CLEARWATER, Fla., Dec. 21, 2009 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based insurance holding company, today announced that its wholly-owned insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., has assumed 23,000 homeowners' insurance policies from Citizens Property Insurance Corporation, Florida's state-owned insurance company. This assumption represents a 44% increase from the approximately 52,000 policies on the company's books.
"We are pleased to announce this significant addition to our policy base," said F.X. McCahill, chief executive officer of Homeowners Choice. "This shows a real vote of confidence in Homeowners Choice on the part of the Florida Office of Insurance Regulation as well as Florida consumers. We look forward to serving our new customers and continuing to add policies from Citizens in the new year."
The 23,000 policies are assumable under Florida's take-out program, which encourages private insurance companies to assume policies from Citizens to reduce the state's risk exposure. Citizens, which began as Florida's home insurer of last resort, is now Florida's largest homeowners' insurance provider with more than 1 million policies in force.
In October 2009, Homeowners Choice received authorization by the Florida Office of Insurance Regulation to assume an additional 60,000 homeowners' policies from Citizens, subject to a maximum assumption of 30,000 policies in December 2009.
About Homeowners Choice, Inc.
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 approximately 75,000 policyholders throughout Florida representing approximately $100 million in annualized premiums. The company's common shares trade on the NASDAQ Global Market under the ticker symbol HCII and were recently added to 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.
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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. The forward-looking statements in this news release include the estimates and statements made by the stock analyst. 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 complete the assumption of policies from Citizens Property Insurance Company or that the company will effect additional assumptions in the future. 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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