Tuesday August 15, 4:43 pm Eastern Time

Press Release

Universal American Financial Corp. Reports Record 2000 Second Quarter and Six Month Results

RYE BROOK, N.Y.--(BUSINESS WIRE)--August 15, 2000--Universal American Financial Corp. (NASDAQ National Market:UHCO) (``Universal'') today announced record financial results for the second quarter and six months ended June 30, 2000 (see attached tables).

Second Quarter 2000 Financial Highlights Compared to Second Quarter 1999

Pre-tax operating income for the 2000 second quarter rose to $8.84 million from $1.07 million in the 1999 second quarter. Pre-tax operating income for the first half of 2000 increased to $17.65 million from $2.14 million in the first half of 1999. Net income applicable to common shareholders for the 2000 second quarter reached $5.63 million, or $0.12 per diluted share, an increase over the $0.70 million, or $.05 per diluted share, reported in the second quarter of 1999. Net income applicable to common shareholders for the first six months of 2000 rose to $11.29 million, or $0.24 per diluted share, as compared to $1.23 million, or $.10 per diluted share, reported in the comparable period of the prior year. Weighted average diluted shares outstanding for the 2000 three and six month periods increased, respectively, to 47.10 million and 47.12 million as compared to 15.22 million and 14.75 million for the same periods in 1999. This increase is due primarily to shares issued in conjunction with the 1999 acquisition.

Insurance premiums before reinsurance for the second quarter of 2000 rose 222% to $111.85 million from $34.75 million in the same period one year ago. For the first half of 2000, insurance premiums before reinsurance increased 231% to $221.19 million from $66.82 million from the first half of 1999. Total revenues in the 2000 second quarter increased 388% to $71.83 million from $14.71 million in the second quarter of 1999. For the 2000 six-month period, total revenues rose 399% to $142.60 million from $28.56 million last year.

Shareholders' equity at June 30, 2022 was $147.9 million, or $3.16 per common share, as compared with $134.0 million, or $2.92 per common share, at December 31, 1999. Shareholders' equity, excluding unrealized gains and losses, at June 30, 2022 was $156.5 million, or $3.35 per common share, as compared with $140.9 million, or $3.08 per common share, at December 31, 1999.

Universal's Chairman and CEO Richard A. Barasch stated, ``Accelerating internal growth, an active integration program and a commitment to technology are continuing to supplement the dramatic growth that the 1999 acquisition has produced. These efforts are also forming the foundation upon which Universal intends to continue to grow and expand its industry presence.'' Mr. Barasch highlighted the following:

In June 2000, Universal's Board of Directors authorized a program to repurchase up to 500,000 shares of Universal common stock. The shares may be purchased from time to time in open market and privately negotiated transactions, depending on price and availability. As of August 14, 2000, the Company has repurchased 78,011 shares of its common stock under this plan.

Universal American Financial Corp. offers life and supplemental health insurance for senior citizens and customized insurance programs for market niches.

Except for the historical information contained above, this document may contain some forward looking statements, including statements related to 2000 and 2001 operating results, which involve a number of risks and uncertainties that could cause actual results to differ materially. These risk factors are listed from time to time in the Company's SEC reports.

          UNIVERSAL AMERICAN FINANCIAL CORP. AND SUBSIDIARIES
                 SELECTED CONSOLIDATED FINANCIAL DATA
                              (Unaudited)
 
 
                                    Six Months  Ended June 30,
INCOME STATEMENT DATA                2000                  1999
-------------------------   --------------------   -------------------
 
Premium and policyholder
 fees earned,
 before reinsurance              $221,189,000           $66,817,000
                             ==================   ===================
 
Total revenues                    142,596,000            28,563,000
                             ------------------   -------------------
 
Total benefits,
 claims and other
 deductions                       124,946,000            26,423,000
                             ------------------   -------------------
 
Operating income
 before taxes                      17,650,000             2,140,000
Federal income
 tax expense                        6,363,000               727,000
                             ------------------   -------------------
Net income                         11,287,000             1,413,000
Redemption accrual
 on Series C and D
 Preferred Stock                    -                       180,000
                             ------------------   -------------------
Net income applicable to
 common shareholders              $11,287,000           $ 1,232,000
                             ==================   ===================
 
Earnings per common share:
 Basic                              $    0.24             $    0.14
                             ==================   ===================
 
 Diluted                            $    0.24             $    0.10
                             ==================   ===================
 
 
 
                                   Three Months Ended June 30,
                                   2000                  1999
                             ------------------    -----------------
 
Premium and policyholder
 fees earned,
 before reinsurance              $111,848,000     $     34,751,000
                             ==================    =================
 
Total revenues                     71,826,000           14,713,000
                             ------------------    -----------------
 
Total benefits,
 claims and other
 deductions                        62,990,000           13,640,000
                             ------------------    -----------------
 
Operating income
 before taxes                       8,836,000            1,073,000
Federal income
 tax expense                        3,207,000              371,000
                              -----------------    -----------------
Net income                          5,629,000              702,000
Redemption accrual
 on Series C and D
 Preferred Stock                      -                    -
                             ------------------    -----------------
Net income applicable to
 common shareholders               $5,629,000            $ 702,000
                             ==================    =================
 
Earnings per common share:
 Basic                               $   0.12             $   0.07
 
                             ==================    =================
 Diluted                             $   0.12             $   0.05
                             ==================    =================

Contact:

     Universal American Financial Corp.                                            -OR-
     Robert A. Waegelein
     Senior Vice President &
     Chief Financial Officer
     914/934-8820
       or
     (INVESTOR RELATIONS COUNSEL)
     The Equity Group Inc.
     Devin Sullivan
     www.theequitygroup.com
     212/836-9608