STAMFORD, Conn., June 15, 2015 (GLOBE NEWSWIRE) -- Independence Holding Company (NYSE:IHC) today announced that its subsidiaries, Madison National Life Insurance Company, Inc. (“MNL”) and Standard Security Life Insurance Company of New York (“SSL”), have entered into an agreement to reinsure substantially all of their run-off blocks of individual life and annuities and sell MNL’s infrastructure related to those blocks (“Transferred Assets”) to National Guardian Life Insurance Company (“NGL”) in consideration of a pre-tax payment to MNL and SSL of an aggregate of $42 million in cash. MNL previously sold a portion of its life and annuity blocks in 2013. It is anticipated that the transaction, which is subject to normal closing conditions, including applicable regulatory approvals, will close in the third quarter of 2015.
Chief Executive Officer’s Comments
Roy T. K. Thung, Chief Executive Officer of IHC, commented, “We are delighted to announce this transaction, which will be immediately accretive to earnings and will substantially strengthen and increase MNL’s statutory capital and liquidity. MNL will continue in its core group life and disability and specialty health lines, and, as a result of the substantial increase in surplus, we will consider strategic acquisitions and other opportunities to expand our current portfolio of products.”
About Madison National Life Insurance Company, Inc.
Madison National Life Insurance Company, Inc. is domiciled in Wisconsin and licensed to sell insurance products in 49 states, the District of Columbia, Guam, American Samoa and the U.S. Virgin Islands. Its core products and services are group life and disability income and specialty health insurance. It is rated A- (Excellent) for financial strength by A.M. Best Company, a widely recognized rating agency that rates insurance companies on their relative financial strength and ability to meet policyholder obligations (an A++ rating from A.M. Best is its highest rating).
About Independence Holding Company
Independence Holding Company 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, 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 major and limited medical, short-term medical, group long-term and short-term disability, group life, short-term, employer-mandatory disability benefit policies 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. (Nasdaq:AMIC), which is a holding company principally engaged in the insurance and reinsurance business.
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 Independence Holding Company (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
Source:Independence Holding Company