Independence Holding Company (IHC) has reported a 72.90 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $8.53 million, or $0.49 a share in the quarter, compared with $4.93 million, or $0.28 a share for the same period last year.
Revenue during the quarter plunged 36.70 percent to $78.87 million from $124.60 million in the previous year period. Net premium earned for the quarter dropped 43.04 percent or $50.76 million to $67.18 million.
Benefits, losses and expenses for the quarter were at $70.13 million, or 104.39 percent of premium earned from $118.40 million or 100.40 percent of premium earned in the last year period. Operating income for the quarter was $8.74 million, compared with $6.20 million in the previous year period.
Net investment income was at $3.87 million for the quarter, up 13.59 percent or $0.46 million from year-ago period. Meanwhile, income from fees and commission for the quarter jumped 168.20 percent or $2.45 million to $3.90 million. The company has recorded a gain on investments of $0.56 million in the quarter compared with a gain of $0.10 million for the previous year period.
Roy T. K. Thung, chief executive officer, commented, "In the past two years, IHC has sold our capital-intensive medical stop-loss business for $152.5 million, which generated a material gain of $100.8 million, as reported above, sold our life and annuity blocks and related infrastructure for $42 million, and used some of our cash to retire all of our debt and to take American Independence Corp. (AMIC) private. We have made five equity investments to bolster the distribution of our specialty health products, worksite marketing expertise, and most recently acquired 85% of the stock of PetPartners, Inc. (PetPartners), which is a pet insurance administrator with a very solid administrative system that allows for worksite marketing of pet insurance. With this acquisition, we now have a fully vertically integrated structure for marketing, administering, pricing and retaining the risk on our pet insurance product, and PetPartners also has an exclusive relationship with the American Kennel Club (AKC) that allows us to directly market pet insurance to breeders and owners who register their dogs with AKC."
Assets, liabilities fall
Total assets decreased 5.30 percent or $63.50 million to $1,134.46 million on Dec. 31, 2016. On the other hand, total liabilities were at $695.21 million as on Dec. 31, 2016, down 19.65 percent or $170.05 million from year-ago.
Return on assets stood at 0.70 percent in the quarter, up 0.34 from 0.36 percent in the last year period. At the same time, return on equity was at 1.94 percent in the quarter, up 0.46 from 1.48 percent in the last year period.
Investments move up
Investments stood at $514.82 million as on Dec. 31, 2016, up 5.46 percent or $26.66 million from year-ago. Meanwhile, yield on investments went up 5 basis points to 0.75 percent in the quarter.
Meanwhile, reinsurance recoverables moved down 8.86 percent or $42.79 million over the year to $440.28 million on Dec. 31, 2016.
Shareholders equity stood at $439.26 million as on Dec. 31, 2016, up 32.03 percent or $106.55 million from year-ago.
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