Left Shark Investing
Long/short equity, value, Growth

Independence Holding: The Stock That Math Forgot

After the close on January 5th, American Independence Corp. (NASDAQ:AMIC) announced its intention to sell its stop-loss business, IHC Risk Solutions, along with the in-force stop-loss business of Standard Security Life Insurance Company and Independence American Insurance Company, for an aggregate consideration of $152.5 million. Swiss Re (OTCPK:SSREF) is the acquirer. AMIC is slated to receive approximately 89% of this consideration. Its closing price on January 5th was $8.77, or an implied market capitalization of $71 million, with 8.1 million shares outstanding. Given that (1) AMIC was only selling part of its business, and (2) this part of the business was valued by the acquirer at nearly 2x its then-current market capitalization, the shares have appreciated

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