Universal Insurance Holdings, Inc. Reports a Florida Insurance Guaranty Association Assessment and Announces Recoupment Plan

Thu Dec 6, 2012 4:10pm EST

* Reuters is not responsible for the content in this press release.

  FORT LAUDERDALE, FL, Dec 06 (Marketwire) -- 
Universal Insurance Holdings, Inc. (NYSE MKT: UVE) (Company), a
vertically integrated insurance holding company, announced a mandatory
assessment by the Florida Insurance Guaranty Association, Inc. (FIGA).
The assessment of 0.9 percent of net direct written premiums for the
calendar year 2011 is applicable to all member insurers of FIGA's "All
Other Account," which includes Universal Property & Casualty Insurance
Company (UPCIC) and American Platinum Property and Casualty Insurance
Company (APPCIC), both wholly owned subsidiaries of the Company and
together referred to as the "Insurance Entities." 

    Collectively, the assessment was 0.9 percent of the Insurance Entities'
net direct written premiums within Florida for the calendar year 2011 and
totaled $6.3 million. The assessment will have a negative effect on the
consolidated operating results of the Company for the three-month period
ended December 31, 2012. The mandatory assessment on UPCIC of $6.3
million will be recouped through a surcharge on UPCIC's policies within
Florida, pursuant to a filing made with the Florida Office of Insurance
Regulation on November 28, 2012, and the Company expects it will have a
positive effect on operating results over a twelve-month period beginning
February 1, 2013. The mandatory assessment on APPCIC was a nominal amount
that the Company has elected not to recoup.

    FIGA is a nonprofit corporation created by the Florida legislature. Since
the last assessment levied by FIGA in 2009 on its All Other Account, FIGA
reports there have been thirteen foreign and domestic insurance company
insolvencies affecting its claims-paying accounts. 

    About Universal Insurance Holdings, Inc.
 Universal Insurance Holdings,
Inc. (Company), 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 three 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 and Maryland. 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. 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 the Form 10-K for the
year ended December 31, 2011 and the Form 10-Q for the quarter ended
September 30, 2012.


Investor Contact:
Philip Kranz
Dresner Corporate Services

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