TAMPA, Fla., Nov. 8, 2011 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based provider of homeowners' insurance, today announced its results of operations for the three and nine months ended Sept. 30, 2011.

"Another successful and profitable quarter is the result of the hard work and dedicated efforts of the entire team here at Homeowners Choice," said Homeowners Choice Chief Executive Officer Paresh Patel. "In a difficult market, we're pleased to provide not only excellent returns for our shareholders, but also an exceptional level of service for our policyholders."

Income available to common stockholders for the third quarter of 2011 was $1,856,000, or $0.27 diluted earnings per common share, compared with $1,657,000, or $0.25 diluted earnings per common share, for the third quarter of 2010. Income available to common stockholders for the nine months ended Sept. 30, 2011 was $4,572,000, or $0.70 diluted earnings per common share, compared with $3,638,000, or $0.54 diluted earnings per common share, for the nine months ended Sept. 30, 2010.

Gross premiums earned were $31.7 million for the three months ended Sept. 30, 2011 compared with $29.4 million for the three months ended Sept. 30, 2010. Gross premiums earned for the nine months ended Sept. 30, 2011 were $93.9 million compared with $89.7 million for the nine months ended Sept. 30, 2010. Net premiums earned (gross premiums earned reduced by premiums ceded to reinsurance companies that cover certain of the risks from hurricanes and other catastrophes) for the third quarter of 2011 increased approximately 18 percent to $17.8 million from $15.1 million in the prior year quarter. Net premiums earned for the nine months ended Sept. 30, 2011 increased approximately 10 percent to $51.6 million from $47.0 million for the nine months ended Sept. 30, 2010.

Losses and loss adjustment expenses (the expenses associated with investigating and settling claims) for the three months ended Sept. 30, 2011 were $10.4 million compared with $8.8 million for the three months ended Sept. 30, 2010 and $31.4 million for the nine months ended Sept. 30, 2011 compared with $29.5 million for the nine months ended Sept. 30, 2010. Policy acquisition and other underwriting expenses for the three months ended Sept. 30, 2011 were $3.5 million compared with $3.7 million for the three months ended Sept. 30, 2010 and $10.6 million for the nine months ended Sept. 30, 2011 compared with $10.7 million for the nine months ended Sept. 30, 2010.

In an announcement yesterday, Homeowners Choice reported that it acquired the Florida policies of HomeWise Insurance Company. The terms of the deal, approved by the Florida insurance regulators, include the transfer to Homeowners Choice of up to 70,000 homeowners' policies and approximately $53 million of unearned premium. The transaction should nearly double the size of the company's existing policy base.

Financial information is included below.

Conference Call

The Company will host an earnings conference call on Nov. 8, 2011 at 4:30 ET to discuss its third quarter 2011 results. Interested parties are invited to listen to the call live over the Internet at http://www.ir-site.com/hcpci/events.asp. The call is also available by dialing (877) 407-9210 (toll-free). International participants should instead call (201) 689-8049. Participants should dial into the conference call approximately 10 minutes before the scheduled start time. Replays of the webcast will be available until Dec. 9, 2011.

About Homeowners Choice, Inc.

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 prior to the assumption served approximately 57,000 policyholders throughout Florida representing approximately $128 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.

The Homeowners Choice, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6712

Forward-Looking Statements

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 the company will continue profitability. 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.

HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
At September 30, 2011At December 31, 2010
(Unaudited)
Assets
Investment in fixed maturity securities, available-for-sale, at
fair value (amortized cost $35,350 and $28,456)
35,326 28,564
Equity securities, available-for-sale, at fair value 4,757 884
Time deposits 14,442 14,033
Total investments 54,525 43,481
Cash and cash equivalents 61,956 54,849
Accrued interest and dividends receivable 244 180
Premiums receivable 10,050 5,822
Assumed reinsurance balances receivable 63 26
Prepaid reinsurance premiums 17,228 17,787
Deferred policy acquisition costs 11,157 9,407
Income taxes receivable 774
Property and equipment, net 16,788 7,755
Deferred income taxes 584
Other assets 1,378 1,057
Total assets $ 174,163 $ 140,948
Liabilities and Stockholders' Equity
Losses and loss adjustment expenses 23,693 22,146
Unearned premiums 78,289 65,034
Advance premiums 4,584 1,114
Deferred income taxes 285
Accrued expenses 3,247 2,385
Dividends payable 218
Income taxes payable 310
Other liabilities 4,668 3,330
Total liabilities 114,984 94,319
Stockholders' equity:
7% Series A cumulative convertible preferred stock (liquidation
preference $10.00 per share), no par value, 1,500,000 shares authorized,
1,247,700 shares issued and outstanding in 2011
Preferred stock (no par value 18,500,000 shares authorized,
no shares issued or outstanding)
Common stock, (no par value, 40,000,000 shares authorized,
6,111,802 and 6,205,396 shares issued and
outstanding in 2011 and 2010)
Additional paid-in capital 28,572 18,606
Retained earnings 30,803 28,065
Accumulated other comprehensive loss (196) (42)
Total stockholders' equity 59,179 46,629
Total liabilities and stockholders' equity $ 174,163 $ 140,948
HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months EndedNine Months Ended
September 30,September 30,
2011201020112010
Revenue
Gross premiums earned $ 31,741 29,398 $ 93,855 89,720
Premiums ceded (13,906) (14,314) (42,302) (42,750)
Net premiums earned 17,835 15,084 51,553 46,970
Net investment income 529 473 1,602 1,572
Policy fee income 424 434 1,278 1,309
Realized investment gains 123 1,028 416 1,534
Gain on bargain purchase 936
Other 1,184 53 2,143 86
Total revenue 20,095 17,072 57,928 51,471
Expenses
Losses and loss adjustment expenses 10,431 8,783 31,357 29,459
Policy acquisition and other underwriting expenses 3,529 3,730 10,572 10,689
Other operating expenses 2,829 2,021 7,617 5,604
Total expenses 16,789 14,534 49,546 45,752
Income before income taxes 3,306 2,538 8,382 5,719
Income taxes 1,232 881 3,214 2,081
Net income $ 2,074 1,657 $ 5,168 3,638
Preferred stock dividends (218) (596)
Income available to common stockholders $ 1,856 1,657 $ 4,572 3,638
Basic earnings per common share $ 0.30 0.27 $ 0.75 0.59
Diluted earnings per common share $ 0.27 0.25 $ 0.70 0.54
Dividends per common share $ 0.10 $ 0.30
CONTACT:  Media Contact: 
          Suzie Boland
          RFB Communications Group
          813.259.0345
          sboland@rfbcommunications.com
 
          Investor Relations Contact:
          Jay Madhu
          Homeowners Choice, Inc.
          813.405.3660
          jmadhu@hcpci.com