Universal Insurance Holdings, Inc. Estimates Impact of Florida Hurricane Season on Insurance Subsidiary.

MIAMI -- Universal Property and Casualty Insurance Company ("UPCIC"), the Florida-based homeowners insurance subsidiary of Universal Insurance Holdings ("UIH") (OTCBB:UVIH), continues to accept new and renewal policies following the four recent Florida hurricanes. Because of its reinsurance arrangements and its ability to purchase supplemental reinsurance during the hurricane season, UPCIC retained $400,000 in losses for each of the hurricanes or $1.6 million in the aggregate, which will adversely affect UIH's operating results for the third quarter. The storm losses in UPCIC have been offset by $1.175 million in additional capital contributed to UPCIC by UIH and by UPCIC's non-catastrophe operating results. Management estimates that despite the hurricane losses, UPCIC's reported surplus as of September 30, 2004, will equal or exceed the $4.62 million in surplus reported as of June 30, 2004. Management intends that UPCIC will continue its strategy of writing policies throughout Florida through the efforts of the state's independent agents.

Universal Insurance Holding Company, Inc. is a vertically integrated insurance company. Readers should refer generally to reports filed by the Company with the Securities and Exchange Commission (SEC), and specifically to the Company's Form 10-KSB for the year ended December 31, 2003 for a discussion of the risk factors that could affect UPCIC's operations. Such factors include, without limitation, exposure to catastrophic losses, reliance on reinsurance program and competition within the insurance industry. This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation 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.