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American Independence Corp. Announces 2016 Second-Quarter and Six-Month Results

NEW YORK, Aug. 15, 2016 (GLOBE NEWSWIRE) -- American Independence Corp. (NASDAQ:AMIC) today reported 2016 second-quarter and six-month results.

Financial Results

On March 31, 2016, AMIC completed the sale of IHC Risk Solutions, LLC (“Risk Solutions”) and the medical stop-loss business it produced and realized an after tax gain of approximately $114 million. In addition, under the purchase and sale agreement, all of the in-force medical stop-loss business of Independence American Insurance Company produced by Risk Solutions is 100% co-insured as of January 1, 2016. AMIC’s block of medical stop-loss business is in run-off. The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company’s operations and financial results. The disposal transaction qualifies for reporting as discontinued operations in the first quarter of 2016.

AMIC reported net income of $1.3 million ($.16 per diluted share) for the three months ended June 30, 2016 compared to $0.9 million ($.11 per diluted share) for the three months ended June 30, 2015. Income from continuing operations was $1.4 million ($.16 per diluted share), and $1.0 million ($.11 per diluted share), for the three months ended June 30, 2016 and 2015, respectively.

AMIC reported net income of $115.5 million ($14.22 per diluted share) for the six months ended June 30, 2016 compared to $1.6 million ($.20 per diluted share) for the six months ended June 30, 2015. Income from continuing operations was $1.8 million ($.19 per diluted share), and $1.2 million ($.14 per diluted share), for the six months ended June 30, 2016 and 2015, respectively.

Revenues decreased to $29.4 million and $58.8 million for the three months and six months ended June 30, 2016, respectively, compared to revenues of $42.2 million and $81.6 million for the three months and six months ended June 30, 2015, respectively, primarily due to the sale of Risk Solutions and the exit from the medical stop-loss business.

Independence Holding Company (“IHC”) intends to take the Company private on or about August 31, 2016 by way of a statutory “short-form" merger. As a result, IHC will indirectly own all of the outstanding shares of common stock of AMIC.

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.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2016 2015 2016 2015
REVENUES:
Premiums earned$ 21,735 $ 37,232 $42,831$73,449
Agency income 5,094 3,639 10,594 6,116
Net investment income 1,155 485 2,625 1,084
Net realized investment gains (losses) 389 211 603 352
Other income 1,073 593 2,195 594
29,446 42,160 58,848 81,595
EXPENSES
Insurance benefits, claims and reserves 13,508 25,296 28,474 49,266
Selling, general and administrative expenses 13,573 15,168 27,079 30,120
Amortization and depreciation 303 217 583 332
27,384 40,681 56,136 79,718
Income from continuing operations before income taxes 2,062 1,479 2,712 1,877
Provision for income taxes 669 527 903 667
Income from continuing operations 1,393 952 1,809 1,210
Discontinued operations:
Income (loss) from discontinued operations, before income taxes - (18) 122,034 819
Income taxes on discontinued operations (22) (4) 8,047 320
Income (loss) from discontinued operations 22 (14) 113,987 499
Net income 1,415 938 115,796 1,709
Less: Net (income) loss attributable to the non-controlling interest 88 51 266 100
Net income attributable to American Independence Corp.$ 1,327 $ 887 $115,530$1,609
Basic income per common share:
Income from continuing operations$.16$.11$.19$.14
Income from discontinued operations - - 14.06 .06
Basic income per common share$.16$.11$14.25$.20
Weighted-average shares outstanding 8,119 8,079 8,110 8,079
Diluted income per common share:
Income from continuing operations$.16$.11$.19$.14
Income from discontinued operations - - 14.03 .06
Diluted income per common share$.16$.11$14.22$.20
Weighted-average diluted shares outstanding 8,148 8,094 8,125 8,093


American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
June 30,
2016 December 31,
ASSETS: (Unaudited) 2015
Investments:
Securities purchased under agreements to resell$ 7,527 $ 4,595
Fixed maturities available-for-sale, at fair value 201,707 84,933
Equity securities available-for-sale, at fair value 2,608 2,594
Total investments 211,842 92,122
Cash and cash equivalents 7,824 4,861
Restricted cash 1,379 1,377
Accrued investment income 1,626 727
Premiums receivable 15,988 16,654
Net deferred tax asset 14,723 13,944
Due from reinsurers 36,161 4,950
Goodwill 5,703 5,703
Intangible assets 12,814 13,327
Due from securities brokers 403 1,051
Other assets 12,623 10,540
Assets attributable to discontinued operations (Note 3) - 31,718
TOTAL ASSETS$ 321,086 $ 196,974
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Policy benefits and claims$ 47,512 $ 43,764
Premium and claim funds payable 1,379 1,377
Commission payable 7,294 5,817
Accounts payable, accruals and other liabilities 10,396 11,192
Debt 2,025 3,189
State income taxes payable 5,904 -
Due to securities brokers 1,973 -
Due to reinsurers 18,436 100
Liabilities attributable to discontinued operations (Note 3) 953 24,337
Total liabilities 95,872 89,776
STOCKHOLDERS’ EQUITY:
American Independence Corp. stockholders’ equity:
Preferred stock, $0.10 par value, 1,000 shares designated; no shares issued
and outstanding - -
Common stock, $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares
issued, respectively; 8,118,551 and 8,088,105 shares outstanding, respectively 92 92
Additional paid-in capital 88,658 88,637
Accumulated other comprehensive gain (loss) 1,740 (197)
Treasury stock, at cost, 1,063,242 and 1,093,688 shares, respectively (9,878) (10,161)
Retained earnings 141,026 25,549
Total American Independence Corp. stockholders’ equity 221,638 103,920
Non-controlling interest in subsidiaries 3,576 3,278
Total equity 225,214 107,198
TOTAL LIABILITIES AND EQUITY$ 321,086 $ 196,974

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

Source:American Independence Corp.