UNITED STATES




 


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549




FORM 8-K


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported)  August 9, 2007


INDEPENDENCE HOLDING COMPANY

(Exact name of registrant as specified in its charter)


Delaware

010306

58-1407235

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

 

 

96 Cummings Point Road, Stamford, Connecticut

06902

(Address of principal executive offices)

(Zip Code)


Registrant's telephone number, including area code:  (203) 358-8000



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240a-12)


Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))













 









Item 2.02 Results of Operations and Financial Condition.


This information set forth under this Item 2.02 is intended to be furnished under this Item 2.02 "Results of Operations and Financial Condition." Such information, including the Exhibit attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.


On August 9, 2007, Independence Holding Company issued a news release announcing 2007 Second Quarter and Six Months Results.


Item 9.01 Financial Statements and Exhibit


(c)  

Exhibit:


Exhibit 99.1

News Release of Independence Holding Company dated August 9, 2007 announcing 2007 Second Quarter and Six Months Results.





SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



INDEPENDENCE HOLDING COMPANY

 

(Registrant)




/s/ Teresa A. Herbert

Teresa A. Herbert

Senior Vice President and Chief Financial Officer



Date:



August 9, 2007







 

                                   Exhibit 99.1

 

 

INDEPENDENCE HOLDING COMPANY

CONTACT: DAVID T. KETTIG

96 CUMMINGS POINT ROAD

(212) 355-4141 Ext. 3047

STAMFORD, CONNECTICUT 06902

www.Independenceholding.com

NYSE: IHC

 



NEWS RELEASE


INDEPENDENCE HOLDING COMPANY ANNOUNCES

2007 SECOND QUARTER AND SIX MONTHS RESULTS


Stamford, Connecticut, August 9, 2007. Independence Holding Company (NYSE: IHC) today reported 2007 second quarter and six months results.

Financial Results


Revenues increased 15% to $105,121,000 for the three months ended June 30, 2007 compared to revenues for the three months ended June 30, 2006 of $91,469,000. Net income per share increased 63% to $.26 per share, diluted, or $3,929,000, for the three months ended June 30, 2007 compared to $.16 per share, diluted, or $2,366,000 for the three months ended June 30, 2006.  


Revenues increased 20% to $214,192,000 for the six months ended June 30, 2007 compared to revenues for the six months ended June 30, 2006 of $178,309,000. Net income per share increased 30% to $.56 per share, diluted, or $8,531,000 for the six months ended June 30, 2007 compared to $.43 per share, diluted, or $6,395,000 for the six months ended June 30, 2006.


Chief Executive Officer’s Comments


Roy Thung, Chief Executive Officer, commented, “We are pleased to report that our revenues for the six months ended June 30, 2007 of $214 million are 20% greater than those we reported for the comparable period in 2006.  We are also gratified that our net income per share increased 63% to $.26 per share, diluted, for the three months ended June 30, 2007 compared to $.16 per share, diluted, for the comparable 2006 quarter.  Although our fully insured premiums are growing significantly we had expected better earnings from this segment. Our second quarter results were impacted by the expensing of development and implementation costs associated with our expanding fully insured division. Specifically, we expended significant time and money in bringing to market eight new programs (including the recently announced Destiny and GBS relationships) that will not produce significant premiums until 2008.  Moreover, we are still developing new programs and will continue to incur related expenses in the foreseeable future.   We remain confident that we have built a solid foundation in fully insured health and expect to expand at favorable profit margins. We also would like to report that the Company's mortgage security portfolio has no exposure to sub-prime mortgages.”


Continuation of Stock Buy Back Program


Independence Holding Company's Board of Directors has approved the continuation of its share repurchase program and authorized the acquisition in the open market of up to 100,000 additional shares of the Company's common stock. The timing and price of any purchases will be at the sole discretion of IHC's management, and the program may be discontinued or suspended at any time. Since the initiation of IHC's repurchase program in 1991, approximately 3.6 million net shares have been acquired at a cost of $37.8 million.






About Independence Holding Company


IHC is a holding company principally engaged in the life and health insurance business and the acquisition of blocks of policies through its insurance company subsidiaries (Standard Security Life Insurance Company of New York and Madison National Life Insurance Company, Inc.), its affiliate (American Independence Corp. (NASDAQ: AMIC)), and its managing general underwriters, third-party administrators, and marketing affiliates.  Standard Security Life markets medical stop-loss, small group major medical, short-term medical, major medical for individuals and families, limited medical, group long and short-term disability and life, dental, vision and managed health care products. Madison Life sells group life and disability, employer medical stop-loss, small group major medical, major medical for individuals and families, short-term medical, dental, vision, credit life and disability and individual life insurance. AMIC is a holding company principally engaged in the insurance and reinsurance business through Independence American Insurance Company and its managing general underwriter division.


Certain statements in this news 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 which 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.





INDEPENDENCE HOLDING COMPANY

SECOND QUARTER REPORT

JUNE 30, 2007

(In Thousands, Except Per Share Data)



 

 

 

Three Months

 

Six Months

 

 

 

Ended

Ended

 

 

 

June 30,

 

June 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Premiums earned

 

$

80,144

$

71,290

$

164,631

$

137,578

Net investment income

 

 

12,421

 

11,402

 

24,455

 

23,333

Fee income

 

 

10,346

 

7,702

 

20,533

 

15,113

Net realized investment gains

 

 

582

 

50

 

1,002

 

467

Equity income from AMIC

 

 

562

 

183

 

1,097

 

359

Other income

 

 

1,066

 

842

 

2,474

 

1,459

 

 

 

105,121

 

91,469

 

214,192

 

178,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Insurance benefits, claims and reserves

 

 

60,641

 

52,621

 

122,920

 

102,801

Selling, general  and administrative expenses

 

 

34,407

 

31,665

 

70,874

 

58,814

Amortization of deferred acquisition costs

 

 

2,809

 

2,671

 

5,300

 

5,189

Interest expense on debt

 

 

1,062

 

928

 

2,118

 

1,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

98,919

 

87,885

 

201,212

 

168,635

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

6,202

 

3,584

 

12,980

 

9,674

Income tax expense

 

 

2,273

 

1,218

 

4,449

 

3,279

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

3,929

$

2,366

$

8,531

$

6,395

 

 

 

 

 

 

 

 

 

 

 

Basic income per common share

 

$

.26

$

.16

$

.56

$

.44

 

 

 

 

 

 

 

 

 

 

Weighted average basic common shares

 

 

15,193

 

14,862

 

15,187

 

14,679

 

 

 

 

 

 

 

 

 

 

 

Diluted income per common share

 

$

.26

$

.16

$

.56

$

.43

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares

 

 

15,336

 

15,178

 

15,341

 

15,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


As of August 7, 2007, there were 15,184,648 shares outstanding, net of treasury shares.