August 6, 2015

American Independence Corp. Announces 2015 Second-Quarter and Six-Month Results

NEW YORK, Aug. 06, 2015 (GLOBE NEWSWIRE) -- American Independence Corp. (NASDAQ:AMIC) today reported 2015 second-quarter and six-month results.

Financial Results

AMIC reported net income of $0.9 million ($.11 per diluted share) for the three months ended June 30, 2015 compared to $0.5 million ($.06 per diluted share) for the three months ended June 30, 2014.  AMIC reported net income of $1.6 million ($.20 per diluted share) for the six months ended June 30, 2015 compared to $1.1 million ($.14 per diluted share) for the six months ended June 30, 2014. 

Revenues increased to $45.6 million for the three months ended June 30, 2015 compared to revenues of $40.0 million for the three months ended June 30, 2014, primarily due to an increase in premiums and fee income.  Revenues increased to $89.2 million for the six months ended June 30, 2015 compared to revenues of $83.1 million for the six months ended June 30, 2014, primarily due to an increase in premiums offset by a decrease in agency income. 

Chief Executive Officer's Comments

Roy T. K. Thung, Chief Executive Officer, commented, "We are pleased with the continuing growth in earned premium and with the profitability of business written by IHC Risk Solutions.  We expect continued improvement in this line of business, as evidenced by the 38% growth in our direct business written for the twelve months ended July 2015, while maintaining consistent profit margins on a growing premium base.  With respect to our fully insured operating companies, we continue to build out the direct-to-consumer distribution that is essential to our future growth as a specialty health company, and we are pleased with the growth and profitability of our ancillary lines of business.  Our financial condition and balance sheet remain strong.  We have grown our book value to $11.58 per share at June 30, 2015 from $11.34 per share at December 31, 2014."

About American Independence Corp.

American Independence Corp. is a holding company principally engaged in health insurance and reinsurance.  It provides specialized health coverage and related services to commercial customers and individuals.  Through Independence American Insurance Company and its other subsidiaries, it offers medical stop-loss, non-subscriber occupational accident, pet insurance, short-term medical, vision, dental and various supplemental products, which are marketed through its subsidiaries IHC Specialty Benefits, Inc. (including www.healthedeals.com and www.aspiraAmas.com, IPA Direct, LLC and IPA Family, LLC.  AMIC markets medical stop-loss through its marketing and administrative company IHC Risk Solutions, LLC.

Forward-Looking Statements

Certain statements and information contained in this 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 that 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 American Independence Corp. (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 unless required by applicable law.


American Independence Corp.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
     
  Three Months Ended Six Months Ended
  June 30, June 30,
   2015  2014  2015   2014 
         
Premiums earned$ 37,232 $33,644$ 73,449 $ 66,128 
Fee and agency income  7,080  5,561  13,622   15,537 
Net investment income  498  565  1,110   1,101 
Net realized investment gains  211  235  352   283 
Other income  589  15  634   58 
         
 Revenues  45,610  40,020  89,167   83,107 
         
Insurance benefits, claims and reserves  25,296  20,997  49,266   42,783 
Selling, general and administrative expenses  18,461  17,839  36,526   37,488 
Amortization and depreciation  392  434  679   862 
         
 Expenses  44,149  39,270  86,471   81,133 
         
Income before income tax  1,461  750  2,696   1,974 
Provision for income taxes  523  307  987   649 
         
Net income  938  443  1,709   1,325 
 Less: Net (income) loss attributable to the non-controlling interest  (51) 14  (100)  (226)
         
Net income attributable to American Independence Corp.$ 887 $457$ 1,609 $ 1,099 
         
Basic income per common share:        
 Net income attributable to        
  American Independence Corp. common stockholders$.11  $.06$.20  $.14  
         
Weighted-average shares outstanding  8,079  8,076  8,079   8,075 
         
Diluted income per common share:        
 Net income attributable to        
  American Independence Corp. common stockholders$.11  $.06$.20  $.14  
         
Weighted-average diluted shares outstanding  8,094  8,101  8,093   8,100 



 
 
American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
      
  June 30,   
   2015   December 31,
ASSETS: (Unaudited)   2014 
 Investments:     
 Securities purchased under agreements to resell$ 8,227  $ 3,143 
 Trading securities  1,104    1,138 
 Fixed maturities available-for-sale, at fair value  75,511    73,608 
 Equity securities available-for-sale, at fair value  1,018    1,013 
      
 Total investments  85,860    78,902 
      
 Cash and cash equivalents  4,507    4,569 
 Restricted cash  19,975    18,881 
 Accrued investment income  531    652 
 Premiums receivable  16,907    13,257 
 Net deferred tax asset  8,966    12,025 
 Due from reinsurers  5,861    5,532 
 Goodwill  6,134    - 
 Intangible assets  14,845    9,915 
 Accrued fee income  4,276    4,469 
 Due from securities brokers  352    293 
 Other assets  14,151    17,286 
      
 TOTAL ASSETS$ 182,365  $ 165,781 
      
LIABILITIES AND STOCKHOLDERS' EQUITY:     
 LIABILITIES:     
 Policy benefits and claims$ 41,097  $ 33,616 
 Premium and claim funds payable  19,975    18,881 
 Commission payable  5,705    4,672 
 Accounts payable, accruals and other liabilities  14,095    11,283 
 Debt  3,326    - 
 State income taxes payable  619    597 
 Due to securities brokers  220    58 
 Due to reinsurers  754    2,334 
      
 Total liabilities  85,791    71,441 
       
STOCKHOLDERS' EQUITY:     
 American Independence Corp. stockholders' equity:     
  Preferred stock, $0.10 par value, 1,000 shares designated; no shares issued     
    and outstanding  -    - 
  Common stock, $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares     
    issued, respectively; 8,079,215 shares outstanding, respectively  92    92 
  Additional paid-in capital  80,106    79,746 
  Accumulated other comprehensive gain (loss)  (133)   (154)
  Treasury stock, at cost, 1,102,578 shares, respectively  (10,243)   (10,243)
  Retained earnings  23,700    22,139 
  Total American Independence Corp. stockholders' equity  93,522    91,580 
 Non-controlling interest in subsidiaries  3,052    2,760 
  Total equity  96,574    94,340 
  TOTAL LIABILITIES AND EQUITY$ 182,365  $ 165,781 

 

CONTACT: 
LOAN NISSER
(646) 509-2107
www.americanindependencecorp.com


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