Universal Insurance Holdings, Inc. Announces Impact from Recent Hurricanes

Fort Lauderdale, FL, October 10, 2017 – Universal Insurance Holdings, Inc. (NYSE: UVE) announced today the expected impact to the Company from recent hurricanes. Using claims information received to date and post event catastrophe model estimations, Universal Property & Casualty Insurance Company (UPCIC) anticipates that gross losses relating to Hurricane Irma, a Category 4 hurricane, from both Florida and other Southeastern U.S. states will be $350-450 million. In light of UPCIC’s substantial reinsurance program, the Company expects to recognize net pre-tax losses relating to Hurricane Irma of only $35 million, representing UPCIC’s first event net retention. In addition, to the extent UPCIC experiences any additional reinsurance recoveries from its supplemental Non-Florida reinsurance program, those recoveries would serve to further reduce its $35 million retention. At this estimated loss level, UPCIC has its full reinsurance tower of $2.65 billion available for any future events.

American Platinum Property and Casualty Insurance Company (APPCIC) anticipates that gross losses relating to Hurricane Irma will be $1-2 million. In light of APPCIC’s reinsurance program containing a $2 million retention, the Company expects to retain all of the net pre-tax losses relating to Hurricane Irma, capped at a maximum of $2 million. At this estimated loss level, APPCIC has its full reinsurance tower available for any future events.

The Company expects no impact to third quarter 2017 financial results from either Hurricane Harvey (which primarily affected Texas and Louisiana) or Hurricane Maria (which primarily affected the Caribbean and Puerto Rico), as neither of Universal’s insurance company subsidiaries have exposure in the affected areas. Additionally, the Company expects to incur little or no losses relating to Hurricane Nate, which initially made U.S. landfall on October 7, 2017, and affected Mississippi, Alabama, Louisiana, and the Florida Panhandle.

Universal Chairman and Chief Executive Officer Sean P. Downes commented: “We are thankful that our dedicated staff, disaster preparedness planning and conservative reinsurance program placed with strong reinsurance partners helped to limit the overall financial impact of these events. We have had approximately 50,000 claims reported relating to Hurricane Irma to date, over 90% of reported claims have already been inspected, and nearly 50% of reported claims have already been closed. We also highlight our extensive second event coverage and our solid financial position as we move through the remainder of the 2017 hurricane season. Additionally, as we begin to look forward, it is important to note that over 60% of the UPCIC reinsurance capacity estimated to be impacted is part of multi-year deals with dedicated limit and pricing already determined for future years, which will serve to protect UPCIC in the event of a hardening reinsurance market. We remain committed to fully supporting our policyholders in this time of need and delivering outstanding value to Universal shareholders.”

About Universal Insurance Holdings, Inc.

Universal Insurance Holdings, Inc., with its wholly-owned subsidiaries, is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Universal Property & Casualty Insurance Company (UPCIC), a wholly-owned subsidiary of the Company, is one of the leading writers of homeowners insurance in Florida and is now fully licensed and has commenced its operations in North Carolina, South Carolina, Hawaii, Georgia, Massachusetts, Maryland, Delaware, Indiana, Pennsylvania, Minnesota, Michigan, Alabama, Virginia, and New Jersey. American Platinum Property and Casualty Insurance Company (APPCIC), also a wholly-owned subsidiary, currently writes homeowners multi-peril insurance on Florida homes valued in excess of $1 million, which are limits and coverages currently not targeted through its affiliate UPCIC. APPCIC is additionally licensed and has commenced writing Fire, Commercial Multi-Peril, and Other Liability lines of business in Florida. For additional information on the Company, please visit our investor relations website at www.universalinsuranceholdings.com.

Forward-Looking Statements and Risk Factors

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 similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments 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, and the Company undertakes no obligation to correct or update any forward-looking statements. For further information regarding risk factors that could affect the Company’s operations and future results, refer to the Company’s reports filed with the Securities and Exchange Commission, including Form 10-K for the year ended December 31, 2016 and Form 10-Q for the quarter ended June 30, 2017.

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