UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                  FORM 10-QSB

(Mark One)
X         QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
          EXCHANGE ACT OF 1934
              For the quarterly period ended June 30, 2006

                                       OR

          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934
              For the transition period from ______________ to ______________


                        Commission File Number 000-20848


                       UNIVERSAL INSURANCE HOLDINGS, INC.
       (Exact name of small business issuer as specified in its charter)


          Delaware                                              65-0231984
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)


                            1110 W. Commercial Blvd.
                                   Suite 100
                         Fort Lauderdale, Florida 33309
                    (Address of principal executive offices)


                                 (954) 958-1200
                          (Issuer's telephone number)


                             2875 N.E. 191st Street
                                   Suite 302
                                Miami, FL 33180
                                (former address)


          State the number of shares outstanding of each of the issuer's classes
of common equity, as of the last practicable  date:  37,957,103 shares of common
stock as of August 18, 2006.

          Transitional Small Business Disclosure Format  Yes      No  X
                                                             ---     ---



                       UNIVERSAL INSURANCE HOLDINGS, INC.
                       ----------------------------------

                        PART I -- FINANCIAL INFORMATION

Item 1.   Financial Statements


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To The Board of Directors and Stockholders of
Universal Insurance Holdings, Inc. and Subsidiaries
Fort Lauderdale, Florida


We have  reviewed  the  accompanying  condensed  consolidated  balance  sheet of
Universal Insurance Holdings,  Inc. and Subsidiaries as of June 30, 2006 and the
related condensed consolidated  statements of income for the three and six-month
periods ended June 30, 2006 and 2005 and cash flows for six-month  periods ended
June  30,  2006  and  2005.   These  interim   financial   statements   are  the
responsibility of the Company's management.

We conducted our review in accordance  with the standards of the Public  Company
Accounting  Oversight  Board  (United  States).  A review of  interim  financial
information  consists  principally of applying analytical  procedures and making
inquiries of persons  responsible  for financial and accounting  matters.  It is
substantially  less in scope  than an audit  conducted  in  accordance  with the
standards of the Public Company Accounting  Oversight Board (United States), the
objective  of which is the  expression  of an opinion  regarding  the  financial
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  interim  financial  statements  for  them to be in
conformity with accounting principles generally accepted in the United States of
America.


/s/ Blackman Kallick Bartelstein, LLP

Chicago, Illinois
August 18, 2006

                                       2


     The  following  unaudited  consolidated  financial  statements of Universal
Insurance Holdings,  Inc. have been prepared in accordance with the instructions
to Form 10-QSB and,  therefore,  omit or condense  certain  footnotes  and other
information  normally  included in financial  statements  prepared in conformity
with accounting  principles  generally accepted in the United States of America.
In the opinion of management,  all adjustments  (consisting  primarily of normal
recurring   accruals)  necessary  for  a  fair  presentation  of  the  financial
information  for the  interim  periods  reported  have  been  made.  Results  of
operations for the three and six-months  ended June 30, 2006 are not necessarily
indicative of the results for the year ending December 31, 2006.

                                       3



                                UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
                                       CONDENSED CONSOLIDATED BALANCE SHEET
                                                   JUNE 30, 2006
                                                    (Unaudited)

                                                      ASSETS
                                                                                              
Cash and cash equivalents                                                                        $     68,024,838
Reinsurance recoverables                                                                              126,311,358
Premiums and other receivables                                                                         22,415,709
Deferred acquisition cost                                                                               3,491,263
Real estate                                                                                             3,202,918
Property and equipment, net                                                                               808,264
Deferred income tax                                                                                     1,845,969
Other assets                                                                                              210,333
                                                                                                 ----------------

Total assets                                                                                     $    226,310,652
                                                                                                 ================

                                       LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:
Unpaid losses and loss adjustment expenses                                                       $     35,008,322
Unearned premiums                                                                                     105,572,557
Advanced premiums                                                                                       3,449,783
Accounts payable                                                                                        2,250,828
Reinsurance payable                                                                                    53,632,960
Income taxes payable                                                                                    2,385,577
Dividends payable                                                                                       1,518,284
Other accrued expenses                                                                                  8,038,276
Loans payable                                                                                           1,100,849
                                                                                                 ----------------

Total liabilities                                                                                $    212,957,436
                                                                                                 ================

STOCKHOLDERS' EQUITY:
Cumulative convertible preferred stock, $.01 par value, 1,000,000 shares                                    1,387
  authorized, 138,640 shares issued and outstanding, minimum liquidation
  preference of $1,419,700
 Common stock, $.01 par value, 50,000,000 shares authorized, 37,957,103
  shares issued and 34,848,458 shares outstanding                                                         341,728
Common stock in treasury, at cost - 208,645 shares                                                       (101,820)
Minority interest                                                                                          35,421
Additional paid-in capital                                                                             16,315,656
Accumulated deficit                                                                                    (3,239,156)
                                                                                                 ----------------

Total stockholders' equity                                                                             13,353,216
                                                                                                 ----------------

Total liabilities and stockholders' equity                                                       $    226,310,652
                                                                                                 ================

The accompanying notes to condensed consolidated financial statements are an integral part of these statements.


                                                          4



                                         UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
                                             CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                             (Unaudited)


                                                                   Six Months Ended                     Three Months Ended
                                                             June 30,          June 30,            June 30,             June 30,
                                                               2006              2005                2006                 2005
                                                               ----              ----                ----                 ----
                                                                                                            
PREMIUMS EARNED AND OTHER REVENUES:
     Direct premiums written                          $  114,003,676      $   34,474,916        $   77,159,159          $20,693,417
     Ceded premiums written                              (77,945,774)        (20,882,915)          (45,963,214)          (9,603,456)
                                                          ----------         -----------           -----------          ------------
     Net premiums written                                 36,057,902          13,592,001            31,195,945           11,089,961
     Change in unearned premiums                         (25,079,437)         (9,616,941)          (24,503,066)          (8,312,463)
                                                         -----------          ----------           -----------          ------------
     Premiums earned, net                                 10,978,465           3,975,060             6,692,879            2,777,498
     Net investment income                                   969,183             326,570               585,216              120,155
     Commission revenue                                    2,530,465           1,136,394             1,609,573              585,819
     Transaction fees                                          -                 160,151                 -                   47,417
     Other revenue                                           201,329              91,987               162,499               27,638
                                                         -----------          ----------           -----------          ------------

          Total premiums earned and other revenues        14,679,442           5,690,162             9,050,167            3,558,527
                                                         -----------          ----------           -----------          ------------
OPERATING COSTS AND EXPENSES
     Losses and loss adjustment expenses                   5,033,199             445,415             4,114,076              282,503
     General and administrative expenses                   2,982,796           4,225,875             3,062,980            3,258,169
                                                         -----------          ----------           -----------          ------------

          Total operating costs and expenses               8,015,995           4,671,290             7,177,056            3,540,672
                                                         -----------          ----------           -----------          ------------

INCOME BEFORE FEDERAL INCOME TAXES                         6,663,447           1,018,872             1,873,111               17,855
                                                         -----------          ----------           -----------          ------------

    Federal income taxes current                           2,615,933                                 1,337,068                  -
    Federal income taxes deferred                         (1,238,670)              -                (1,437,547)                 -
                                                         -----------          ----------           -----------          ------------
    Federal income taxes, net                              1,377,263               -                  (100,479)                  -
                                                         -----------          ----------           -----------          ------------

NET INCOME                                             $   5,286,184      $    1,018,872        $    1,973,590          $    17,855
                                                       =============      ==============        ==============          ============

INCOME PER COMMON SHARE
    Basic                                              $        0.15      $         0.03        $         0.06          $      0.00
                                                       =============      ==============        ==============          ============
WEIGHTED AVERAGE COMMON SHARES
 OUTSTANDING - BASIC                                      34,373,000          32,808,000            34,306,000           32,720,000
                                                       =============      ==============        ==============          ============
INCOME PER COMMON SHARE
    Diluted                                            $        0.14      $         0.03                  0.05          $      0.00
                                                       =============      ==============        ==============          ============
WEIGHTED AVERAGE COMMON SHARES
 OUTSTANDING - DILUTED                                    36,863,000          33,456,000            37,300,000           33,406,000
                                                       =============      ==============        ==============          ============
CASH DIVDEND DECLARED PER
 COMMON SHARE                                          $        0.08      $        -            $         0.04          $       -
                                                       =============      ==============        ==============          ============

The accompanying notes to condensed consolidated financial statements are an integral part of these statements.


                                                          5



                                  UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
                                    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                      (Unaudited)

                                                                         Six Months Ended             Six Months Ended
                                                                           June 30, 2006                June 30, 2005
                                                                           -------------                -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
                                                                                                 
Net income                                                               $  5,286,184                  $ 1,018,872
     Adjustments to reconcile net income
         to cash provided by (used in) operations:
     Amortization and depreciation                                            185,062                       66,126
     Issuance of common stock as compensation                               1,138,764                       64,500
Net change in assets and liabilities relating to operating
activities:
     Reinsurance recoverables                                              (4,373,490)                  37,578,035
     Premiums and other receivables                                       (16,941,815)                  (2,075,216)
     Deferred taxes                                                        (1,238,670)                        -
     Reinsurance payable                                                    9,180,607                   (8,146,502)
     Deferred acquisition cost                                             (3,491,263)                        -
     Deferred ceding commission                                            (1,043,544)                        -
     Advanced premiums                                                      2,441,954                    1,412,556
     Accounts payable                                                       1,315,294                   (2,489,515)
     Taxes payable                                                          2,385,577                      579,222
     Other accrued expenses                                                 3,402,278                      895,721
     Unpaid losses and loss adjustment expenses                           (31,991,634)                 (44,518,594)
     Unearned premiums                                                     54,682,552                   10,577,778
     Other assets                                                             735,913                     (701,501)
                                                                         ------------                  ------------

Net cash provided by (used in) operating activities                        21,673,769                   (5,738,518)
                                                                         ------------                  -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Capital expenditures                                                     (51,826)                     (75,269)
     Building improvements                                                   (115,027)                        -
     Purchase of real estate                                                     -                      (1,367,031)
                                                                         ------------                  ------------
Net cash used in investing activities                                        (166,853)                  (1,442,300)
                                                                         ------------                  ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Preferred stock dividend                                                 (24,976)                     (24,975)
     Issuance of common stock                                                  44,251                         -
     Common stock dividend paid                                            (1,488,851)                        -
     Repayments of loans payable                                              (51,238)                    (367,182)
     Proceeds from loans payable                                                 -                       1,041,378
                                                                         ------------                  ------------

Net cash (used in) provided by financing activities                        (1,520,814)                     649,221
                                                                         ------------                  ------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS                                                                19,986,102                   (6,531,597)

CASH AND CASH EQUIVALENTS, Beginning of period                             48,038,736                   22,443,579
                                                                         ------------                  ------------

CASH AND CASH EQUIVALENTS, End of period                                 $ 68,024,838                  $15,911,982
                                                                         ============                  ============
Non-cash items
     Declared dividends payable                                            $1,518,284                  $      -
                                                                         ============                  ============

The accompanying notes to condensed consolidated financial statements are an integral part of these statements.


                                                          6


               UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2006
                                   (Unaudited)

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

The  accompanying   condensed  consolidated  financial  statements  include  the
accounts of Universal Insurance  Holdings,  Inc.  ("Company"),  its wholly owned
subsidiary,  Universal Property & Casualty Insurance Company ("UPCIC") and other
wholly owned entities,  Sterling Premium Finance Company,  which is wholly owned
by certain officers of the Company and the Universal  Insurance  Holdings,  Inc.
Stock  Grantor  Trust.  All  intercompany  accounts and  transactions  have been
eliminated in consolidation.

The condensed consolidated balance sheet of the Company as of June 30, 2006, the
related  condensed  consolidated  statements  of income for the six months ended
June 30, 2006 and 2005 and cash flows for the six months ended June 30, 2006 and
2005 are unaudited.  There were no items comprising comprehensive income for the
six months ended June 30, 2006 and 2005. Accordingly, consolidated statements of
comprehensive  income are not presented.  The accounting  policies  followed for
quarterly  financial  reporting are the same as those  disclosed in the Notes to
Consolidated  Financial  Statements  included in the Company's  Annual Report on
Form 10-KSB for the year ended  December 31, 2005 except for the adoption of new
accounting  pronouncements  as noted  below.  The interim  financial  statements
reflect all adjustments  (consisting  primarily of normal and recurring accruals
and adjustments)  which are, in the opinion of management,  necessary for a fair
statement  of the results  for the  interim  periods  presented.  The  Company's
operating  results for any  particular  interim  period may not be indicative of
results  for the full  year  and thus  should  be read in  conjunction  with the
Company's annual statements.

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting period. Actual results could differ from those estimates.

OFF-BALANCE SHEET  ARRANGEMENTS.  There were no off-balance  sheet  arrangements
during the first six months of 2006.

NEW ACCOUNTING PRONOUNCEMENTS. SFAS No.123 (Revised 2004), Share-Based Payments,
issued in December  2004, is a revision of FASB  Statement  123,  Accounting for
Stock-Based Compensation and supersedes APB Opinion No. 25, Accounting for Stock
Issued to  Employees,  and its related  implementation  guidance.  The Statement
focuses  primarily on accounting  for  transactions  in which an entity  obtains
employee services in share-based  payments  transactions.  SFAS No. 123 (Revised
2004) requires a public entity to measure the cost of employee services received
in exchange  for an award of equity  instruments  based on the  grant-date  fair
value of the award (with limited  exceptions)  with the cost recognized over the
period  during which an employee is required to provide  service in exchange for
the award. This statement is effective as of the beginning of the first interim

                                       7


or annual  reporting period of the company's first fiscal year that begins on or
after  December  15,  2005 and the  Company  adopted  the  standard in the first
quarter of fiscal year 2006.

On March 29, 2005, the Securities and Exchange  Commission  ("SEC") issued Staff
Accounting  Bulletin No. (SAB 107) regarding the Staff's  interpretation of SFAS
123(R).  This  interpretation  expresses  the views of the Staff  regarding  the
interaction  between  SFAS  123(R) and  certain  SEC rules and  regulations  and
provides the Staff's  views  regarding  the  valuation of  share-based  payments
arrangements  by public  companies.  In particular,  this SAB provides  guidance
related to share-based payments transactions with non-employees,  the transition
from nonpublic to public entity status,  valuation  methods,  the accounting for
certain redeemable  financial  instruments  issued under  shared-based  payments
arrangements,  the  classification of compensation  expense,  non-GAAP financial
measures,   first-time   adoption   of  SFAS   123(R)  in  an  interim   period,
capitalization   of   compensation   cost   related  to   share-based   payments
arrangements,  the  accounting  for income tax effects of  share-based  payments
arrangements  upon adoption of SFAS 123(R),  the  modification of employee share
options  prior to  adoption  of SFAS  123(R)  and  disclosures  in  Management's
Discussion  and  Analysis  subsequent  to adoption of SFAS  123(R).  The Company
adopted SAB 107 in connection with its adoption of SFAS 123(R).

In May 2005, FASB issued SFAS No. 154, Accounting Changes and Error Corrections,
which  establishes,  unless  impracticable,  retrospective  application  as  the
required  method for  reporting a change in  accounting  principle in absence of
explicit  transition  requirements  specific  to the  newly  adopted  accounting
principle. The statement provides guidance for determining whether retrospective
application of a change in accounting principle is impracticable.  The statement
also  addresses the  reporting of a correction of error by restating  previously
issued financial  statements.  SFAS No. 154 is effective for accounting  changes
and  corrections  of errors made in fiscal years  beginning  after  December 14,
2005. The Company  adopted SFAS No. 154 in the first quarter of 2006. The impact
of such adoption did not have an effect on the Company's  consolidated financial
statements.

CRITICAL  ACCOUNTING  POLICIES AND  ESTIMATES.  Management  has  reassessed  the
critical  accounting  policies  as  disclosed  in  our  2005  Annual  Report  to
Stockholders  on Form  10-KSB  and  determined  that no  changes,  additions  or
deletions  are  needed  to  the  policies  as  disclosed.  Also  there  were  no
significant changes in our estimates associated with those policies.

RISKS AND UNCERTAINTIES.  The Company's business could be affected by regulatory
and  competitive  restrictions  on pricing  for new and  renewal  business,  the
availability and cost of catastrophic  reinsurance,  adverse loss experience and
federal  and  state   legislation  or  governmental   regulations  of  insurance
companies.   Changes  in  these  areas  could  adversely  affect  the  Company's
operations in the future.

     Management  continues  to take  action to improve  and  strengthen  UPCIC's
financial condition. Premium rate increases have been implemented. UPCIC changed
the geographic and coverage mix of the property insurance it writes,  which is a
key  determinant in the amount and pricing of reinsurance  procured by UPCIC. In
light of the four windstorm  catastrophes Florida experienced in 2004, and three
windstorm  catastrophes  Florida  experienced  in 2005,  there was a significant
increase in catastrophe  reinsurance cost for the June 1, 2006 renewal which the

                                       8


Company had planned and factored into its original policy pricing. Effective May
1, 2004 the Company  brought in house the system it utilizes for policy issuance
and  administration.  This has enhanced  UPCIC's  operating  results through its
ability  to  improve  and  better  control   underwriting   and  loss  adjusting
activities.  Management believes the implementation of, and results attributable
to, the actions  described  above will continue to strengthen  UPCIC's  surplus.
However,  there can be no assurance of the ultimate  success of these plans,  or
that the Company will be able to maintain profitability.

     Effective  June 1, 2006,  the  Company  reduced  the rate of cession on its
quota share  reinsurance.  Quota share reinsurance is used primarily to increase
the  Company's  underwriting  capacity and to reduce  exposure to losses.  Quota
share  reinsurance  refers to a form of  reinsurance  under which the  reinsurer
participates  in a  specified  percentage  of the  premiums  and  losses  on all
reinsured  policies in a given class of business.  As a result of this reduction
of the  Company's  quota share  reinsurance  from 80% to 50%,  the Company  will
retain and earn more  premiums  the  Company  writes,  but will also retain more
related losses. The Company's  increased exposure to potential losses could have
a material  adverse effect on the Company's  business,  financial  condition and
results of operations.

RESULTS OF OPERATIONS

INSURANCE OPERATIONS

UPCIC  commenced  its insurance  activity in February 1998 by assuming  policies
from  the  Florida   Residential   Property  and  Casualty  Joint   Underwriting
Association  ("JUA").  UPCIC received the unearned  premiums and began servicing
such  policies.  Since then,  UPCIC has been renewing  these policies as well as
soliciting business actively in the open market through independent agents.

Unearned  premiums  represent  amounts that UPCIC would refund  policyholders if
their policies were canceled.  UPCIC determines unearned premiums by calculating
the pro-rata  amount that would be due to the  policyholder  at a given point in
time  based upon the  premiums  owed over the life of each  policy.  At June 30,
2006, the Company had unearned premiums totaling $105,572,557.

Premiums  earned are included in earnings evenly over the terms of the policies.
UPCIC does not have policies that provide for retroactive premium adjustments.

Policy  acquisition  costs,  consisting of commissions and other costs that vary
with and are  directly  related to the  production  of  business,  net of ceding
commissions, are deferred and amortized over the terms of the policies, but only
to the extent that unearned  premiums are  sufficient to cover all related costs
and expenses.  At June 30, 2006,  deferred policy  acquisition  cost amounted to
$3,491,263.

An allowance  for  uncollectible  premiums  receivable  is  established  when it
becomes evident that  collection is doubtful,  typically after 90 days past due.
No allowance is deemed necessary at June 30, 2006.

                                       9


Loss and  loss  adjustment  expenses  ("LAE"),  less  related  reinsurance,  are
provided  for as claims are  incurred.  The  provision  for unpaid  loss and LAE
includes:  (1) the  accumulation  of individual  case estimates for loss and LAE
reported  prior  to the  close  of the  accounting  period;  (2)  estimates  for
unreported claims based on past experience  modified for current trends; and (3)
estimates  of expenses  for  investigating  and  adjusting  claims based on past
experience.  During  2005,  Florida  experienced  three  windstorm  catastrophes
(Hurricanes Dennis,  Katrina and Wilma) which resulted in losses. As a result of
these storms,  the Company currently  estimates that it incurred  $77,181,196 in
losses prior to reinsurance and $4,121,253 net of reinsurance.

Liabilities  for  unpaid  claims  and claims  adjustment  expenses  are based on
estimates of ultimate cost of settlement.  Changes in claims estimates resulting
from the  continuous  review  process  and  differences  between  estimates  and
ultimate  payments are reflected in expense for the period in which the revision
of these  estimates  first  becomes  known.  UPCIC  estimates  claims and claims
expenses based on its historical  experience and payment and reporting  patterns
for the type of risk  involved.  These  estimates are  continuously  reviewed by
UPCIC's management  professionals and any resulting adjustments are reflected in
operations for the period in which they are determined.

Inherent in the  estimates  of  ultimate  claims are  expected  trends in claims
severity,  frequency and other factors that may vary as claims are settled.  The
amount of  uncertainty in the estimates for casualty  coverage is  significantly
affected by such factors as the amount of historical claims experience  relative
to the development period, knowledge of the actual facts and circumstances,  and
the amount of insurance risk retained.

ONLINE COMMERCE OPERATIONS

The Company has formed subsidiaries that were to specialize in selling insurance
and  generating  insurance  leads via the Internet.  Tigerquote.com  Insurance &
Financial Services Group, Inc.  ("Tigerquote.com") and Tigerquote.com  Insurance
Solutions,  Inc.  were  incorporated  in Delaware on June 6, 1999 and August 23,
1999,  respectively.  Tigerquote.com  was an Internet  insurance lead generating
network while Tigerquote.com Insurance Solutions, Inc. was a network of Internet
insurance agencies. These entities would have sought to generate income from the
selling  of leads  and  commissions  on  policies  written.  To date,  insurance
agencies have been  established in 22 states.  Separate legal entities have been
formed for each state and are governed by the respective states'  departments of
insurance.  None of the agencies are currently active as the Company changed its
focus to sell leads to other companies and independent agents. During the fourth
quarter of 2005,  the Company  decided to stop  generating  new  business on its
online commerce operations and focus on its core operations.

CORPORATE AND OTHER OPERATIONS

Operating  segments that are not  individually  reportable  based on the current
operations in such  segments,  are included in Corporate and Other.  The segment
currently includes the operations of Universal Insurance  Holdings,  Inc., Tiger
Home Services,  Inc. and other  entities.  During 2001, the Company formed Tiger
Home  Services,  Inc.,  which  furnished  pool services to homeowners  until the
operation was sold during the second quarter of 2005.

                                       10


REINSURANCE

In the normal course of business,  UPCIC seeks to reduce the loss that may arise
from catastrophes or other events that cause unfavorable underwriting results by
reinsuring  certain  levels of risk in  various  areas of  exposure  with  other
insurance  enterprises or reinsurers.  Amounts  recoverable  from reinsurers are
estimated in a manner  consistent  with the reinsurance  contracts.  Reinsurance
premiums,  losses  and  loss  adjustment  expenses  are  accounted  for on bases
consistent  with those used in accounting for the original  policies  issued and
the terms of the reinsurance contracts.  Reinsurance ceding commissions received
are deferred and netted against policy  acquisition costs and amortized over the
effective period of the related insurance policies.

UPCIC  limits the  maximum  net loss that can arise from large risks or risks in
concentrated  areas of exposure by reinsuring  (ceding)  certain levels of risks
with other  insurers or reinsurers,  either on an automatic  basis under general
reinsurance  contracts  known as "treaties"  or by  negotiation  on  substantial
individual  risks.  The reinsurance  arrangements  are intended to provide UPCIC
with the ability to maintain its exposure to loss within its capital  resources.
Such reinsurance  includes quota share,  excess of loss and catastrophe forms of
reinsurance.  While ceding premiums to reinsurers  reduces the Company's risk of
exposure in the event of  catastrophic  losses,  it also  reduces the  Company's
potential for greater profits should such catastrophic events fail to occur. The
Company  believes that the extent of its  reinsurance  is at least typical for a
company of its size in the Florida homeowner's insurance industry.

Effective June 1, 2006, UPCIC entered into a quota share reinsurance  treaty and
excess  per risk  agreements  with  various  reinsurers.  Under the quota  share
treaty,  through May 31, 2007,  UPCIC cedes 50% of its gross  written  premiums,
losses and loss  adjustment  expenses for policies  with  coverage for wind risk
with a ceding  commission  equal  to 28% of ceded  gross  written  premiums.  In
addition,  the quota share treaty has a  limitation  for any one  occurrence  of
$25,000,000 and a limitation from losses arising out of events that are assigned
a catastrophe  serial  number by the Property  Claims  Services  (PCS) office of
$55,000,000.  Effective June 1, 2006 through May 31, 2007,  UPCIC entered into a
multiple  line excess per risk  agreement  with  various  reinsurers.  Under the
multiple line excess per risk agreement,  UPCIC obtained  coverage of $1,300,000
in excess of $500,000  ultimate net loss for each risk and each  property  loss,
and  $1,000,000  in excess of $300,000  for each  casualty  loss.  A  $5,200,000
aggregate  limit  applies to the term of the  contract.  Effective  June 1, 2006
through May 31, 2007,  UPCIC  entered into a property per risk excess  agreement
covering  ex-wind only policies.  Under the property per risk excess  agreement,
UPCIC  obtained  coverage of $300,000  in excess of $200,000  for each  property
loss. A $2,100,000 aggregate limit applies to the term of the contract.

Effective  June 1,  2006  through  May 31,  2007,  under an  excess  catastrophe
contract,  UPCIC  obtained  catastrophe  coverage  of  $76,000,000  in excess of
$25,000,000 covering certain loss occurrences including hurricanes. The contract
contains a provision for one  reinstatement  in the event coverage is exhausted;
additional  premium  is  calculated  pro rata as to amount  and 100% as to time.
Effective  June 1, 2006 through May 31, 2007,  UPCIC  purchased a  reinstatement
premium  protection  contract  which  reimburses  the  Company  for its  cost to
reinstate the  catastrophe  coverage of  $76,000,000  in excess of  $25,000,000.
Effective June 1, 2006, UPCIC also obtained subsequent  catastrophe event excess
of loss  reinsurance  to cover  certain  levels of the  Company's  net retention

                                       11


through  three  catastrophe  events  including  hurricanes.  UPCIC also obtained
coverage from the Florida  Hurricane  Catastrophe  Fund (FHCF).  The approximate
coverage is estimated to be for  $223,110,000 in excess of $78,400,000.  Also at
June 1, 2006, the Florida Hurricane  Catastrophe Fund made available $10,000,000
of additional catastrophe excess of loss coverage with one free reinstatement of
coverage to  carriers  qualified  as limited  apportionment  companies,  such as
UPCIC. This particular layer of coverage is $10,000,000 in excess of $3,750,000.

The  estimated  total  cost  of the  Company's  underlying  catastrophe  private
reinsurance  program  at June 1,  2006 is  $27,170,000  of which  the  Company's
estimated cost is 50% or $13,585,000 and the quota share  reinsurers cost is the
remaining 50%. The contract has an adjustment  mechanism which could result in a
higher   reinsurance   premium  amount.  In  addition,   the  Company  purchases
reinsurance  premium  protection as described above which amounts to $6,238,500.
This contract also has an  adjustment  mechanism  which could result in a higher
reinsurance  premium  amount.  The estimated cost of the subsequent  catastrophe
event  excess of loss  reinsurance  is  $1,770,468.  This  contract  also has an
adjustment  mechanism which could result in a higher reinsurance premium amount.
The  estimated  premium  the  Company  plans  to cede to the  Florida  Hurricane
Catastrophe  Fund for the 2006 hurricane  season is $14,877,524,  which includes
the 25% surcharge the FHCF is dictating for the 2006 hurricane  season, of which
the Company's estimated cost is 50% or $7,438,762 and the quota share reinsurers
estimated  cost is the remaining 50%. The Company is also  participating  in the
additional  coverage option for Limited  Apportionment  Companies offered by the
FHCF, the premium for which is estimated to be $5,000,000 of which the Company's
estimated  cost is 50% or $2,500,000  and the quota share  reinsurers  estimated
cost is the remaining 50%.

The ceded reinsurance  arrangements had the following effect on certain items in
the accompanying consolidated financial statements:




                        Six Months Ended                                           Six Months Ended
                         June 30, 2006                                               June 30, 2005
           --------------------------------------------------    ---------------------------------------------------
                                                  Loss and
                                                    Loss                                             Loss and Loss
              Premiums          Premiums         Adjustment        Premiums           Premiums         Adjustment
              Written            Earned           Expenses          Written            Earned           Expenses
              -------            ------           --------          -------            ------           --------
                                                                                    
Direct     $114,003,676        $59,321,123      $32,488,546      $34,474,916        $23,955,222       $12,763,557
Ceded       (77,945,774)       (48,342,658)     (27,455,347)     (20,882,915)       (19,980,162)      (12,318,143)
           ---------------    --------------    -------------    -------------     ---------------   ---------------
Net         $36,057,902        $10,978,465       $5,033,199      $13,592,001         $3,975,060          $445,415
           ===============    ==============    =============    =============     ===============   ===============






                      Three Months Ended                                         Three Months Ended
                         June 30, 2006                                             June 30, 2005
           --------------------------------------------------    ---------------------------------------------------
                                                  Loss and
                                                    Loss                                             Loss and Loss
              Premiums          Premiums         Adjustment        Premiums           Premiums         Adjustment
              Written            Earned           Expenses          Written            Earned           Expenses
              -------            ------           --------          -------            ------           --------
                                                                                    
Direct      $77,159,159        $34,436,949      $25,799,436      $20,693,417        $13,700,426       $12,071,291
Ceded       (45,963,214)       (27,744,070)     (21,685,360)      (9,603,456)       (10,922,928)      (11,788,788)
           ---------------    --------------    -------------    -------------     ---------------   ---------------
Net         $31,195,945         $6,692,879       $4,114,076      $11,089,961         $2,777,498          $282,503
           ===============    ==============    =============    =============     ===============   ===============


                                                          12


OTHER AMOUNTS:

                                                                   June 30, 2006
                                                                   -------------
Reinsurance recoverable on paid and unpaid
   losses and loss adjustment expenses                            $   35,969,561
Unearned premiums ceded                                               71,249,881
Other reinsurance receivable                                          19,091,916
                                                                  --------------
Reinsurance recoverable                                           $  126,311,358

     UPCIC's reinsurance  contracts do not relieve UPCIC from its obligations to
policyholders.  Failure of reinsurers to honor their obligations could result in
losses to UPCIC;  consequently,  allowances are  established  for amounts deemed
uncollectible.  No  allowance  is  deemed  necessary  at June  30,  2006.  UPCIC
evaluates the financial condition of its reinsurers and monitors  concentrations
of credit risk arising from similar geographic regions,  activities, or economic
characteristics of the reinsurers to minimize its exposure to significant losses
from reinsurer  insolvencies.  UPCIC  currently has  reinsurance  contracts with
various  reinsurers  located  throughout the United States and  internationally.
UPCIC  believes  that  ceding  risks  to  reinsurers  whom  it  considers  to be
financially sound combined with the distribution of reinsurance  contracts to an
array of  reinsurers  adequately  minimizes  UPCIC's  risk  from  any  potential
operating difficulties of its reinsurers.  In addition,  UPCIC does not have any
unauthorized  reinsurers which have recoverable balances that are not secured by
a letter of credit or that have ceded balances payable that are greater than the
amount of the recoverable.

     In light of the four windstorm  catastrophes  Florida  experienced in 2004,
and  three  windstorm  catastrophes  Florida  experienced  in 2005,  there was a
significant  increase  in  catastrophe  reinsurance  cost for the  June 1,  2006
renewal  which the Company had planned and  factored  into its  original  policy
pricing.

     Effective  June 1, 2006,  the  Company  reduced  the rate of cession on its
quota share  reinsurance.  Quota share reinsurance is used primarily to increase
the  Company's  underwriting  capacity and to reduce  exposure to losses.  Quota
share  reinsurance  refers to a form of  reinsurance  under which the  reinsurer
participates  in a  specified  percentage  of the  premiums  and  losses  on all
reinsured  policies in a given class of business.  As a result of this reduction
of the  Company's  quota share  reinsurance  from 80% to 50%,  the Company  will
retain and earn more  premiums  the  Company  writes,  but will also retain more
related losses. The Company's  increased exposure to potential losses could have
a material  adverse effect on the Company's  business,  financial  condition and
results of operations.

     The  Company  may also be  subject  to  assessments  by  Citizens  Property
Insurance  Corporation,  the state-run  insurer of last resort and the FHCF as a
result of operating deficiencies related to windstorm catastrophes. In addition,
the  Company  is  subject  to  assessments  by the  Florida  Insurance  Guaranty
Association,  as result of  company  insolvencies.  Under  current  regulations,
insurers may recoup the amount of their  assessments from  policyholders,  or in
some  cases  collect  the  amount  of  the  assessments  from  policyholders  as
surcharges for the benefit of the assessing entity.

                                       13


     On June 12,  2006 the OIR ordered an  emergency  FHCF  assessment  of 1% of
direct premiums written effective January 1, 2007 which the Company will collect
from policyholders, as the assessment is to policyholders, not the Company.

     During  its  meeting  on June 16,  2006 the Board of  Directors  of Florida
Insurance Guaranty  Association  ("FIGA")  determined the need for an assessment
upon its  member  companies.  The  Board  decided  on an  assessment  on  member
companies of 2% of the Florida net direct  premiums for the calendar  year 2005.
Based on the 2005 net  direct  premium  of $11.2  billion  this  would  generate
approximately  $225 million.  UPCIC's  participation in this assessment  totaled
$1,772,861.  Pursuant to Florida statutes,  insurers are permitted to recoup the
assessment  by adding a  surcharge  to  policies  in an amount not to exceed the
amount paid by the insurer to FIGA. As a result, UPCIC is currently underwriting
the recoupment in connection with this assessment.

EARNINGS PER SHARE

Earnings per share ("EPS")  amounts are  calculated in accordance  with SFAS No.
128,  EARNINGS PER SHARE.  Basic EPS is based on the weighted  average number of
shares  outstanding  for  the  period,   excluding  any  dilutive  common  share
equivalents.  Diluted EPS reflects the  potential  dilution  that could occur if
securities to issue common stock were exercised.

A reconciliation of shares used in calculating basic and diluted EPS for the six
month periods ended June 30, 2006 and June 30, 2005, respectively, follows:


                                                     Six Months Ended
                                         June 30, 2006             June 30, 2005
                                         -------------             -------------
Basic EPS                                 34,373,000                32,808,000
Effect of assumed conversion               2,490,000                   648,000
  of common stock equivalents            -------------             -------------
Diluted EPS                               36,863,000                33,456,000


Options and warrants totaling approximately  5,468,000 and 897,000 respectively,
were excluded from the calculation of diluted earnings per share as their effect
was anti-dilutive  for the six months ended June 30, 2006.  Options and warrants
totaling approximately 7,953,000 and 3,195,000 respectively,  were excluded from
the calculation of diluted earnings per share as their effect was  anti-dilutive
for the six  months  ended  June 30,  2005.  Such  options  and  warrants  could
potentially  dilute  basic  EPS  in  the  future  but  were  excluded  from  the
computation of diluted earnings per share due to being anti-dilutive.


A  reconciliation  of shares used in  calculating  basic and diluted EPS for the
three  month  periods  ended  June 30,  2006 and  June 30,  2005,  respectively,
follows:

                                       14


                                                   Three Months Ended
                                         June 30, 2006             June 30, 2005
                                         -------------             -------------
Basic EPS                                 34,306,000                32,720,000
Effect of assumed conversion               2,994,000                   686,000
  of common stock equivalents            -------------             -------------
Diluted EPS                               37,300,000                33,406,000


Options and warrants totaling approximately  5,298,000 and 563,000 respectively,
were excluded from the calculation of diluted earnings per share as their effect
was anti-dilutive for the three months ended June 30, 2006. Options and warrants
totaling approximately 7,614,000 and 3,497,000 respectively,  were excluded from
the calculation of diluted earnings per share as their effect was  anti-dilutive
for the three  months  ended June 30,  2005.  Such  options and  warrants  could
potentially  dilute  basic  EPS  in  the  future  but  were  excluded  from  the
computation of diluted earnings per share due to being anti-dilutive.

STOCK- BASED COMPENSATION PLANS AND WARRANTS

Effective January,  2006, the Company adopted Statement of Financial  Accounting
Standards  (SFAS) No. 123 (R),  "Share-Based  Payments,"  and began  recognizing
compensation  expense  in its  Consolidated  Statements  of Income for its stock
option  grants based on the fair value of the awards.  Prior to January 1, 2006,
the  Company  accounted  for stock  options  grants  under the  recognition  and
measurement of APB Opinion 25,  "Accounting  for Stock Issued to Employees," and
related  Interpretations,   as  permitted  by  SFAS  No.  123,  "Accounting  for
Stock-Based  Compensation." No stock-based compensation expense was reflected in
the net income prior to adopting  SFAS 123 (R) as all options were granted at an
exercise  price  equal to or  greater  than the market  value of the  underlying
common stock on the date of grant.  SFAS 123 (R) was adopted  using the modified
prospective  transition method. Under this transition method,  compensation cost
recognized in the periods after adoption  includes (i) compensation cost for all
share-based payments granted prior to, but not yet vested as of January 1, 2006,
based on the  grant-date  fair value  estimated in accordance  with the original
provision of SFAS 123, and (ii) compensation  cost for all share-based  payments
granted  subsequent  to  January  1, 2006,  based on the  grant-date  fair value
estimated in accordance with the provisions of SFAS 123 (R).  Results from prior
periods  have not been  restated.  As a result  of  adopting  SFAS 123 (R),  the
Company's  income  before  income  taxes and net income for the six months ended
June 30,  2006 are  $12,471 and $9,428  lower,  respectively,  and for the three
months ended June 30, 2006 are $6,053 and $5,094 lower, respectively, than if it
had continued to account for share-based compensation under APB 25. In addition,
during the six months  ended June 30,  2006,  the Company  issued  common  stock
valued at $1,138,764 as compensation.

The following table illustrates the effects on net income and earnings per share
if the Company had applied the fair value recognition  provisions of SFAS 123 to
options  granted  under  the  Company's  stock  option  plans  for  all  periods
presented.  For purposes of this pro forma disclosure,  the value of the options
is estimated using a Black-Scholes-Merton  option pricing model and amortized to
expense over the options' vesting periods.

                                       15



                                                                                 For the Six Months Ended
                                                                         June 30, 2006            June 30, 2005
                                                                         -------------            -------------
                                                                                         

Net income reported                                                      $  5,286,184             $  1,018,872
      Add:
      Total stock-based compensation expense included in reported
      net income, net of related tax effects                                    9,428                    -
      Deduct:
      Total stock-based compensation expense determined   under
      fair value based method, net of related tax effects                      (9,428)                 (19,938)
                                                                         -----------------        -------------------
      SFAS No 123 R pro forma net income                                 $  5,286,184             $    998,934
                                                                         =================        ===================

Pro forma earnings per share
      Basic                                                                          $0.15                      $0.03
                                                                         =================        ===================
      Fully diluted                                                                  $0.14                      $0.03
                                                                         =================        ===================
      Earnings per share, as reported
      Basic                                                                          $0.15                      $0.03
                                                                         =================        ===================
      Fully diluted                                                                  $0.14                      $0.03
                                                                         =================        ===================




                                                                                 For the Three Months Ended
                                                                         June 30, 2006            June 30, 2005
                                                                         -------------            -------------
                                                                                         

Net income reported                                                      $  1,973,590             $     17,855
      Add:
      Total stock-based compensation expense included in reported
      net income, net of related tax effects                                    5,049                      -
      Deduct:
      Total stock-based compensation expense determined   under
      fair value based method, net of related tax effects                      (5,049)                  (6,418)

                                                                         -----------------        -------------------
          SFAS No 123 R pro forma net income                             $  1,973,590             $     11,437
                                                                         =================        ===================

Pro forma earnings per share
          Basic                                                                      $0.06                      $0.00
                                                                        ==================        ===================
          Fully diluted                                                              $0.05                      $0.00
                                                                        ==================        ===================
          Earnings per share, as reported
          Basic                                                                      $0.06                      $0.00
                                                                        ==================        ===================
          Fully diluted                                                              $0.05                      $0.00
                                                                        ==================        ===================


                                                          16


At June 30,  2006,  there  were  7,205,000  options  outstanding  and  currently
exercisable with a weighted average remaining  contract term of 2.30 years and a
weighted  exercise price of $0.95.  There were 220,000 options  exercised during
the six months ended June 30, 2006.

At June 30,  2006,  there were  1,081,700  warrants  outstanding  and  currently
exercisable with a weighted average remaining  contract term of 1.70 years and a
weighted exercise price of $0.59.  There were 525,000 warrants  exercised during
the six months ended June 30, 2006.


The Company estimated the fair value of all stock options awards as of the grant
date by applying the Black-Scholes-Merton  option pricing model. The use of this
valuation model involves assumptions that are judgmental and highly sensitive in
the  determination of compensation  expense and include the expected life of the
option,  stock  price  volatility,  risk-free  interest  rate,  dividend  yield,
exercise  price,  and  forfeiture  rate.  Under  SFAS 123 (R),  forfeitures  are
estimated at the time of valuation and reduce  expense  ratably over the vesting
period.  The  forfeiture  rate is adjusted  periodically  based on the extent to
which actual  forfeitures  differ, or are expected to differ,  from the previous
estimate.  Under  SFAS  123 and APB 25,  the  Company  elected  to  account  for
forfeitures when awards were actually forfeited and reflect the forfeitures as a
cumulative adjustment to the pro forma expense.

In  accordance  with SFAS 123 (R),  fair  values  of  options  granted  prior to
adoption and determined for purposes of disclosure  under SFAS 123 have not been
changed.  The fair values of options  granted prior to adoption of SFAS 123 (R),
of which a portion is unvested,  was estimated assuming the following:  weighted
average  expected life of five years,  dividend yield of 0.0 percent,  risk-free
interest  rate of 6.5 percent,  and  expected  volatility  of 154.5  percent for
grants in 2004 and  126.3 in 2002.  No  options  were  granted  in the first six
months of 2006.

SEGMENT INFORMATION

The Company and its subsidiaries  operate  principally in two business  segments
consisting of insurance and online  commerce.  The  insurance  segment  consists
primarily of  underwriting  through  UPCIC,  managing  general agent  operations
through  Universal Risk Advisors,  Inc.,  claims  processing  through  Universal
Adjusting   Corporation,   property  inspections  through  Universal  Inspection
Corporation and marketing and distribution  through Coastal Homeowners Insurance
Specialists,  Inc. and Universal Florida  Insurance  Agency,  Inc. The insurance
segment sells  homeowner's  insurance and includes  substantially all aspects of
the insurance,  distribution  and claims process.  The online  commerce  segment
consists  of Internet  insurance  leads  generated  through  Tigerquote.com  and
commissions on policies placed by Tigerquote.com Insurance Solutions, Inc.

The accounting  policies of the segments are the same as those  described in the
summary of the  significant  accounting  policies  and  practices.  The  Company
evaluates  its  business  segments  based  on GAAP  pretax  operating  earnings.
Corporate  overhead  expenses are allocated to business  segments.  Transactions
between reportable segments are accounted for at fair value.

                                       17


Operating segments that are not individually reportable,  based on the extent of
the  current  operations  in such  segments,  are  included  in the "All  Other"
category.  The  "All  Other"  category  currently  includes  the  operations  of
Universal Insurance Holdings, Inc., and other entities.

Information  regarding  components  of  operations  for the three months and six
months ended June 30, 2006 and 2005 follows:



                                                                         Six months ended June 30,
                                                                        2006                     2005
                                                                        ----                     ----
                                                                                        
Total revenue
           Insurance segment                                        $14,660,353               $5,486,771
           Online commerce segment                                          370                  161,014
           Corporate and other                                           69,263                   42,377
                                                                    ------------              -----------

                      Total operating segments                       14,729,986                5,690,162
           Intercompany eliminations                                    (50,544)                    -
                                                                    ------------              -----------

                      Total revenues                                $14,679,442               $5,690,162
                                                                    ============              ===========

Earnings (loss) before income taxes
           Insurance segment                                        $ 7,607,293               $1,851,554
           Online commerce segment                                      (55,457)                 (94,361)
           Corporate and other                                         (888,389)                (738,321)
                                                                    ------------              -----------

                      Total earnings before income taxes            $ 6,663,447               $1,018,872
                                                                    ============              ===========





                                                                         Three months ended June 30,
                                                                        2006                     2005
                                                                        ----                     ----
                                                                                        
Total revenue
           Insurance segment                                        $9,055,583                $3,501,811
           Online commerce segment                                     (20,405)                   47,595
           Corporate and other                                          40,261                     9,121
                                                                    -----------               -----------

                      Total operating segments                       9,075,439                 3,558,527
           Intercompany eliminations                                   (25,272)                     -
                                                                    -----------               -----------

                      Total revenues                                $9,050,167                $3,558,527
                                                                    ===========               ===========

Earnings (loss) before income taxes
           Insurance segment                                        $2,207,270                  $850,537
           Online commerce segment                                     (25,318)                  (94,361)
           Corporate and other                                        (308,841)                 (738,321)
                                                                    -----------               -----------

                      Total earnings before income taxes            $1,873,111                   $17,855
                                                                    ===========               ===========



Information regarding total assets as of June 30, 2006:

                                                      18


                                                                   June 30, 2006
                                                                   -------------

Total assets
           Insurance segment                                       $222,376,443
           Online commerce segment                                       70,675
           Corporate and other                                        6,485,889
                                                                   -------------

                      Total operating segments                     $228,933,007
Intercompany eliminations                                            (2,622,355)
                                                                    ------------

                      Total assets                                 $226,310,652
                                                                    ============


RELATED PARTY TRANSACTIONS

Dennis Downes and  Associates,  a multi-line  insurance  adjustment  corporation
based in Deerfield  Beach,  Florida  performs  certain claims adjusting work for
UPCIC. Dennis Downes and Associates is owned by Dennis Downes, who is the father
of Sean P. Downes, Chief Operating Officer, Senior Vice President and a Director
of the Company.  During the six months ended June 30, 2006 and 2005, the Company
expensed claims adjusting fees of $496,000 and $375,343 respectively,  to Dennis
Downes and Associates.

In July 2004, the Company  borrowed monies from a private investor in the amount
of $175,000 for working capital.  In August 2005, this individual's son, Michael
P. Moran,  became  UPCIC's Vice  President  of Claims.  The loan was paid off in
January 2006.

STOCK ISSUANCES

In February  2006  pursuant to section 4(2) of the  Securities  Acts of 1933, as
amended, the Company issued 325,000 shares of restricted Common Stock at a price
of $.05 per share to a private investor  pursuant to the exercise of warrants to
purchase  restricted Common Stock. In April 2006 pursuant to section 4(2) of the
Securities Acts of 1933, as amended, the Company issued 200,000 shares of Common
Stock at a price of $.05 per  share to a  vendor  pursuant  to the  exercise  of
warrants to purchase  restricted  Common Stock.  Also in April 2006, the Company
issued 200,000 shares of restricted Common Stock at a price of $.04 per share to
Sean P. Downes,  COO of the Company,  pursuant to Mr. Downes'  exercise of stock
options and 123,077  shares of  restricted  Common  Stock at a price of $.93 per
share pursuant to Mr. Downes' election to receive such shares in lieu of accrued
vacation. The shares were issued to Mr. Downes in a private transaction pursuant
to Section 4(2) of the  Securities  Act of 1933, as amended.  Also in April 2006
pursuant to section 4(2) of the Securities Acts of 1933, as amended, the Company
issued 10,000 shares of restricted  Common Stock at a price of $.50 per share to
Reed J. Slogoff, a Director of the Company,  pursuant to the exercise of options
to purchase  restricted  Common Stock.  In May 2006,  the Company issued 400,000
shares of restricted  Common Stock to one employee at $1.23 per share and 25,000
to a  second  employee  at  $1.30  per  share  in  conjunction  with  employment
agreements.  Also in May 2006 pursuant to section 4(2) of the Securities Acts of
1933, as amended, the Company issued 10,000 shares of restricted Common Stock at
a price of $.50 per share to an employee of the Company pursuant to the exercise
of options to purchase the  restricted  Common  Stock.  In June 2006 pursuant to

                                       19


section 4(2) of the  Securities  Acts of 1933,  as amended,  the Company  issued
25,000 shares of  restricted  Common Stock at a price of $1.52 per share to each
of the outside  directors of the Company,  (Norman M. Meier,  Reed Slogoff,  and
Joel Wilentz) and 200,000 shares of restricted  Common Stock at a price of $1.52
per share to Sean P.  Downes,  COO of the Company as a bonus.  Also in June 2006
pursuant to section 4(2) of the Securities Acts of 1933, as amended, the Company
issued James M. Lynch,  CFO of the Company,  25,807  shares of Common Stock at a
price of $1.65 per share as a bonus. Unless otherwise specified,  such as in the
case of the  exercise of stock  options or  warrants,  the per share prices were
determined  using the closing price of the  Company's  Common Stock as quoted on
the OTC Bulletin Board.

PROVISION FOR INCOME TAX EXPENSE

A provision  for income tax expense of $1,377,263 is recorded for the six months
ended June 30, 2006 as a result of utilization of operating loss  carry-forwards
and current  profitable  operations.  No provision had been recorded for the six
months ended June 30, 2005 due to the substantial  operating loss carry-forwards
and corresponding valuation allowance that existed at that time.

SUBSEQUENT EVENT

On August 11,  2006,  the  Company  declared a dividend of $.05 per share on the
outstanding  Common  Stock of the  Company to be paid on November 8, 2006 to the
shareholders  of record of the  Company at the close of  business on October 25,
2006.

Item 2.   Management's Discussion and Analysis or Plan of Operation

     The  following  discussion  and  analysis by  management  of the  Company's
consolidated  financial  condition and results of  operations  should be read in
conjunction with the Company's Condensed  Consolidated  Financial Statements and
Notes thereto.

FORWARD-LOOKING STATEMENTS

     Certain statements made by the Company's management may be considered to be
"forward-looking statements" within the meaning of the Private Securities Reform
Litigation Act of 1995.  Forward-looking statements are based on various factors
and  assumptions  that include  known and unknown risks and  uncertainties.  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, as well as 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 as a result of the risks set forth in the following discussion, among
others.

OVERVIEW

     The Company is a  vertically  integrated  insurance  holding  company.  The
Company,   through  its   subsidiaries,   is  currently   engaged  in  insurance
underwriting,   distribution  and  claims.  UPCIC  generates  revenue  from  the

                                       20


collection and investment of premiums.  The Company's agency  operations,  which
include  Universal  Florida  Insurance Agency and Coastal  Homeowners  Insurance
Specialists,  Inc.,  generate income from commissions.  Universal Risk Advisors,
Inc., the Company's managing general agent, generates revenue through policy fee
income  and  other  administrative  fees  from  the  marketing  of  UPCIC's  and
third-party  insurance products through the Company's  distribution  network and
UPCIC.  Universal  Risk Life  Advisors,  Inc.  was  formed  to be the  Company's
managing general agent for life insurance products. In addition, the Company has
formed an independent claims adjusting company, Universal Adjusting Corporation,
which adjusts UPCIC claims,  and an  inspection  company,  Universal  Inspection
Corporation,  which  performs  property  inspections  for  homeowners'  policies
underwritten by UPCIC.

     The  Company has formed  subsidiaries  that were to  specialize  in selling
insurance  and  generating  insurance  leads  via the  Internet.  Tigerquote.com
Insurance & Financial  Services Group, Inc. was to be an Internet insurance lead
generating network, and Tigerquote.com  Insurance  Solutions,  Inc., was to be a
network of Internet  insurance  agencies.  At June 30, 2006,  agencies have been
established  in 22 states.  Separate  legal  entities  have been formed for each
state and are governed by the respective states' departments of insurance.  None
of the agencies are  currently  active as the Company  changed its focus to sell
leads to other  companies and independent  agents.  During the fourth quarter of
2005,  the Company  decided to stop  generating new business on its direct sales
operation and focus on its core operations.

     The Company also formed Tiger Home  Services,  Inc.,  which  furnished pool
services to homeowners until the operation was sold during the second quarter of
2005.

FINANCIAL CONDITION

     Cash and cash  equivalents  at June 30, 2006  aggregated  $68,024,838.  The
source of liquidity for possible claims payments  consists of net premiums after
deductions for expenses, reinsurance recoverables and short-term loans.

     UPCIC  believes that  premiums  will be sufficient to meet UPCIC's  working
capital  requirements for at least the next twelve months.  The Company's policy
is to invest  amounts  considered  to be in excess of  current  working  capital
requirements.  At June 30, 2006,  the Company's  investments  were  comprised of
$68,024,838 in cash and overnight  repurchase  agreements and $3,202,918 in real
estate consisting of a building purchased by UPCIC that the Company is currently
using as its home office.

     Policies  originally  obtained  from the Florida  Residential  Property and
Casualty Joint  Underwriting  Association  ("JUA")  provided the opportunity for
UPCIC to solicit future renewal premiums. Less than 15% of the policies obtained
from the JUA are  currently  renewed with the Company.  UPCIC does not expect to
participate in takeouts of additional policies from the JUA. In 1998 the Company
began to solicit  business  actively  in the open market in an effort to further
grow its insurance  operations.  Through  renewal of JUA business  combined with
business solicited in the market through independent agents,  UPCIC is currently
servicing approximately 150,000 homeowners and dwelling fire insurance policies.

                                       21


     The Company,  as noted above,  diversified  its operations by  establishing
online  commerce  and  other  ancillary  operations.  However,  the  Company  is
currently  contemplating  the sale of the online  commerce  division in order to
further focus on the core property and casualty insurance business.

RESULTS OF OPERATIONS - SIX MONTHS ENDED  JUNE 30, 2006  VERSUS SIX MONTHS ENDED
JUNE 30, 2005

     Gross premiums  written  increased 230.1% to $114,003,676 for the six-month
period ended June 30, 2006 from  $34,474,916 for the six-month period ended June
30, 2005. The increase in gross premiums written is primarily attributable to an
approximate  222.3%  increase in new business as well as an overall 7.8% premium
rate  increase.  The increase in new business is partially  attributable  to the
recent  windstorm   catastrophes  providing  an  opportunity  in  the  otherwise
competitive marketplace as certain companies are not accepting new business.

     Net premiums  earned  increased  176.2% to  $10,978,465  for the  six-month
period ended June 30, 2006 from  $3,975,060 for the six-month  period ended June
30,  2005.  The  increase is due to an increase in new  business,  premium  rate
increases and changes in the reinsurance program.

     Investment  income  increased  196.8% to $969,183 for the six-month  period
ended June 30, 2006 from $326,570 for the six-month  period ended June 30, 2005.
The  increase  is  primarily  due to  higher  investment  balances  and a higher
interest rate environment during the six-months ended June 30, 2006.

     Transaction  fee revenue  decreased  100.0% to $0 for the six-month  period
ended June 30, 2006 from $160,151 for the six-month  period ended June 30, 2005.
The  decrease  is  primarily  due to the  discontinuance  of  sales  of  on-line
insurance leads to insurance  agents during the six-month  period ended June 30,
2006.

     Other revenue  increased  118.9% to $201,329 for the six-month period ended
June 30, 2006 from $91,987 for the  six-month  period  ended June 30, 2005.  The
increase is  primarily  attributable  to an increase in  miscellaneous  revenues
during the six-month period ended June 30, 2006.

     Commission income increased 122.7% to $2,530,465 for six-month period ended
June 30, 2006 from  $1,136,394  for the  six-month  period  ended June 30, 2005.
Commission  income is  comprised  principally  of the managing  general  agent's
policy fee income on all new and  renewal  insurance  policies  and  commissions
generated from agency operations.  The increase is primarily  attributable to an
increase in commissions generated from agency operations on new policies.

     Net losses and loss adjustment expense ("LAE") incurred increased 1,030.02%
to $5,033,199 for the six-month period ended June 30, 2006 from $445,415 for the
six-month  period  ended June 30, 2005.  Losses and LAE incurred  increased as a
result of increased premium volume, changes in the Company's reinsurance program
and additional losses related to 2004 catastrophes. The Company's net loss ratio
for the six-month period ended June 30, 2006 was 45.8% compared to 11.2% for the
six-month  period ended June 30,  2005.  Losses and LAE are  influenced  by loss
severity and frequency. The Company's net loss ratio increased principally due

                                       22


to additional net losses of $2,220,000  related to 2004 catastrophes  recognized
in the six-month period ended June 30, 2006.  Losses and LAE, the Company's most
significant  expenses,  represent  actual  payments made net of reinsurance  and
changes  in  estimated  future  net  payments  to be made to or on behalf of its
policyholders, including expenses required to settle claims and losses.

     Catastrophes  are an  inherent  risk  of the  property-liability  insurance
business which may contribute to material  year-to-year  fluctuations in UPCIC's
and the Company's  results of operations  and financial  position.  During 2005,
Florida experienced three windstorm catastrophes (Hurricanes Dennis, Katrina and
Wilma)  which  resulted  in losses.  As a result of these  storms,  the  Company
currently  estimates it incurred  $77,181,196 in losses prior to reinsurance and
$4,121,253 net of reinsurance.  The level of catastrophe loss experienced in any
year cannot be predicted and could be material to the results of operations  and
financial  position.   While  management  believes  UPCIC's  and  the  Company's
catastrophe  management  strategies  will reduce the severity of future  losses,
UPCIC and the Company continue to be exposed to catastrophic losses.

     General and  administrative  expenses decreased 29.4% to $2,982,796 for the
six-month  period ended June 30, 2006 from  $4,225,875 for the six-month  period
ended June 30, 2005. General and administrative expenses decreased primarily due
to an increase in ceding  commissions  associated with an increase in the dollar
amount  of ceded  premiums  written  to quota  share  reinsurers  related  to an
increase in direct premiums written.

RESULTS OF OPERATIONS  -  THREE MONTHS ENDED JUNE 30, 2006  VERSUS  THREE MONTHS
ENDED JUNE 30, 2005

     Gross premiums written  increased 272.9% to $77,159,159 for the three-month
period ended June 30, 2006 from  $20,693,417  for the  three-month  period ended
June 30, 2005. The increase in gross premiums written is primarily  attributable
to an  approximate  265.1%  increase in new  business as well as an overall 7.8%
premium rate increase. The increase in new business is partially attributable to
the recent  windstorm  catastrophes  providing an  opportunity  in the otherwise
competitive marketplace as certain companies are not accepting new business.

     Net premiums  earned  increased  141.0% to $6,692,879  for the  three-month
period ended June 30, 2006 from $2,777,498 for the three-month period ended June
30,  2005.  The  increase is due to an increase in new  business,  premium  rate
increases and changes in the reinsurance program effective June 1, 2005.

     Investment  income increased 387.1% to $585,216 for the three-month  period
ended June 30, 2006 from  $120,155  for the  three-month  period  ended June 30,
2005. The increase is primarily due to higher  investment  balances and a higher
interest rate environment during the three-months ended June 30, 2006.

     Transaction fee revenue  decreased to $0 for the  three-month  period ended
June 30, 2006 from $47,417 for the  three-month  period ended June 30, 2005. The
decrease is primarily due to the decreased  sales of on-line  insurance leads to
insurance agents.

                                       23


     Other revenue increased 488.0% to $162,499 for the three-month period ended
June 30, 2006 from $27,638 for the  three-month  period ended June 30, 2005. The
increase is  primarily  attributable  to an increase in  miscellaneous  revenues
during the three-month period ended June 30, 2006.

     Commission income increased 174.8% to $1,609,573 for the three-month period
ended June 30, 2006 from  $585,819  for the  three-month  period  ended June 30,
2005. Commission income is comprised principally of the managing general agent's
policy fee income on all new and  renewal  insurance  policies  and  commissions
generated from agency operations.  The increase is primarily  attributable to an
increase in commissions generated from agency operations on new policies.

     Net losses and loss adjustment  expense ("LAE") incurred increased 1,356.3%
to $4,114,076 for the  three-month  period ended June 30, 2006 from $282,503 for
the three-month  period ended June 30, 2005.  Losses and LAE incurred  increased
due to  increased  exposure  due to  increased  premium  volume,  changes in the
Company's   reinsurance   program  and   additional   losses   related  to  2004
catastrophes. The Company's net loss ratio for the three-month period ended June
30, 2006 was 61.4% compared to 10.2% for the  three-month  period ended June 30,
2005.  Losses  and LAE  are  influenced  by loss  severity  and  frequency.  The
Company's net loss ratio  increased  principally due to additional net losses of
$2,220,000  related to 2004  catastrophes  recognized in the three-month  period
ended June 30, 2006.  Losses and LAE, the Company's most  significant  expenses,
represent  actual  payments  made net of  reinsurance  and changes in  estimated
future net payments to be made to or on behalf of its  policyholders,  including
expenses required to settle claims and losses.

     Catastrophes  are an  inherent  risk  of the  property-liability  insurance
business which may contribute to material  year-to-year  fluctuations in UPCIC's
and the Company's  results of operations  and financial  position.  During 2005,
Florida experienced three windstorm catastrophes (Hurricanes Dennis, Katrina and
Wilma)  which  resulted  in losses.  As a result of these  storms,  the  Company
currently  estimates it incurred  $77,181,196 in losses prior to reinsurance and
$4,121,253 net of reinsurance.  The level of catastrophe loss experienced in any
year cannot be predicted and could be material to the results of operations  and
financial  position.   While  management  believes  UPCIC's  and  the  Company's
catastrophe  management  strategies  will reduce the severity of future  losses,
UPCIC and the Company continue to be exposed to catastrophic losses.

     General and  administrative  expenses decreased 6.0% to $3,062,980  for the
three-month  period  ended June 30,  2006 from  $3,258,169  for the  three-month
period  ended June 30,  2005.  General  and  administrative  expenses  decreased
primarily due to an increase in the dollar amount of ceded  premiums  written to
quota share reinsurers related to an increase in direct premiums written.

LIQUIDITY AND CAPITAL RESOURCES

     The  Company's   primary  sources  of  cash  flow  are  premium   revenues,
commissions,  policy fees,  investment  income and reinsurance  recoverables and
short-term loans.

                                       24


     For the  six-month  period  ended June 30,  2006,  cash flows  provided  by
operating activities were $21,673,769.  Cash flows from operating activities are
expected  to be  positive  in both the  short-term  and  reasonably  foreseeable
future. In addition,  the Company's  investment portfolio is highly liquid as it
consists almost entirely of cash and readily marketable securities.

     In June 2005, the Company  borrowed  monies from two private  investors and
issued  two  promissory  notes for the  aggregate  principal  sum of  $1,000,000
payable in 10 monthly installments of $100,000. Payment on one note commences on
June 30, 2006 and  commences on the other note on November  30,  2006.  The loan
amount subsequently was contributed to UPCIC as additional  paid-in-capital.  In
conjunction  with  the  notes,  the  Company  granted  a  warrant  to one of the
investors to purchase  200,000 shares of restricted  Common Stock at an exercise
price of $.05 per share, expiring in June 2010. These transactions were approved
by the Company's Board of Directors.

     In order to improve the Company's financial position and achieve profitable
operations,  management  has  implemented  rate  increases  for new and  renewal
business,  has restructured the homeowners'  coverage offered,  has restructured
its catastrophic  reinsurance coverage to reduce cost, and has worked to control
future general and administrative expenses.

     Management  believes that the continued  implementation of these plans will
be successful  over the next twelve months.  However,  there can be no assurance
that  successful  implementation  of these  plans  will be  achieved  or will be
sufficient  to  ensure  UPCIC's  future   compliance   with  Florida   insurance
regulations, or that the Company will be able to maintain profitability. Failure
by UPCIC to maintain the required  level of statutory  capital and surplus could
result in the suspension of UPCIC's  authority to write new or renewal business,
other regulatory actions or ultimately, in the revocation of UPCIC's certificate
of authority by the Florida Office of Insurance Regulation ("OIR").

     The Company  believes  that its current  capital  resources  together  with
management's  plan as  described  above will be  sufficient  to support  current
operations and expected growth for at least twelve months.

     On June 7, 2006 the  Company  declared a dividend  of $.04 per share on the
outstanding  Common  Stock of the  Company  to be paid on July  10,  2006 to the
shareholders of record of the Company at the close of business on June 28, 2006.
The  dividend  payable  amount of  $1,518,284  is accrued  in the June 30,  2006
balance  sheet.  During the quarter the Company also paid a $0.04  dividend that
was  accrued  at the end of  first  quarter.  The  amount  of the  dividend  was
$1,488,851.

     The  property  and  casualty  reinsurance  industry  is subject to the same
market  conditions as the direct  property and casualty  insurance  market,  and
there can be no  assurance  that  reinsurance  will be available to UPCIC to the
same  extent  and at the same  cost as  currently  in place  for  UPCIC.  Future
increases in  catastrophe  reinsurance  costs are  possible and could  adversely
affect UPCIC's results.

     The balance of cash and cash  equivalents at June 30, 2006 is  $68,024,838.
Most of this  amount is  available  to pay  claims in the event of  catastrophic

                                       25


events  pending  reimbursement  by  reinsurers.   Catastrophic   reinsurance  is
recoverable upon presentation to the reinsurer of evidence of claim payment.

     Generally  accepted  accounting  principles  differ in some  respects  from
reporting  practices   prescribed  or  permitted  by  the  OIR.  To  retain  its
certificate of authority,  the Florida  insurance laws and  regulations  require
that UPCIC maintain  capital and surplus equal to the statutory  minimum capital
and surplus requirement defined in the Florida Insurance Code. UPCIC's statutory
capital and surplus  exceeded the minimum  capital and surplus  requirements  of
$4,000,000  as of June 30, 2006.  UPCIC is also required to adhere to prescribed
premium-to-capital surplus ratios.

     The  maximum  amount of  dividends  which can be paid by Florida  insurance
companies  without  prior  approval  of  the  OIR  Commissioner  is  subject  to
restrictions  relating to statutory  surplus.  The maximum  dividend that may be
paid by UPCIC without  prior  approval is limited to the lesser of statutory net
income from  operations  of the  preceding  calendar  year or 10.0% of statutory
unassigned  surplus as of the preceding year end.  Statutory  unassigned surplus
(deficit) at December 31, 2005 was $(1,995,376).

     The  Company  is  required  to  comply  with the  National  Association  of
Insurance  Commissioner's ("NAIC") Risk-Based Capital ("RBC") requirements.  RBC
requirements  prescribe a method of measuring the amount of capital  appropriate
for an insurance company to support its overall business  operations in light of
its size and risk  profile.  NAIC's RBC  requirements  are used by regulators to
determine appropriate  regulatory actions relating to insurers who show signs of
weak or deteriorating  condition. As of December 31, 2005, based on calculations
using the appropriate  NAIC RBC formula,  the Company's  reported total adjusted
capital was in excess of the requirements.

OFF-BALANCE SHEET ARRANGEMENTS

     There were no off-balance sheet arrangements during the first six months of
2006.

Item 3.   Controls and Procedures

     The Company  carried out an evaluation  under the  supervision and with the
participation  of  the  Company's  management,  including  the  Company's  Chief
Executive  Officer and Chief  Financial  Officer,  of the  effectiveness  of the
design  and  operation  of the  Company's  disclosure  controls  and  procedures
pursuant  to Rule 13a-15  under the  Securities  Exchange  Act of 1934 as of the
period covered by this report.  Based on that  evaluation,  the Company's  Chief
Executive  Officer and Chief  Financial  Officer have concluded that  disclosure
controls and  procedures  were  effective as of the end of the period covered by
this report to ensure that  information  required to be disclosed by the Company
in its reports  that it files or submits  under the  Securities  Exchange Act of
1934 is recorded,  processed,  summarized  and reported  within the time periods
specified in the Securities and Exchange  Commissions rules and forms. There was
no change in the Company's  internal  controls  over  financial  reporting  that
occurred during the period covered by this report that has materially  affected,
or is reasonably  likely to materially  affect,  the Company's  internal control
over financial reporting.

                                       26


                           PART II - OTHER INFORMATION

Item 1.   Legal Proceedings

     The Company did not have any reportable  legal  proceedings  during the six
months ending June 30, 2006.  Certain claims and  complaints  have been filed or
are pending against the Company with respect to various matters.  In the opinion
of  management,  none of these  lawsuits is  material,  and they are  adequately
provided for or covered by insurance  or, if not so covered,  are without any or
have little merit or involve such amounts that if disposed of unfavorably  would
not have a material adverse effect on the Company.

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds

     In February 2006 pursuant to section 4(2) of the  Securities  Acts of 1933,
as amended,  the Company issued  325,000 shares of restricted  Common Stock at a
price of $.05 per  share to a  private  investor  pursuant  to the  exercise  of
warrants to purchase  restricted Common Stock. In April 2006 pursuant to section
4(2) of the  Securities  Acts of 1933, as amended,  the Company  issued  200,000
shares of Common Stock at a price of $.05 per share to a vendor  pursuant to the
exercise of warrants to purchase  restricted  Common Stock.  Also in April 2006,
the Company issued 200,000 shares of restricted  Common Stock at a price of $.04
per  share  to Sean P.  Downes,  COO of the  Company,  pursuant  to Mr.  Downes'
exercise of stock  options and 123,077  shares of  restricted  Common Stock at a
price of $.93 per share pursuant to Mr. Downes'  election to receive such shares
in lieu of accrued  vacation.  The shares were issued to Mr. Downes in a private
transaction  pursuant to Section 4(2) of the Securities Act of 1933, as amended.
Also in April 2006 pursuant to section 4(2) of the  Securities  Acts of 1933, as
amended,  the Company issued 10,000 shares of restricted Common Stock at a price
of $.50 per share to Reed J. Slogoff, a Director of the Company, pursuant to the
exercise  of options to  purchase  restricted  Common  Stock.  In May 2006,  the
Company  issued  400,000  shares of  restricted  Common Stock to one employee at
$1.23  per  share  and  25,000  to a  second  employee  at  $1.30  per  share in
conjunction  with  employment  agreements.  Also in May 2006 pursuant to section
4(2) of the  Securities  Acts of 1933,  as amended,  the Company  issued  10,000
shares of restricted Common Stock at a price of $.50 per share to an employee of
the Company  pursuant to the  exercise  of options to  purchase  the  restricted
Common Stock.  In June 2006 pursuant to section 4(2) of the  Securities  Acts of
1933, as amended, the Company issued 25,000 shares of restricted Common Stock at
a price of $1.52  per share to each of the  outside  directors  of the  Company,
(Norman  M.  Meier,  Reed  Slogoff,  and Joel  Wilentz)  and  200,000  shares of
restricted Common Stock at a price of $1.52 per share to Sean P. Downes,  COO of
the  Company  as a bonus.  Also in June 2006  pursuant  to  section  4(2) of the
Securities Acts of 1933, as amended,  the Company issued James M. Lynch,  CFO of
the  Company,  25,807  shares of Common Stock at a price of $1.65 per share as a
bonus. Unless otherwise specified,  such as in the case of the exercise of stock
options or  warrants,  the per share  prices were  determined  using the closing
price of the Company's Common Stock as quoted on the OTC Bulletin Board.


Item 3.   Defaults upon Senior Securities
          -------------------------------

          None.

                                       27


Item 4.   Submission of Matters to a Vote of Security Holders

          None.

Item 5.   Other Information

     Effective May 1, 2006, the terms of the employment agreements of Bradley I.
Meier,  President and Chief Executive Officer of the Company and Sean P. Downes,
COO of the  Company  were  amended to provide  for an increase in base salary of
$150,000 per annum.




Item 6.   Exhibits

          Exhibit No.    Exhibit
          -----------    -------
          11.1           Statement Regarding Computation of Per Share Income
          31.1           Certification  of Chief Executive  Officer  Pursuant to
                         Rule   13a-14(a)/15d-14(a),   as  Adopted  Pursuant  to
                         Section 302 of the Sarbanes-Oxley Act of 2002
          31.2           Certification  of Chief Financial  Officer  Pursuant to
                         Rule   13a-14(a)/15d-14(a),   as  Adopted  Pursuant  to
                         Section 302 of the Sarbanes-Oxley Act of 2002
          32             Certification  of Chief  Executive  Officer  and  Chief
                         Financial  Officer  Pursuant to Title 18, United States
                         Code,  Section 1350, as Adopted Pursuant to Section 906
                         of the Sarbanes-Oxley Act of 2002

                                       28


                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                         UNIVERSAL INSURANCE HOLDINGS, INC.


Date:    August 18, 2006                 /s/ Bradley I. Meier
                                         ---------------------------------------
                                         Bradley I. Meier, President and Chief
                                         Executive Officer


                                         /s/ James M. Lynch
                                         ---------------------------------------
                                         James M. Lynch, Chief Financial Officer


                                       29