Gross premiums earned for the third quarter of 2009 more than doubled to $25.2 million from $12 million in the prior-year quarter. Net premiums earned for the third quarter of 2009 increased 49 percent to $12.0 million from $8.1 million in the prior-year quarter. Losses and loss adjustment expenses were $6.7 million compared with $4.6 million in the prior-year quarter.
Reinsurance costs increased significantly beginning June 1, 2009, when the company renewed its reinsurance policies. During the third quarter, the company ceded more than half of its gross premiums earned to reinsurers.
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 some 53,000 policyholders, representing approximately $100 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. Warrants trade on the same market under the ticker symbol HCIIW. More information about Homeowners Choice, Inc., is available at www.hcpci.com.
