CLEARWATER, Fla., Feb. 26, 2010 (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 received approval for a premium rate increase for its homeowners' program within the state of Florida by Florida's Office of Insurance Regulation . Homeowner policies written or renewed on or after April 10, 2010 will reflect an overall average rate increase of 14 percent.
The company attributed the increase to rising reinsurance costs. Reinsurance is insurance that insurance companies buy from large financial pools to cover the risk of hurricanes and other catastrophes. "Since the inception of our company nearly three years ago we have held our premiums steady," said F. X. McCahill, chief executive officer of Homeowners Choice. "Reinsurance substantially mitigates our risk of hurricanes. However, like all others in the industry, we have been impacted by rising reinsurance costs. We have held the line as long as possible, but now find a rate increase necessary."
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 serves approximately 70,000 policyholders throughout Florida representing approximately $132 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. Homeowners Choice 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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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. 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 fully implement its proposed rate increases. 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.