United America Indemnity, Ltd. Reports Third Quarter 2007 Results and Share Repurcha...( the nine months ended September 30...),Health

the nine months ended September 30, 2006.

-- A 3.4% increase in net income to $72.5 million or $1.93 per diluted

share, compared to $70.1 million or $1.89 per diluted share for the

nine months ended September 30, 2006.

-- A combined ratio of 88.8% compared to 89.7% for the nine months ended

September 30, 2006.

-- A 10.6% reduction in gross premiums written to $442.1 million compared

to $494.7 million for the nine months ended September 30, 2006.

-- A reduction in net prior year loss reserves of $16.2 million and a

reduction in the reinsurance reserve allowance of $4.5 million.

-- A $177.0 million decrease in reinsurance receivables, net of

collateral, to $162.6 million or 0.2 x shareholders' equity at

September 30, 2007.

-- A 10.7%, or $81.6 million, increase in book value to $844.8 million at

September 30, 2007.

-- A 10.0% increase in book value per share to $22.57 at September 30,

2007.

United America Indemnity's Third Quarter 2007 Results

United America Indemnity's (the "Company's") operating income for the three months ended September 30, 2007 increased 6.4% to $24.4 million ($0.65 per diluted share), compared with $22.9 million ($0.62 per diluted share) for the same period in 2006. Operating income for the three months ended September 30, 2007 includes a $6.9 million pre-tax increase ($6.2 million after tax or $0.17 per diluted share) due to the decrease in net loss and loss adjustment expense and the reinsurance reserve allowance resulting from favorable loss trends relative to prior accident years. Operating income for the three months ended September 30, 2006 includes a $5.0 million pre-tax increase ($3.3 million after tax or $0.09 per diluted share) due to a reduction in net prior year loss reserves of $2.0 million and a reduction in the reinsurance reserve allowance of $3.0 million.

The Company's net income for
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