HCI Group To Acquire Prepared Insurance Company

HCI Group, Inc.

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.