TAMPA, Fla., Feb. 14, 2020 (GLOBE NEWSWIRE) -- HCI Group, Inc. (HCI) announced today that its wholly owned insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., has entered into a definitive policy replacement agreement with Anchor Property & Casualty Insurance Company under which Anchor will cancel all its policies as of April 1, 2020 and Homeowners Choice will offer to those policyholders short-term replacement policies having substantially the same terms and rates as the cancelled policies and expiring the same dates the cancelled policies would have expired had they not been cancelled. Anchor’s policyholders will be under no obligation to accept the replacement policies. Anchor will retain liability for policyholder claims arising from events occurring on or before March 31, 2020. Upon expiration of the replacement policies, Homeowners Choice will offer renewals to the policyholders at its own rates and terms. The agreement contains no purchase price for the transition of business to Homeowners Choice, but to encourage a smooth transition, includes a payment based on the premium in force associated with the replacement polices remaining in force at June 1, 2020.
Anchor is a Florida-based provider of homeowners insurance. Based on data provided by Anchor, Homeowners Choice estimates that at April 1, 2020, Anchor will have a maximum of 43,000 policies available for replacement representing a maximum of $69 million in annualized premium.
Karin Coleman, president of Homeowners Choice, said: “We are pleased to participate in this process, which ensures Anchor’s policyholders experience a seamless transition from Anchor to Homeowners Choice and continue to receive quality coverage for their homes.”
About HCI Group, Inc.
HCI Group, Inc. is an InsurTech company with operations in insurance, software development and real estate. HCI’s leading insurance operation, TypTap Insurance Company, is a rapidly growing, technology-driven insurance company, which provides homeowners’ insurance and flood insurance primarily in Florida. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners’ insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.
The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.
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," "confident," "prospects" 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. There can be no assurance, for example, that the estimates of the number of Anchor policies and the associated annualized premium will be accurate. Further, it cannot be known or predicted with assurance how many Anchor policyholders will accept the Homeowners Choice replacement policy offer or how many replacement policyholders will accept renewal offers at the terms offered by Homeowners Choice. 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. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
Kevin Mitchell, Senior Vice President of Investor Relations
HCI Group, Inc.
Tel (813) 405-3603