Independence Holding Company Announces Redemption of Final Series of Its Trust Preferred Securities
December 12 2016 - 1:11PM
Independence Holding Company (NYSE:IHC) (the “Company” or “IHC”)
today announced that it will redeem the Junior Subordinated Debt
Securities due in December 2034 this week.
Chief Executive Officer’s Comments
Roy T. K. Thung, Chief Executive Officer,
commented, “We have a pristine balance sheet and are pleased that,
as a result of redeeming these securities, IHC will be debt free.
We recently announced a 33% increase in our cash dividend
from $.09 to $.12 per share. Since the beginning of this
year, we have retired $43 million of debt and invested $7.3 million
in investments in distribution partnerships and established website
domains. Even after these redemptions of indebtedness and
investments, we continue to have a great deal of liquidity.
We are in the process of using a portion of our liquidity to make
additional strategic investments that will further enhance
distribution of our specialty benefit products. As of
September 30, 2016, our book value is $25.72 per share and our
tangible book value is $22.74 per share. Based on the market
close on December 9, 2016, our stock is trading at 80% of book
value per share and 91% of tangible book value per share.”
Mr. Thung continued, “We are also very
optimistic for the future of our specialty health division as a
result of changes that we anticipate from the Trump
administration. While we cannot predict the exact nature and
extent of these changes, we believe that our broad and diverse
portfolio of group and individual specialty benefit products
(short-term medical, hospital indemnity, group limited medical and
gap plans), our varied distribution (direct to consumer, career,
call center, independent agents and brokerage) and our
industry-leading ACT (‘Agent Connectivity Tools’) technology will
result in accelerated growth of this segment.”
About The IHC Group
Independence Holding Company (NYSE:IHC) is a
holding company that is principally engaged in underwriting,
administering and/or distributing group and individual specialty
benefit products, including disability, supplemental health, pet,
and group life insurance through its subsidiaries since 1980.
The IHC Group owns three insurance companies (Standard Security
Life Insurance Company of New York, Madison National Life Insurance
Company, Inc. and Independence American Insurance Company), and IHC
Specialty Benefits, Inc., a technology-driven insurance sales and
marketing company that creates value for insurance producers,
carriers and consumers (both individuals and small businesses)
through a suite of proprietary tools and products (including ACA
plans and small group medical stop-loss). All products are
placed with highly rated carriers.
Forward-looking Statements
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
that 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 unless required by applicable law.
CONTACT:
Loan Nisser
(646) 509-2107
www.IHCGroup.com
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