Universal Insurance Holdings, Inc. Reports Record Results for Second Quarter 2015

Achieved Highest Quarterly Net Income and Diluted EPS in Company History

Fort Lauderdale, FL, August 4, 2015 – Universal Insurance Holdings, Inc. (NYSE: UVE) (or the “Company”) today reported record net income for the second quarter of 2015 of $24.7 million, an increase of 44.2% ($7.6 million) over the same period in 2014. Diluted earnings per share (EPS) was $0.69 for the second quarter of 2015, an increase of 40.9% ($0.20 per share) over the same quarter in 2014.  This compares to net income of $17.1 million, or $0.49 per diluted share, for the same period in 2014.

“We are pleased to report another record quarter with sequential improvement in multiple financial measures as we continue to focus on excellence in all aspects of our business,” said Sean P. Downes, the Company’s Chairman, President and Chief Executive Officer.  “The hard work and dedication of our tremendous employees as well as our loyal agency force continue to be key factors to our success.  With the help of our peer leading agency force, we continue to focus on writing organically grown rate adequate business in all of our active states.

“We believe that the strategic changes and improvements we made to our reinsurance program will continue to drive financial improvements.  Specifically, our 2015/2016 reinsurance program provides us with the necessary protection from significant storms and allows us, as a result of our improved capital position, to retain a greater share of our profitable business through the elimination of the quota share agreement.  Our second quarter results reflect just one month of this quota share elimination, and we look forward to realizing additional value moving forward.

“As we enter the second half of the year, we remain confident in our ability to increase market share by targeting profitable, rate adequate business from our growing distribution channels, improve our financial condition, continue our geographic expansion efforts and deliver increasing returns to shareholders.”

Second-Quarter 2015 & Recent Highlights

• Net earned premiums grew by $39.5 million, or 53.9%, to $112.9 million.
• Total revenues increased by $36.6 million, or 42.1%, to $123.6 million.
• Net income increased by $7.6 million, or 44.2%, to $24.7 million.
• Diluted EPS grew by $0.20, or 40.9%, to $0.69 per share.
• Paid dividends of $0.12 per share.
• Eliminated quota share reinsurance with 2015-2016 reinsurance program.
• Received Certificates of Authority from Michigan, Minnesota and Virginia.

Second-Quarter 2015 Results

Net income for the second quarter of 2015 of $24.7 million reflects an improvement across multiple measures including an increase in direct premiums written, net premiums written, net earned premiums, policy fees, net investment income and improvements in our loss ratio. The increase in net earned premiums reflects both growth in policies in force and lower reinsurance costs, including the reduction in the cession rate of the Company’s quota share reinsurance contracts to 30% effective June 2014, followed by the elimination of quota share reinsurance effective June 2015.  To a lesser degree but an important strategic initiative is diversification of premium outside of Florida as the Company is now licensed to write premium in 13 states. The loss and loss adjustment expense ratio was improved to 35.2% in the second quarter of 2015 compared to 37.7% for the second quarter of 2014.  The Company’s initiatives to expedite claims have resulted in savings, reducing the severity and duration of claims and costs associated with handling of claims.

Stockholders’ equity reached an all-time high of $255.3 million as of June 30, 2015 compared to $218.9 million (pro-forma) as of December 31, 2014.

Cash Dividends

On April 13, 2015, the Company announced that its board of directors declared a cash dividend of $0.12 per share of common stock which was paid on July 2, 2015 to shareholders of record on June 18, 2015.

If declared and paid as intended, the annual aggregate dividend in 2015 will be $0.48 for each common share.

Financial Results Presentation

The Company will make available an audio recording of a presentation discussing its second quarter 2015 financial results at approximately 5:00 pm Eastern on August 4, 2015. The presentation will be pre-recorded and there will be no opportunity for live questions. The audio recording of this presentation will be available at www.universalinsuranceholdings.com until September 4, 2015.

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 and Pennsylvania.  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, 2014 and Form 10-Q for the quarter ended June 30, 2015.