Hey check this out. PAMC to focus on Health Axis. Gets a customer and receive cash.
biz.yahoo.com
Thursday November 12, 5:00 pm Eastern Time
Company Press Release
Provident American Corporation to
Sell Insurance Subsidiary in
Continued Strategic Shift to Its
Online Venture -- HealthAxis.com
Selling Provident American Life and Health Insurance Company to Central
Reserve Life Corporation
NORRISTOWN, Pa.--(BUSINESS WIRE)--Nov. 12, 1998-- Provident American
Corporation (NASDAQ:PAMC - news) announced today that it has reached an agreement to
sell an insurance subsidiary to further facilitate the Company's strategic shift to its online health
insurance venture, HealthAxis.com.
Under the sales agreement, the Company will sell all of the common stock of Provident American
Life and Health Insurance Company to Central Reserve Life Insurance Company, a subsidiary of
Central Reserve Life Corporation (NASDAQ:CRLC - news), for approximately $5 million.
Central Reserve Life, in conjunction with the Reassurance Company of Hannover, will assume
through reinsurance all of the individual and small group heath insurance currently in force through
Provident American Corporation's subsidiaries for a ceding commission payment to Provident
American Corporation of approximately $10 million. The purchase and reinsurance are expected
to be completed on or before January 1, 1999, and are subject to regulatory approvals.
The agreement calls for Central Reserve Life to provide health products for Internet sales through
HealthAxis.com for a three-year period, and Provident Indemnity Life may reinsure up to 50% of
the risk. Central Reserve Life also will work to develop additional health insurance products for
sale through HealthAxis.com.
As a pioneer in the electronic distribution of health insurance, HealthAxis.com will offer Internet
consumers a full range of insurance products, including health insurance for individuals and small
groups, dental insurance, vision care insurance, prescription coverage, critical care and long-term
care insurance. HealthAxis.com also will provide product and health information, instant price
quotes, online billing, claim status, and policy or personal information changes and a customer
hotline.
''We are delighted to have reached this sale agreement that continues our strategic shift to our
online health insurance venture, HealthAxis.com,'' said Alvin H. Clemens, Chairman and Chief
Executive Officer of Provident American Corporation. ''We look forward to working with
Central Reserve Life to develop cutting-edge consumer products for HealthAxis.com.''
About Provident American Corporation
The Provident American Corporation is an insurance holding company specializing in the
marketing of unique and affordable healthcare and life policies to individuals and small businesses,
a $75 billion annual premium market.
About HealthAxis.com
HealthAxis.com, a subsidiary of Provident American Corporation, is a pioneer in the electronic
distribution of health insurance to the individual and small group markets. Through its interactive,
user-friendly Web site, healthaxis.com, HealthAxis.com will provide customers with
access to and the ability to purchase a full range of high quality, flexible insurance products and
services at very competitive prices.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain
statements made by the Companies which are not historical facts may be considered
forward-looking statements, including, without limitation, statements as to trends, management's
beliefs, expectations and opinions, which are based upon a number of assumptions concerning
future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are
subject to risks and uncertainties and may be affected by various factors which may cause actual
results to differ materially from those in the forward-looking statements. For further information
which could cause actual results to differ from the Companies' expectations as well as other
factors which could affect the Companies' financial statements, please refer to the Companies'
reports filed with the Securities and Exchange Commission.
Contact:
Provident American Corporation, Norristown
John Gillin, 610/279-2500
More Quotes
and News:
Central Reserve Life Corp (Nasdaq:CRLC - news)
Provident American Corp (Nasdaq:PAMC - news)
Related News Categories: banking, insurance
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