Proposed Transaction Supplements its October Assumption of 45,000 Policies
Homeowners Choice, Inc. (NASDAQ:HCII), a Florida-based provider of homeowners’ insurance, today announced that its wholly-owned insurance subsidiary, Homeowners Choice Property & Casualty Insurance Co., Inc. has been approved to assume 24,717 policies from Citizens Property Insurance Corporation, Florida’s state-sponsored homeowners’ insurance company.
The 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 and lower assessment fees. Citizens, with more than 1 million policies in force, is subsidized through assessments on all homeowners’ insurance policies throughout Florida. Policy holders, once informed their policy has been assumed, may opt out of the take-out any time and remain with Citizens. This assumption will be final Dec. 9, 2008.
In October 2008, Homeowners Choice reported a successful takeout of 45,000 policies, after which it reported having approximately 63,000 policies in force. “With this upcoming take-out effective in December, we will be adding substantially to our existing policy base and hope to take advantage of the calm before the next hurricane season in June 2009,” said Paresh Patel, the company’s chairman.
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 http://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 the actual number of policies to be assumed and the final assumption date. 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 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.