Transport Holdings, Inc.

Supplemental Accident and Health Insurance Company

In September 1995, IP completed the tax-free "sponsored" spin-off of Transport Holdings, Inc. from its parent, Travelers Group. After preliminary negotiations, Travelers decided that an outright sale of the subsidiary did not accomplish its objectives and therefore pulled the company off the market. IP devised the sponsored spin-off structure, the first of its kind within the insurance sector, in an effort to respond to the needs of the seller, while at the same time maintaining an attractive risk-return profile for its investors. Headquartered in Fort Worth, Texas, Transport, through its wholly owned subsidiary, Transport Life Insurance Co., was a leading writer of specialty supplemental health insurance products, primarily cancer, heart/stroke, and long-term care products.