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Independence Holding, American Independence complete sale of stop loss biz to Swiss Re Corporate Solutions

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Independence Holding, American Independence complete sale of stop loss biz to Swiss Re Corporate Solutions

Independence HoldingCo. and American IndependenceCorp. said March 31 that they completed the sale of IHCRisk Solutions LLC and the stop-loss business produced by it for anaggregate of $152.5 million in cash to SwissRe Corporate Solutions Ltd.'s largest U.S. carrier,

IHC Risk Solutions will immediately adopt the Swiss Re CorporateSolutions brand, and IHC Risk Solutions' former president, Mike Kemp, will leadthe North America accident and health business unit of Swiss Re Corporate Solutions,according to a separate news release.

American Independence and its subsidiaries will receive approximately89% of the aggregate amount, while the remaining will be received by .

The sale will result in a pro forma estimated gain and an immediateincrease in book value of approximately $114 million for American Independence.American Independence received $2.9 million, after-tax, in ceding commission asa result of 100% coinsuring its share of the stop-loss business, which will alsoincrease its book value over the co-insurance period.

Independence Holding's pro forma increase in book value and estimatedgain on the sale, after tax, was approximately $100 million, which takes into accountIndependence Holding's ownership of American Independence. Independence Holdingreceived $10.2 million, after-tax, including its share of American Independence,in ceding commission as a result of 100% coinsuring its share of the stop-loss business,which will also increase its book value over the co-insurance period.