American Independence Corp. Announces 2013 Second-Quarter and Six-Month Results

NEW YORK, Aug. 7, 2013 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2013 second-quarter and six-month results.

Financial Results

Net income attributable to AMIC increased to $1.5 million ($.19 per share, diluted), for the three months ended June 30, 2013 compared to $0.3 million ($.04 per share, diluted), for the three months ended June 30, 2012. Revenues increased to $37.4 million for the three months ended June 30, 2013 compared to revenues of $23.5 million for the three months ended June 30, 2012, primarily due to an increase in premiums.

Net income attributable to AMIC increased to $2.2 million ($.27 per share, diluted), for the six months ended June 30, 2013 compared to $1.4 million ($.17 per share, diluted), for the six months ended June 30, 2012. Revenues increased to $72.7 million for the six months ended June 30, 2013 compared to revenues of $45.7 million for the six months ended June 30, 2012, primarily due to an increase in premiums.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "Earned premium for our medical stop-loss for the second quarter grew 22% over the same quarter last year, driven by annual growth rates at IHC Risk Solutions of 28% in our direct-written business. Profitability of this line of business continues at expected levels. We see a significant portion of this growth arising from employer groups moving from fully insured to self-funding as they consider their alternatives as a result of changes being brought about by health care reform. We expect a continuation of these trends through the remainder of this year and into 2014. Our financial condition and balance sheet remain strong. We have no debt and have grown our book value to $12.67 per share at June 30, 2013 from $12.59 per share at December 31, 2012."

About American Independence Corp.

AMIC, through Independence American Insurance Company and its other subsidiaries, offers major medical for individuals and families, medical stop-loss, small group major medical, short-term medical, various supplemental products, pet insurance, and non-subscriber occupational accident and international coverages. 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, and IHC Specialty Benefits, Inc. 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 which 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 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)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
Premiums earned $ 31,618 $ 19,334 $ 61,614 $ 37,791
Fee and agency income 4,688 3,739 8,935 6,867
Net investment income 501 500 1,005 996
Net realized investment gains 387 44 927 170
Other-than-temporary impairment losses -- (189) -- (189)
Other income 179 47 252 74
Revenues 37,373 23,475 72,733 45,709
Insurance benefits, claims and reserves 20,194 14,266 41,427 25,957
Selling, general and administrative expenses 14,397 8,417 27,001 17,010
Amortization and depreciation 256 45 484 90
Expenses 34,847 22,728 68,912 43,057
Income before income tax 2,526 747 3,821 2,652
Provision for income taxes 821 196 1,193 804
Net income 1,705 551 2,628 1,848
Less: Net income attributable to the non-controlling interest (201) (242) (433) (420)
Net income attributable to American Independence Corp. $ 1,504 $ 309 $ 2,195 $ 1,428
Basic income per common share:
Net income attributable to American Independence Corp. common stockholders $ .19 $ .04 $ .27 $ .17
Weighted-average shares outstanding 8,073 8,272 8,079 8,272
Diluted income per common share:
Net income attributable to American Independence Corp. common stockholders $ .19 $ .04 $ .27 $ .17
Weighted-average diluted shares outstanding 8,076 8,272 8,079 8,272
American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
June 30,
2013 December 31,
ASSETS: (Unaudited) 2012
Investments:
Securities purchased under agreements to resell $ 5,288 $ 5,234
Trading securities 1,066 1,056
Fixed maturities available-for-sale, at fair value 67,129 58,329
Equity securities available-for-sale, at fair value 997 2,507
Total investments 74,480 67,126
Cash and cash equivalents 1,152 4,576
Restricted cash 10,554 13,321
Accrued investment income 601 755
Premiums receivable 17,267 10,387
Net deferred tax asset 11,891 13,024
Due from reinsurers 6,672 6,307
Goodwill 23,561 23,561
Intangible assets 2,752 3,379
Accrued fee income 2,459 3,122
Due from securities brokers 112 61
Other assets 12,888 13,364
TOTAL ASSETS $ 164,389 $ 158,983
LIABILITIES AND STOCKHOLDERS' EQUITY:
LIABILITIES:
Insurance reserves $ 34,218 $ 24,993
Premium and claim funds payable 10,554 13,321
Commission payable 5,837 4,329
Accounts payable, accruals and other liabilities 9,602 10,118
State income taxes payable 555 545
Due to securities brokers 171 22
Due to reinsurers 1,019 1,431
Total liabilities 61,956 54,759
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 and 8,272,332 shares outstanding, respectively
92 92
Additional paid-in capital 479,456 479,451
Accumulated other comprehensive income (loss) (1,030) 1,829
Treasury stock, at cost, 1,109,245 shares and 909,461 shares, respectively (10,305) (9,107)
Accumulated deficit (365,915) (368,113)
Total American Independence Corp. stockholders' equity 102,298 104,152
Non-controlling interest in subsidiaries 135 72
Total equity 102,433 104,224
TOTAL LIABILITIES AND EQUITY $ 164,389 $ 158,983

CONTACT: DAVID T. KETTIG (212) 355-4141 Ext. 3047 www.americanindependencecorp.comSource:American Independence Corp.