UNIVERSAL AMERICAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME

For the Three Years Ended December 31, 2000
(In thousands)

                                                                        
                                                        Accumulated
                         Series B          Additional      Other    
                         Preferred   Common  Paid-In   Comprehensive  Retained  Treasury
                           Stock     Stock   Capital   Income (Loss)  Earnings   Stock   Total 
Balance,        
 January 1, 1998           $ 4,000  $   73  $ 15,993     $    842   $  4,799   $   -  $ 25,707
Net income                       -       -         -            -      2,608       -     2,608
Redemption accrual on     
 Series C Preferred Stock        -       -         -            -       (434)      -      (434)
Other comprehensive
income (Note 21)                 -       -         -           16          -       -        16 

Comprehensive income                                                                     2,190 

Issuance of common stock
 (Note 8)                        -       3       525            -          -       -       528
Issuance of Series D
 Preferred Stock                 -       -      (107)           -          -       -      (107)
                                                                                               
Balance,
 December 31, 1998           4,000      76    16,411          858      6,973       -    28,318 

Net income                       -        -         -           -      9,813       -     9,813
Redemption accrual on
 Series C Preferred Stock        -        -         -           -       (180)      -      (180)
Other comprehensive
 income (Note 21)                -        -         -      (7,745)         -       -    (7,745)

Comprehensive income                                                                     1,888 

Issuance of common stock
 (Note 8)                        -      383    89,927           -          -       -    90,310
Preferred Stock Conversion
 (Note 7)                   (4,000)       -    13,142           -        863       -    10,005
Stock-based compensation
 (Note 3 and 9)                  -        -     4,411           -          -       -     4,411
Loans to officers (Note 7)       -        -      (967)          -          -       -      (967)
Balance,
  December 31, 1999              -      459   122,924      (6,887)    17,469       -   133,965 

Net income                       -        -         -           -     22,885       -    22,885
Other comprehensive
 income (Note 21)                -        -         -      11,762          -       -    11,762 

Comprehensive income                                                                    34,647 

Issuance of common stock
 (Note 8)                        -        9     3,289           -          -       -     3,298
Stock-based compensation
 (Note 3 and 9)                  -        -     2,388           -          -       -     2,388
Loans to officers (Note 7)       -        -        13           -          -       -        13
Treasury shares purchased,
 at cost (Note 8)                -        -         -           -          -    (711)     (711)
Treasury shares reissued
 (Note 8)                        -        -        11           -          -     338       349 
Balance,
 December 31, 2000         $     -   $  468  $128,625     $ 4,875   $ 40,354  $ (373) $173,949 

See notes to consolidated financial statements.