August 7, 2013

American Independence Corp. Announces 2013 Second-Quarter and Six-Month Results

NEW YORK, Aug. 7, 2013 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2013 second-quarter and six-month results.

Financial Results

Net income attributable to AMIC increased to $1.5 million ($.19 per share, diluted), for the three months ended June 30, 2013 compared to $0.3 million ($.04 per share, diluted), for the three months ended June 30, 2012. Revenues increased to $37.4 million for the three months ended June 30, 2013 compared to revenues of $23.5 million for the three months ended June 30, 2012, primarily due to an increase in premiums.

Net income attributable to AMIC increased to $2.2 million ($.27 per share, diluted), for the six months ended June 30, 2013 compared to $1.4 million ($.17 per share, diluted), for the six months ended June 30, 2012. Revenues increased to $72.7 million for the six months ended June 30, 2013 compared to revenues of $45.7 million for the six months ended June 30, 2012, primarily due to an increase in premiums.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "Earned premium for our medical stop-loss for the second quarter grew 22% over the same quarter last year, driven by annual growth rates at IHC Risk Solutions of 28% in our direct-written business. Profitability of this line of business continues at expected levels. We see a significant portion of this growth arising from employer groups moving from fully insured to self-funding as they consider their alternatives as a result of changes being brought about by health care reform. We expect a continuation of these trends through the remainder of this year and into 2014. Our financial condition and balance sheet remain strong. We have no debt and have grown our book value to $12.67 per share at June 30, 2013 from $12.59 per share at December 31, 2012."

About American Independence Corp.

AMIC, through Independence American Insurance Company and its other subsidiaries, offers major medical for individuals and families, medical stop-loss, small group major medical, short-term medical, various supplemental products, pet insurance, and non-subscriber occupational accident and international coverages. AMIC provides to the individual and self-employed markets health insurance and related products, which are distributed through its subsidiaries, IPA Family, LLC, healthinsurance.org, LLC, and IHC Specialty Benefits, Inc. AMIC markets medical stop-loss through its marketing and administrative company IHC Risk Solutions, LLC.

Certain statements in this news release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the markets in which AMIC operates, new federal or state governmental regulation, AMIC's ability to effectively operate, integrate and leverage any past or future strategic acquisition, and other factors which can be found in AMIC's other news releases and filings with the Securities and Exchange Commission. AMIC expressly disclaims any duty to update its forward-looking statements or earnings guidance, and does not undertake to provide any such guidance in the future.  

American Independence Corp.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
 
 Three Months EndedSix Months Ended
 June 30,June 30,
 2013201220132012
       
Premiums earned $ 31,618  $ 19,334  $ 61,614  $ 37,791 
Fee and agency income 4,688  3,739  8,935  6,867 
Net investment income 501  500  1,005  996 
Net realized investment gains 387  44  927  170 
Other-than-temporary impairment losses --  (189) --  (189)
Other income 179  47  252  74 
         
Revenues 37,373 23,475  72,733  45,709 
         
Insurance benefits, claims and reserves 20,194  14,266  41,427  25,957 
Selling, general and administrative expenses 14,397  8,417  27,001  17,010 
Amortization and depreciation 256  45  484  90 
         
Expenses 34,847  22,728  68,912  43,057 
         
Income before income tax 2,526  747  3,821  2,652 
Provision for income taxes 821  196  1,193  804 
         
Net income 1,705  551  2,628  1,848 
Less: Net income attributable to the non-controlling interest (201) (242) (433) (420)
         
Net income attributable to American Independence Corp. $ 1,504  $ 309  $ 2,195  $ 1,428 
         
Basic income per common share:      
Net income attributable to American Independence Corp. common stockholders $ .19  $ .04  $ .27  $ .17 
         
Weighted-average shares outstanding 8,073  8,272  8,079  8,272 
         
Diluted income per common share:      
Net income attributable to American Independence Corp. common stockholders $ .19  $ .04  $ .27  $ .17 
         
Weighted-average diluted shares outstanding 8,076  8,272  8,079  8,272 
 
 
American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
 June 30, 
 2013December 31,
ASSETS:(Unaudited)2012
Investments:  
Securities purchased under agreements to resell $ 5,288  $ 5,234 
Trading securities 1,066  1,056 
Fixed maturities available-for-sale, at fair value 67,129  58,329 
Equity securities available-for-sale, at fair value 997  2,507 
     
Total investments 74,480  67,126 
     
Cash and cash equivalents 1,152  4,576 
Restricted cash 10,554  13,321 
Accrued investment income 601  755 
Premiums receivable 17,267  10,387 
Net deferred tax asset 11,891  13,024 
Due from reinsurers 6,672  6,307 
Goodwill 23,561  23,561 
Intangible assets 2,752  3,379 
Accrued fee income 2,459  3,122 
Due from securities brokers 112  61 
Other assets 12,888  13,364 
    
TOTAL ASSETS $ 164,389  $ 158,983 
    
LIABILITIES AND STOCKHOLDERS' EQUITY:   
LIABILITIES:   
Insurance reserves $ 34,218  $ 24,993 
Premium and claim funds payable 10,554  13,321 
Commission payable 5,837  4,329 
Accounts payable, accruals and other liabilities 9,602  10,118 
State income taxes payable 555  545 
Due to securities brokers 171  22 
Due to reinsurers 1,019  1,431 
     
Total liabilities 61,956  54,759 
     
STOCKHOLDERS' EQUITY:    
American Independence Corp. stockholders' equity:    
Preferred stock, $0.10 par value, 1,000 shares designated; no shares issued and outstanding --  -- 
Common stock, $0.01 par value, 15,000,000 shares authorized;
9,181,793 shares issued, respectively; 8,072,548 and 8,272,332 shares outstanding, respectively
92  92 
Additional paid-in capital 479,456  479,451 
Accumulated other comprehensive income (loss) (1,030) 1,829 
Treasury stock, at cost, 1,109,245 shares and 909,461 shares, respectively (10,305) (9,107)
Accumulated deficit (365,915) (368,113)
Total American Independence Corp. stockholders' equity 102,298  104,152 
Non-controlling interest in subsidiaries 135  72 
Total equity 102,433  104,224 
TOTAL LIABILITIES AND EQUITY $ 164,389  $ 158,983 
CONTACT: DAVID T. KETTIG

         (212) 355-4141 Ext. 3047

         www.americanindependencecorp.com


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