PRESS RELEASE

(BW) (FL-UNIVERSAL-INSURANCE) (UVIH) UNIVERSAL INSURANCE HOLDINGS, INC. DECLARES
DIVIDEND


     Business Editors/Insurance Writers

     FT.  LAUDERDALE,  FLA.  -  (BUSINESS  WIRE) -- April 3,  2006 --  Universal
Insurance  Holdings,  Inc.  ("Company")  (OTCBB:  UVIH) today announced that its
Board of Directors declared a dividend on its Common Stock of four cents ($0.04)
per share.  The dividend is payable on May 5, 2006 to  shareholders of record as
of April 21, 2006.

     The Board of Directors  decided to pay a dividend at this time based on the
Company's positive results and profits during the fiscal year ended December 31,
2005, as detailed in its most recently filed Form 10-KSB with the Securities and
Exchange Commission ("SEC"), and its continued positive results and profits. The
Company is not making any  commitment  to pay  dividends in the future,  but the
Board of  Directors  intends  to  evaluate  the  possibility  of  paying  future
dividends on a quarter-by-quarter basis.

     Universal Insurance  Holdings,  Inc. is a vertically  integrated  insurance
company. Readers should refer generally to reports filed by the Company with the
SEC, and  specifically  to the Company's Form 10-KSB for the year ended December
31, 2005 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 and revenues.  Additional factors
that may affect future  results are contained in the Company's  filings with the
SEC,  which  are  available  at the SEC's  web site at  http://www.sec.gov.  The
Company  disclaims any obligation to update and revise  statements  contained in
this presentation based on new information or otherwise.

     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.


CONTACT: Universal Insurance Holdings, Inc., Fort Lauderdale
         Bradley I. Meier, 954-958-1200