HCI, Walter Investment profit

Homeowners Choice Inc.
CLEARWATER — Homeowners Choice Inc. (symbol: HCII) was profitable in 2010, but the Clearwater-based insurer's annual net income shrank by roughly 50% over the year.

Total revenues were roughly equal from year to year, with $68.6 million in business generated in 2010, against $68.4 million in 2009. But expenses grew from $50.6 million to $60 million.

CEO F.X. McCahill said higher reinsurance rates were the specific expense that hurt the company's 2010 profits, particularly in the first five months of the year. But those higher costs will not impact the company's 2011 plans.