CLEARWATER, Fla., Nov. 3, 2010 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based insurance holding company, today announced that its board of directors has declared the company's first ever cash dividend in the amount of $00.30 per share. The dividend will be paid Dec. 20, 2010 to shareholders of record on the close of business Nov. 20, 2010.
According to the company, the $00.30 dividend represents an initial regular quarterly dividend of $00.10 and a special annual dividend of $00.20. While future dividends will be subject to board approval and depend upon a number of business, market and tax considerations, the company says it plans to maintain the $00.10 per share quarterly dividend and consider a special dividend each year as Florida's hurricane season concludes. Florida's active hurricane season is generally understood to begin June 1 and end November 30. When annualized, the anticipated quarterly dividend represents a current annual yield of 5.86% based upon the Nov. 2, 2010 closing stock price of $6.82. The company's dividend plans are in addition to its $6 million share buyback plan. Since announcing that buyback plan in March 2009, the company has expended over $4,624,947 and repurchased approximately 674,279 of its common shares.
"When we began business back in 2007, we committed to our initial investors that we would seek to pay dividends. I believe this dividend fulfills that commitment and, along with our continued share buyback plan, reflects the board's confidence in the company's future cash flows," said Homeowners Choice Chairman of the Board, Paresh Patel.
Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Clearwater. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance solely to Florida property owners. Founded in 2006, Homeowners Choice today serves policyholders throughout Florida. The company's common shares trade on the NASDAQ Global Market under the ticker symbol HCII and are included in the Russell Microcap Index. Warrants trade on the same market under the ticker symbol HCIIW. 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 that the company will continue to pay its quarterly dividend or that it will pay additional special dividends. 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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