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Universal American Financial Corp. Reports Second Quarter 2007 Results.

Article Excerpt
RYE BROOK, N.Y. -- Universal American Financial Corp. (NASDAQ: UHCO) today announced financial results for the quarter ended June 30, 2007.

Second Quarter 2007 Highlights

* Revenues from continuing operations increased by 114% year over year to $703.5 million

* Net income was $22.3 million, or $0.35 per diluted share

* Total Medicare Advantage membership as of June 30, 2007 increased to 238,000

* Acquisition of MemberHealth on target to close by end of third quarter

2007 Guidance

* Revenues between $2.7 billion and $2.9 billion

* Diluted earnings per share of $1.23 to $1.33, excluding investment gains

Second Quarter 2007 Compared to Second Quarter 2006

Universal American reported net income of $22.3 million for the second quarter of 2007, or $0.35 per diluted share. This compares to net income of $18.1 million, or $0.30 per diluted share, reported for the second quarter of 2006.

Income from continuing operations for the second quarter of 2007 of $22.3 million included $0.2 million, after tax, of realized losses. Income from continuing operations for the second quarter of 2006 was $15.4 million, or $0.26 per diluted share. Income from discontinued operations for the second quarter of 2006, after taxes, was $2.7 million, or $0.04 per diluted share. Total revenues from continuing operations for the second quarter of 2007 increased to $703.5 million, or 114%, over the second quarter of 2006.

Management Comments

"The highlight of the second quarter again was the continued expansion of our Medicare Advantage business. We are delighted by the market response to our products which we believe bring significant value to our members. We were also quite pleased with the strong results posted by our Part D business," said Richard Barasch, Chairman and CEO. "We are looking forward to the closing of the MemberHealth transaction both for its projected financial accretion and for the strategic advances that we believe it will bring."

Medicare Advantage

Revenues in the Medicare Advantage segment were $494.2 million, and pre-tax income was $20.3 million for the second quarter of 2007. Our overall loss ratio for the segment was 83.6%.

HMO's

As of June 30, 2007, the membership in our southeast Texas Medicare Advantage HMO plan grew to 38,900, a 13% increase since the end of the year. In addition, our acquisition of GlobalHealth, Inc....

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