American Independence Corp. Announces Acquisition of National Marketing Organization Distributing Individual Major Medical Policies
16 04 08 - 14:58
STAMFORD, Conn. & NEW YORK, Apr 15, 2008 (BUSINESS WIRE) -- American Independence Corp. (NASDAQ: AMIC) today announced that it has significantly expanded its ability to sell individual and limited medical plans to the self-employed, under-insured and uninsured markets through the acquisition of the assets of Insurance Producers Group of America, Inc. and its operating subsidiaries. AMIC owns a 51% interest in the company resulting from the acquisition, which has been renamed Independent Producers of America, LLC ("IPA"). IPA operates under a controlled career agent distribution model in which independent producers sell products approved by IPA and AMIC. It is expected that, within 12 months, the majority of the premium generated will be placed through Independence American Insurance Company ("Independence American"), AMIC's insurance carrier subsidiary, although it is anticipated that in certain states (and for certain ancillary benefits) other carriers (including those owned by Independence Holding Company ("IHC")) will also be utilized. IHC will also benefit through its 49.7% ownership interest in AMIC, and Independence American will cede a portion of the premium it generates from IPA to one of IHC's insurance companies.
Roy Thung, Chief Executive Officer of AMIC, commented, "This acquisition positions Independence American to become a substantial presence in the expanding individual major medical market. The demand for individual health insurance is growing as employer-based group coverage becomes less available and less affordable, and we believe that there could be an acceleration of this demand depending on the eventual outcome of proposed health insurance reform initiatives. Under the guidance of its seasoned executive team, which held leadership positions with companies employing a similar sales model, IPA has grown rapidly since its founding in 2006. In the last 12 months, IPA has expanded its business volume from approximately $20 million of annualized premium to about $40 million. Currently, approximately 25% of this is being placed with Independence American. As a result of this transaction, we expect that IPA will continue its rapid growth and that the portion of premium written with Independence American will significantly increase. IPA utilizes innovative web-based sales technology and adds recruiting, lead-generation and agent-training expertise to our group. Its independent agency field force, which now numbers over 600 active and pending agents, sells health insurance in 27 states exclusively for IPA. We believe that a dedicated agency field force gives us a powerful competitive advantage, and also offers an excellent platform from which we can react quickly to an evolving regulatory and legislative environment."
Jeffrey Smedsrud, Chief Marketing Officer of IHC, stated, "The acquisitions of IPA and healthinsurance.org, LLC (which was announced late last year), together with IHC's telesales operations, have significantly enhanced the controlled distribution of our small employer group health, individual health, short-term medical and dental products, and establishes us as a rising presence in the sale of niche health insurance plans through dedicated career agency and other controlled distribution models."
About American Independence Corp. (AMIC)
AMIC, through Independence American Insurance Company and its other subsidiaries, offers health insurance solutions to individuals and employer groups. AMIC provides to the individual and self-employed markets health insurance and related products, which are distributed through its subsidiaries, Independent Producers of America, LLC and healthinsurance.org, LLC. AMIC markets medical stop-loss, small group major medical, and managed care insurance and reinsurance through managing general underwriters, including IndependenceCare Holdings LLC, Marlton Risk Group LLC and Risk Assessment Strategies, Inc.
About Independence Holding Company (IHC)
IHC is a holding company principally engaged in the life and health insurance business and the acquisition of blocks of policies through its insurance company subsidiaries (Standard Security Life Insurance Company of New York and Madison National Life Insurance Company, Inc.), its affiliate (American Independence Corp. (NASDAQ: AMIC)), and its managing general underwriters, third-party administrators, and marketing affiliates. Standard Security Life markets medical stop-loss, small group major medical, short-term medical, major medical for individuals and families, limited medical, group long and short-term disability and life, dental, vision and managed health care products. Madison Life sells group life and disability, employer medical stop-loss, small group major medical, major medical for individuals and families, short-term medical, dental, vision, and individual life insurance.
Forward-Looking Statements
Certain statements and materials contained in this news release may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to IHC's and AMIC'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 IHC and AMIC operate, new federal or state governmental regulation, and other factors which can be found in IHC's and AMIC's other news releases and filings with the Securities and Exchange Commission.
SOURCE: American Independence Corp.
INDEPENDENCE HOLDING COMPANY
David T. Kettig, 212-355-4141 EXT. 3047
www.ihcgroup.com
or
AMERICAN INDEPENDENCE CORP.
David T. Kettig, 212-355-4141 EXT. 3047
www.americanindependencecorp.comCopyright Business Wire 2008