Health Insurance Innovations, Inc. Provides Update on Business Strategy and Ongoing Strategic Review Process
20 Diciembre 2019 - 8:00AM
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
mdevries@hiiq.com
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