Health Insurance Innovations, Inc. Highlights Strength of Business
September 27 2017 - 7:00AM
Provides Update on Montana Regulatory Matter and
Florida TPA Licensure Process
Health Insurance Innovations, Inc. (NASDAQ:HIIQ) (“HIIQ” or
“the Company”), a leading developer, distributor, and virtual
administrator of affordable health plans, today highlighted the
strength of its business and provided an update regarding
regulatory matters and financial and industry outlook.
Reaffirms 2017 Full Year Guidance
The Company has reaffirmed its previously announced and revised
full year 2017 guidance and expects to achieve the following
results:
- Revenue growth of 22% to 25% year-over-year ($225 million to
$230 million);
- Adjusted EBITDA growth of 41% to 51% year-over-year ($39
million to $42 million); and
- Adjusted EPS growth of 29% to 38% ($1.45 to $1.55).
As a result of disciplined execution and commitment to product
and technology innovation, HIIQ has delivered nine straight
quarters of record revenue and adjusted earnings.
The HIIQ Board of Directors and management team are committed to
acting in the best interests of the Company and its shareholders,
and continually review the Company’s strategic and capital
allocation priorities and opportunities to enhance shareholder
value.
Comment on Affordable Care Act (“ACA”)
Developments
Gavin Southwell, HIIQ's Chief Executive Officer and President,
said, “HIIQ has benefited from significant opportunities for growth
as the health care landscape has evolved. We believe HIIQ is
uniquely positioned for continued growth due to our innovative
technology platform, strong compliance and expanding distribution
network, allowing us to continue to meet the demands and needs of
consumers in the dynamic individual health insurance market.”
Mr. Southwell continued, “Given the strength of our business, we
remain well positioned to continue to penetrate a $14 billion
addressable market and provide access to affordable health
insurance products and unparalleled customer service. We are
confident our strategy will drive value for all our stakeholders,
including consumers, business partners and shareholders. We are
encouraged by the positive momentum we experienced in the first
half of the year and look forward to a strong full year 2017.”
Key Regulatory Updates
As disclosed on September 25, 2017, the Company provided updated
disclosures regarding the following regulatory matters:
- Update on Florida Third-Party Insurance Administrator
(“TPA”) License: As previously disclosed, the Company
remains an active insurance agency in the State of Florida under an
Agency License issued by the Florida Department of Financial
Services. The Company continues to engage in active discussions
with the Florida Office of Insurance Regulation (“OIR”) regarding
the Company obtaining a TPA license in the State of Florida. As a
result of these discussions, the Company and the OIR have now
reached a general understanding on a path forward that would allow
the Company to submit a new application for a TPA license, and the
Company and the OIR are working on the specific terms of that
understanding.
- Update on pending regulatory matters in
Montana. As disclosed in the Company’s SEC filings, the
Company was among more than two dozen separate parties named by the
Montana Commissioner of Securities and Insurance (“CSI”) in a
Notice of Proposed Agency Action on May 12, 2016. While the Company
continues to be fully cooperative with the CSI, at this time based
on our discussions with the CSI, the Company has updated its
estimate of exposure to a potential settlement with Montana with
respect to this action and believes that it is no longer material
to the Company.
Support from Leaders for Value that HIIQ Brings to
Consumers
The Company has received strong support from important voices in
and around the insurance industry:
- “As the former North Carolina Commissioner of Insurance, I know
firsthand the actors across the increasingly important – and
complicated – insurance industry. In all my interactions with
Health Insurance Innovations and its management team, I found them
passionate about their work, diligent, and, on information and
belief, exceedingly cooperative and compliant with regulatory
requirements among the states. Today I have a professional
relationship with Health Insurance Innovations and its management
team, and can attest to their great pride in providing access to
affordable health insurance plans and specialized products for
consumers across the U.S.” — Wayne Goodwin, Chair of the
North Carolina Democratic Party; Former Commissioner of Insurance
for North Carolina (2009-2016)
- “Health Insurance Innovations is an important contributor to
our citizens as a developer and distributor of individualized
health insurance plans and services. I know the insurance industry
well from serving as CEO of the National Association of Insurance
Commissioners. The Company’s growth across Florida and the United
States has helped improve access to insurance products and
services, positively impacting the lives of millions of consumers
who have short-term insurance needs. Any market that Health
Insurance Innovations is in is one that is better served.” —
Ben Nelson, Former U.S. Senator (D-NE) and Governor of
Nebraska; Former Nebraska Director of Insurance and CEO of the
National Association of Insurance Commissioners (NAIC)
- “Health Insurance Innovations has a strong commitment to
providing consumers with unparalleled service with the utmost
integrity. Now as an advisor to the Company, I can speak to Health
Insurance Innovations’ important role in partnering with insurance
carriers to develop and distribute affordable short-term medical
and health benefit plans, a vital and important service in today’s
evolving healthcare environment.” — Barry Goldwater Jr.,
Former U.S. Representative (R-CA)
About Health Insurance Innovations, Inc.
HIIQ is a market leader in developing innovative health
insurance products that are affordable and meet the needs of
millions of health insurance plan shoppers. HIIQ develops insurance
products through partnerships with best-in-class insurance
companies and markets them via its broad distribution network of
licensed insurance agents across the nation. HII's data-centric
paperless business model is facilitated by its Consumer Division
that provides real-time data used to identify opportunities and
underserved needs in the health insurance market. HIIQ's Consumer
Division includes AgileHealthInsurance.com, a website for
researching, comparing and purchasing Term Health insurance
products and HealthPocket.com, an independently managed free
website that compares and ranks all health insurance plans, and
uses objective data to publish unbiased health insurance market
analyses and other consumer advocacy research. Additional
information about HIIQ can be found at HiiQuote.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 our products, state 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 are discussed in HIIQ's most
recent 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.
Investor Contacts Mike Hershberger, Health
Insurance Innovations, Inc. 1-877-376-5831 x282John Evans,
Investor Relations, PIR Communications,
415-309-0230,ir@hiiquote.com
Media ContactsKelly Sullivan or James Golden,
Joele Frank, Wilkinson Brimmer Katcher, (212) 355-4449
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