Universal Insurance Holdings, Inc. Announces Approval to Write Property and Casualty Insurance in Hawaii

Market Wire, August, 2008

Universal Insurance Holdings, Inc. (AMEX: UVE), a vertically integrated insurance holding company, announced that its subsidiary Universal Property and Casualty Insurance Company (UPCIC), has received approval from the insurance division of Hawaii's Department of Commerce and Consumer Affairs to write property and casualty insurance in the state of Hawaii. UPCIC intends to file for approval for its rates and forms with the insurance division of Hawaii's Department of Commerce and Consumer Affairs by the end of the fourth quarter with the anticipation of writing new business in the beginning of 2009.

Bradley I. Meier, president and chief executive officer, commented, "With the approval to write property and casualty insurance in Hawaii, UPCIC continues with its plans for geographic expansion beyond Florida. We are very excited to have been approved by Hawaii and UPCIC looks forward to meeting the property and casualty needs of its citizens."

About Universal Insurance Holdings, Inc.

The Company is a vertically integrated insurance holding company. Through its subsidiaries, the Company is currently engaged in insurance underwriting, distribution and claims. UPCIC, which generates revenue from the collection and investment of premiums, is one of the top five writers of homeowners' insurance policies in the state of Florida and has aligned itself with well-respected service providers in the industry.

Readers should refer generally to reports filed by the Company with the Securities and Exchange Commission (SEC), specifically the Company's Form 10-KSB for the year ended December 31, 2007, and the Company's Form 10-Q for the quarterly period ended June 30, 2008, 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; and competition and its effect on pricing, spending, third-party relationships, the Company's financial stability rating, product pricing and revenues. 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.

Investor Contact: Philip Kranz Dresner Corporate Services 312-780-7240 pkranz@dresnerco.com