Health Insurance Innovations, Inc. Provides Update on Business Strategy and Ongoing Strategic Review Process
TAMPA, Fla., Dec. 20, 2019 (GLOBE NEWSWIRE) -- Health Insurance Innovations, Inc. (NASDAQ: HIIQ) (“HIIQ” or “the Company”), a leading cloud-based technology platform and distributor of insurance products, today provided an update on its business strategy and its ongoing strategic review process.
Gavin Southwell, President and Chief Executive Officer of Health Insurance Innovations, Inc. said, “With the success of our Medicare business, and continued evolution in the IFP market with many of the major players shifting towards other higher-growth market segments like Medicare, it has become clear to us that prioritizing the rapid build out of our potentially high growth Medicare business represents the best path forward for maximizing value for our shareholders.”
Mr. Southwell continued, “As we continue through our previously announced Strategic Review process, our focus for the IFP business will be to maximize cash flows and enhance our e-commerce capabilities. We believe that our existing book of IFP business, including policies in force and expected renewals thereof, will allow us to realize approximately $170 million of net cash flows from our existing IFP contract assets and commissions payable. A significant amount of this operating cash flow will be available in 2020.”
Mr. Southwell added, “Our decision to accelerate our transformation is informed by our unique insight into our market, and we believe that further investment in our Medicare business is significantly value enhancing. We also disclose that this may result in certain IFP carrier and distributor relationships and books of business being run-off or replaced as the company accelerates its strategic pivot towards Medicare insurance products. Our Strategic Review process is ongoing, and we look forward to updating our shareholders and other stakeholders as we make further progress.”
About Health Insurance Innovations, Inc. (HIIQ)
HIIQ is a market leading cloud-based technology platform and distributor of innovative health and life insurance products that are affordable and meet the needs of consumers. HIIQ helps develop insurance products through our relationships with best-in-class insurance companies and markets them via its broad distribution network of third-party licensed insurance agents across the nation, its call center network and its unique online capabilities. Additional information about HIIQ can be found at HIIQ.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans and projections regarding new markets, products, services, growth strategies, anticipated trends in our business and anticipated changes and developments in the United States health insurance system and laws. Forward-looking statements are based on HIIQ’s current assumptions, expectations and beliefs are generally identifiable by use of words “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” or similar expressions and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. These risks and uncertainties include, among other things, our ability to maintain relationships and develop new relationships with health insurance carriers and distributors, our ability to retain our members, the demand for products offered through our platform, factors affecting growth in the Medicare market, our ability to grow our Medicare business, cash flow from our IFP business, regulatory oversight and examinations of us and our carriers and distributors, legal and regulatory compliance by our carriers and distributors, the amount of commissions paid to us or changes in health insurance plan pricing practices, competition, changes and developments in the United States health insurance system and laws, and HIIQ’s ability to adapt to them, the ability to maintain and enhance our name recognition, difficulties arising from acquisitions or other strategic transactions, and our ability to build the necessary infrastructure and processes to maintain effective controls over financial reporting. These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements will be discussed in HIIQ's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) as well as other documents that may be filed by HIIQ from time to time with the Securities and Exchange Commission, which are available at www.sec.gov. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. You should not rely on any forward-looking statement as representing our views in the future. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Contact:
Health Insurance Innovations, Inc.:
Michael DeVries
SVP Finance
(813) 906-5314
[email protected]