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Independence Holding Company Reports Operating Results (10-Q)

May 17, 2010 | About:
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10qk

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Independence Holding Company (IHC) filed Quarterly Report for the period ended 2010-03-31.

Independence Holding Company has a market cap of $117.85 million; its shares were traded at around $7.71 with a P/E ratio of 15.42 and P/S ratio of 0.33. The dividend yield of Independence Holding Company stocks is 0.65%.IHC is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Income from continuing operations increased $13.1 million to $16.4 million for the three months ended March 31, 2010 compared to $3.3 million for the three months ended March 31, 2009 primarily due to the gain on bargain purchase of AMIC of $16.8 million, net of tax (See Note 2 of Notes to Condensed Consolidated Financial Statements).

Premiums earned decreased $9.1 million for the three months ended March 31, 2010 when compared to the same period in 2009. Excluding $3.2 million of earned premiums related to the consolidation of AMICs results, premiums earned decreased $12.3 million. The decrease in premiums earned is due to reduced production volume for the reasons stated above.

Fee and other income decreased $1.9 million for the three months ended March 31, 2010 as compared to the same period in 2009. Excluding AMIC fee income of $.7 million, fee and other income decreased by $2.6 million due primarily to a decrease in non-IHC carrier business administered by IHC Administrative Services and reduced profit commissions from the comparable 2009 period. The Company also experienced a decrease in general expenses due to its lower volume of business.

Premiums earned increased $3.5 million for the three months ended March 31, 2010 over the comparable 2009 period. Excluding AMIC premiums of $2.7 million during this period, earned premiums increased $.8 million.

Net realized investment gains were $.3 million for the three months ended March 31, 2010 compared to net realized investment gains of $1.7 million for the three months ended March 31, 2009. Other-than-temporary impairment losses for the three months ended March 31, 2010 and 2009 were $1.6 million and $.3 million, respectively; and

Income from continuing operations was $16.4 million for the three months ended March 31, 2010 compared to $3.3 million for the three months ended March 31, 2009. The Company's income from continuing operations before taxes increased $22.0 million to $26.3 million for the three months ended March 31, 2010 from $4.3 million for the three months ended March 31, 2009. Information by business segment for the three months ended March 31, 2010 and 2009 is as follows:

Read the The complete Report

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