American Independence Corp. Announces Acquisition of National Marketing Organization Distributing Individual Major Medical Polic
April 15 2008 - 3:37PM
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.
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