Independence Holding Company Announces 2006 Third Quarter and Nine Months Results.STAMFORD, Conn. -- Independence Holding Company (NYSE NYSE See: New York Stock Exchange :IHC IHC Immunohistochemistry IHC Intermountain Health Care IHC Inner Hair Cells IHC International Harvester Company IHC Internet Healthcare Coalition IHC Indian Head Cent IHC Interactive Health Communication IHC International Hurricane Center ) today reported 2006 third quarter and nine months results. Financial Results Revenues increased 19% to $93,094,000 for the three months ended September 30, 2006 compared to three months ended September 30, 2005 revenues of $78,435,000. Net income decreased to $4,069,000, including net realized investment gains of $253,000, or $.27 per share, diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , for the three months ended September 30, 2006 compared to $4,788,000, including net realized investment gains of $994,000, or $.34 per share, diluted, for the three months ended September 30, 2005. Revenues increased 27% to $271,403,000 for the nine months ended September 30, 2006 compared to nine months ended September 30, 2005 revenues of $213,090,000. Net income decreased to $10,464,000, including net realized investment gains of $720,000, or $.69 per share, diluted, for the nine months ended September 30, 2006 compared to $16,406,000, including net realized investment gains of $2,078,000, or $1.15 per share, diluted, for the nine months ended September 30, 2005. The 2005 first nine months income before taxes was positively impacted by $3,500,000 recorded in other income relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a commutation agreement and loss cover (these agreements apply only to the 2003 and 2004 treaty years; no similar agreements have been, or are contemplated to be, entered into since that time). Chief Executive Officer's Comments Roy Thung, Chief Executive Officer, commented, "We are encouraged by another significant increase in revenues for the quarter and the nine months ended September 30, 2006. Our net income for the third quarter and the nine months ended September 30, 2006 was negatively impacted by further development on our medical stop-loss business incepting in 2005 and in 2004, which caused reduced underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. profitability. Based upon our best estimate, the experience on business incepting in 2005 is continuing to perform better than business written in 2004, and business written in 2006 continues to track better, at the same point in time, than business written in the prior two years. As described in a recent A.M. Best Special Report, the medical stop loss industry as a whole reported increased loss ratios in 2004 and 2005, but it also stated that there are indications that the market should show signs of hardening hardening, in metallurgy, treatment of metals to increase their resistance to penetration. A metal is harder when it has small grains, which result when the metal is cooled rapidly. by sometime in 2007. During 2006, IHC and its affiliate, American Independence Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMIC Am´ic a. 1. (Chem.) Related to, or derived, ammonia; - used chiefly as a suffix; as, amic acid; phosphamic acid. s> Amic acid (Chem. ), have reported several new fully-insured initiatives with regard to major medical plans for small groups, self-employed, individuals and families, as well as vision and limited medical plans. In most cases, IHC will first begin benefiting from these new relationships in 2007. As a result of the significant increase in premiums and anticipated incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. income from these initiatives and improved loss ratio on our medical stop-loss business, we anticipate that our earnings will improve in 2007." 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 New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Madison National Life Insurance Company, Inc.), its affiliate (American Independence Corp. (NASDAQ: AMIC)), and its managing general underwriters, third party administrators, and marketing affiliates. Standard Security Life markets medical stop-loss, employer-sponsored group major medical, short-term medical, group long and short-term disability and life, dental, vision and managed health care products. Madison Life sells group life and disability, employer medical stop-loss, employer-sponsored group major medical, short-term medical, dental, vision, credit life and disability and individual life insurance. AMIC is a holding company principally engaged in the insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. business through Independence American Insurance Company and its managing general underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. division. Certain statements in this news release may be considered forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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. [TABLE OMITTED] As of November 8, 2006, there were 15,048,567 shares outstanding, net of treasury shares. |
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