Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, and Independence Holding Company, through its subsidiaries, a leading specialty health insurer and administrator, announced that they have agreed to set up a Best Practices Administration Exchange for health and pet insurance lines of business nationally.
The joint venture, which is targeted at creating a highly efficient administration exchange, combines the best of Ebix Technology and outsourcing practices with IHC’s expertise as of one of the foremost fully insured administrators in the country. The agreement between the two companies involves the following key salient aspects –
- IHC contributes to the joint venture its existing TPA operations – now known as Ebix Health Administration Exchange, Inc.
- A multi-year outsourcing deal, estimated to generate revenues of approximately $5 million a year to Ebix and create significant cost savings to Ebix Health Administration Exchange as a result of creating a highly efficient Administration Exchange for health and pet insurance
- IHC, which will also receive cash, holds 60% and Ebix holds 40% of the interests in the joint venture, with Ebix having the option to increase to a 50% ownership position over the next three years
- Technology powered by Ebix Enterprise, while retiring all applicable legacy systems of IHC over the next few months
- Ebix contributes certain pet insurance technology assets to the joint venture to help power an end-to-end pet insurance administration exchange, which would complement IHC’s existing role as one of the nation’s leading pet insurers
David Kettig, Chief Operating Officer of IHC, commented, “We believe that combining one of the industry’s leading administrative capabilities of our TPA with the cutting-edge and highly efficient technology platform of Ebix will overnight propel Ebix Health Administration Exchange to be a leader in providing administrative solutions in multiple health care markets, including both public and private exchanges. In addition, we are delighted to be able to combine IHC’s knowledge as a leading provider of pet insurance nationally with the groundbreaking CurePet system. CurePet, which just went into production with one of the leading veterinary universities in the country, provides pet parents, specialty pet hospitals and universities and general veterinary practices with the only open exchange in the country for all such constituencies.”
Pete Wirski, CEO of Ebix Health Administration Exchange, stated, “We are thrilled to be able to work with healthcare providers nationally in connecting consumers to some of the nation’s best networks of hospitals and physicians. We believe that, as a result of the Affordable Care Act and the recent wave of mega insurance mergers, there will be a growing need for the types of services we provide, and that Ebix Health Administration Exchange is ideally situated to be the leader in providing a full spectrum of back-office solutions to health systems, insurance companies and accountable care organizations. In addition, we will now be able to offer new and unique technology and administrative solutions in the vast and largely underserved pet care and health insurance industry.”
“Ebix has the industry’s most feature-rich, cutting edge, end-to-end Health Enterprise Exchange system functioning across 50 states today. Combine that with the expanse of our outsourcing services and consistent record of having run high margin businesses over the last decade, we believe that we have the ability to improve any insurance entity’s operating margins considerably,” Robin Raina, President & Chief Executive Officer of Ebix, said. “The outsourcing deal gives us a high level of confidence that we will be able to create a high margin, end-to-end industry leading administration exchange. Combine that with IHC’s expertise in health and pet insurance, and we have the ingredients for a Best Practices Administration Exchange joint venture.” (Original Source)
Shares of Ebix closed yesterday at $27.43. EBIX has a 1-year high of $38.04 and a 1-year low of $12.64. The stock’s 50-day moving average is $29.63 and its 200-day moving average is $30.61.
Ebix Inc provides a series of application software products for the insurance industry from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries.