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American Independence Corp. Announces 2015 Third-Quarter and Nine-Month Results

NEW YORK, Nov. 09, 2015 (GLOBE NEWSWIRE) -- American Independence Corp. (NASDAQ:AMIC) today reported 2015 third-quarter and nine-month results.

Financial Results

AMIC reported net income of $1.6 million ($.20 per diluted share) for the three months ended September 30, 2015 compared to $2.1 million ($.25 per diluted share) for the three months ended September 30, 2014. AMIC reported net income of $3.3 million ($.40 per diluted share) for the nine months ended September 30, 2015 compared to $3.2 million ($.39 per diluted share) for the nine months ended September 30, 2014.

Revenues increased to $46.7 million for the three months ended September 30, 2015 compared to revenues of $41.2 million for the three months ended September 30, 2014, primarily due to an increase in premiums, agency income and fee income. Revenues increased to $135.9 million for the nine months ended September 30, 2015 compared to revenues of $124.3 million for the nine months ended September 30, 2014, primarily due to an increase in premiums and fee income, 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 of business written by IHC Risk Solutions, as evidenced by the 32% growth in our direct business written for the twelve months ended October 31, 2015. 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 excellent profitability of our ancillary and disability lines of business. Income was negatively impacted in the quarter by realized investment losses of $162,000 versus gains of $580,000 for the three months ended September 30, 2015 and 2014, respectively. Our financial condition and balance sheet remain strong. We have grown our book value to $11.85 per share at September 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 Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Premiums earned$ 37,429 $33,927$ 110,878 $ 100,055
Fee and agency income 8,821 5,944 22,443 21,481
Net investment income 586 544 1,696 1,645
Net realized investment gains (losses) (162) 580 190 863
Other income 57 162 691 220
Revenues 46,731 41,157 135,898 124,264
Insurance benefits, claims and reserves 24,189 21,229 73,455 64,012
Selling, general and administrative expenses 19,407 16,215 55,933 53,703
Amortization and depreciation 449 418 1,128 1,280
Expenses 44,045 37,862 130,516 118,995
Income before income tax 2,686 3,295 5,382 5,269
Provision for income taxes 1,050 1,339 2,037 1,988
Net income 1,636 1,956 3,345 3,281
Less: Net (income) loss attributable to the non-controlling interest 5 101 (95) (125)
Net income attributable to American Independence Corp.$ 1,641 $2,05 $ 3,250 $ 3,156
Basic income per common share:
Net income attributable to
American Independence Corp. common stockholders$ .20 $.25$ .40 $ .39
Weighted-average shares outstanding 8,083 8,079 8,080 8,076
Diluted income per common share:
Net income attributable to
American Independence Corp. common stockholders$ .20 $.25$ .40 $ .39
Weighted-average diluted shares outstanding 8,094 8,097 8,092 8,102



American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
September 30,
2015 December 31,
ASSETS: (Unaudited) 2014
Investments:
Securities purchased under agreements to resell$ 4,616 $ 3,143
Trading securities 1,107 1,138
Fixed maturities available-for-sale, at fair value 84,840 73,608
Equity securities available-for-sale, at fair value 1,025 1,013
Total investments 91,588 78,902
Cash and cash equivalents 6,235 4,569
Restricted cash 17,531 18,881
Accrued investment income 772 652
Premiums receivable 17,797 13,257
Net deferred tax asset 7,694 12,025
Due from reinsurers 5,703 5,532
Goodwill 6,134 -
Intangible assets 14,476 9,915
Accrued fee income 5,027 4,469
Due from securities brokers 533 293
Other assets 14,012 17,286
TOTAL ASSETS$ 187,502 $ 165,781
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Policy benefits and claims$ 43,819 $ 33,616
Premium and claim funds payable 17,516 18,881
Commission payable 6,132 4,672
Accounts payable, accruals and other liabilities 16,476 11,283
Debt 3,189 -
State income taxes payable 618 597
Due to securities brokers 78 58
Due to reinsurers 786 2,334
Total liabilities 88,614 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, $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares
issued, respectively; 8,088,105 and 8,079,215 shares outstanding, respectively 92 92
Additional paid-in capital 80,116 79,746
Accumulated other comprehensive gain (loss) 484 (154)
Treasury stock, at cost, 1,093,688 and 1,102,578 shares, respectively (10,161) (10,243)
Retained earnings 25,303 22,139
Total American Independence Corp. stockholders’ equity 95,834 91,580
Non-controlling interest in subsidiaries 3,054 2,760
Total equity 98,888 94,340
TOTAL LIABILITIES AND EQUITY$ 187,502 $ 165,781



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

Source:American Independence Corp.