8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities and Exchange Act of 1934

Date of Report (or Date of Earliest Event Reported): November 2, 2011

Homeowners Choice, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Florida	001-34126	20-5961396
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

5300 West Cypress Street, Suite 100

Tampa Florida 33706

(Address of Principal Executive Offices)

(813) 405-3600

(Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 1 – Business and operations

Item 1.01. Entry into a Material Definitive Agreement

On November 2, 2011, we entered into an assumption agreement with HomeWise Insurance Company, whereby we agreed to assume certain rights and obligations with respect to that company’s Florida homeowners’ insurance policies. Under the agreement, HomeWise agreed to transfer to us up 70,000 of the policies and approximately $45 million in cash, which represents an estimate of the unearned premiums and premium receivables. Exact figures are undeterminable until ongoing policy cancellations and premium refunds are accounted for.

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition

On November 8, 2011, we released our earnings for the three and months ended September 30, 2011. We plan to host an earnings conference call that same day at 4:30 p.m. ET during which our chief executive officer and our chief financial officer will discuss the results.

Interested parties are invited to listen to the call live over the Internet at http://www.ir-site.com/hcpci/events.asp. The call is also available by dialing (877) 407-9210 (toll-free). International participants should instead call (201) 689-8049. Participants should dial into the conference call approximately 10 minutes before the scheduled start time. Replays of the webcast will be available until December 9, 2011.

Investors wishing to participate in the call should contact Jay Madhu, Vice-President–Investor Relations at: jmadhu@hcpci.com or (727) 213-3660.

Our earnings release appears as Exhibit 99.1.

Section 3 – Securities and Trading Markets

Item 3.02 Unregistered Sales of Equity Securities

On November 2, 2011, we agreed to issue to Glencoe Acquisition, Inc., 1,000,000 warrants for the purchase of up to 500,000 of our common shares in exchange for an option to acquire all the equity interest in its subsidiary First Home Acquisition Corporation, LLC. The option expires February 28, 2013. Two warrants are exercisable to purchase one common share at a price $9.10 per share before July 31, 2013. The warrants were issued pursuant to the exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended.

Section 9 – Financial Statements and Exhibits

Item 9.01 Exhibits.

Exhibit 99.1 Earnings Release

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: November 8, 2011.

HOMEOWNERS CHOICE, INC.
BY:	/s/ Richard R. Allen
Name:	Richard R. Allen
Title:	Chief Financial Officer

A signed original of this Form 8-K has been provided to Homeowners Choice, Inc. and will be retained by Homeowners Choice, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Media Contact:	Investor Relations Contact:
Suzie Boland	Jay Madhu
RFB Communications Group	Homeowners Choice, Inc.
813.259.0345	813.405.3660
sboland@rfbcommunications.com	jmadhu@hcpci.com

Homeowners Choice Reports Strong Third Quarter

CLEARWATER, Fla. – (Nov. 8, 2011) – Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based provider of homeowners’ insurance, today announced its results of operations for the three and nine months ended Sept. 30, 2011.

“Another successful and profitable quarter is the result of the hard work and dedicated efforts of the entire team here at Homeowners Choice,” said Homeowners Choice Chief Executive Officer Paresh Patel. “In a difficult market, we’re pleased to provide not only excellent returns for our shareholders, but also an exceptional level of service for our policyholders.”

Income available to common stockholders for the third quarter of 2011 was $1,856,000, or $0.27 diluted earnings per common share, compared with $1,657,000, or $0.25 diluted earnings per common share, for the third quarter of 2010. Income available to common stockholders for the nine months ended Sept. 30, 2011 was $4,572,000, or $0.70 diluted earnings per common share, compared with $3,638,000, or $0.54 diluted earnings per common share, for the nine months ended Sept. 30, 2010.

Gross premiums earned were $31.7 million for the three months ended Sept. 30, 2011 compared with $29.4 million for the three months ended Sept. 30, 2010. Gross premiums earned for the nine months ended Sept. 30, 2011 were $93.9 million compared with $89.7 million for the nine months ended Sept. 30, 2010. Net premiums earned (gross premiums earned reduced by premiums ceded to reinsurance companies that cover certain of the risks from hurricanes and other catastrophes) for the third quarter of 2011 increased approximately 18 percent to $17.8 million from $15.1 million in the prior year quarter. Net premiums earned for the nine months ended Sept. 30, 2011 increased approximately 10 percent to $51.6 million from $47.0 million for the nine months ended Sept. 30, 2010.

Losses and loss adjustment expenses (the expenses associated with investigating and settling claims) for the three months ended Sept. 30, 2011 were $10.4 million compared with $8.8 million for the three months ended Sept. 30, 2010 and $31.4 million for the nine months ended Sept. 30, 2011 compared with $29.5 million for the nine months ended Sept. 30, 2010. Policy acquisition and other underwriting expenses for the three months ended Sept. 30, 2011 were $3.5 million compared with $3.7 million for the three months ended Sept. 30, 2010 and $10.6 million for the nine months ended Sept. 30, 2011 compared with $10.7 million for the nine months ended Sept. 30, 2010.

In an announcement yesterday, Homeowners Choice reported that it acquired the Florida policies of HomeWise Insurance Company. The terms of the deal, approved by the Florida insurance regulators, include the transfer to Homeowners Choice of up to 70,000 homeowners’ policies and approximately $53 million of unearned premium. The transaction should nearly double the size of the company’s existing policy base.

Financial information is included below.

Conference Call

The Company will host an earnings conference call on Nov. 8, 2011 at 4:30 ET to discuss its third quarter 2011 results. Interested parties are invited to listen to the call live over the Internet at http://www.ir-site.com/hcpci/events.asp. The call is also available by dialing (877) 407-9210 (toll-free). International participants should instead call (201) 689-8049. Participants should dial into the conference call approximately 10 minutes before the scheduled start time. Replays of the webcast will be available until Dec. 9, 2011.

About Homeowners Choice, Inc.

Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Tampa. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners’ insurance, condominium owners’ insurance and tenants’ insurance. Founded in 2006, Homeowners Choice prior to the assumption served approximately 57,000 policyholders throughout Florida representing approximately $128 million in annualized premiums. The company’s common shares trade on the NASDAQ Global Select Market under the ticker symbol HCII and are included in the Russell Microcap Index. Its warrants trade on the same market under the ticker symbol HCIIW. Its Series A, Cumulative Redeemable Preferred shares trade on the NASDAQ Capital Market under the ticker symbol HCIIP. More information about Homeowners Choice, Inc. is available at www.hcpci.com.

The Homeowners Choice, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6712

Forward-Looking Statements

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” 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. For example, there can be no assurance the company will continue profitability. 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. Homeowners Choice, Inc. disclaims all obligations to update any forward-looking statements.

HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Dollars in thousands, except share amounts)

	At September 30, 2011			At December 31, 2010
	(Unaudited)
Assets
Investment in fixed maturity securities, available-for-sale, at fair value (amortized cost $35,350 and $28,456)		35,326			28,564
Equity securities, available-for-sale, at fair value		4,757			884
Time deposits		14,442			14,033
Total investments		54,525			43,481
Cash and cash equivalents		61,956			54,849
Accrued interest and dividends receivable		244			180
Premiums receivable		10,050			5,822
Assumed reinsurance balances receivable		63			26
Prepaid reinsurance premiums		17,228			17,787
Deferred policy acquisition costs		11,157			9,407
Income taxes receivable		774			—
Property and equipment, net		16,788			7,755
Deferred income taxes		—			584
Other assets		1,378			1,057
Total assets	$	174,163			140,948
Liabilities and Stockholders’ Equity
Losses and loss adjustment expenses		23,693			22,146
Unearned premiums		78,289			65,034
Advance premiums		4,584			1,114
Deferred income taxes		285			—
Accrued expenses		3,247			2,385
Dividends payable		218			—
Income taxes payable		—			310
Other liabilities		4,668			3,330
Total liabilities		114,984			94,319
Stockholders’ equity:
7% Series A cumulative convertible preferred stock (liquidation preference $10.00 per share), no par value, 1,500,000 shares authorized, 1,247,700 shares issued and outstanding in 2011		—			—
Preferred stock (no par value 18,500,000 shares authorized, no shares issued or outstanding)		—			—
Common stock, (no par value, 40,000,000 shares authorized, 6,111,802 and 6,205,396 shares issued and outstanding in 2011 and 2010)		—			—
Additional paid-in capital		28,572			18,606
Retained earnings		30,803			28,065
Accumulated other comprehensive loss		(196	)		(42	)
Total stockholders’ equity		59,179			46,629
Total liabilities and stockholders’ equity	$	174,163			140,948

HOMEOWNERS CHOICE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

(Dollars in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Revenue
Gross premiums earned	$	31,741			29,398		$	93,855			89,720
Premiums ceded		(13,906	)		(14,314	)		(42,302	)		(42,750	)
Net premiums earned		17,835			15,084			51,553			46,970
Net investment income		529			473			1,602			1,572
Policy fee income		424			434			1,278			1,309
Realized investment gains		123			1,028			416			1,534
Gain on bargain purchase		—			—			936			—
Other		1,184			53			2,143			86
Total revenue		20,095			17,072			57,928			51,471
Expenses
Losses and loss adjustment expenses		10,431			8,783			31,357			29,459
Policy acquisition and other underwriting expenses		3,529			3,730			10,572			10,689
Other operating expenses		2,829			2,021			7,617			5,604
Total expenses		16,789			14,534			49,546			45,752
Income before income taxes		3,306			2,538			8,382			5,719
Income taxes		1,232			881			3,214			2,081
Net income	$	2,074			1,657		$	5,168			3,638
Preferred stock dividends		(218	)		—			(596	)		—
Income available to common stockholders	$	1,856			1,657		$	4,572			3,638
Basic earnings per common share	$	0.30			0.27		$	0.75			0.59
Diluted earnings per common share	$	0.27			0.25		$	0.70			0.54
Dividends per common share	$	0.10			—		$	0.30			—