Policy Count to Increase by Better than Three-Fold
Homeowners Choice, Inc. (NASDAQ:HCII), a Florida-based insurance holding company, announced today that its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., has assumed approximately 45,000 homeowners’ policies from Citizens Property Insurance Corporation, Florida’s state-created insurance company.
The policies are assumable under the state’s “take-out” program, designed to reduce the state’s risk exposure by encouraging private insurance companies to assume policies from Citizens. Citizens, which began as Florida’s home insurer of last resort, has become the state’s largest homeowners’ insurance provider. Under the take-out rules, affected policyholders are entitled to opt out before and after the assumption and remain with Citizens. By not opting out, approximately 45,000 policyholders chose to leave Citizens for Homeowners Choice.
Homeowners Choice announced in September that it had approximately 18,000 policies. The assumption of these policies represents more than a three-fold increase in the company’s policy count.
“We are pleased to significantly increase our policy base,” said the company’s chief executive officer, F. X. McCahill. “This shows a real vote of confidence in Homeowners Choice on the part of Florida consumers. We look forward to serving our new customers.”
About Homeowners Choice, Inc.
Homeowners Choice, Inc. is a Florida-based insurance holding company, headquartered in Clearwater, Fla. and founded by Florida homeowners. Its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., which began operations in July 2007, provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance solely to Florida property owners. The company’s principal executive offices are located at 2340 Drew St., Suite 200, Clearwater, Fla. 33765. More information about Homeowners Choice, Inc. is available at www.hcpci.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” and “project” and other similar words and expressions are intended to signify forward-looking statements. The forward-looking statements in this news release include statements regarding the company’s expectations regarding the increase in its policy count. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company’s registration statement filed 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.