EXHIBIT 11.1 Universal Insurance Holdings, Inc. Statement Regarding the Computation of Per Share Income The following table reconciles the numerator (earnings) and denominator (shares) of the basic and diluted earnings per share computations for net income for the nine month and three periods ended September 30, 2006 and 2005. Nine Months Ended Nine Months Ended September 30, 2006 September 30, 2005 ------------------ ------------------ Income Income Available Available to Common Per-Share to Common Per-Share Stockholders Shares Amount Stockholders Shares Amount ------------ ------ --------- ------------ ------ --------- Net income $9,049,927 $3,857,015 Less: Preferred stock dividends (37,464) (37,464) ---------- ---------- Income available to common stockholders $9,012,463 34,409,000 $0.26 $3,819,551 32,808,000 $0.12 ======== ====== Effect of dilutive securities: Stock options and warrants --- 2,193,000 --- --- 187,000 --- Preferred stock 37,464 568,000 --- 37,464 568,000 --- --------------- ------ ------- --- ------ ------- ----- Income available to common stockholders and assumed conversion $9,049,927 37,170,000 $0.24 $3,857,015 33,563,000 $0.11 ========== ========== ===== ========== ========== ===== Options and warrants totaling approximately 3,940,000 and 839,000 respectively, were excluded from the calculation of diluted earnings per share as their effect was anti-dilutive for the nine months ended September 30, 2006. Options and warrants totaling approximately 7,684,000 and 3,297,000 respectively, were excluded from the calculation of diluted earnings per share as their effect was anti-dilutive for the nine months ended September 30, 2005. Three Months Ended Three Months Ended September 30, 2006 September 30, 2005 ------------------ ------------------ Income Income Available Available to Common Per-Share to Common Per-Share Stockholders Shares Amount Stockholders Shares Amount ------------ ------ ------ ------------ ------ --------- Net income $3,763,742 $2,838,144 Less: Preferred stock dividends (12,488) (12,488) ---------- ---------- Income available to common stockholders $3,751,254 34,891,000 $0.11 $2,825,656 33,355,000 $0.08 ===== ===== Effect of dilutive securities: Stock options and warrants --- 2,735,000 --- --- 228,000 --- Preferred stock 12,488 568,000 --- 12,488 568,000 --- ---------- ---------- ----- ---------- ---------- ----- Income available to common stockholders and assumed conversion $3,763,742 38,194,000 $0.10 $2,838,144 34,151,000 $0.08 ========== ========== ===== ========== ========== ===== Options and warrants totaling approximately 3,515,844 and 721,000 respectively, were excluded from the calculation of diluted earnings per share as their effect was anti-dilutive for the three months ended September 30, 2006. Options and warrants totaling approximately 7,441,000 and 3,499,000 respectively, were excluded from the calculation of diluted earnings per share as their effect was anti-dilutive for the three months ended September 30, 2005.