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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

Source:American Independence Corp.