UICI, Leading "A" Rated Insurance Carrier, Leads Group Investing $8.8 Million in HealthAxis.com
NORRISTOWN, Pa.--(BUSINESS WIRE)--March 31, 1999--
Leading Nationwide Online Provider of Healthcare Insurance
Achieves Run Rate of Over $3 Million in Annualized Premiums from
Sales During First Quarter of Operation
HealthAxis.com Continues to Build Brand and Expand Product
Offerings
HealthAxis.com, Inc., a subsidiary of Provident American Corp. (Nasdaq: PAMC) and the Internet's only full-service healthcare insurance marketer, today announced the private placement of equity securities that brought in $8.8 million in capital. The lead investor was UICI (Nasdaq: UICI), a financial services company with "A" rated insurance subsidiaries, and also included several other institutional investors.
ING Baring/Furman Selz acted as placement agent on the transaction. UICI joins the original HealthAxis.com investment group, which includes America Online, Inc. (NYSE: AOL), Health Plan Services, Inc. (NYSE: HPS), and Provident American.
Michael Ashker, President and Chief Executive Officer of HealthAxis.com, said: "We are pleased to have the support of UICI, both as an investor and as a top-notch carrier partner that clearly understands the power of the Internet as a sales and distribution channel for healthcare insurance".
HealthAxis.com also announced that it has achieved a run rate of over $3 million in annualized premiums from sales during its first quarter of operation. First quarter sales showed strong month-over-month growth despite the fact the Company has been utilizing online impressions at a modest level, compared to what is provided for in its distribution agreements.
Over the next several quarters, HealthAxis.com will be adding new carrier partners to its Web site. The Company has already announced carrier agreements with Fortis Health, Security Life Insurance Company of America, Ameritas Life Insurance Corp., Ceres Group (Nasdaq: CERG), and UICI. It anticipates signing additional carriers in the months ahead. The Company's objective is to offer individuals and small groups a choice of carriers within an information-rich shopping environment.
Mr. Ashker added: "These early results validate our belief in consumers' willingness to purchase insurance over the Internet. The strong first quarter volume and monthly growth rate clearly establish HealthAxis.com as the leading e-commerce health insurance marketer. What is especially gratifying about our results is that they were achieved under a controlled marketing program designed to test and refine our online marketing strategies. Later this year, we expect to broaden our efforts to include both traditional marketing and a full ramp of the online impressions available to us through America Online, Lycos, CNET, and SNAP!."
About HealthAxis.com
HealthAxis.com, Inc. a subsidiary of Provident American Corporation, is a pioneer in the Internet distribution of health and life insurance to the individual and small group markets. HealthAxis.com is a "digital insurance agent." The Company does not engage in any insurance underwriting and assumes no underwriting risk. Through its interactive, user-friendly, one-stop healthcare insurance Web site, healthaxis.com, HealthAxis.com provides customers with access to and the ability to purchase a full range of high quality, flexible insurance products and services at very competitive prices. HealthAxis.com also provides product and health information, instant price quotes, electronic application processing, online billing, claims status, policy or personal information changes, and a customer hotline. Policyholders can easily and conveniently view billing information, claims history and policy details - day and night, 7 days a week. HealthAxis.com has Internet distribution agreements with AOL (Keyword: HealthAxis), Lycos, CNet and Snap!
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements made by the Company which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors which may cause actual results to differ materially from those in the forward-looking statements. For further information which could cause actual results to differ from the Company's expectations as well as other factors which could affect the Company's financial statements, please refer to the Company's reports filed with the Securities and Exchange Commission.
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CONTACT: Investor Contact: HealthAxis.com, Norristown
Deidre Holt, 610-275-3800
deidreh@earthlink.net
or
Contact:
Robinson Lerer & Montgomery, New York
Annalise Carol, 212/484-7237
acarol@rlmnet.com |
