Universal Insurance Holdings, Inc. of Ft. Lauderdale reported net income of $1.0 million, or $0.02 per diluted share, in the third quarter of 2011, compared to net income of $13.1 million, or $0.32 per diluted share, for the same period in 2010. For the first nine months of 2011, the company reported net income of $22.4 million, or $0.55 per diluted share, compared to $30.8 million, or $0.76 per diluted share, for the same period of 2010. While net premiums earned improved nominally, the company's profitability decreased primarily as a result of net unrealized losses on investments during the 2011 third quarter.

Homeowners' and dwelling fire insurance policies serviced by Universal Property & Casualty Insurance Co. (UPCIC), the company's wholly owned subsidiary, and the related direct premiums written rose during the third quarter of 2011 compared to the same period of 2010. The fourth-quarter 2009 premium rate increases in Florida, which were 14.6 percent statewide for UPCIC's homeowners' program and 14.8 percent statewide for its dwelling fire policies, improved net premiums earned while contributing to profitability in the 2011 third quarter.

Additionally, the premium rate increase of 14.9 percent statewide for UPCIC's homeowners' insurance program within Florida announced in February 2011 continues to flow through UPCIC's book of business. The effective dates for the most recent rate increase were Feb. 7, 2011, for new business and March 28, 2011, for renewal business.