Independence Holding Company (IHC) has reported revenues of $116.3m for the first quarter of 2010, an increase of 18% compared to $98.7m for the same quarter in 2009.
IHC said that the increase in revenues is due to the gain on bargain purchase under acquisition accounting as a result of IHC acquiring a controlling interest in American Independence (AMIC) in March 2010.
The premium earned was $70.8m for the first three months ended March 31, 2010, compared with $76.43 for the same quarter of the 2009.
Net income per share from continuing operations attributable to IHC was $1.05 per share, diluted, or $16.1m for the three months ended March 31, 2010 compared to $.22 per share, diluted, or $33.5 for the same quarter ended March 31, 2009.
Roy Thung, CEO of IHC, said: Our operating income dropped to $.02 per share from $.16 per share for the comparable quarter of 2009 and $.14 per share for the fourth quarter of 2009. This decline is primarily due to a decrease in IHC’s investment income of $1.3m and a much higher than expected incidence of death and long term disability (LTD) claims in our group business amounting to approximately $1.6m more than expected claims.
The decrease in investment income is due to a decrease in yields (from 4.9% for the first quarter of 2009 to 4.1% for the comparable quarter of 2010) and the shorter duration of our portfolio.
IHC Group is an organization of affiliated insurance carriers, marketing and administrative companies and agencies dedicated to delivering insurance solutions to groups and individuals.