Roy T.K. Thung has responded to a drop in the price of the stock of Independence Holding Company by spending $520,000 to buy 40,000 IHC shares.
Thung, chief executive officer of IHC, Stamford, Conn., a health insurer and stop-loss company, says the company is doing well.
IHC shares are now selling for less than $14, down from a 52-week high of more than $24.
The latest Thung stock purchase “reinforces my continued confidence in Independence Holding Company’s long-term prospects and its commitment to reaching its strategic goals,” Thung says in a statement. “Our core lines are performing well. Our medical stop-loss business has been profitable over the last several years. The fully insured line is growing and we expect higher margins in 2008 due to increases in rates and tighter underwriting in 2007.”
In addition, IHC has $1.3 billion in assets, a mortgage security portfolio with no exposure to sub-prime mortgages and a book value of $15.05 per share, Thung says.