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American Independence Corp. Announces 2015 Fourth-Quarter and Annual Results

NEW YORK, June 06, 2016 (GLOBE NEWSWIRE) -- American Independence Corp. (NASDAQ:AMIC) today reported 2015 fourth-quarter and annual results. As a result of the delay in reporting these results, AMIC is currently working on its 2016 first-quarter results.

Financial Results

AMIC reported net income of $0.3 million ($.03 per diluted share) for the three months ended December 31, 2015 compared to $2.1 million ($.26 per diluted share) for the three months ended December 31, 2014. AMIC reported net income of $3.5 million ($.44 per diluted share) for the twelve months ended December 31, 2015 compared to $5.3 million ($.65 per diluted share) for the twelve months ended December 31, 2014. Income excluding taxes for the 2014 fourth quarter and year was positively impacted by an increase of $2.5 million in the deferred tax asset related to our federal net operating loss carryforward, with no corresponding amount in 2015.

Revenues increased to $47.4 million for the three months ended December 31, 2015 compared to revenues of $40.6 million for the three months ended December 31, 2014, primarily due to an increase in premiums, agency income and fee income. Revenues increased to $183.3 million for the twelve months ended December 31, 2015 compared to revenues of $164.9 million for the twelve months ended December 31, 2014, primarily due to an increase in premiums and fee income, offset by a decrease in agency income and realized gains.

Chief Executive Officer’s Comments

Roy T. K. Thung, Chief Executive Officer, commented, “Our financial condition and balance sheet remain strong. We have grown our book value to $12.85 per share at December 31, 2015 from $12.39 per share at December 31, 2014. As previously announced, AMIC completed the sale of IHC Risk Solutions LLC and the stop-loss business it produced on March 31, 2016 and realized an after tax gain of approximately $114 million. This gain will further increase our book value per share from the December 31, 2015 value. AMIC is now re-positioning itself as a specialty health and pet insurance underwriter and sales and marketing company, and will focus on the growth of these lines of business in 2016 and beyond.”

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.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
Premiums earned$ 37,925 $ 33,551 $ 148,803 $ 133,606
Fee and agency income 8,520 6,437 30,963 27,918
Net investment income 551 557 2,247 2,202
Net realized investment gains 70 104 260 967
Other income (loss) 302 (37) 993 183
Revenues 47,368 40,612 183,266 164,876
Insurance benefits, claims and reserves 25,286 24,875 98,741 88,887
Selling, general and administrative expenses 20,477 16,049 76,410 69,752
Amortization and depreciation 477 412 1,605 1,692
Expenses 46,240 41,336 176,756 160,331
Income (loss) before income tax 1,128 (724) 6,510 4,545
Provision (benefit) for income taxes 658 (2,790) 2,695 (802)
Net income 470 2,066 3,815 5,347
Less: Net (income) loss attributable to the non-controlling interest (191) 28 (286) (97)
Net income attributable to American Independence Corp.$ 279 $ 2,094 $ 3,529 $ 5,250
Basic income per common share:
Net income attributable to
American Independence Corp. common stockholders$.03 $.26 $.44 $.65
Weighted-average shares outstanding 8,088 8,079 8,082 8,077
Diluted income per common share:
Net income attributable to
American Independence Corp. common stockholders$.03 $.26 $.44 $.65
Weighted-average diluted shares outstanding 8,094 8,093 8,094 8,103
As of June 1, 2016, there were 8,118,551 common shares outstanding, net of treasury shares.


American Independence Corp.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31,
ASSETS: 2015 2014
Investments:
Securities purchased under agreements to resell$ 4,595 $ 3,143
Trading securities - 1,138
Fixed maturities available-for-sale, at fair value 84,933 73,608
Equity securities available-for-sale, at fair value 2,594 1,013
Total investments 92,122 78,902
Cash and cash equivalents 5,765 4,569
Restricted cash 21,735 18,881
Accrued investment income 733 652
Premiums receivable 16,654 13,257
Net deferred tax asset 16,215 19,977
Due from reinsurers 4,950 5,532
Goodwill 5,703 -
Intangible assets 14,113 9,915
Accrued fee income 5,307 4,469
Due from securities brokers 1,051 293
Other assets 12,626 17,247
TOTAL ASSETS$ 196,974 $ 173,694
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Policy benefits and claims$ 43,764 $ 33,616
Premium and claim funds payable 21,735 18,881
Commission payable 6,302 4,672
Accounts payable, accruals and other liabilities 14,686 11,283
Debt 3,189 -
Due to securities brokers - 58
Due to reinsurers 100 2,334
Total liabilities 89,776 70,844
STOCKHOLDERS’ EQUITY:
American Independence Corp. stockholders’ equity:
Preferred stock, $0.10 par value, 1,000 shares designated; no shares issued
and outstanding - -
Common stock, $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares
issued, respectively; 8,088,105 and 8,079,215 shares outstanding, respectively 92 92
Additional paid-in capital 88,637 88,256
Accumulated other comprehensive loss (197) (154)
Treasury stock, at cost, 1,093,688 and 1,102,578 shares, respectively (10,161) (10,243)
Retained earnings 25,549 22,139
Total American Independence Corp. stockholders’ equity 103,920 100,090
Non-controlling interest in subsidiaries 3,278 2,760
Total equity 107,198 102,850
TOTAL LIABILITIES AND EQUITY$ 196,974 $ 173,694


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

Source:American Independence Corp.