Contact Information: Investor Contact: Philip Kranz Dresner Corporate Services 312-780-7240 pkranz@dresnerco.com
Universal Insurance Holdings, Inc. Reports a Florida Insurance Guaranty Association Assessment and Receives Approval for Recoupment
| Source: Universal Insurance Holdings, Inc.
FORT LAUDERDALE, FL--(Marketwire - January 8, 2010) - Universal Insurance Holdings, Inc. (the
Company) (NYSE Amex : UVE ), a vertically integrated insurance holding
company, announced a mandatory assessment by the Florida Insurance Guaranty
Association applicable to all Florida property and casualty insurers
including Universal Property & Casualty Insurance Company (UPCIC), a wholly
owned subsidiary of the Company.
The assessment totaled $4.1 million, or 0.8 percent of net direct written
premiums, for the calendar year 2008, and will have a negative effect on
operating results for the three-month period ended December 31, 2009. The
mandatory assessment will be recovered through a surcharge on policies, as
approved by the Florida Office of Insurance Regulation in January 2010, and
the Company expects it will have a positive effect on operating results
over a twelve-month period beginning March 1, 2010.
About Universal Insurance Holdings, Inc.
Universal Insurance Holdings, Inc. (UIH) is a vertically integrated
insurance holding company, which through its various subsidiaries, covers
substantially all aspects of insurance underwriting, distribution, claims
processing and exposure management. Universal Property & Casualty Insurance
Company (UPCIC), a wholly owned subsidiary of UIH, is one of the five
leading writers of homeowners' insurance in Florida and is now fully
licensed and has commenced its operations in Georgia, Hawaii, North
Carolina and South Carolina. For additional information on the Company,
please visit our investor relations Web site at
www.universalinsuranceholdings.com
Readers should refer generally to reports filed by the Company with the
Securities and Exchange Commission (SEC), specifically the Company's Form
10-K for the year ended December 31, 2008, and the Company's Form 10-Q for
the quarterly period ended September 30, 2009, for a discussion of the risk
factors that could affect its operations. Such factors include, without
limitation, exposure to catastrophic losses; reliance on the Company's
reinsurance program; underwriting performance on catastrophe and
non-catastrophe risks; the ability to maintain relationships with
customers, employees or suppliers; competition and its effect on pricing,
spending and third-party relationships; the Company's financial stability
rating; product pricing and revenues; and the effect of Federal or state
laws and regulations. Additional factors that may affect future results are
contained in the Company's filings with the SEC, which are available on the
SEC's web site at http://www.sec.gov. The Company disclaims any obligation
to update and revise statements contained in this press release based on
new information or otherwise.
Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. The words
"believe," "expect," "anticipate," and "project," and similar expressions
identify forward-looking statements, which speak only as of the date the
statement was made. Such statements may include, but not be limited to,
projections of revenues, income or loss, expenses, plans, 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 in
forward-looking statements.