Universal Insurance Holdings, Inc. of Ft. Lauderdale reportednet income of $7.5 million, or $0.19 per diluted share, in thesecond quarter of 2011, compared to net income of $10.8 million, or$0.27 per diluted share, for the same period in 2010. For the firstsix months of 2011, the company reported net income of $21.4million, or $0.53 per diluted share, compared to $17.7 million, or$0.44 per diluted share, for the same period of 2010.

Second quarter 2011 results net income and diluted earnings pershare declined approximately 29.9 percent and 29.6 percent,respectively, in the 2011 second quarter compared to the sameperiod last year. Notwithstanding higher net premiums earned, thecompany's profitability decreased primarily due to net unrealizedlosses on investments and lower net realized gains on investmentsduring the 2011 second quarter. The company's profitability wasfurther moderated by state-mandated wind mitigation credits withinFlorida.

However, homeowners' and dwelling fire insurance policiesserviced by UniversalProperty & Casualty Insurance Co. (UPCIC), the company'swholly owned insurance company subsidiary, and the related directpremiums written increased during the second quarter of 2011compared to the same period of 2010. The fourth-quarter 2009premium rate increases in Florida, which were 14.6 percentstatewide for UPCIC's homeowners' program and 14.8 percentstatewide for its dwelling fire policies, increased direct premiumswritten and net premiums earned while contributing to profitabilityin the second quarter of 2011.

Additionally, the premium rate increase of 14.9 percentstatewide for UPCIC's homeowners' insurance program within Floridaannounced in February 2011 continues to flow through UPCIC's bookof business. The effective dates for the most recent rate increasewere February 7 for new business and March 28 for renewal business.UPCIC expects the approved premium rate increase to have afavorable effect on premiums written and earned in future months,as new and renewal policies are written at the higher rates.

During the 2011 second quarter, UPCIC's policy count continuedto grow on a year-over-year basis. At June 30, UPCIC servicedapproximately 591,000 homeowners' and dwelling fire insurancepolicies, a nominal decline from approximately 593,000 policies atMarch 31, and an increase from approximately 566,000 policies atJune 30, 2010. Within South Carolina, North Carolina, and Hawaii,UPCIC had approximately 11,800 policies totaling approximately$14.8 million of in-force premiums at June 30.

Net premiums earned increased 19.7 percent in the second quarterof 2011 compared to the same quarter in 2010, primarily as a resultof an increase in the number of policies written generated byUPCIC's agent network and rate increases which became effective inFebruary 2011 as well as those that became effective in the latterpart of 2009.

UPCIC is one of the three leading writers of homeowners'insurance in Florida and is now fully licensed and operating inHawaii, North Carolina and South Carolina.