Contact Information: Investor Contact: Philip Kranz Dresner Corporate Services 312-780-7240 pkranz@dresnerco.com
Universal Insurance Holdings, Inc. and Atlas Premium Finance Company Announce the Formal Launch of Atlas' Premium Finance Business
| Source: Universal Insurance Holdings, Inc.
FORT LAUDERDALE, FL--(Marketwire - November 29, 2007) - Universal Insurance Holdings, Inc.
(UIH) (AMEX : UVE ), a vertically integrated insurance holding company, and
Atlas Premium Finance Company (Atlas), announce the formal launch of Atlas'
premium finance business. Atlas will offer insurance premium finance
services to customers with annual homeowners insurance premiums of at least
$1,000. Premium finance services will be available to homeowners
policyholders insured by UIH's wholly owned subsidiary Universal Property &
Casualty Insurance Company (UPCIC), as well as to other homeowners
insurance customers across Florida. Approximately 188,000 of UPCIC's
370,000 homeowners insurance policyholders have annual premiums of at least
$1,000.
To fund its operations, Atlas has agreed to an initial finance facility of
$12 million with Flatiron Capital Corp., a premier funding partner to the
commercial property and casualty insurance industry owned by TD Banknorth,
N.A. The funding is secured by Atlas' finance contracts. The Company
expects that it will be able to increase its finance facility with Flatiron
or secure financing with other parties as conditions require.
Bradley I. Meier, president and chief executive officer, commented, "Atlas
Premium Finance Company is positioned to assist Floridians in paying for
their homeowners insurance premiums. Atlas will provide premium finance
loans for property and casualty coverage as an alternative and flexible way
to pay for insurance.
"Our agents have asked for our assistance in funding insurance premiums for
their clients in response to increased costs of homeowners insurance in
Florida," continued Meier. "Through Atlas we will provide a variety of
programs, services and technology that will allow our agents and brokers to
better serve their clients."
Meier concluded, "With the recently completed testing of Atlas' systems, we
are now in a position to expand the rollout of this initiative to
additional insurance agencies over the next few months."
UIH recently requested the Florida Office of Insurance Regulation's
approval of a transaction by which UIH acquired Atlas. Two of UIH's
officers previously had purchased Atlas as a dormant premium finance
company with no active business. To consolidate insurance-related
activities, UIH and its officers transferred Atlas to UIH for consideration
equal to Atlas' book value and maintenance costs, subject to Florida Office
of Insurance Regulation approval.
About Universal Insurance Holdings, Inc.
The Company is a vertically integrated insurance holding company operating
solely in the state of Florida. Through its subsidiaries, the Company is
currently engaged in insurance underwriting, distribution and claims.
Universal Property & Casualty Insurance Company (UPCIC), which generates
revenue from the collection and investment of premiums, is one of the top
five leading writers of homeowners insurance in the state of Florida and
has aligned itself with well respected service providers in the industry.
Readers should refer generally to reports filed by the Company with the
Securities and Exchange Commission (SEC), and specifically to the Company's
Form 10-KSB for the year ended December 31, 2006 for a discussion of the
risk factors that could affect its operations. Such factors include,
without limitation, exposure to catastrophic losses; reliance on the
Company's reinsurance program; underwriting performance on catastrophe and
non-catastrophe risks; the ability to maintain relationships with
customers, employees or suppliers; and competition and its effect on
pricing, spending, third-party relationships and revenues. Additional
factors that may affect future results are contained in the Company's
filings with the SEC, which are available on the SEC's web site at
http://www.sec.gov. The Company disclaims any obligation to update and
revise statements contained in this press release based on new information
or otherwise.
Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. The words
"believe," "expect," "anticipate" and "project," and similar expressions
identify forward-looking statements, which speak only as of the date the
statement was made. Such statements may include, but not be limited to,
projections of revenues, income or loss, expenses, plans, and assumptions
relating to the foregoing. Forward-looking statements are inherently
subject to risks and uncertainties, some of which cannot be predicted or
quantified. Future results could differ materially from those described in
forward-looking statements.