TAMPA, Fla., May 2, 2013 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc., doing business as HCI Group, Inc. (NYSE:HCI), reported its financial results for the quarter ended March 31, 2013.
First Quarter 2013 - Financial Results
Income available to common stockholders in the first quarter of 2013 totaled $20.4 million or $1.81 diluted earnings per common share. These results compare with $6.8 million or $0.88 diluted earnings per common share in the first quarter of 2012.Gross premiums earned in the first quarter of 2013 increased 50.9% to $82.5 million from $54.7 million in the same year-ago period. The increase was primarily due to policies assumed from Citizens Property Insurance Corporation in November 2012. Net premiums earned (defined as gross premiums earned less premiums ceded to reinsurance companies) in the first quarter of 2013 increased 49.8% to $60.6 million from $40.4 million in the same prior year period. Premiums ceded in the first quarter of 2013 were 26.6% of the company's gross premiums earned, compared with 26.1% during the same prior year period. Net investment income in the first quarter of 2013 was $139,000 compared with $522,000 in the same prior year period. The decrease was primarily due to operating losses incurred by certain business activities associated with the company's real estate investments. Losses and loss adjustment expenses in the first quarter of 2013 were $15.9 million compared with $19.2 million in the same prior year period. Policy acquisition and other underwriting expenses in the first quarter of 2013 were $6.0 million compared with $6.8 million in the first quarter of 2012. The decrease was primarily due to a one-time charge in 2012 resulting from the adoption of new accounting guidance for deferred acquisition costs. Interest expense totaled $686,000 in the first quarter of 2013 and relates to our senior notes issued in January 2013. Other operating expenses, which include a variety of general and administrative costs, totaled $6.1 million in the first quarter of 2013 compared with $4.3 million in the first quarter of 2012.
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