8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of the

Securities Exchange Act of 1934

August 10, 2010

Date of report (Date of earliest event reported)

Universal Insurance Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-20848	65-0231984
(State or other jurisdiction	(Commission file number)	(IRS Employer
of incorporation or organization)		Identification No.)

1110 W. Commercial Blvd. Suite 100, Fort Lauderdale, Florida 33309

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code: (954) 958-1200

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

ITEM 2.02                      Results of Operations and Financial Condition .

On August 10, 2010, Universal Insurance Holdings, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2010.  A copy of the press release is furnished as Exhibit 99.1 to this report.

ITEM 9.01                       Financial Statements and Exhibits

(d) Exhibits:

99.1           Press Release, dated August 10, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:  August 9, 2010	UNIVERSAL INSURANCE HOLDINGS, INC.
	/s/ Bradley I. Meier
	Bradley I. Meier
	President and Chief Executive Officer

EX-99.1

UNIVERSAL INSURANCE HOLDINGS, INC. REPORTS

SECOND-QUARTER 2010 FINANCIAL RESULTS

● Policy count increased by approximately 22,000 in the second quarter

● Diluted earnings per share improved by 42.1 percent compared to the same quarter of 2009

● Stockholders’ equity increased 7.7 percent in the second quarter

Fort Lauderdale, Fla., August 10, 2010 - Universal Insurance Holdings, Inc. (the Company or Universal) (NYSE AMEX: UVE), a vertically integrated insurance holding company, announced second-quarter 2010 net income of $10.8 million, or $0.27 per diluted share, compared to $7.6 million, or $0.19 per diluted share, in the second quarter of 2009.  

The Company’s net income and diluted earnings per share increased by 41.0 and 42.1 percent, respectively, for the 2010 second quarter compared to the same period last year.  The increases were primarily attributable to growth in net premiums earned and higher realized gains on investments, but were mitigated by state-mandated wind mitigation credits and increased general and administrative expenses.  The Company’s investment portfolio generated $4.5 million in realized gains on investments in the second quarter of 2010.  

The number of homeowners’ and dwelling fire insurance policies serviced by Universal Property & Casualty Insurance Company (UPCIC), the Company’s wholly-owned subsidiary, and the related direct premiums written increased during the second quarter of 2010.  UPCIC’s recent premium rate increases, 14.6 percent statewide for its homeowners’ program and 14.8 percent statewide for its dwelling fire policies, positively affected premiums and profitability.  UPCIC continued to recoup the mandatory Florida Insurance Guaranty Association (FIGA) assessment of $4.1 million, which contributed to the improved second quarter 2010 results.  As 2010 progresses, the Company believes that the premium rate increases and FIGA assessment recovery will continue to have a positive effec t on profitability.  

UPCIC’s policy count continued to grow, servicing approximately 566,000 homeowners’ and dwelling fire insurance policies as of June 30, 2010, up from 544,000 policies at March 31, 2010, and 520,000 policies at June 30, 2009.  The increase in the number of policies in-force is the result of heightened relationships with existing agents, an increase in the number of new agents, and continued expansion within Florida and in South Carolina, North Carolina, and Hawaii.  Within South Carolina, North Carolina, and Hawaii, UPCIC had approximately 6,800 policies totaling approximately $9.5 million of in-force premiums at June 30, 2010. 

-more-

UIH Q2 2010 Results

Page 2

Net premiums earned increased 10.7 percent in the second quarter of 2010 compared to the same quarter in 2009.  Meanwhile, second-quarter 2010 general and administrative expenses increased 26.3 percent to $13.4 million from $10.6 million in the 2009 second quarter.  The increase in general and administrative expenses was primarily attributable to higher direct and ceded commissions paid, and increased insurance premium taxes, all of which are related to growth in direct written premiums.

At June 30, 2010, stockholders’ equity increased to $123.6 million from $114.8 million at March 31, 2010, representing growth of 7.7 percent.  

Investment Portfolio Update

Realized gains on investments increased to $4.5 million for the three-month period ended June 30, 2010, from $0.3 million for the same period ended June 30, 2009.  The increase in realized gains on investments is the result of the expansion of the Company’s investment portfolio into fixed securities and equity securities and the related sales of certain of these securities.

As of June 30, 2010, the Company’s investments in equity securities and fixed maturities totaled $137.9 million, compared to $132.5 million at March 31, 2010.  At June 30, 2010, approximately 56.2 percent of the investments were in equity securities considered available for sale and 43.8 percent were in fixed maturities available for sale.  As of June 30, 2010, the Company’s investment portfolio contained $0.6 million of pre-tax net unrealized losses.

The Company restated its financial statements for the quarter ended March 31, 2010 to reflect the correction of an error in the accounting for an other-than-temporary impairment of an investment security.

The Company’s results for the second quarter reported herein and in the Form 10-Q for the quarter ended June 30, 2010 are inclusive of the Company’s restatement of its Condensed Consolidated Financial Statements for the three-month period ended March 31, 2010, as filed in the Company’s Form 10-Q/A for the quarter ended March 31, 2010.  

Cash Dividend

On May 24, 2010, Universal’s board of directors declared a cash dividend of $0.10 per share payable on July 15, 2010, to shareholders of record as of June 17, 2010.  

About Universal Insurance Holdings, Inc.

Universal Insurance Holdings, Inc. is a vertically integrated insurance holding company, which through its 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 the Company, is one of the five leading writers of homeowners’ insurance in Florida and is now fully licensed and has commenced its operations in Hawaii, North Carolina and South Carolina. For additional information on the Company, please visit our investor relations website at www.universalinsuranceholdings.com.

-more-

UIH Q2 2010 Results

Page 3

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, 2009, and the Company's Form 10-Q/A for the quarterly period ended March 31, 2010 and Form 10-Q for the quarterly period ended June 30, 2010, 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 t he 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 may contain "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 r evenues, 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.

Investor Contact:

Philip Kranz, Dresner Corporate Services, 312-780-7240, pkranz@dresnerco.com

-more-

UIH Q2 2010 Results

Page 4

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Six						For the Three
	Months Ended June 30,						Months Ended June 30,
	2010			2009			2010			2009
PREMIUMS EARNED AND OTHER REVENUES
Direct premiums written	$	368,119,332		$	301,984,289		$	208,019,687		$	156,772,144
Ceded premiums written		(248,872,199	)		(224,366,164	)		(121,304,233	)		(128,638,307	)
Net premiums written		119,247,133			77,618,125			86,715,454			28,133,837
(Increase) decrease in net unearned premium		(44,572,783	)		(2,483,735	)		(45,354,667	)		9,242,901
Premiums earned, net		74,674,350			75,134,390			41,360,787			37,376,738
Net investment income		310,571			798,482			117,619			461,774
Realized gains on investments		8,152,024			1,452,609			4,457,307			341,276
Foreign currency transaction gains		809,050			72,316			124,803			84,435
Other-than-temporary impairment of investments		(2,407,680	)		-			-			-
Commission revenue		17,521,299			15,307,618			8,783,428			7,862,769
Other revenue		2,020,332			2,901,730			1,016,078			1,422,353
Total premiums earned and other revenues		101,079,946			95,667,145			55,860,022			47,549,345
OPERATING COSTS AND EXPENSES
Losses and loss adjustment expenses		48,486,605			44,926,823			24,834,893			24,506,159
General and administrative expenses		23,577,980			18,114,424			13,389,331			10,599,196
Total operating costs and expenses		72,064,585			63,041,247			38,224,224			35,105,355
INCOME BEFORE INCOME TAXES		29,015,361			32,625,898			17,635,798			12,443,990
Income taxes, current		11,656,144			8,949,654			8,171,931			367,037
Income taxes, deferred		(351,761	)		3,599,856			(1,302,863	)		4,438,395
Income taxes, net		11,304,383			12,549,510			6,869,068			4,805,432
NET INCOME	$	17,710,978		$	20,076,388		$	10,766,730		$	7,638,558
Basic net income per common share	$	0.45		$	0.53		$	0.27		$	0.20
Weighted average of common shares
outstanding - Basic	$	39,028,976		$	37,589,412		$	39,167,241		$	37,617,174
Fully diluted net income per share	$	0.44		$	0.50		$	0.27		$	0.19
Weighted average of common shares
outstanding - Diluted	$	40,440,773		$	40,225,815		$	40,445,975		$	40,529,702
Cash dividend declared per common share	$	0.22		$	0.34		$	0.10		$	0.12
	For the Six						For the Three
	Months Ended June 30,						Months Ended June 30,
		2010			2009			2010			2009
Comprehensive Income:
Net income	$	17,710,978		$	20,076,388		$	10,766,730		$	7,638,558
Change in net unrealized gains on investments, net of tax		(966,901	)		8,228,976			790,675			5,672,835
Comprehensive Income	$	16,744,077		$	28,305,364		$	11,557,405		$	13,311,393

-more-

UIH Q2 2010 Results

Page 5

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	June 30,			December 31,
ASSETS	2010			2009
Cash and cash equivalents	$	262,444,768		$	192,924,291
Investments
Fixed maturities available for sale, at fair value		60,447,710			41,389,008
Equity securities available for sale, at fair value		77,477,064			73,408,002
Real estate, net		4,335,589			3,289,893
Prepaid reinsurance premiums		233,086,613			200,294,241
Reinsurance recoverables		63,235,510			91,816,433
Premiums receivable, net		49,351,405			37,363,110
Receivable from securities		14,669,988			6,259,973
Other receivables		2,629,577			5,068,367
Income taxes recoverable		-			3,211,874
Property and equipment, net		1,197,645			1,245,858
Deferred policy acquisition costs, net		14,041,890			9,464,624
Deferred income taxes		12,853,266			11,894,289
Other assets		1,020,164			617,337
Total assets	$	796,791,189		$	678,247,300
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Unpaid losses and loss adjustment expenses	$	128,903,761		$	127,197,753
Unearned premiums		355,735,699			278,370,544
Advance premium		20,058,953			17,078,558
Accounts payable		4,822,714			3,172,626
Bank overdraft		22,573,228			20,297,061
Reinsurance payable, net		86,815,057			73,104,595
Income taxes payable		3,786,298			368,968
Dividend payable to shareholder		3,916,724			-
Payable for securities		3,821,527			-
Other accrued expenses		18,855,334			20,750,385
Long-term debt		23,897,059			24,632,353
Total liabilities		673,186,354			564,972,843
STOCKHOLDERS' EQUITY:
Cumulative convertible preferred stock, $.01 par value		1,077			1,087
Authorized shares - 1,000,000
Issued shares - 107,690 and 108,640
Outstanding shares - 107,690 and 108,640
Minimum liquidation preference - $287,240 and $288,190
Common stock, $.01 par value		408,772			402,146
Authorized shares - 55,000,000
Issued shares - 40,877,087 and 40,214,884
Outstanding shares - 39,166,033 and 37,774,765
Treasury shares, at cost - 1,711,054 and 1,809,119 shares		(7,389,416	)		(7,948,606	)
Common stock held in trust, at cost - 0 and 631,000 shares		-			(511,110	)
Additional paid-in capital		37,802,927			36,666,914
Accumulated other comprehensive (loss) income, net of taxes		(403,247	)		563,654
Retained earnings		93,184,722			84,100,372
Total stockholders' equity		123,604,835			113,274,457
Total liabilities and stockholders' equity	$	796,791,189		$	678,247,300

-###-