SoftNet Systems Purchases Insurance Holding Company, Changes Name to American Independence Corp.

SoftNet Systems, Inc. has acquired the stock of Independence American Holdings Corp. (“IAHC”) from Independence Holding Company (“IHC”) and SoftNet has changed its name to American Independence Corp. (“AMIC”).

IAHC is an insurance holding company that owns Independence American Insurance Company (formerly known as First Standard Security Insurance Company (“Independence American”) and two managing general underwriters (“MGUs”). Independence American is a property and casualty insurer and reinsurer which is licensed in 24 states and rated B+ (Very Good) by A.M. Best & Company, Inc.

In addition to issuing and reinsuring provider excess loss insurance, Independence American has entered into reinsurance treaties with Standard Security Life Insurance Company of New York (“Standard Security”) and Madison National Life Insurance Company, Inc. (“Madison National”) under which these companies will cede to Independence American, effective Jan. 1, 2003, 15 percent of their gross employer medical stop-loss and managed care premiums.

The acquired MGUs underwrite and market employer medical stop-loss, provider excess loss, HMO Reinsurance and/or group life. IHC, which owns 19.9 percent of AMIC, is the holding company for Standard Security and Madison National.

AMIC’s shareholders also approved an amendment to the company’s certificate of incorporation to limit acquisitions of its common stock in excess of certain percentage amounts.

AMIC is a holding company engaged principally in insurance and reinsurance business through Independence American, IndependenceCare Holdings LLC, and Risk Assessment Strategies, Inc.

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