American Independence Corp. (NASDAQ:AMIC) and Independence Holding Company (NYSE:IHC) today announced the sale of their in-force stop-loss business of Standard Security Life Insurance Company of NY, and sale of the stock of IHC Risk Solutions LLC.
This has caused shares of American Independence Corp. (NASDAQ:AMIC) to shoot up almost 50% in afternoon trading today.
“The transaction has been approved by the independent members of the Boards of Directors of IHC, AMIC and SSL and by the holders of approximately 92% of the outstanding stock of AMIC,” the company explained. “It is anticipated that the transaction, which is subject to certain closing conditions including applicable regulatory approvals, will close in the first quarter of 2016. This transaction will result in very significant gains in both income and book value of both IHC and AMIC, which amounts will not be fully determined until after closing of the transaction.”
The deal is worth $152.5 million in cash. AMIC stock is up 47.12% or $4.01 following the news, hitting $12.51 per share. About 22,183 shares traded hands or up 3724.66% from the average. amic has declined 12.39% since June 2, 2015 and is currently downtrending. It has underperformed the S&P500 by 7.70%.
American Independence Corp. is a holding firm principally engaged in health insurance and reinsurance. The company has a market cap of $67.91 million. The Firm provides specialized health coverage and related services to commercial clients and individuals. It has 18.95 P/E ratio. The Company’s wholly owned subsidiary include Independence American Insurance Company, markets its products through IHC Risk Solutions, LLC, IHC Specialty Benefits, Inc., IPA Family, LLC, and IPA Direct, LLC, which are subsidiaries of AMIC, and through independent brokers, producers and agents.