Independence Holding Company and American Independence Corp. Announce Sale of Stop Loss Business to Swiss Re Corporate Soluti...
January 05 2016 - 4:01PM
Independence Holding Company (NYSE:IHC) and American Independence
Corp. (NASDAQ:AMIC) today announced that they have entered into an
agreement to sell the stock of IHC Risk Solutions LLC (RS) and
co-insure to Swiss Re Corporate Solutions' largest US carrier,
Westport Insurance Corporation, all of the in-force stop-loss
business of Standard Security Life Insurance Company of New York
(SSL) and Independence American Insurance Company (IAIC) produced
by RS, as of January 1, 2016, for an aggregate of $152,500,000 in
cash. AMIC and its subsidiaries, including IAIC, are expected to
receive approximately 89% of the purchase price with the balance
being paid to SSL. The transaction has been approved by the
independent members of the Boards of Directors of IHC, AMIC and SSL
and by the holders of approximately 92% of the outstanding stock of
AMIC. It is anticipated that the transaction, which is
subject to certain closing conditions including applicable
regulatory approvals, will close in the first quarter of
2016. This transaction will result in very significant gains
in both income and book value of both IHC and AMIC, which amounts
will not be fully determined until after closing of the
transaction.
Roy T. Thung, Chief Executive Officer of IHC and
AMIC, commented, “We are delighted that this transaction will
unlock significant value for the shareholders of both AMIC and
IHC and will materially increase liquidity in both
companies. We will continue to focus on growing our specialty
health, group life and disability, DBL and occupational accident
lines of business through organic growth and acquisitions. In
addition, the IHC Board of Directors has appointed a special
committee of independent directors which has been authorized to
hire independent advisors to recommend to the full Board of
Directors the price at which IHC would take AMIC private in
2016. After completion of the going private transaction, IHC
will own 100% of SSL, IAIC and Madison National Life Insurance
Company, Inc.”
About Independence Holding
Company
Independence Holding Company (NYSE:IHC) is a
holding company principally engaged in the life and health
insurance business through its insurance company subsidiaries
(Standard Security Life Insurance Company of New York, Madison
National Life Insurance Company, Inc. and Independence American
Insurance Company) and its marketing and administrative
affiliates. Standard Security Life furnishes medical
stop-loss, group limited medical, short-term medical, group
long-term and short-term disability, group life, statutory
disability benefit policies (DBL) in New York, group and individual
dental, vision and various supplemental products. Madison
National Life sells group life and disability, group limited
medical, group and individual dental, and various supplemental
products. Independence American offers pet insurance,
non-subscriber occupational accident, short-term medical, medical
stop-loss, group and individual dental and various supplemental
products. IHC owns certain subsidiaries through its majority
ownership of American Independence Corp. (NASDAQ:AMIC), which is a
holding company principally engaged in the insurance and
reinsurance business.
About American Independence
Corp.
American Independence Corp. (NASDAQ:AMIC) is a
holding company principally engaged in health insurance and
reinsurance. It provides specialized health coverage and
related services to commercial customers and individuals.
Through Independence American Insurance Company and its other
subsidiaries, it offers medical stop-loss, non-subscriber
occupational accident, pet insurance, group major medical,
short-term medical, vision, dental and various supplemental
products, which are marketed through its subsidiaries IHC Specialty
Benefits, Inc., IPA Direct, LLC and IPA Family, LLC. AMIC
markets medical stop-loss through its marketing and administrative
company IHC Risk Solutions, LLC.
Forward-looking Statements
Certain statements and information contained in
this release may be considered “forward-looking statements,” such
as statements relating to management's views with respect to future
events and financial performance. Such forward-looking
statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from
historical experience or from future results expressed or implied
by such forward-looking statements. Potential risks and
uncertainties include, but are not limited to, economic conditions
in the markets in which Independence Holding Company (IHC) and
American Independence Corp (AMIC) and operates, new federal or
state governmental regulation, IHC’s and AMIC’s ability to
effectively operate, integrate and leverage any past or future
strategic acquisition, and other factors which can be found in
IHC’s and AMIC’s other news releases and filings with the
Securities and Exchange Commission. IHC and AMIC expressly
disclaims any duty to update its forward-looking statements unless
required by applicable law.
INDEPENDENCE HOLDING COMPANY
96 CUMMINGS POINT ROAD
STAMFORD, CONNECTICUT 06902
NYSE: IHC
CONTACT: LOAN NISSER
(646) 509-2107
www.IHCGroup.com
AMERICAN INDEPENDENCE CORP.
485 MADISON AVENUE
NEW YORK, NEW YORK 10022
NASDAQ: AMIC
CONTACT: LOAN NISSER
(646) 509-2107
www.americanindependencecorp.com
American Independence Corp. (NASDAQ:AMIC)
Historical Stock Chart
From Jun 2024 to Jul 2024
American Independence Corp. (NASDAQ:AMIC)
Historical Stock Chart
From Jul 2023 to Jul 2024