IHC to sell interest in pet division

Independence Holding Company reported its agreement to sell a controlling interest in its pet division and in the stock of Independence American Insurance Company (“Independence American”) to a subsidiary of Iguana Capital, an investment company specifically formed to facilitate this transaction.

IHC and its wholly-owned subsidiary IHC SB Holdings (“SBH”) have entered into a Stock Purchase Agreement with Iguana to sell its 85% interest in PetPartners. In addition, IHC and its wholly-owned subsidiary, AMIC Holdings, have entered into a Stock Purchase Agreement with Iguana to sell all of the stock of Independence American Holdings Company (“IAHC”), which owns all of the stock of Independence American. In aggregate for both deals, IHC will receive 70% of the consideration in cash, or approximately $265 million, and will receive 30% of the stock of Iguana.