TAMPA, Fla., Nov. 7, 2011 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based insurance holding company, announced today that its wholly owned insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., has 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. According to Homeowners Choice, exact figures will be unavailable until ongoing policy cancellations and premium refunds are accounted for. The deal remains subject to certain contingencies.
"This acquisition nearly doubles the size of the company without doubling administrative expenses," said Homeowners Choice Chief Executive Officer Paresh Patel. "We have acquired large numbers of policies before and are confident we can handle this transaction as well with minimal disruption to our operations. Our financial strength enabled us to satisfy the regulators and move quickly to consummate this transaction."
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 59,000 policyholders throughout Florida representing approximately $130 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.
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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 handle this acquisition with minimal disruption to operations. 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.