Earnings: National Western, IHC

- Low interest rates are putting pressure on existing blocks of business.

Independence Holding Company, Stamford, Conn.

2 Q 2008 Results

NET INCOME: $6.7 million loss

REVENUE: $89 million

NET REALIZED CAPITAL CHANGE: $15 million loss

2 Q 2007 Results

NET INCOME: $3.8 million

REVENUE: $99 million

NET REALIZED CAPITAL CHANGE: $582,000 gain

- IHC Chief Executive Roy Thung says the company has recorded losses for “other than temporary impairments” for some investment-grade preferred stocks in its investment portfolio.

- Thung says the company has no direct investments in subprime mortgages or collateralized debt obligations, but that about 5% of fixed-maturity investments are in AAA-rated Alt A mortgages. “While these mortgages have seen lower quoted market values recently, we believe that the unrealized losses on these securities are not necessarily indicative of their ultimate performance,” Thung says.

- Core line business are performing well, Thung says. Premium revenue increased to $82 million, from $75 million.