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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."