Independence Holding Company (IHC) and American Independence Corp. (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.
Shares of both companies are higher as AMIC was +44% and IHC were +7% at time of writing. Both of these Emerging Growth Stocks benefited by this early 2016 move.
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.”
Independence Holding Company (IHC) today reported declaration of its semi-annual cash dividend of .045 per share of common stock, payable to stockholders of record on January 6, 2016, with a payment date of January 20, 2016.
About Independence Holding Company
Independence Holding Company (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. (AMIC), which is a holding company principally engaged in the insurance and reinsurance business.
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