August 15, 2016

American Independence Corp. Announces 2016 Second-Quarter and Six-Month Results

NEW YORK, Aug. 15, 2016 (GLOBE NEWSWIRE) -- American Independence Corp. (NASDAQ:AMIC) today reported 2016 second-quarter and six-month results.

Financial Results

On March 31, 2016, AMIC completed the sale of IHC Risk Solutions, LLC ("Risk Solutions") and the medical stop-loss business it produced and realized an after tax gain of approximately $114 million.  In addition, under the purchase and sale agreement, all of the in-force medical stop-loss business of Independence American Insurance Company produced by Risk Solutions is 100% co-insured as of January 1, 2016.  AMIC's block of medical stop-loss business is in run-off.  The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company's operations and financial results.  The disposal transaction qualifies for reporting as discontinued operations in the first quarter of 2016.  

AMIC reported net income of $1.3 million ($.16 per diluted share) for the three months ended June 30, 2016 compared to $0.9 million ($.11 per diluted share) for the three months ended June 30, 2015.  Income from continuing operations was $1.4 million ($.16 per diluted share), and $1.0 million ($.11 per diluted share), for the three months ended June 30, 2016 and 2015, respectively.

AMIC reported net income of $115.5 million ($14.22 per diluted share) for the six months ended June 30, 2016 compared to $1.6 million ($.20 per diluted share) for the six months ended June 30, 2015.  Income from continuing operations was $1.8 million ($.19 per diluted share), and $1.2 million ($.14 per diluted share), for the six months ended June 30, 2016 and 2015, respectively.

Revenues decreased to $29.4 million and $58.8 million for the three months and six months ended June 30, 2016, respectively, compared to revenues of $42.2 million and $81.6 million for the three months and six months ended June 30, 2015, respectively, primarily due to the sale of Risk Solutions and the exit from the medical stop-loss business. 

Independence Holding Company ("IHC") intends to take the Company private on or about August 31, 2016 by way of a statutory "short-form" merger.  As a result, IHC will indirectly own all of the outstanding shares of common stock of AMIC.

About American Independence Corp.

American Independence Corp. (AMIC) 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 non-subscriber occupational accident, pet insurance, short-term medical, vision, dental and various supplemental products.  Through its subsidiaries IHC Specialty Benefits, Inc. (including through www.healthedeals.com and www.aspiraAmas.com), IPA Direct, LLC and IPA Family, LLC, AMIC markets products underwritten by its affiliated companies and various products (including ACA plans and medical stop-loss) on behalf of unaffiliated carriers.

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 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 Six Months
  Ended June 30, Ended June 30,
   2016   2015   2016 2015
REVENUES:         
 Premiums earned$ 21,735 $ 37,232 $42,831$73,449
 Agency income  5,094   3,639  10,594  6,116
 Net investment income  1,155   485  2,625 1,084
 Net realized investment gains (losses)  389   211  603 352
 Other income  1,073   593  2,195  594
   29,446   42,160  58,848 81,595
         
         
EXPENSES        
 Insurance benefits, claims and reserves  13,508   25,296  28,474 49,266
 Selling, general and administrative expenses  13,573   15,168  27,079 30,120
 Amortization and depreciation  303   217  583 332
   27,384   40,681  56,136 79,718
         
Income from continuing operations before income taxes  2,062   1,479  2,712 1,877
Provision for income taxes  669   527  903 667
         
Income from continuing operations  1,393   952  1,809 1,210
         
Discontinued operations:        
 Income (loss) from discontinued operations, before income taxes  -   (18) 122,034 819
 Income taxes on discontinued operations  (22)  (4) 8,047 320
 Income (loss) from discontinued operations  22   (14) 113,987 499
         
Net income  1,415   938  115,796 1,709
 Less: Net (income) loss attributable to the non-controlling interest  88   51  266 100
         
Net income attributable to American Independence Corp.$ 1,327 $ 887 $115,530$1,609
         
Basic income per common share:        
 Income from continuing operations$.16$.11$.19$.14
 Income from discontinued operations  -   -  14.06 .06
  Basic income per common share$.16$.11$14.25$.20
         
Weighted-average shares outstanding  8,119   8,079   8,110 8,079
         
Diluted income per common share:        
 Income from continuing operations $.16$.11$.19$.14
 Income from discontinued operations  -   -  14.03 .06
  Diluted income per common share$.16$.11$14.22$.20
         
Weighted-average diluted shares outstanding  8,148   8,094  8,125 8,093
             


 
American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
  June 30,   
   2016   December 31,
ASSETS:  (Unaudited)   2015 
 Investments:     
 Securities purchased under agreements to resell$ 7,527  $ 4,595 
 Fixed maturities available-for-sale, at fair value  201,707     84,933 
 Equity securities available-for-sale, at fair value  2,608    2,594 
      
 Total investments  211,842    92,122 
      
 Cash and cash equivalents  7,824    4,861 
 Restricted cash  1,379    1,377 
 Accrued investment income  1,626    727 
 Premiums receivable  15,988    16,654 
 Net deferred tax asset  14,723    13,944 
 Due from reinsurers   36,161    4,950 
 Goodwill  5,703    5,703 
 Intangible assets  12,814    13,327 
 Due from securities brokers  403    1,051 
 Other assets  12,623    10,540 
 Assets attributable to discontinued operations (Note 3)  -    31,718 
      
 TOTAL ASSETS$ 321,086  $ 196,974 
      
LIABILITIES AND STOCKHOLDERS' EQUITY:     
 LIABILITIES:     
  Policy benefits and claims$ 47,512  $ 43,764 
 Premium and claim funds payable  1,379    1,377 
 Commission payable  7,294    5,817  
 Accounts payable, accruals and other liabilities  10,396    11,192 
 Debt  2,025    3,189 
 State income taxes payable  5,904    - 
 Due to securities brokers  1,973    - 
 Due to reinsurers  18,436    100 
 Liabilities attributable to discontinued operations (Note 3)  953    24,337 
       
 Total liabilities  95,872    89,776 
        
STOCKHOLDERS' EQUITY:     
 American Independence Corp. stockholders' equity:     
  Preferred stock, $0.10 par value, 1,000 shares designated; no shares issued      
  and outstanding  -    - 
  Common stock, $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares     
  issued, respectively; 8,118,551 and 8,088,105 shares outstanding, respectively  92    92 
  Additional paid-in capital  88,658    88,637 
  Accumulated other comprehensive gain (loss)  1,740    (197)
  Treasury stock, at cost, 1,063,242 and 1,093,688 shares, respectively  (9,878)    (10,161)
  Retained earnings  141,026    25,549 
  Total American Independence Corp. stockholders' equity  221,638    103,920 
 Non-controlling interest in subsidiaries  3,576    3,278 
  Total equity  225,214    107,198 
  TOTAL LIABILITIES AND EQUITY$ 321,086  $ 196,974 
            

CONTACT:  LOAN NISSER

(646) 509-2107

www.americanindependencecorp.com

Source: American Independence Corp.

News Provided by Acquire Media


Close window | Back to top

Copyright 2018 American Independence Corp.