NEWS

Contact:    Bradley I. Meier
            President and Chief Executive Officer
            Universal Insurance Holdings, Inc.
            (954) 958-1200

FOR IMMEDIATE RELEASE


              UNIVERSAL INSURANCE HOLDINGS, INC. DECLARES DIVIDEND


Ft.  Lauderdale,  Florida,  June  7,  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 July 10, 2006 to shareholders of record as of June 28, 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
during the quarter ended March 31, 2006, as detailed  in its most recently filed
Form  10-QSB  with  the SEC.  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
and  the  Company's  Form  10-QSB for the quarter ended March  31,  2006  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.