TAMPA, Fla., Nov. 21, 2011 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based insurance holding company, today announced that its board of directors has declared a regular quarterly cash dividend on its common shares in the amount of 12.5 cents per share, which represents a 25 percent increase over the previous quarterly rate of 10 cents per share.
The dividend will be paid Dec. 16, 2011 to shareholders of record on the close of business Dec. 1, 2011. In addition, the Homeowners Choice board declared a special dividend of 10 cents per common share to be paid Dec. 16, 2011 to shareholders of record on the close of business Dec. 1, 2011.
"While future dividends will be subject to board approval and depend upon a number of business, market and tax considerations, the board determined that a 12.5 cents per share regular quarterly dividend would be sustainable over the long-term," said Homeowners Choice Chief Executive Officer and Chairman of the Board Paresh Patel. "In setting the special dividend the board considered the regular dividends already paid during the year, earnings and the expected cash needs over the coming quarters, especially the cash needs arising from our recent acquisition of approximately 70,000 policies from HomeWise Insurance Company," he said. "We expect those policies to generate substantial additional revenue, but over the near term our plan is to be conservative in maintaining reserves and operating ratios."
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 serves approximately 125,000 policyholders throughout Florida representing approximately $235 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.
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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 that the company will continue to pay its quarterly dividend, that it will pay additional special dividends, or that the acquired policies will generate the anticipated revenues. 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.
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