Independence Holding Company Announces 2013 First-Quarter Results

Independence Holding Company Announces 2013 First-Quarter Results

STAMFORD, Conn., May 8, 2013 (GLOBE NEWSWIRE) -- Independence Holding Company
(NYSE:IHC) today reported 2013 first-quarter results.

Financial 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
                                                   March 31,
                                                   2013          2012
REVENUES                                                         
Premiums earned                                     $117,368    $ 83,774
Net investment income                               8,001       8,751
Fee income                                          6,542       7,421
Net realized investment gains                       4,619       1,137
Other-than-temporary impairment losses              --          (83)
Other income                                        1,352       1,156
                                                   137,882     102,156
                                                                
EXPENSES                                                         
Insurance benefits, claims and reserves             85,460      57,135
Selling, generaland administrative expenses        42,880      36,472
Amortization of deferred acquisition costs          1,440       1,594
Interest expense on debt                            487         539
                                                   130,267     95,740
                                                                
Income before income taxes                          7,615       6,416
Income taxes                                        2,575       2,086
                                                                
Net Income                                          5,040       4,330
Less income from noncontrolling interests in        (339)        (408)
subsidiaries
                                                                
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.com
 
Press spacebar to pause and continue. Press esc to stop.