Repeat customers boosted second-quarter results at UICI.[@@]
UICI, North Richland Hills, Texas, is reporting $52 million in net income for the latest quarter on $545 million in revenue, up from $42 million in net income on $512 million in revenue for the second quarter of 2004.
UICI has a unit, Star HRG, that sells low-priced “mini medical” policies. It also has units that sell conventional health insurance to students and self-employed individuals.
Although an increase in claims hurt mini med profits, losses narrowed at the student health business as a result of a decrease in the ratio of claims expenses to premium revenue.
At the self-employed unit, operating income increased to $76 million, from $70 million. The increase was due in part to an increase in the percentage of self-employed health insurance business that comes from renewal business, which tends to carry a lower commission rate than first-year business, UICI says.