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. The company's common shares and 8% senior notes trade on the New York Stock Exchange under the ticker symbols "HCI" and "HCJ." Its common shares are included in the Russell 2000 Index. Its 7% Series A, cumulative redeemable preferred shares trade on the NASDAQ Capital Market under the ticker symbol "HCIIP." More information about Homeowners Choice is available at www.hcigroup.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. 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 
Consolidated Balance Sheets 
(Dollars in thousands, except share amounts) 
     
  At December 31, 2012 At December 31, 2011
  (Unaudited)  
Assets    
     
Fixed-maturity securities, available-for-sale, at fair value  $ 35,953  35,788
Equity securities, available-for-sale, at fair value  8,876  4,061
Time deposits —   12,427
Other investments  16,087  6,483
Total investments 60,916 58,759
Cash and cash equivalents  230,214  100,355
Accrued interest and dividends receivable  375  408
Premiums and reinsurance receivable  10,642  13,909
Prepaid reinsurance premiums  9,112  14,169
Deferred policy acquisition costs  10,032  12,321
Property and equipment, net  10,853  10,499
Goodwill —  161
Deferred income taxes  3,848  2,368
Other assets  2,296  1,869
     
Total assets  $ 338,288 214,818
     
Liabilities and Stockholders' Equity    
     
Losses and loss adjustment expenses 41,168 27,424
Unearned premiums 154,249 108,677
Advance premiums 4,029 2,132
Assumed reinsurance balances payable 1,377 — 
Accrued expenses 3,041  3,478
Dividends payable  42 218
Income taxes payable  8,813 4,956
Other liabilities  4,316  4,103
     
 Total liabilities 217,035 150,988
     
Stockholders' equity:    
7% Series A cumulative convertible preferred stock (liquidation preference $10.00 per share), no par value, 1,500,000 shares authorized, 241,182 and 1,247,700 shares issued and outstanding in 2012 and 2011, respectively —  — 
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, 10,877,537 and 6,202,485 shares issued and outstanding in 2012 and 2011, respectively) —  — 
Additional paid-in capital 63,875 29,636
Retained income 55,758  33,986
Accumulated other comprehensive income  1,620  208
     
Total stockholders' equity 121,253 63,830
     
Total liabilities and stockholders' equity  $ 338,288 214,818
 
HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES 
Consolidated Statements of Income
(Dollars in thousands, except per share amounts) 
         
  Three Months Ended December 31, Years Ended December 31,
  2012 2011 2012 2011
  (Unaudited) (Unaudited)  
         
Revenue        
         
Gross premiums earned  $ 72,028  49,751  $ 233,607  143,606
Premiums ceded  (22,464)  (13,918)  (75,939)  (55,525)
         
Net premiums earned  49,564  35,833  157,668  88,081
         
Net investment income  109  504  980  2,061
Policy fee income  371  160  2,538  1,438
Realized investment gains (losses)  250  (126)  276 290
Gain on bargain purchase  179 936
Other  783  195  1,424  1,003
         
Total revenue  51,077  36,566  163,065  93,809
         
Expenses        
         
Losses and loss adjustment expenses  15,928  16,886  66,310  48,243
Policy acquisition and other underwriting expenses  6,240  7,557  25,930  18,129
Goodwill impairment loss  161  161
Other operating expenses  7,683  4,100  21,084  11,032
         
Total expenses  30,012  28,543  113,485  77,404
         
Income before income taxes  21,065  8,023  49,580  16,405
         
Income taxes  7,964  3,227  19,423  6,441
         
Net income  $ 13,101  4,796  $ 30,157  9,964
         
Preferred stock dividends  (36)  (218)  (322)  (815)
         
Income available to common stockholders  $ 13,065  4,578  $ 29,835  9,149
         
Basic earnings per common share  $ 1.27  0.74  $ 3.45  1.49
         
Diluted earnings per common share  $ 1.19  0.62  $ 3.02  1.34
         
Dividends per common share  $ 0.33  0.23  $ 0.88  0.53
CONTACT: Company Contact:         Jay Madhu, V.P. of Investor Relations         Homeowners Choice, Inc.         Tel (813) 405-3660         jmadhu@hcpci.com                  Investor Relations Contact:         Matt Glover or Michael Koehler         Liolios Group, Inc.         Tel (949) 574-3860         hci@liolios.com

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