Reinsurance lowers HCI income

Homeowners Choice Inc. overcame an increase in reinsurance costs to remain barely profitable in the first quarter of 2010.

The company posted a net income of $698,000 for the first three months of 2010, down nearly 90% from 2009's first quarter total of $6.28 million.

While premiums remained essentially flat for the Clearwater-based insurance company, reinsurance costs increased by more than $5 million, up to $14.1 million from $9 million the year before, contributing to the decrease in net gains.