Homeowners Choice to Increase Citizens Policies

Homeowners Choice Inc., a Florida-based provider of homeowners’ insurance, announced that its wholly-owned insurance subsidiary, Homeowners Choice Property & Casualty Company Inc., has received approval from the Florida Office of Insurance Regulation to increase its policy takeout authorization from Citizens Property Insurance Corporation to 95,000 policies from 30,000 policies.

Citizens is a state-created homeowners insurance company. The State of Florida has a take-out program that encourages private insurance companies to assume policies from Citizens to reduce the State’s risk exposure.

In July of this year Homeowners Choice Inc. completed an $11.6 million initial public offering in which it sold 1.66 million units consisting of one common share and one warrant at $7.00 per unit. In addition, it recently reported a profitable 2^nd quarter 2008.