Homeowners Choice Property & Casualty Insurance Company, a wholly-owned subsidiary of HCI Group, (HCI), has assumed approximately thirty-six thousand homeowners' policies, including an estimated thirty thousand wind-only policies, from Citizens Property Insurance Corporation, Florida's state-operated insurance company.
The assumption, effective December 16, 2014, is based upon an approval in October 2014 by the Florida Office of Insurance Regulation.
The policies were assumed under Florida’s "take-out" program, designed to reduce the state’s risk exposure by encouraging private insurance companies to assume policies from Citizens. Under the take-out rules, affected policyholders are entitled to opt-out before or within 30 days after the assumption and remain with Citizens.
"This assumption increases our annualized gross premiums to approximately $430 million, an all-time high for the company," said Scott Wallace, president of Homeowners Choice.
HCI Group owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners’ insurance, reinsurance, real estate and information technology services.