TAMPA, Fla., Nov. 8, 2011 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (
"Another successful and profitable quarter is the result of the hard work and dedicated efforts of the entire team here at Homeowners Choice," said Homeowners Choice Chief Executive Officer Paresh Patel. "In a difficult market, we're pleased to provide not only excellent returns for our shareholders, but also an exceptional level of service for our policyholders."
Income available to common stockholders for the third quarter of 2011 was $1,856,000, or $0.27 diluted earnings per common share, compared with $1,657,000, or $0.25 diluted earnings per common share, for the third quarter of 2010. Income available to common stockholders for the nine months ended Sept. 30, 2011 was $4,572,000, or $0.70 diluted earnings per common share, compared with $3,638,000, or $0.54 diluted earnings per common share, for the nine months ended Sept. 30, 2010.
Gross premiums earned were $31.7 million for the three months ended Sept. 30, 2011 compared with $29.4 million for the three months ended Sept. 30, 2010. Gross premiums earned for the nine months ended Sept. 30, 2011 were $93.9 million compared with $89.7 million for the nine months ended Sept. 30, 2010. Net premiums earned (gross premiums earned reduced by premiums ceded to reinsurance companies that cover certain of the risks from hurricanes and other catastrophes) for the third quarter of 2011 increased approximately 18 percent to $17.8 million from $15.1 million in the prior year quarter. Net premiums earned for the nine months ended Sept. 30, 2011 increased approximately 10 percent to $51.6 million from $47.0 million for the nine months ended Sept. 30, 2010.
Losses and loss adjustment expenses (the expenses associated with investigating and settling claims) for the three months ended Sept. 30, 2011 were $10.4 million compared with $8.8 million for the three months ended Sept. 30, 2010 and $31.4 million for the nine months ended Sept. 30, 2011 compared with $29.5 million for the nine months ended Sept. 30, 2010. Policy acquisition and other underwriting expenses for the three months ended Sept. 30, 2011 were $3.5 million compared with $3.7 million for the three months ended Sept. 30, 2010 and $10.6 million for the nine months ended Sept. 30, 2011 compared with $10.7 million for the nine months ended Sept. 30, 2010.
In an announcement yesterday, Homeowners Choice reported that it acquired the Florida policies of HomeWise Insurance Company. The terms of the deal, approved by the Florida insurance regulators, include the transfer to Homeowners Choice of up to 70,000 homeowners' policies and approximately $53 million of unearned premium. The transaction should nearly double the size of the company's existing policy base.
Financial information is included below.
The Company will host an earnings conference call on Nov. 8, 2011 at 4:30 ET to discuss its third quarter 2011 results. Interested parties are invited to listen to the call live over the Internet at http://www.ir-site.com/hcpci/events.asp. The call is also available by dialing (877) 407-9210 (toll-free). International participants should instead call (201) 689-8049. Participants should dial into the conference call approximately 10 minutes before the scheduled start time. Replays of the webcast will be available until Dec. 9, 2011.
Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Tampa. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance. Founded in 2006, Homeowners Choice prior to the assumption served approximately 57,000 policyholders throughout Florida representing approximately $128 million in annualized premiums. The company's common shares trade on the NASDAQ Global Select Market under the ticker symbol HCII and are included in the Russell Microcap Index. Its warrants trade on the same market under the ticker symbol HCIIW. Its Series A, Cumulative Redeemable Preferred shares trade on the NASDAQ Capital Market under the ticker symbol HCIIP. More information about Homeowners Choice, Inc. is available at www.hcpci.com.
The Homeowners Choice, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6712
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" 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. For example, there can be no assurance the company will continue profitability. 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. Homeowners Choice, Inc. disclaims all obligations to update any forward-looking statements.
|HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES|
|Condensed Consolidated Balance Sheets|
|(Dollars in thousands, except share amounts)|
|At September 30, 2011||At December 31, 2010|
Investment in fixed maturity securities, available-for-sale, at |
fair value (amortized cost $35,350 and $28,456)
|Equity securities, available-for-sale, at fair value||4,757||884|
|Cash and cash equivalents||61,956||54,849|
|Accrued interest and dividends receivable||244||180|
|Assumed reinsurance balances receivable||63||26|
|Prepaid reinsurance premiums||17,228||17,787|
|Deferred policy acquisition costs||11,157||9,407|
|Income taxes receivable||774||—|
|Property and equipment, net||16,788||7,755|
|Deferred income taxes||—||584|
|Total assets||$ 174,163||$ 140,948|
|Liabilities and Stockholders' Equity|
|Losses and loss adjustment expenses||23,693||22,146|
|Deferred income taxes||285||—|
|Income taxes payable||—||310|
|7% Series A cumulative convertible preferred stock (liquidation|
|preference $10.00 per share), no par value, 1,500,000 shares authorized,|
|1,247,700 shares issued and outstanding in 2011||—||—|
|Preferred stock (no par value 18,500,000 shares authorized,|
|no shares issued or outstanding)||—||—|
|Common stock, (no par value, 40,000,000 shares authorized,|
|6,111,802 and 6,205,396 shares issued and|
|outstanding in 2011 and 2010)||—||—|
|Additional paid-in capital||28,572||18,606|
|Accumulated other comprehensive loss||(196)||(42)|
|Total stockholders' equity||59,179||46,629|
|Total liabilities and stockholders' equity||$ 174,163||$ 140,948|
|HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES|
|Condensed Consolidated Statements of Earnings|
|(Dollars in thousands, except per share amounts)|
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|Gross premiums earned||$ 31,741||29,398||$ 93,855||89,720|
|Net premiums earned||17,835||15,084||51,553||46,970|
|Net investment income||529||473||1,602||1,572|
|Policy fee income||424||434||1,278||1,309|
|Realized investment gains||123||1,028||416||1,534|
|Gain on bargain purchase||—||—||936||—|
|Losses and loss adjustment expenses||10,431||8,783||31,357||29,459|
|Policy acquisition and other underwriting expenses||3,529||3,730||10,572||10,689|
|Other operating expenses||2,829||2,021||7,617||5,604|
|Income before income taxes||3,306||2,538||8,382||5,719|
|Net income||$ 2,074||1,657||$ 5,168||3,638|
|Preferred stock dividends||(218)||—||(596)||—|
|Income available to common stockholders||$ 1,856||1,657||$ 4,572||3,638|
|Basic earnings per common share||$ 0.30||0.27||$ 0.75||0.59|
|Diluted earnings per common share||$ 0.27||0.25||$ 0.70||0.54|
|Dividends per common share||$ 0.10||—||$ 0.30||—|
CONTACT: Media Contact: Suzie Boland RFB Communications Group 813.259.0345 firstname.lastname@example.org Investor Relations Contact: Jay Madhu Homeowners Choice, Inc. 813.405.3660 email@example.com