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TAMPA, Fla., March 5, 2013 (GLOBE NEWSWIRE) --
Homeowners Choice, Inc. (NYSE:HCI), a Florida-based insurance holding company, reported its financial results for the fourth quarter and year ended December 31, 2012.
Fourth Quarter 2012 - Financial Results
Income available to common stockholders in the fourth quarter of 2012 totaled $13.1 million or $1.19 diluted earnings per common share, compared with $4.6 million or $0.62 diluted earnings per common share in the fourth quarter of 2011.
Gross premiums earned in the fourth quarter of 2012 increased 44.8% to $72.0 million from $49.8 million in the same year-ago period. The increase was primarily due to policies acquired from Citizens Property Insurance Corporation in November 2012.
Net premiums earned (defined as gross premiums earned less premiums ceded to reinsurance companies) in the fourth quarter of 2012 increased 38.3% to $49.6 million from $35.8 million in the same year-ago period. Premiums ceded in the fourth quarter of 2012 were 31.2% of the company's gross premiums earned, compared with 28.0% during the same year-ago period.
Net investment income in the fourth quarter of 2012 was $109,000 compared with $504,000 in the same year-ago period. The decrease was primarily due to operating losses incurred by certain of the company's real estate investments.
Losses and loss adjustment expenses in the fourth quarter of 2012 were $15.9 million compared with $16.9 million in the same year-ago period.
Policy acquisition and other underwriting expenses in the fourth quarter of 2012 were $6.2 million compared with $7.6 million in the comparable period in 2011. The decrease was primarily the result of the minimal acquisition costs related to the November 2012 Citizens assumption transaction, which was not subject to commission. Other operating expenses, which include a variety of general and administrative costs, totaled $7.7 million in the fourth quarter of 2012 compared with $4.1 million in Q4 2011.