United America Indemnity, Ltd. Reports Third Quarter 2007 Results and Share Repurcha...(rtnership net of tax ...),Health

net of tax (206) (39) 155 533

Net income before

discontinued

operations 24,098 21,065 72,519 59,344

Discontinued operations,

net of tax (118) 11,024 2 10,777

Net income $23,980 $32,089 $72,521 $70,121

Weighted average shares

outstanding - basic 37,229 36,680 37,185 36,637

Weighted average shares

outstanding - diluted 37,521 37,098 37,513 37,090

Net income per share

- basic $0.64 $0.87 $1.95 $1.91

Net income per share

- diluted $0.64 $0.86 $1.93 $1.89

Combined ratio analysis:

Loss ratio 55.8 55.1 56.7 57.8

Expense ratio 32.5 31.7 32.1 31.9

Combined ratio 88.3 86.8 88.8 89.7

Certain prior period amounts have been reclassified to conform to the 2007

presentation. Earnings per share includes results of discontinued

operations. The presentation above is not in conformity with generally

accepted accounting principles (GAAP) which requires earnings per share

for discontinued operations to be disclosed separately.

UNITED AMERICA INDEMNITY, LTD.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)

ASSETS As of As of

September 30, December 31,

2007 2006

Bonds:

Available for sale securities,

at fair value (amortized cost: 2007

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