NEW YORK, Aug. 15, 2016 (GLOBE NEWSWIRE) — American Independence Corp. (NASDAQ:AMIC) today reported 2016 second-quarter and six-month results.

Financial Results

On March 31, 2016, AMIC completed the sale of IHC Risk Solutions, LLC (“Risk Solutions”) and the medical stop-loss business it produced and realized an after tax gain of approximately $114 million.  In addition, under the purchase and sale agreement, all of the in-force medical stop-loss business of Independence American Insurance Company produced by Risk Solutions is 100% co-insured as of January 1, 2016.  AMIC’s block of medical stop-loss business is in run-off.  The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company’s operations and financial results.  The disposal transaction qualifies for reporting as discontinued operations in the first quarter of 2016.  

AMIC reported net income of $1.3 million ($.16 per diluted share) for the three months ended June 30, 2016 compared to $0.9 million ($.11 per diluted share) for the three months ended June 30, 2015.  Income from continuing operations was $1.4 million ($.16 per diluted share), and $1.0 million ($.11 per diluted share), for the three months ended June 30, 2016 and 2015, respectively.

AMIC reported net income of $115.5 million ($14.22 per diluted share) for the six months ended June 30, 2016 compared to $1.6 million ($.20 per diluted share) for the six months ended June 30, 2015.  Income from continuing operations was $1.8 million ($.19 per diluted share), and $1.2 million ($.14 per diluted share), for the six months ended June 30, 2016 and 2015, respectively.

Revenues decreased to $29.4 million and $58.8 million for the three months and six months ended June 30, 2016, respectively, compared to revenues of $42.2 million and $81.6 million for the three months and six months ended June 30, 2015, respectively, primarily due to the sale of Risk Solutions and the exit from the medical stop-loss business. 

Independence Holding Company (“IHC”) intends to take the Company private on or about August 31, 2016 by way of a statutory “short-form” merger.  As a result, IHC will indirectly own all of the outstanding shares of common stock of AMIC.

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.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
 
    Three Months   Six Months
    Ended June 30,   Ended June 30,
      2016       2015     2016   2015
REVENUES:                
  Premiums earned $   21,735   $   37,232   $ 42,831 $ 73,449
  Agency income     5,094       3,639     10,594   6,116
  Net investment income     1,155       485     2,625   1,084
  Net realized investment gains (losses)     389       211     603   352
  Other income     1,073       593     2,195   594
      29,446       42,160     58,848   81,595
                 
                 
EXPENSES                
  Insurance benefits, claims and reserves     13,508       25,296     28,474   49,266
  Selling, general and administrative expenses     13,573       15,168     27,079   30,120
  Amortization and depreciation     303       217     583   332
      27,384       40,681     56,136   79,718
                 
Income from continuing operations before income taxes     2,062       1,479     2,712   1,877
Provision for income taxes     669       527     903   667
                 
Income from continuing operations     1,393       952     1,809   1,210
                 
Discontinued operations:                
  Income (loss) from discontinued operations, before income taxes           (18 )   122,034   819
  Income taxes on discontinued operations     (22 )     (4 )   8,047   320
  Income (loss) from discontinued operations     22       (14 )   113,987   499
                 
Net income     1,415       938     115,796   1,709
  Less: Net (income) loss attributable to the non-controlling interest     88       51     266   100
                 
Net income attributable to American Independence Corp. $   1,327   $   887   $ 115,530 $ 1,609
                 
Basic income per common share:                
  Income from continuing operations $ .16 $ .11 $ .19 $ .14
  Income from discontinued operations               14.06   .06
    Basic income per common share $ .16 $ .11 $ 14.25 $ .20
                 
Weighted-average shares outstanding     8,119       8,079     8,110   8,079
                 
Diluted income per common share:                
  Income from continuing operations $ .16 $ .11 $ .19 $ .14
  Income from discontinued operations               14.03   .06
    Diluted income per common share $ .16 $ .11 $ 14.22 $ .20
                 
Weighted-average diluted shares outstanding     8,148       8,094     8,125   8,093
                         

 
American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
    June 30,      
      2016       December 31,
ASSETS:   (Unaudited)       2015  
  Investments:          
  Securities purchased under agreements to resell $   7,527     $   4,595  
  Fixed maturities available-for-sale, at fair value     201,707         84,933  
  Equity securities available-for-sale, at fair value     2,608         2,594  
           
  Total investments     211,842         92,122  
           
  Cash and cash equivalents     7,824         4,861  
  Restricted cash     1,379         1,377  
  Accrued investment income     1,626         727  
  Premiums receivable     15,988         16,654  
  Net deferred tax asset     14,723         13,944  
  Due from reinsurers     36,161         4,950  
  Goodwill     5,703         5,703  
  Intangible assets     12,814         13,327  
  Due from securities brokers     403         1,051  
  Other assets     12,623         10,540  
  Assets attributable to discontinued operations (Note 3)             31,718  
           
  TOTAL ASSETS $   321,086     $   196,974  
           
LIABILITIES AND STOCKHOLDERS’ EQUITY:          
  LIABILITIES:          
  Policy benefits and claims $   47,512     $   43,764  
  Premium and claim funds payable     1,379         1,377  
  Commission payable     7,294         5,817  
  Accounts payable, accruals and other liabilities     10,396         11,192  
  Debt     2,025         3,189  
  State income taxes payable     5,904          
  Due to securities brokers     1,973          
  Due to reinsurers     18,436         100  
  Liabilities attributable to discontinued operations (Note 3)     953         24,337  
           
  Total liabilities     95,872         89,776  
             
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; 8,118,551 and 8,088,105 shares outstanding, respectively     92         92  
    Additional paid-in capital     88,658         88,637  
    Accumulated other comprehensive gain (loss)     1,740         (197 )
    Treasury stock, at cost, 1,063,242 and 1,093,688 shares, respectively     (9,878 )       (10,161 )
    Retained earnings     141,026         25,549  
    Total American Independence Corp. stockholders’ equity     221,638         103,920  
  Non-controlling interest in subsidiaries     3,576         3,278  
    Total equity     225,214         107,198  
    TOTAL LIABILITIES AND EQUITY $   321,086     $   196,974  
                       
CONTACT: CONTACT:  LOAN NISSER
(646) 509-2107
www.americanindependencecorp.com
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