585     63,041,247     38,224,224     35,105,355
                 -------------  -------------  -------------  -------------

INCOME BEFORE
 INCOME TAXES       29,015,361     32,625,898     17,635,798     12,443,990

  Income taxes,
   current          11,656,144      8,949,654      8,171,931        367,037
  Income taxes,
   deferred           (351,761)     3,599,856     (1,302,863)     4,438,395
                 -------------  -------------  -------------  -------------
    Income
     taxes, net     11,304,383     12,549,510      6,869,068      4,805,432
                 -------------  -------------  -------------  -------------

NET INCOME       $  17,710,978  $  20,076,388  $  10,766,730  $   7,638,558
                 =============  =============  =============  =============

Basic net income
 per common
 share           $        0.45  $        0.53  $        0.27  $        0.20
                 =============  =============  =============  =============
Weighted average
 of common
 shares
 outstanding -
 Basic              39,028,976     37,589,412     39,167,241     37,617,174
                 =============  =============  =============  =============

Fully diluted
 net income per
 share           $        0.44  $        0.50  $        0.27  $        0.19
                 =============  =============  =============  =============
Weighted average
 of common
 shares
 outstanding -
 Diluted            40,440,773     40,225,815     40,445,975     40,529,702
                 =============  =============  =============  =============

Cash dividend
 declared per
 common share    $        0.22  $        0.34  $        0.10  $        0.12
                 =============  =============  =============  =============


                          For the Six                  For the Three
                     Months Ended June 30,         Months Ended June 30,
                 ----------------------------  ----------------------------
                      2010           2009           2010           2009
                 -------------  -------------  -------------  -------------
Comprehensive
 Income:
  Net income     $  17,710,978  $  20,076,388  $  10,766,730  $   7,638,558
  Change in net
   unrealized
   gains on
   investments,
   net of tax         (966,901)     8,228,976        790,675      5,672,835
                 -------------  -------------  -------------  -------------

Comprehensive
 Income          $  16,744,077  $  28,305,364  $  11,557,405  $  13,311,393
                 =============  =============  =============  =============





            UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS

                                                  (Unaudited)
                                                   June 30,    December 31,
                     ASSETS                          2010          2009
                                                 ------------  ------------
Cash and cash equivalents                        $262,444,768  $192,924,291
Investments
  Fixed maturities available for sale, at fair
   value                                           60,447,710    41,389,008
  Equity securities available for sale, at fair
   value                                           77,477,064    73,408,002
Real estate, net                                    4,335,589     3,289,893
Prepaid reinsurance premiums                      233,086,613   200,294,241
Reinsurance recoverables                           63,235,510    91,816,433
Premiums receivable, net                           49,351,405    37,363,110
Receivable from securities                         14,669,988     6,259,973
Other receivables                                   2,629,577     5,068,367
Income taxes recoverable                                    -     3,211,874
Property and equipment, net                         1,197,645     1,245,858
Deferred policy acquisition costs, net             14,041,890     9,464,624
Deferred income taxes                              12,853,266    11,894,289
Other assets                                        1,020,164       617,337
                                                 ------------  ------------
    Total assets                                 $796,791,189  $678,247,300
                                                 ============  ============

      LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Unpaid losses and loss adjustment expenses       $128,903,761  $127,197,753
Unearned premiums                                 355,735,699   278,370,544
Advance premium                                    20,058,953    17,078,558
Accounts payable                                    4,822,714     3,172,626
Bank overdraft                                     22,573,228    20,297,061
Reinsurance payable, net                           86,815,057    73,104,595
Income taxes payable                                3,786,298       368,968
Dividend payable to shareholder                     3,916,724             -
Payable for securities                              3,821,527             -
Other accrued expenses                             18,855,334    20,750,385
Long-term debt                                     23,897,059    24,632,353
                                                 ------------  ------------
    Total liabilities                             673,186,354   564,972,843
                                                 ------------  ------------

STOCKHOLDERS' EQUITY:
Cumulative convertible preferred stock, $.01 par
 value                                                  1,077         1,087
  Authorized shares - 1,000,000
  Issued shares - 107,690 and 108,640
  Outstanding shares - 107,690 and 108,640
  Minimum liquidation preference - $287,240 and
   $288,190
Common stock, $.01 par value                          408,772       402,146
  Authorized shares - 55,000,000
  Issued shares - 40,877,087 and 40,214,884
  Outstanding shares - 39,166,033 and 37,774,765
  Treasury shares, at cost - 1,711,054 and
   1,809,119 shares                                (7,389,416)   (7,948,606)
Common stock held in trust, at cost - 0 and
 631,000 shares                                             -      (511,110)
Additional paid-in capital                         37,802,927    36,666,914
Accumulated other comprehensive (loss) income,
 net of taxes                                        (403,247)      563,654
Retained earnings                                  93,184,722    84,100,372
                                                 ------------  ------------
    Total stockholders' equity                    123,604,835   113,274,457
                                                 ------------  ------------
    Total liabilities and stockholders' equity   $796,791,189  $678,247,300
                                                 ============  ============