TAMPA, Fla., Aug. 11, 2015 (GLOBE NEWSWIRE) -- Homeowners Choice Property & Casualty Insurance Company, Inc., a wholly-owned insurance subsidiary of HCI Group, Inc. (NYSE:HCI), has been approved by the Florida Office of Insurance Regulation to assume in October of this year approximately 51,000 policies from Citizens Property Insurance Corporation, Florida's state-operated insurance company. Of those policies, 17,500 are identified as wind-only.
The policies are assumable under Florida's "take-out" program, designed to reduce the state's risk exposure by encouraging private insurance companies to assume policies from Citizens. Under the take-out rules, affected policyholders are entitled to opt-out before or within 30 days after the assumption and remain with Citizens.
"Based on the current opportunity within Citizens, we anticipate the focus of this takeout will be wind-only policies," said Paresh Patel, HCI Group's chief executive officer. "Selecting only those policies from Citizens that meet our strict underwriting criteria allows us to minimize our underwriting risk."
About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners' insurance, reinsurance, real estate and information technology. The company's largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., is a leading provider of property and casualty insurance in the state of Florida.
The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. Its 8% Senior Notes trade on the New York Stock Exchange under the ticker symbol "HCJ." For more information about HCI Group, visit www.hcigroup.com.
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. There can be no assurance, for example, that competition from other insurance companies, opt-outs or other factors will not diminish the number of policies to be assumed from Citizens or that the company's assessment of the underwriting risks will be accurate. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
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