STOCK TITAN

IHC Announces Agreement to Sell a Controlling Interest in Pet Division and the Stock of Independence American Insurance Company

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

STAMFORD, Conn., May 17, 2021 (GLOBE NEWSWIRE) -- Independence Holding Company (NYSE: IHC) today reported its agreement to sell a controlling interest in its pet division and in the stock of Independence American Insurance Company (“Independence American”) to a subsidiary of Iguana Capital, Inc. (“Buyer”), an investment company specifically formed to facilitate this transaction. The transaction is structured as two agreements that are expected to close on different dates.       

IHC and its wholly owned subsidiary IHC SB Holdings LLC (“SBH”) have entered into a Stock Purchase Agreement (the “PPI Purchase Agreement”) with Buyer to sell its 85% interest in Pet Partners, Inc. (“PPI”). In addition, IHC and its wholly owned subsidiary, AMIC Holdings, Inc., have entered into a Stock Purchase Agreement (the “IAHC Purchase Agreement”) with Buyer to sell all of the stock of Independence American Holdings Company (“IAHC”), which owns all of the stock of Independence American. In aggregate for both deals, IHC will receive 70% of the consideration in cash, or approximately $265 million, and will receive 30% of the stock of Buyer.

The closing of the PPI Purchase Agreement is subject to customary closing conditions. The closing of the IAHC Purchase Agreement is subject to customary closing conditions including applicable regulatory approvals, one of which is the approval of the Delaware Insurance Department.

Raymond James & Associates acted as financial advisor to IHC and Dentons provided external legal counsel in connection with this transaction.

About Independence Holding Company

Through our subsidiaries, Independence Holding Company (NYSE: IHC) underwrites and distributes health, group disability and life, New York State DBL and paid family leave, and pet insurance. IHC underwrites policies in all 50 states, Washington D.C., Puerto Rico and the U.S. Virgin Islands through our three carriers: Independence American Insurance Company, Standard Security Life Insurance Company of New York (Standard Security Life) and Madison National Life Insurance Company, Inc. We also distribute products nationally through multiple channels, including our agencies, call centers, advisors, direct and affinity relationships, Web Broker, and web properties, including www.healthedeals.com; www.healthinsurance.org; www.medicareresources.org; www.petplace.com; and www.mypetinsurance.com. As previously announced, IHC recently entered into a stock purchase agreement to sell all of the issued and outstanding capital stock of Standard Security Life. To learn more visit https://ihcgroup.com/.

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 IHC operates, new federal or state governmental regulation, IHC’s ability to effectively operate, integrate and leverage any past or future strategic acquisition, and other factors which can be found in IHC’s other news releases and filings with the Securities and Exchange Commission. IHC expressly disclaims any duty to update its forward-looking statements unless required by applicable law.

CONTACT:  Loan Nisser
(203) 358-8000
www.IHCGroup.com

Independence Holding Co.

NYSE:IHC

IHC Rankings

IHC Latest News

IHC Stock Data

Direct Life Insurance Carriers
Finance and Insurance
Link
Finance, Life/Health Insurance, Finance and Insurance, Direct Life Insurance Carriers

About IHC

Independence Holding Company, formed in 1980, is a holding company that is principally engaged in underwriting, administering and/or distributing group and individual specialty benefit products, including disability, supplemental health, pet, and group life insurance through its subsidiaries (Independence Holding Company and its subsidiaries collectively referred to as 'The IHC Group'). The IHC Group consists of three insurance companies (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company). Company also owns the following agencies: (i) PetPartners, Inc.; (ii) IHC Specialty Benefits, Inc., a technology-driven full-service marketing and distribution company that focuses on small employer and individual consumer products through its call center, career agents, and Independence Brokerage Group; and (iii) The INSX Cloud Platform through My1HR, company's wholly owned Web Based Entity. Its InsureTech division is comprised of company's call centers, field and career agents, in-house MarTech artificial intelligence capabilities and domains, including www.healthedeals.com; www.healthinsurance.org; www.medicareresources.org; www.petplace.com; and www.mypetinsurance.com.