OREANDA-NEWS. American Independence Corp. (NASDAQ:AMIC) today reported 2015 fourth-quarter and annual results.  As a result of the delay in reporting these results, AMIC is currently working on its 2016 first-quarter results.

Financial Results

AMIC reported net income of $0.3 million ($.03 per diluted share) for the three months ended December 31, 2015 compared to $2.1 million ($.26 per diluted share) for the three months ended December 31, 2014.  AMIC reported net income of $3.5 million ($.44 per diluted share) for the twelve months ended December 31, 2015 compared to $5.3 million ($.65 per diluted share) for the twelve months ended December 31, 2014.  Income excluding taxes for the 2014 fourth quarter and year was positively impacted by an increase of $2.5 million in the deferred tax asset related to our federal net operating loss carryforward, with no corresponding amount in 2015.

Revenues increased to $47.4 million for the three months ended December 31, 2015 compared to revenues of $40.6 million for the three months ended December 31, 2014, primarily due to an increase in premiums, agency income and fee income.  Revenues increased to $183.3 million for the twelve months ended December 31, 2015 compared to revenues of $164.9 million for the twelve months ended December 31, 2014, primarily due to an increase in premiums and fee income, offset by a decrease in agency income and realized gains. 

Chief Executive Officer’s Comments

Roy T. K. Thung, Chief Executive Officer, commented, “Our financial condition and balance sheet remain strong.  We have grown our book value to $12.85 per share at December 31, 2015 from $12.39 per share at December 31, 2014.  As previously announced, AMIC completed the sale of IHC Risk Solutions LLC and the stop-loss business it produced on March 31, 2016 and realized an after tax gain of approximately $114 million.  This gain will further increase our book value per share from the December 31, 2015 value.  AMIC is now re-positioning itself as a specialty health and pet insurance underwriter and sales and marketing company, and will focus on the growth of these lines of business in 2016 and beyond.”

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.
Consolidated Statements of Income
(In thousands, except per share data)
         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
      2015       2014       2015       2014  
                 
Premiums earned $   37,925   $   33,551   $   148,803   $   133,606  
Fee and agency income     8,520       6,437       30,963       27,918  
Net investment income     551       557       2,247       2,202  
Net realized investment gains     70       104       260       967  
Other income (loss)     302       (37 )     993       183  
                 
  Revenues     47,368       40,612       183,266       164,876  
                 
Insurance benefits, claims and reserves     25,286       24,875       98,741       88,887  
Selling, general and administrative expenses     20,477       16,049       76,410       69,752  
Amortization and depreciation     477       412       1,605       1,692  
                 
  Expenses     46,240       41,336       176,756       160,331  
                 
Income (loss) before income tax     1,128       (724 )     6,510       4,545  
Provision (benefit) for income taxes     658       (2,790 )     2,695       (802 )
                 
Net income     470       2,066       3,815       5,347  
  Less: Net (income) loss attributable to the non-controlling interest     (191 )     28       (286 )     (97 )
                 
Net income attributable to American Independence Corp. $   279   $   2,094   $   3,529   $   5,250  
                 
Basic income per common share:                
  Net income attributable to                
    American Independence Corp. common stockholders $ .03   $ .26   $ .44   $ .65  
                 
Weighted-average shares outstanding     8,088       8,079       8,082       8,077  
                 
Diluted income per common share:                
  Net income attributable to                
    American Independence Corp. common stockholders $ .03   $ .26   $ .44   $ .65  
                 
Weighted-average diluted shares outstanding     8,094       8,093       8,094       8,103  
 
As of June 1, 2016, there were 8,118,551 common shares outstanding, net of treasury shares.
 
American Independence Corp.
Consolidated Balance Sheets
(In thousands, except per share data)
           
    December 31,     December 31,
ASSETS:     2015         2014  
  Investments:          
  Securities purchased under agreements to resell $   4,595      $   3,143   
  Trading securities     -          1,138   
  Fixed maturities available-for-sale, at fair value     84,933          73,608   
  Equity securities available-for-sale, at fair value     2,594          1,013   
           
  Total investments     92,122          78,902   
           
  Cash and cash equivalents     5,765          4,569   
  Restricted cash     21,735          18,881   
  Accrued investment income     733          652   
  Premiums receivable     16,654          13,257   
  Net deferred tax asset     16,215          19,977   
  Due from reinsurers     4,950          5,532   
  Goodwill     5,703          -   
  Intangible assets     14,113          9,915   
  Accrued fee income     5,307          4,469   
  Due from securities brokers     1,051          293   
  Other assets     12,626          17,247   
           
  TOTAL ASSETS $   196,974      $   173,694   
           
LIABILITIES AND STOCKHOLDERS’ EQUITY:          
  LIABILITIES:          
  Policy benefits and claims $   43,764      $   33,616   
  Premium and claim funds payable     21,735          18,881   
  Commission payable     6,302          4,672   
  Accounts payable, accruals and other liabilities     14,686          11,283   
  Debt     3,189          -   
  Due to securities brokers     -          58   
  Due to reinsurers     100          2,334   
           
  Total liabilities     89,776          70,844   
             
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     88,637          88,256   
    Accumulated other comprehensive loss     (197 )       (154 )
    Treasury stock, at cost, 1,093,688 and 1,102,578 shares, respectively     (10,161 )       (10,243 )
    Retained earnings     25,549          22,139   
    Total American Independence Corp. stockholders’ equity     103,920          100,090   
  Non-controlling interest in subsidiaries     3,278          2,760   
    Total equity     107,198          102,850   
    TOTAL LIABILITIES AND EQUITY $   196,974      $   173,694