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.”