STAMFORD, Conn., May 8, 2013 (GLOBE NEWSWIRE) -- Independence Holding Company (NYSE:IHC) today reported 2013 first-quarter results.
Net income per share attributable to IHC increased 20% to $.26 per share, diluted, or $4,701,000, for the three months ended March 31, 2013 compared to $.22 per share, diluted, or $3,922,000, for the three months ended March 31, 2012.
Revenues increased 35% to $137,882,000 for the three months ended March 31, 2013 compared to revenues for the three months ended March 31, 2012 of $102,156,000, primarily due to an increase in premium revenue.
Chief Executive Officer's Comments
Roy Thung, Chief Executive Officer, commented, "We continue to be encouraged by the significant increase in the profitability and growth (gross stop-loss premiums increased 31% from the prior year first quarter) of our direct written stop-loss business. We attribute these increases to the more efficient and controlled model of writing the majority of our medical stop-loss on a direct basis. We are hopeful of similar increases for the remainder of the year. We are also encouraged by the performance of our group life, disability and DBL business, and our expansion into new lines of business, including pet, non-subscriber occupational accident and international insurance. Our first quarter was adversely affected by the establishment of a reserve, net of recoveries, for a potential lawsuit related to a fully insured program written through a managing general underwriter (MGU) in 2007. This MGU was terminated in 2008. In addition, we also accrued for an increase in reserves related to an AMIC stop-loss producer that has been terminated. The total of these two charges decreased our income before income taxes by $3.2 million. Our overall investment portfolio continues to be very highly rated (on average, AA), and has a duration of approximately six years. Our book value has increased to $16.16 per share at March 31, 2013 from $15.93 per share at December 31, 2012 and our total stockholders' equity of $289 million is an all-time high. Since January 1, 2013 to date, the Company has repurchased approximately 230,000 shares of its common stock at an average cost of $10.19 per share."
About Independence Holding Company
IHC is a holding company principally engaged in the life and health insurance business and the acquisition of blocks of policies through its insurance company subsidiaries (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company) and its marketing and administrative affiliates. Standard Security Life markets medical stop-loss, small group major medical, short-term medical, major medical for individuals and families, limited medical, group long and short-term disability and life, dental, vision and various supplemental products. Madison Life sells group life and disability, employer medical stop-loss, small group major medical, major medical for individuals and families, short-term medical, dental, individual life insurance, and various supplemental products. Independence American offers major medical for individuals and families, medical stop-loss, small group major medical, short-term medical, pet insurance, and non-subscriber occupational accident and international coverages. IHC owns certain subsidiaries through its majority ownership of American Independence Corp. (Nasdaq:AMIC), which is a holding company principally engaged in the insurance and reinsurance business.
Certain statements and information contained in this release may be considered "forward-looking statements," such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the markets in which IHC operates, new federal or state governmental regulation, IHC's ability to effectively operate, integrate and leverage any past or future strategic acquisition, and other factors which can be found in IHC's other news releases and filings with the Securities and Exchange Commission. IHC expressly disclaims any duty to update its forward-looking statements or earnings guidance, and does not undertake to provide any such guidance in the future.
|INDEPENDENCE HOLDING COMPANY|
|FIRST QUARTER REPORT|
|March 31, 2013|
|(In Thousands, Except Per Share Data)|
|Three Months Ended|
|Premiums earned||$ 117,368||$ 83,774|
|Net investment income||8,001||8,751|
|Net realized investment gains||4,619||1,137|
|Other-than-temporary impairment losses||--||(83)|
|Insurance benefits, claims and reserves||85,460||57,135|
|Selling, general and administrative expenses||42,880||36,472|
|Amortization of deferred acquisition costs||1,440||1,594|
|Interest expense on debt||487||539|
|Income before income taxes||7,615||6,416|
|Less income from noncontrolling interests in subsidiaries||(339)||(408)|
|NET INCOME ATTRIBUTABLE TO IHC||$ 4,701||$ 3,922|
|Basic income per common share||$ .26||$ .22|
|WEIGHTED AVERAGE BASIC SHARES OUTSTANDING||17,919||18,029|
|Diluted income per common share:||$ .26||$ .22|
|WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING||18,040||18,176|
|As of May 3, 2013, there were 17,853,244 common shares outstanding, net of treasury shares.|
CONTACT: DAVID T. KETTIG (212) 355-4141 Ext. 3047 www.IHCGroup.comSource:Independence Holding Company