American Independence Corp. Announces 2013 Fourth-Quarter And Annual Results

NEW YORK, March 13, 2014 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2013 fourth-quarter and annual results.

Financial 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."

About American Independence Corp.

AMIC, through Independence American Insurance Company and its other subsidiaries, offers pet insurance, non-subscriber occupational accident, international coverages, small-group major medical and short-term medical. 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, IHC Specialty Benefits, Inc., and IPA Direct, LLC. 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 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 and 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.
Consolidated Statements of Income
(In thousands, except per share data)
         
  Three Months Ended Year Ended
  December 31, December 31,
  2013 2012 2013 2012
         
Premiums earned $ 33,745   $ 23,706   $ 127,203   $ 83,778  
Fee and agency income  8,448  4,692  22,421  15,441 
Net investment income 562  544  2,104  2,126 
Net realized investment gains 109  403  1,082  603 
Other-than-temporary impairment losses --  --  --  (189)
Other income  82  26  459  126 
         
Revenues 42,946  29,371  153,269  101,885 
         
Insurance benefits, claims and reserves  23,488  15,911  87,118  56,849 
Selling, general and administrative expenses  18,043  10,988  58,878  37,875 
Amortization and depreciation 245  237  981  509 
         
Expenses 41,776  27,136  146,977  95,233 
         
Income before income tax 1,170  2,235  6,292  6,652 
State income tax (expense) benefit (43) (29) (81)
Federal income tax – current and deferred (286) (672) (1,845) (1,929)
Federal income tax – reduction of valuation allowance --  5,900  --  5,900 
         
Net income 886  7,420  4,418  10,542 
Less: Net income attributable to the non-controlling interest (349) (262) (983) (950)
         
Net income attributable to American Independence Corp. $ 537   $ 7,158   $ 3,435   $ 9,592  
         
Basic income per common share:        
Net income attributable to American Independence Corp. common stockholders $ .07  $ .87  $ .43  $ 1.16 
         
Weighted-average shares outstanding 8,073  8,272  8,076  8,272 
         
Diluted income per common share:        
Net income attributable to American Independence Corp. common stockholders $ .07  $ .87  $ .43  $ 1.16 
         
Weighted-average diluted shares outstanding 8,093  8,272  8,084  8,272 
 
American Independence Corp.
Consolidated Balance Sheets
(In thousands, except per share data)
     
     
  December 31, December 31,
ASSETS: 2013 2012
Investments:    
Securities purchased under agreements to resell $ 3,563   $ 5,234  
Trading securities 859  1,056 
Fixed maturities available-for-sale, at fair value 68,222  58,329 
Equity securities available-for-sale, at fair value 988  2,507 
     
Total investments 73,632  67,126 
     
Cash and cash equivalents  4,424  4,576 
Restricted cash 10,067  13,321 
Accrued investment income 604  755 
Premiums receivable 14,364  10,387 
Net deferred tax asset 11,248  13,024 
Due from reinsurers 7,549  6,307 
Goodwill 23,561  23,561 
Intangible assets 2,336  3,379 
Accrued fee income 2,332  3,122 
Due from securities brokers 172  61 
Other assets 18,105  13,364 
     
TOTAL ASSETS $ 168,394  $ 158,983 
     
LIABILITIES AND STOCKHOLDERS' EQUITY:    
LIABILITIES:    
Policy benefits and claims $ 35,252  $ 24,993 
Premium and claim funds payable 10,067  13,321 
Commission payable 5,455  4,329 
Accounts payable, accruals and other liabilities 13,250  10,118 
State income taxes payable 544  545 
Due to securities brokers 45  22 
Due to reinsurers 1,177  1,431 
     
Total liabilities 65,790  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 479,481  479,451 
Accumulated other comprehensive income (loss) (2,152) 1,829 
Treasury stock, at cost, 1,109,245 shares and 909,461 shares, respectively (10,305) (9,107)
Accumulated deficit (364,730) (368,113)
Total American Independence Corp. stockholders' equity  102,386  104,152 
Non-controlling interest in subsidiaries 218  72 
Total equity 102,604  104,224 
TOTAL LIABILITIES AND EQUITY $ 168,394  $ 158,983 
CONTACT: ADAM C. VANDERVOORT         (646) 509-2156         www.americanindependencecorp.com

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