Independence — Shareholder Meeting (November 2019)
10 slides from Independence's shareholder meeting presentation, Nov 12, 2019
Slide 1: 2019 Annual Meeting of Stockholders
1 1 201 9 Annual Meeting of Stockholders November 1 2 , 201 9 Independence Holding Company © 2017 The IHC Group
Slide 2: IHC Corporate Structure
2 3 Independence Holding Company (DE) Independence Capital Corp. (DE) Madison National Life Insurance Company, Inc. (WI) Standard Security Life Insurance Company of New York (NY) IHC Health Holdings Corp. (DE) Independence American Holdings Corp. ( DE) 1 IHC Carrier Solutions, Inc. (DE) Independence
Slide 3: IHC at a Glance
3 IHC at a Glance • Specialty Health, Life and Disability Company – Management team with average tenure of 25+ years • Founded in 1980, publicly traded on the NYSE – Market cap over $ 578M ($38.97 per share as of 11/7/2019) – Book Value of $31.90 per share (as of 9/30/2019) • Three carriers rated A
Slide 4: Executive Summary
4 4 Executive Summary • Successful transition from capital - intensive LOBs with unpredictable margins to less capital - intensive, higher - margin specialty lines • Management continues to selectively deploy excess capital to grow owned distribution – Expansion of Owned Call Centers – Expansion of
Slide 5: Distribution channels and brands
5 PET PetPartners PetPlace ( Leadgen ) MyPetInsurance AKC Affinity Groups PetsBest FIGO PetFirst D 2 C Call Centers Career Agents Affinity Groups MyHealthInsurance Lead Generation Domains Platforms Senior Market Brokerage Telebroker National Accts • Anthem • United • eHealth • BCBSNC B 2 B DBL & PFL
Slide 6: STM & Fixed Indemnity; DBL & PFL; Group Life & LTD; Pet
6 STM & F ixed I ndemnity Individual & Association • Plans are available online and are active within 24 hours of applying • Duration rules have recently changed allowing states to determine the plan duration. Extend STM expected to be available in 18 states by Q1 2020 • STM and FI more attractive d
Slide 7: IHC Per-Share Value
7 IHC Per - Share Value ❑ As market prices warrant, buy back shares of IHC ❑ Recent price levels: ❑ IHC book value $ 31.90 as of September 30, 2019 ➢ IHC Price to Book Ratio was 1.22 at November 7, 2019 ❑ Russell 2000 Insurance: Life Index Price to Book Ratio was .74 as of 9/30/19 ❑ NASDAQ Insurance
Slide 8: IHC Results of Continuing Operations
8 IHC Results of Continuing Operations* 1 . The year ended 2017 includes : ( i ) a $ 20 . 3 million reduction in the valuation allowance on AMIC’s deferred tax asset ; and (ii) a tax benefit of $ 11 . 6 million from a worthless stock deduction recognized as a result of the winding down and dissoluti
Slide 9: Strategic Objectives Next Years
9 Strategic Objectives Next 3 Years • Expand owned distribution channels and lead generation – Emphasize online sales and direct - to - consumer channels through call center, advisors, transactional websites and pet aggregator – Improve lead flow to call centers and advisors through organic, paid an
Slide 10: Forward-Looking Statements
10 Forward - Looking Statements Certain statements in this presentation are “forward - looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, cash flows, plans, objectives, future performance and
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