IHC Announces Completion of the Sale of a Controlling Interest in Its Pet Division and the Stock of Independence American Insurance Company

Rhea-AI Summary

Independence Holding Company (NYSE: IHC) announced the successful completion of the sale of a controlling interest in its pet division and shares of Independence American Holdings Corp. to Independence Pet Holdings. The transaction closed on December 20, 2021, fulfilling all regulatory conditions, including approval from the Delaware Department of Insurance. IHC received approximately $276 million, with 70% in cash and 30% in Independence Pet stock. CEO Roy T.K. Thung expressed enthusiasm for value creation as a shareholder.

Positive

• IHC received approximately $276 million from the sale, enhancing liquidity.
• 70% of the consideration was received in cash, providing immediate financial benefit.
• 30% of the consideration was received in capital stock of Independence Pet, allowing for potential future gains.

Negative

• None.

STAMFORD, Conn., Dec. 20, 2021 (GLOBE NEWSWIRE) -- Independence Holding Company (NYSE: IHC) today announced the completion of the sale of a controlling interest in its pet division and in the stock of Independence American Holdings Corp., including its subsidiary Independence American Insurance Company (“Independence American”), to a subsidiary of Independence Pet Holdings, Inc. (f/k/a Iguana Capital, Inc.) (“Independence Pet”), an investment company specifically formed to facilitate the sale transaction. The transaction was structured as two separate purchase agreements that were expected to close on different dates and had independent closing conditions.

As previously announced, the Company and its subsidiaries completed the sale of its 85% interest in PetPartners, Inc. to Independence Pet on June 30, 2021. The Company is pleased to announce that Independence American satisfied all of the conditions to the consummation of the sale, including the approval of the Delaware Department of Insurance, and closed on December 20, 2021. In aggregate for both deals, IHC received 70% of the consideration in cash, or approximately $276 million (inclusive of working capital adjustments and estimated excess statutory capital and surplus), and received 30% of the consideration in shares of capital stock of Independence Pet.

Roy T.K. Thung, Chief Executive Officer, stated, “We are delighted to close these transactions and look forward to continued value creation as a shareholder and through involvement with the board of directors of Independence Pet.”

About Independence Holding Company

Independence Holding Company (NYSE: IHC), through our current subsidiaries, underwrites and distributes health, group disability and life, New York State DBL and paid family leave. IHC underwrites policies in all 50 states, Washington D.C., Puerto Rico and the U.S. Virgin Islands through our two carriers: Standard Security Life Insurance Company of New York (“Standard Security Life”) and Madison National Life Insurance Company, Inc. (“Madison National Life”). We also distribute products nationally through multiple channels, including digital, call center and advisors, all of which utilize our CMS-approved Web Broker, INSXcloud.com. We provide information and quoting capabilities via our domain properties including healthinsurance.org; medicareresources.org; myhealthinsurance.com; and healthedeals.com. As previously announced, IHC has entered into stock purchase agreements to sell all of the issued and outstanding capital stock of Standard Security Life and Madison National Life, each subject to regulatory approval. 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
(646) 509-2107
www.IHCGroup.com

FAQ

What was the date of the sale announcement by Independence Holding Company?

The sale announcement was made on December 20, 2021.

What percentage of the sale consideration was received in cash by IHC?

IHC received 70% of the sale consideration in cash.

What is the stock symbol for Independence Holding Company?

The stock symbol for Independence Holding Company is IHC.

Who acquired a controlling interest in IHC's pet division?

Independence Pet Holdings acquired a controlling interest in IHC's pet division.