TAMPA, Fla., June 23, 2014 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI) has entered into a non-binding letter of intent to acquire Prepared Holdings LLC and its subsidiaries, including Florida-based insurer Prepared Insurance Company.
Prepared Insurance Company provides homeowners' insurance to approximately 21,500 Florida policyholders representing approximately $48 million of annualized premium. The letter of intent sets the purchase price at $27 million, less the amounts owing under certain notes payable and other incidental items. The letter of intent represents a preliminary understanding and summarizes the principal provisions to be included in a more definitive agreement yet to be reached by the parties. The proposed acquisition is subject to various contingencies, including approval by the Florida Office of Insurance Regulation. HCI has indicated it plans no material changes to Prepared's management or operations.
About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners' insurance, reinsurance, real estate and information technology services. The company's largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., is a leading provider of property and casualty insurance in the state of Florida.
The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the S&P SmallCap 600 Index. Its 8% Senior Notes trade on the New York Stock Exchange under the ticker symbol "HCJ." For more information about HCI Group, 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, the parties will enter into a definitive agreement or that regulators will approve the transaction or that other contingencies will not arise. 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.
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Source:HCI Group, Inc.