IPO Profile

KMG America

Tel: 952-474-8674
Web:
Ticker: KMA
Amount Raised: $189,000,000.00

Description:
KMG America is a newly formed holding company, incorporated under the laws of the Commonwealth of Virginia. It was formed to acquire Kanawha, a provider of voluntary life and health insurance products in the southeastern United States, and to operate and grow Kanawha's insurance and other related businesses. Our initial operations primarily will consist of the operations that we acquire from Kanawha. We intend to grow our worksite insurance marketing and distribution business by hiring experienced sales personnel, marketing our products nationwide and introducing new life and health insurance products. We intend to differentiate ourselves from our competitors by offering a broad mix of voluntary and group life and health insurance products that, when combined with our third-party administration services, are designed to provide an attractive mix of products and services to employers and their employees. We believe that few insurance companies currently offer a wide range of both voluntary and group life and health insurance products because, historically, voluntary insurance products have been marketed through independent insurance agents and group insurance products have been marketed through internal sales forces. Because of the potential for conflicts to occur when carriers target worksites through these two marketing channels, most established insurance carriers do not pursue a worksite marketing strategy that offers a wide array of both group and voluntary life and health insurance products as we intend to do. We plan to avoid these conflicts by having our independent agents and our internal sales force target different segments of the worksite marketplace based upon employer size and other criteria. We will also continue to write life and health insurance business through distribution outlets other than the worksite, primarily senior market insurance products offered through independent agents. In addition, we expect to earn revenue from administrative services for third parties such as companies with self funded health plans and other insurance carriers and reinsurers, as well as commission revenues from the placement of other insurance carriers' products through our distribution systems.