American Independence Corp. Announces 2013 Fourth-Quarter and Annual Results

NEW YORK, March 13, 2014 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2013 fourth-quarter and annual results.

Financial Results

AMIC reported net income of $0.5 million ($.07 per diluted share) for the three months ended December 31, 2013 compared to $7.2 million ($.87 per diluted share) for the three months ended December 31, 2012. Revenues increased to $42.9 million for the three months ended December 31, 2013 compared to revenues of $29.4 million for the three months ended December 31, 2012, primarily due to an increase in premiums.

For the year ended December 31, 2013, AMIC reported net income of $3.4 million ($.43 per diluted share) compared to $9.6 million ($1.16 per diluted share) for the year ended December 31, 2012. Revenues increased to $153.3 million for the year ended December 31, 2013 compared to revenues of $101.9 million for the year ended December 31, 2012, primarily due to an increase in premiums.

The 2012 annual and fourth-quarter results were positively affected by a $5.9 million further reduction of the valuation allowance related to the deferred tax asset; there was not a corresponding reduction in 2013.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "Earned premium for medical stop-loss, our largest line, grew substantially over the same quarter and twelve months of last year. This growth is being driven by the business IHC Risk Solutions writes on a direct basis. The annual written premium for this direct business increased by approximately 24% from 2012 levels. We attribute the growth in our direct distribution to our enhanced sales force, focused underwriting and employer groups moving from fully insured to self-funding as they consider alternatives as a result of health care reform. Profitability of this line in respect of business written on a direct basis continues at expected levels, however, overall profitability of the stop-loss line was lower than expected due to adverse development on two non-owned MGU programs, both of which have been terminated. We expect continued growth of business written on a direct basis in 2014, as evidenced by our 35% growth in business written in January 2014, which is our largest production month. We are also encouraged by the growth in our pet insurance line and, as a result of an equity investment in a producer of non-subscriber occupational accident policies, we anticipate significant premiums from this new line of business in 2014."

About American Independence Corp.

AMIC, through Independence American Insurance Company and its other subsidiaries, offers pet insurance, non-subscriber occupational accident, international coverages, small-group major medical and short-term medical. 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, IHC Specialty Benefits, Inc., and IPA Direct, LLC. 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 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 and 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.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2013 2012 2013 2012
Premiums earned $ 33,745 $ 23,706 $ 127,203 $ 83,778
Fee and agency income 8,448 4,692 22,421 15,441
Net investment income 562 544 2,104 2,126
Net realized investment gains 109 403 1,082 603
Other-than-temporary impairment losses -- -- -- (189)
Other income 82 26 459 126
Revenues 42,946 29,371 153,269 101,885
Insurance benefits, claims and reserves 23,488 15,911 87,118 56,849
Selling, general and administrative expenses 18,043 10,988 58,878 37,875
Amortization and depreciation 245 237 981 509
Expenses 41,776 27,136 146,977 95,233
Income before income tax 1,170 2,235 6,292 6,652
State income tax (expense) benefit 2 (43) (29) (81)
Federal income tax – current and deferred (286) (672) (1,845) (1,929)
Federal income tax – reduction of valuation allowance -- 5,900 -- 5,900
Net income 886 7,420 4,418 10,542
Less: Net income attributable to the non-controlling interest (349) (262) (983) (950)
Net income attributable to American Independence Corp. $ 537 $ 7,158 $ 3,435 $ 9,592
Basic income per common share:
Net income attributable to American Independence Corp. common stockholders $ .07 $ .87 $ .43 $ 1.16
Weighted-average shares outstanding 8,073 8,272 8,076 8,272
Diluted income per common share:
Net income attributable to American Independence Corp. common stockholders $ .07 $ .87 $ .43 $ 1.16
Weighted-average diluted shares outstanding 8,093 8,272 8,084 8,272
American Independence Corp.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31,
ASSETS: 2013 2012
Investments:
Securities purchased under agreements to resell $ 3,563 $ 5,234
Trading securities 859 1,056
Fixed maturities available-for-sale, at fair value 68,222 58,329
Equity securities available-for-sale, at fair value 988 2,507
Total investments 73,632 67,126
Cash and cash equivalents 4,424 4,576
Restricted cash 10,067 13,321
Accrued investment income 604 755
Premiums receivable 14,364 10,387
Net deferred tax asset 11,248 13,024
Due from reinsurers 7,549 6,307
Goodwill 23,561 23,561
Intangible assets 2,336 3,379
Accrued fee income 2,332 3,122
Due from securities brokers 172 61
Other assets 18,105 13,364
TOTAL ASSETS $ 168,394 $ 158,983
LIABILITIES AND STOCKHOLDERS' EQUITY:
LIABILITIES:
Policy benefits and claims $ 35,252 $ 24,993
Premium and claim funds payable 10,067 13,321
Commission payable 5,455 4,329
Accounts payable, accruals and other liabilities 13,250 10,118
State income taxes payable 544 545
Due to securities brokers 45 22
Due to reinsurers 1,177 1,431
Total liabilities 65,790 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 479,481 479,451
Accumulated other comprehensive income (loss) (2,152) 1,829
Treasury stock, at cost, 1,109,245 shares and 909,461 shares, respectively (10,305) (9,107)
Accumulated deficit (364,730) (368,113)
Total American Independence Corp. stockholders' equity 102,386 104,152
Non-controlling interest in subsidiaries 218 72
Total equity 102,604 104,224
TOTAL LIABILITIES AND EQUITY $ 168,394 $ 158,983

CONTACT: ADAM C. VANDERVOORT (646) 509-2156 www.americanindependencecorp.comSource:American Independence Corp.