Industry Leader C. David Kikumoto appointed Chief Executive Officer of Grandparents Health Plans?
NEW YORK, June 5, 2012 /PRNewswire/ -- Grandparents.com, Inc. (OTCBB: GPCM), The Ultimate Resource for Grandparents, has announced the expansion of its current business to insurance and other ventures focusing on serving America's 120 million grandparents, boomers and seniors. In particular, the Company intends to begin offering health, life, auto, home and long term care insurance, investments, and retirement planning. Health insurance products will be marketed through a joint venture with Denver Management Advisors, Inc. ("DMA"), a Colorado insurance and financial advisory services firm. In addition, the Company intends to develop new initiatives in connection with development of the "Grandparents.com Social Network" related to travel, leisure, dating, food and entertainment. The Company also intends to develop a consumer rebate savings card and is in in the process of organizing a non-profit foundation with the intent of harnessing the talent and experience of America's grandparents toward the betterment of America. The Company recently announced that its membership rose by over 50% to 610,000 members in the past two months.
As part of its expanded business platform, the Company intends to implement a revenue and marketing model similar to AARP® Services, Inc., which, according to AARP's Annual Reports and information available in SEC filings by its marketing partners generates over $10 billion annually for national insurance, financial and other marketing partners. According to published financial statements of AARP® and its affiliates, AARP® affiliates earned over $600 million in each of the past several years from insurance and financial relationships.
In connection with its first insurance endeavor, the Company expects to enter into a joint venture arrangement with DMA to manage Grandparents Health Plans, LLC ("GHP"). It is expected that DMA will retain ten percent ownership of GHP and DMA's Founder and CEO, C. David Kikumoto, will serve as CEO of GHP. GHP is currently licensed to offer health and life insurance products in 41 states. We anticipate that GHP will start offering health and life insurance products to members of Grandparents.com in September 2012.
Prior to founding DMA, Mr. Kikumoto was President and Vice Chairman of Anthem Blue Cross and Blue Shield, Colorado and Nevada from 1999 to 2000. He led the merger of Blue Cross and Blue Shield of Colorado and Nevada with Anthem, Inc., which resulted in the creation of one of the largest private foundations in the State of Colorado. From 1987 to 1999, Mr. Kikumoto served in several roles including as President and Chief Executive Officer at Blue Cross and Blue Shield of Colorado, Nevada and New Mexico, where he created one the first regional Blue Cross and Blue Shield Plans with total membership of 750,000 and annual premium income of $800 million. Mr. Kikumoto is presently Chairman of the Board of Air Methods Corporation (NASDAQ: AIRM), the nation's largest air medical transport company, with over $1 billion in annual revenues. He also serves as Chairman of the Greater Denver Area Boy Scouts of America, and is a member of the Board of the Volunteers of America ? National Services. Mr. Kikumoto received his Bachelor of Science degree in accounting from the University of Utah, pursued graduate studies at the University of Utah, and graduated from the Executive Development Program at the University of Chicago.
About Grandparents.com At Grandparents.com, our goal is to connect and inspire today's families. As The Ultimate Resource for Grandparents ?, we seek to strengthen the ties between family members by promoting wellbeing for young and old, and by providing smart information and expert advice on what really matters to our members, from health and money to travel and retirement. Our stories and videos celebrate the role of grandparents, and encourage them to tell their own stories, passing on a meaningful legacy to their children and grandchildren. As we approach the official Grandparent's Day launch of our new website and App, we will be unveiling new, enriching experiences for our users.
Forward-Looking Statements. Various statements in this release, including those that express a belief, expectation or intention, may be considered "forward-looking statements" that involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects, including, without limitation, the entry into a joint venture arrangement with DMA and the offering of insurance plans pursuant thereto, the engagement of Mr. Kikumoto as CEO of GHP, the implementation of a revenue and marketing model similar to AARP® Services, Inc., and the offering of other ventures described herein or in the Company's other press releases and filings with the Securities and Exchange Commission. Forward-looking statements may also include projections and estimates concerning our future operating results and financial condition. When we use the words "will," "believe," "intend," "expect," "may," "should," "anticipate," "could," "estimate," "plan," "predict," "project," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release; we disclaim any obligation to update these statements. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
SOURCE Grandparents.com, Inc.
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