Earnings: IHC, WellCare, Life Partners

Several life and health insurers and a life settlement firm reported earnings this week.

Independence Holding Company, Stamford, Conn.

4 Q 2008 Results

NET INCOME: $11 million loss

NET REALIZED INVESTMENT CHANGE: $19 million loss

REVENUE: $78 million

4 Q 2007 Results

NET INCOME: $2.4 million loss

NET REALIZED INVESTMENT CHANGE: $215,000 loss

REVENUE: $99 million

- Operating income was $1.2 million, about the same is in the fourth quarter of 2007.

- Underwriting results on medical stop-loss operations were stronger than in 2007, the company says.

- The investment losses reported are the result of the effects of “mark to market accounting” on securities that IHC hopes to hold until maturity. “We expect to recover the majority of the temporary unrealized losses in fixed maturities recorded in book value as the securities mature,” IHC Chief Executive Roy Thung says.

American Independence Corp., New York

4 Q 2008 Results

NET INCOME: $1.2 million loss

NET REALIZED INVESTMENT CHANGE: $2.3 million loss

REVENUE: $26 million

4 Q 2007 Results

NET INCOME: $305,000

NET REALIZED INVESTMENT CHANGE: $149,000

REVENUE: $28 million

- American Independence is an affiliate of Independence Holding Company.

- Like IHC, American Independence has experienced improvements in medical stop-loss underwriting margins and mark-to-market adjustments in the value of securities that the company would like to hold until maturity.