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American Independence Corp. Announces 2014 First-Quarter Results

NEW YORK, May 8, 2014 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2014 first-quarter results.

Financial Results

AMIC reported net income of $0.8 million ($.09 per diluted share) for the three months ended March 31, 2014 compared to $0.7 million ($.09 per diluted share) for the three months ended March 31, 2013.

Revenues increased to $43.1 million for the three months ended March 31, 2014 compared to revenues of $35.4 million for the three months ended March 31, 2013, primarily due to an increase in premiums and agency income.

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 of last year. This growth is being driven by the business IHC Risk Solutions writes on a direct basis. 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. Business written on a direct basis performed very profitably, but overall performance of the stop-loss line was impacted due to two non-owned MGU programs, both of which were terminated during 2013. We expect continued growth of business written as evidenced by the 30% growth in our direct business written for the twelve months ended April 30, 2014. We are also encouraged by the growth in our pet insurance and non-subscriber occupational accident lines, and we anticipate growth in premiums to continue throughout 2014. Our financial condition and balance sheet remain strong. We have no debt and have grown our book value to $12.94 per share at March 31, 2014 from $12.68 per share at December 31, 2013."

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.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended
March 31,
2014 2013
Premiums earned $ 32,484 $ 29,996
Fee and agency income 9,976 4,247
Net investment income 536 504
Net realized investment gains 48 540
Other income 43 73
Revenues 43,087 35,360
Insurance benefits, claims and reserves 21,786 21,233
Selling, general and administrative expenses 19,649 12,604
Amortization and depreciation 237 228
Expenses 41,672 34,065
Income before income tax 1,415 1,295
Provision for income taxes 409 372
Net income 1,006 923
Less: Net income attributable to the non-controlling interest (240) (232)
Net income attributable to American Independence Corp. $ 766 $ 691
Basic income per common share:
Net income attributable to
American Independence Corp. common stockholders $ .09 $ .09
Weighted-average shares outstanding 8,073 8,086
Diluted income per common share:
Net income attributable to
American Independence Corp. common stockholders $ .09 $ .09
Weighted-average diluted shares outstanding 8,098 8,086
American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
March 31, December 31,
ASSETS: 2014 2013
Investments:
Securities purchased under agreements to resell $ 2,049 $ 3,563
Trading securities 1,207 859
Fixed maturities available-for-sale, at fair value 72,232 68,222
Equity securities available-for-sale, at fair value 1,002 988
Total investments 76,490 73,632
Cash and cash equivalents 3,140 4,424
Restricted cash 14,693 10,067
Accrued investment income 665 604
Premiums receivable 14,915 14,364
Net deferred tax asset 10,850 11,248
Due from reinsurers 6,507 7,549
Goodwill 23,561 23,561
Intangible assets 2,138 2,336
Accrued fee income 2,818 2,332
Due from securities brokers 154 172
Other assets 24,040 18,105
TOTAL ASSETS $ 179,971 $ 168,394
LIABILITIES AND STOCKHOLDERS' EQUITY:
LIABILITIES:
Policy benefits and claims $ 34,806 $ 35,252
Premium and claim funds payable 14,693 10,067
Commission payable 6,430 5,455
Accounts payable, accruals and other liabilities 17,145 13,250
State income taxes payable 535 544
Due to securities brokers 98 45
Due to reinsurers 1,553 1,177
Total liabilities 75,260 65,790
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 shares outstanding, respectively 92 92
Additional paid-in capital 479,493 479,481
Accumulated other comprehensive loss (845) (2,152)
Treasury stock, at cost, 1,109,245 shares, respectively (10,305) (10,305)
Accumulated deficit (363,977) (364,730)
Total American Independence Corp. stockholders' equity 104,458 102,386
Non-controlling interest in subsidiaries 253 218
Total equity 104,711 102,604
TOTAL LIABILITIES AND EQUITY $ 179,971 $ 168,394

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