Universal Insurance Holdings has reported a net income of $14.3 million, or $0.35 per diluted share for the first quarter of 2008, compared to a net income of $12.4 million, or $0.30 per diluted share for the corresponding quarter of 2007.

In the first quarter of 2008, net premiums earned decreased 11% to $35.1 million from $39.4 million in the 2007 quarter. The decline is mainly related to a decrease in direct premiums written and an increase in ceded premiums earned related to changes in the reinsurance program, as the company purchased additional coverage in the 2008 period as compared to the 2007 period.

Net investment income decreased 54.5% to $1.2 million for the period from $2.7 million for the comparable period in 2007. The decrease is primarily a result of a lower interest rate environment, coupled with lower investable cash balances in the 2008 quarter.

For the quarter, other revenue rose to $1.1 million from $52,000 for the corresponding period ended March 31, 2007. The increase in other revenue is primarily attributable to fees earned on new payment plans offered to policyholders.

Stockholders’ equity increased to $86.4 million at March 31, 2008, up 19.1% from $72.6 million at December 31, 2007.