Independence — Shareholder Meeting (November 2018)
11 slides from Independence's shareholder meeting presentation, Nov 13, 2018
Slide 1: 2018 Annual Meeting of Stockholders
1 201 8 Annual Meeting of Stockholders November 1 2 , 201 8 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) IHC Carrier Solutions, Inc. (DE) Independence Am
Slide 3: IHC at a Glance
3 □ Specialty H ealth and G roup L ife & D isability insurance company » Management team with average tenure of 25+ years □ Founded in 1980, publicly traded on the NYSE ➢ Market cap over $ 553 M ($ 37.40 per share as of 11/07/2018 ) ➢ Book Value of $ 29.92 per share (as of 9/30/201 8 ) ❑ Three carri
Slide 4: Executive Summary
4 Executive Summary ❑ The Company has been successful in transitioning from capital intensive lines of business with unpredictable margins to less capital intensive, higher margin specialty insurance lines ❑ Management continues to selectively deploy excess capital to grow owned distribution ❑ 2018
Slide 5: Product and distribution offerings by line
5 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 plan duration ➢ The penalty for not having an ACA plan is $0 in 2019 making STM and FI more attractive DBL &
Slide 6: Specialty Health Net Earned Premiums
6 Specialty Health Net Earned Premiums ❑ Earned premiums by major line of business in the Specialty Health Segment are as follows : Three Months Ended Nine Months Ended September 30 , September 30 , Specialty Health Segment Net Earned Premiums by Line: 201 8 201 7 201 8 201 7 Short Term Medical $ 10
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 $29.92 as of September 30, 2018 ➢ IHC Price to Book Ratio was 1.25 at November 7, 2018 ❑ Russell 2000 Insurance: Life Index Price to Book Ratio was 1.49 as of 9/30/18 ❑ 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: Comparison of Five Year Cumulative Total Return
9 The graph below matches Independence Holding Company's cumulative 5 - Year total shareholder return on common stock with the cumulative total returns of the Russell 2000 index and the S&P 500 Life & Health Insurance index . The graph tracks the performance of a $ 100 investment in our common stock
Slide 10: Current Strategy
10 Current Strategy ❑ Expand owned distribution channels and lead generation ➢ Emphasize online sales and direct - to - consumer channels through direct agency, call center, Health eDeals , and owned general agents ➢ Improve lead flow to call center through organic, paid and referral relationships ❑
Slide 11: Forward-Looking Statements
11 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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