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STAMFORD, Conn., May 8, 2014 (GLOBE NEWSWIRE) -- Independence Holding Company (NYSE:IHC) today reported 2014 first-quarter results.
IHC reported net income of $.21 per diluted share, or $3,701,000, for the three months ended March 31, 2014 compared to $.26 per diluted share, or $4,701,000, for the three months ended March 31, 2013. The Company reported realized gains, net of tax, of $1,000,000 for the first three months of 2014 as compared to $2,961,000 in 2013. Revenues increased to $141,072,000 for the three months ended March 31, 2014 compared to revenues for the three months ended March 31, 2013 of $137,882,000.
Chief Executive Officer's Comments
Roy Thung, Chief Executive Officer, commented, "We are pleased that our first-quarter results of $.21 per share are significantly improved over those reported in the fourth quarter of 2013 of $.10 per share. Our fully insured segment performed significantly better in the first quarter of 2014 than in the fourth quarter of 2013, as losses arising from the lines of major-medical business that we have exited – and which are in runoff – were significantly reduced due to lower premiums. We expect this runoff premium to continue to decline through the third quarter of 2014 and to terminate by the end of the year. Losses associated with the runoff are, as previously disclosed, largely attributable to the requirements of the Affordable Care Act.
Earned premium for medical stop-loss, our largest segment, grew substantially over the same quarter of last year despite the cancellation during 2013 of two independent MGU's that were unprofitable. We also are reporting an increase in earnings in this line in the first quarter of 2014 due to better results on our directly written business. We attribute these positive developments to enhanced sales efforts in our direct business, focused underwriting and a general expansion of the market as new employer groups migrate to self-funding from fully insured in response to health care reform. We expect continued growth of business written as evidenced by the 30% growth in our direct business written in the twelve months ended April 30, 2014.