Independence — Shareholder Meeting (November 2020)
12 slides from Independence's shareholder meeting presentation, Nov 10, 2020
Slide 1: Annual Meeting of Stockholders November 10, 2020
1 20 20 Annual Meeting of Stockholders November 1 0 , 20 20 Independence Holding Company © 2017 The IHC Group
Slide 2: IHC Corporate Structure
2 IHC Corporate Structure 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) Independence American Holdings Corp. (DE) 1 Independence Brokerage Group, Inc. (DE ) Independence
Slide 3: IHC at a Glance
3 IHC at a Glance • Specialty Health, Pet, and Disability Company – Management team with average tenure of 25+ years • Founded in 1980, publicly traded on the NYSE – Market cap over $585M ($40.01 per share as of 11/6/2020 ) – Book Value of $ 31.90 per share (as of 9/30/2020 ) – Liquidity at the Corp
Slide 4: Executive Summary
4 Executive Summary • 2020 continuing excellent underwriting results in Group LTD & Life, NY DBL/PFL and Specialty Health • Pet Division – 48% CAGR in pet premiums 2018 – 2020 (est.) – Key relationship with American Kennel Club (AKC) and white - label distribution deals • Controlled distribution for
Slide 5: Distribution channels
5 PET PetPartners (MGA) PetPlace.com AKC Pet Insurance PetsBest FIGO MetLife D 2 C Call Centers Career Agents Affinity Groups MyHealthInsurance Lead Generation Domains Platforms Senior Market Brokerage Telebrokerage National Accts • Anthem • United • eHealth • BCBSNC • BCBSAZ B 2 B DBL & PFL Distrib
Slide 6: STM & Fixed Indemnity; DBL & PFL; Group Life & LTD
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 is available in 20 states • STM and FI more attractive due to elimination of pe
Slide 7: Pet Insurance
7 Pet Insurance • One of the fastest growing insurance coverage, yet there remains tremendous growth potential as less than 2% of pets are insured in US vs. 25%+ in European countries • Collectively, our pet division will underwrite $ 117M of premium (approximately 200,000 dogs and cats) by the end
Slide 8: Group Life & LTD Division
8 Group Life & LTD Division • Largest writer of employer paid Group Life and Disability products for public sector employers in 8 midwestern states. • Focused on continued differentiation in niche through product innovation – Launched Active Assailant Rider in 2020 to school district • Our Group Div
Slide 9: New York Disability Benefits Law (DBL) Paid Family Leave (PFL)
9 New York Disability Benefits Law (DBL) Paid Family Leave (PFL) • R anked 6th in DBL/PFL market in New York State • Annual DBL/PFL premiums of $115M with 70K policies and 1M lives. Growing to approximately $192M in 2021 as a result of an 89% PFL rate increase • NY DBL is state mandated coverage for
Slide 10: IHC Per-Share Value
10 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, 2020 ➢ IHC Price to Book Ratio was 1.25 at November 6, 2020 ❑ Russell 2000 Insurance: Life Index Price to Book Ratio was 0.42 as of 9/30/20 ❑ NASDAQ Insuranc
Slide 11: Strategic Objectives Next Years
11 Strategic Objectives Next 3 Years • Expand pet insurance footprint – Focus on our close relationship with American Kennel Club and the breeders – Continuing to add new “white label” and affinity partners – in particular through insurance company partners – Launch of subscription version of TailTr
Slide 12: Forward-Looking Statements
12 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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