Universal Insurance Holdings, Inc. Reports Third Quarter 2016 Financial Results

Generates strong profits amid severe weather

Fort Lauderdale, FL, November 2, 2016 

Universal Insurance Holdings, Inc. (NYSE: UVE) today reported third quarter net income
of $26.9 million, a decrease of 11.3%, or $3.4 million, from the same quarter
in 2015.  Diluted earnings per share (EPS) were $0.75 for the third quarter of
2016, a decrease of 10.7%, or $0.09 per share, from the same quarter in 2015. 

“During the third
quarter, Universal reported record top line results with record premiums
earned, net and total revenues and strong profitability even as we experienced
severe weather in our coverage areas,” said Sean P. Downes, Universal’s
Chairman and Chief Executive Officer. “Our strong performance is a testament to
the fundamental strength of our business model, including our focus on
maintaining high underwriting standards, and more importantly this quarter, our
claims handling abilities. The rigorous planning we conduct on an ongoing basis
to prepare for severe weather events served us well in the quarter, and allowed
us to respond quickly and effectively following Hurricane Hermine.   

“Looking ahead,
we remain focused on writing high quality, rate adequate organic business, both
in Florida and across our expanding geographic footprint.  We will also
continue to pursue new business through our unique direct-to-consumer platform,
Universal Direct^SM, both organically and by seeking
partnerships and joint ventures to deliver an even broader scope of products
and services to our customers.  Universal enters the fourth quarter well
positioned to drive profitable growth, and we remain confident in our ability
to deliver increasing shareholder value.” 

Third-Quarter 2016 & Recent Highlights

• Net earned premiums grew by $13.4 million, or 9.2%, to $159.5 million.
• Total revenues increased by $15.4 million, or 9.8%, to $172.4 million.
• Net income decreased by $3.4 million, or 11.3%, to $26.9 million.
• Diluted EPS decreased by $0.09, or 10.7%, to $0.75 per share.
• Paid dividends of $0.14 per share.
• Wrote our first policy in Virginia.
• Announced the launch of a Commercial Residential Program.
• Universal DirectSM is now offered in 11 states.

Third-Quarter 2016 Results

Net income for
the third quarter of 2016 of $26.9 million reflects an improvement across all
revenue measures. Net earned
premiums and total revenues were higher than any other quarter in the Company’s
history.

The increase in
net earned premiums is due entirely from organic growth in policies in force.

Net income was
offset by $11 million of pre-tax net losses and loss adjustment expenses
attributable to severe weather in 2016 including Hurricane Hermine. These
losses and loss adjustment expenses were incremental to amounts provided for in
the underlying loss ratio based on historical experience for such events.

Net losses and
loss adjustment expenses as a percentage of net earned premiums increased 9.3
percentage points resulting in a net loss ratio of 46.1% for the third quarter,
compared to 36.8% for the same period last year. The primary driver of this
increase was the severe weather during 2016.

Stockholders’
equity reached an all-time high of $373.3 million as of September 30, 2016
compared to $293.1 million as of December 31, 2015.  Book value per common
share also reached an all-time high of $10.66 as September 30, 2016 compared to
$8.34 as of December 31, 2015.

Cash Dividends

On August 31, 2016, the
Company announced that its Board of Directors had declared a cash dividend of
$0.14 per share of common stock that was paid on October 24, 2016 to
shareholders of record on September 12, 2016.

Conference Call

Members of the Universal management team will host a
conference call on Wednesday, November 2, 2016 at 4:45 PM ET to discuss the
third quarter 2016 financial results.   Following prepared remarks, management
will conduct a question and answer session.

The call will be accessible by dialing toll free at (888)
887-7180 or toll at (270) 823-1518 (using the Conference I.D.: 97544219).  A
live audio webcast of the call will also be accessible on the Universal
Insurance website at www.universalinsuranceholdings.com.  A replay of the call
can be accessed toll free at (855) 859-2056 or toll at (404) 537-3406 (using
the Conference I.D.: 97544219), and will be available through November 17,
2016.

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 and Virginia.  American Platinum Property and
Casualty Insurance Company, 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.  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,
2015.