Universal Insurance Holdings, Inc. of Ft. Lauderdale reported net income of $7.5 million, or $0.19 per diluted share, in the second 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 first six months of 2011, the company reported net income of $21.4 million, 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 per share declined approximately 29.9 percent and 29.6 percent, respectively, in the 2011 second quarter compared to the same period last year. Notwithstanding higher net premiums earned, the company's profitability decreased primarily due to net unrealized losses on investments and lower net realized gains on investments during the 2011 second quarter. The company's profitability was further moderated by state-mandated wind mitigation credits within Florida.

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