American Independence Corp. Announces Acquisition of National Marketing Organization Distributing Individual Major Medical Polic

  
    
  
  
    
      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.