STAMFORD, Conn.--(BUSINESS WIRE)--June 16, 2005--Independence Holding Company (NYSE:IHC) today announced that Strategic Health Associates, of which IHC owns 80% ("SHA"), has entered into an agreement to acquire a 75% interest in GroupLink, Inc., an administrator of dental benefits based in Indianapolis, Indiana for $1.875 million in cash. Roger W. Skinner will continue as GroupLink's President and continue to own the remaining 25% interest. The acquisition is expected to close by June 30, 2005.
Starting in the fourth quarter of 2005, it is anticipated that GroupLink will begin offering dental insurance in certain jurisdictions through Standard Security Life and Madison National Life. IHC expects that this transaction will be immediately accretive to earnings both through income earned from GroupLink and through the business written by Standard Security Life and Madison National Life.
Roy T.K. Thung, Chief Executive Officer, commented, "In January 2005, we announced the formation of a joint venture with Insurers Administrative Corporation ("IAC"), a leading individual and group health insurance administrator, to form SHA. SHA's vision is to capitalize on opportunities in the health insurance areas through the marketing and administrative talents of IAC and the financial strength and insurance capabilities of IHC. SHA's first acquisition was Health Plan Administrators, Inc. a market leader in short-term medical. GroupLink, our latest acquisition, has focused solely on dental insurance since its inception. We are hopeful that, under the continuing leadership of Roger Skinner, the combined strengths of IHC and IAC, and cross-selling opportunities with our other products, GroupLink will prosper."
Roger Skinner, President of GroupLink, commented "GroupLink has specialized in dental benefits nationwide since 1983. We market our products and services through a network of over 5,000 brokers and agents, and enjoy an excellent reputation for the quality and flexibility. Joining forces with SHA brings tremendous resources, knowledge and synergies to GroupLink which will greatly enhance our ability to provide even better products and services to our brokers, agents and policyholders."
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, long-term and short-term disability, employer-sponsored group major medical, short-term medical, group life and managed health care products. Madison Life sells group life and disability, employer medical stop-loss, employer-sponsored group major medical, credit life and disability and individual life insurance. AMIC is a holding company principally engaged in the insurance and reinsurance business through Independence American Insurance Company and its managing general underwriter division.
Some of the statements included herein may be considered to be forward looking statements which are subject to certain risks and uncertainties. Factors which could cause the actual results to differ materially from those suggested by such statements are described from time to time in IHC's filings with the Securities and Exchange Commission.
CONTACT: Independence Holding Company, Stamford Teresa A. Herbert, 203-358-8000 www.Independenceholding.com
