American Independence Corp. Announces 2015 Third-Quarter And Nine-Month Results

NEW YORK, Nov. 09, 2015 (GLOBE NEWSWIRE) -- American Independence Corp. (NASDAQ:AMIC) today reported 2015 third-quarter and nine-month results.

Financial Results

AMIC reported net income of $1.6 million ($.20 per diluted share) for the three months ended September 30, 2015 compared to $2.1 million ($.25 per diluted share) for the three months ended September 30, 2014.  AMIC reported net income of $3.3 million ($.40 per diluted share) for the nine months ended September 30, 2015 compared to $3.2 million ($.39 per diluted share) for the nine months ended September 30, 2014. 

Revenues increased to $46.7 million for the three months ended September 30, 2015 compared to revenues of $41.2 million for the three months ended September 30, 2014, primarily due to an increase in premiums, agency income and fee income.  Revenues increased to $135.9 million for the nine months ended September 30, 2015 compared to revenues of $124.3 million for the nine months ended September 30, 2014, primarily due to an increase in premiums and fee income, offset by a decrease in agency income. 

Chief Executive Officer's Comments

Roy T. K. Thung, Chief Executive Officer, commented, "We are pleased with the continuing growth in earned premium of business written by IHC Risk Solutions, as evidenced by the 32% growth in our direct business written for the twelve months ended October 31, 2015.  With respect to our fully insured operating companies, we continue to build out the direct-to-consumer distribution that is essential to our future growth as a specialty health company, and we are pleased with the growth and excellent profitability of our ancillary and disability lines of business.  Income was negatively impacted in the quarter by realized investment losses of $162,000 versus gains of $580,000 for the three months ended September 30, 2015 and 2014, respectively.  Our financial condition and balance sheet remain strong.  We have grown our book value to $11.85 per share at September 30, 2015 from $11.34 per share at December 31, 2014."

About American Independence Corp.

American Independence Corp. 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 medical stop-loss, non-subscriber occupational accident, pet insurance, short-term medical, vision, dental and various supplemental products, which are marketed through its subsidiaries IHC Specialty Benefits, Inc. (including www.healthedeals.com and www.aspiraAmas.com, IPA Direct, LLC and IPA Family, LLC.  AMIC markets medical stop-loss through its marketing and administrative company IHC Risk Solutions, LLC.

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 American Independence Corp. (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 Ended   Nine Months Ended
    September 30,   September 30,
      2015     2014     2015       2014  
                 
Premiums earned $   37,429   $ 33,927 $   110,878   $   100,055  
Fee and agency income     8,821     5,944     22,443       21,481  
Net investment income     586     544     1,696       1,645  
Net realized investment gains (losses)     (162 )   580     190       863  
Other income     57     162     691       220  
                 
  Revenues     46,731     41,157     135,898       124,264  
                 
Insurance benefits, claims and reserves     24,189     21,229     73,455       64,012  
Selling, general and administrative expenses     19,407     16,215     55,933       53,703  
Amortization and depreciation     449     418     1,128       1,280  
                 
  Expenses     44,045     37,862     130,516       118,995  
                 
Income before income tax     2,686     3,295     5,382       5,269  
Provision for income taxes     1,050     1,339     2,037       1,988  
                 
Net income     1,636      1,956     3,345       3,281  
  Less: Net (income) loss attributable to the non-controlling interest         101     (95 )     (125 )
                 
Net income attributable to American Independence Corp. $   1,641   $ 2,05  $   3,250   $   3,156  
                 
Basic income per common share:                
  Net income attributable to                
    American Independence Corp. common stockholders $   .20   $ .25 $   .40   $   .39  
                 
Weighted-average shares outstanding     8,083     8,079     8,080       8,076   
                 
Diluted income per common share:                
  Net income attributable to                
    American Independence Corp. common stockholders $   .20   $ .25 $   .40   $   .39  
                 
Weighted-average diluted shares outstanding     8,094     8,097     8,092       8,102  

American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
           
    September 30,      
      2015       December 31,
ASSETS:   (Unaudited)       2014  
  Investments:          
  Securities purchased under agreements to resell $   4,616     $   3,143  
  Trading securities     1,107         1,138  
  Fixed maturities available-for-sale, at fair value     84,840         73,608  
  Equity securities available-for-sale, at fair value     1,025         1,013  
           
  Total investments     91,588         78,902  
           
  Cash and cash equivalents     6,235         4,569  
  Restricted cash     17,531         18,881  
  Accrued investment income     772         652  
  Premiums receivable     17,797         13,257  
  Net deferred tax asset     7,694         12,025  
  Due from reinsurers     5,703         5,532  
  Goodwill     6,134         -  
  Intangible assets     14,476         9,915  
  Accrued fee income     5,027         4,469  
  Due from securities brokers     533         293  
  Other assets     14,012         17,286  
           
  TOTAL ASSETS $   187,502     $   165,781  
           
LIABILITIES AND STOCKHOLDERS' EQUITY:          
  LIABILITIES:          
  Policy benefits and claims $   43,819     $   33,616  
  Premium and claim funds payable     17,516         18,881  
  Commission payable     6,132         4,672  
  Accounts payable, accruals and other liabilities     16,476         11,283  
  Debt     3,189         -  
  State income taxes payable     618         597  
  Due to securities brokers     78         58  
  Due to reinsurers     786         2,334  
           
  Total liabilities     88,614         71,441  
             
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     80,116         79,746  
    Accumulated other comprehensive gain (loss)     484         (154 )
    Treasury stock, at cost, 1,093,688 and 1,102,578 shares, respectively     (10,161 )       (10,243 )
    Retained earnings     25,303         22,139  
    Total American Independence Corp. stockholders' equity     95,834         91,580  
  Non-controlling interest in subsidiaries     3,054         2,760  
    Total equity     98,888         94,340  
    TOTAL LIABILITIES AND EQUITY $   187,502     $   165,781  

 

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

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