Universal Insurance Holdings, Inc. of Ft. Lauderdale reportednet income of $1.0 million, or $0.02 per diluted share, in thethird quarter of 2011, compared to net income of $13.1 million, or$0.32 per diluted share, for the same period in 2010. For the firstnine months of 2011, the company reported net income of $22.4million, or $0.55 per diluted share, compared to $30.8 million, or$0.76 per diluted share, for the same period of 2010. Whilenet premiums earned improved nominally, the company's profitabilitydecreased primarily as a result of net unrealized losses oninvestments during the 2011 third quarter.

Homeowners' and dwelling fire insurance policies serviced byUniversal Property & Casualty Insurance Co. (UPCIC), thecompany's wholly owned subsidiary, and the related direct premiumswritten rose during the third quarter of 2011 compared to the sameperiod of 2010. The fourth-quarter 2009 premium rate increases inFlorida, which were 14.6 percent statewide for UPCIC's homeowners'program and 14.8 percent statewide for its dwelling fire policies,improved net premiums earned while contributing to profitability inthe 2011 third quarter.

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 Feb. 7, 2011, for new business and March 28, 2011, for renewalbusiness.

UPCIC's policy count grew slightly during the 2011 thirdquarter. At Sept. 30, 2011, UPCIC serviced approximately 595,000homeowners' and dwelling fire insurance policies, an increase fromapproximately 591,000 policies at June 30, 2011, and an improvementfrom approximately 576,000 policies at Sept. 30, 2010. Of these,UPCIC had approximately 13,000 policies totaling approximately$15.8 million of in-force premiums at Sept. 30, 2011 in NorthCarolina, South Carolina and Hawaii.

Net premiums earned grew 1.6 percent in the third quarter of2011 compared to the same quarter in 2010.

Operating costs and expenses for the third quarter of 2011 werelower compared to the third quarter of last year; losses and lossadjustment expenses (LAE) were comparable to last year, whilegeneral and administrative expenses decreased 6.1 percent. The netloss and LAE ratio, or net losses and LAE as a percentage of netearned premiums, improved slightly to 59.1 percent in the thirdquarter of 2011 compared to 60.1 percent in the third quarter of2010. General and administrative expenses declined primarily as aresult of a decrease in performance-based bonus accruals and adecrease in bad debt expense. These decreases were partially offsetby higher stock-based compensation and non-recurring credits fromthe recovery of Florida Insurance Guaranty Association assessmentsrecorded during the third quarter of 2010.

At Sept. 30, 2011, stockholders' equity was $156.9 millioncompared to $158.2 million at June 30, 2011, and $137.3 million atSept. 30, 2010.