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NEW YORK, March 13, 2014 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2013 fourth-quarter and annual results.
AMIC reported net income of $0.5 million ($.07 per diluted share) for the three months ended December 31, 2013 compared to $7.2 million ($.87 per diluted share) for the three months ended December 31, 2012. Revenues increased to $42.9 million for the three months ended December 31, 2013 compared to revenues of $29.4 million for the three months ended December 31, 2012, primarily due to an increase in premiums.
For the year ended December 31, 2013, AMIC reported net income of $3.4 million ($.43 per diluted share) compared to $9.6 million ($1.16 per diluted share) for the year ended December 31, 2012. Revenues increased to $153.3 million for the year ended December 31, 2013 compared to revenues of $101.9 million for the year ended December 31, 2012, primarily due to an increase in premiums.
The 2012 annual and fourth-quarter results were positively affected by a $5.9 million further reduction of the valuation allowance related to the deferred tax asset; there was not a corresponding reduction in 2013.
Chief Executive Officer's Comments
Roy Thung, Chief Executive Officer, commented, "Earned premium for medical stop-loss, our largest line, grew substantially over the same quarter and twelve months of last year. This growth is being driven by the business IHC Risk Solutions writes on a direct basis. The annual written premium for this direct business increased by approximately 24% from 2012 levels. We attribute the growth in our direct distribution to our enhanced sales force, focused underwriting and employer groups moving from fully insured to self-funding as they consider alternatives as a result of health care reform. Profitability of this line in respect of business written on a direct basis continues at expected levels, however, overall profitability of the stop-loss line was lower than expected due to adverse development on two non-owned MGU programs, both of which have been terminated. We expect continued growth of business written on a direct basis in 2014, as evidenced by our 35% growth in business written in January 2014, which is our largest production month. We are also encouraged by the growth in our pet insurance line and, as a result of an equity investment in a producer of non-subscriber occupational accident policies, we anticipate significant premiums from this new line of business in 2014."