American Independence Corp. Announces 2012 Third-Quarter and Nine-Month Results

American Independence Corp. Announces 2012 Third-Quarter and Nine-Month
Results

NEW YORK, Nov. 8, 2012 (GLOBE NEWSWIRE) -- American Independence Corp.
(Nasdaq:AMIC) today reported 2012 third-quarter and nine-month results. This
press release contains both GAAP and non-GAAP financial information for which
reconciliations can be found at the end of this release.

Financial Results

Net income increased to $1.0 million ($.12 per share, diluted), for the three
months ended September 30, 2012, compared to $0.9 million ($.11 per share,
diluted), for the three months ended September 30, 2011.Revenues increased to
$26.8 million for the three months ended September 30, 2012, compared to
revenues of $23.0 million for the three months ended September 30, 2011,
primarily due to an increase in premiums.

Net income increased to $2.4 million ($.29 per share, diluted), for the nine
months ended September 30, 2012, compared to $2.0 million ($.23 per share,
diluted), for the nine months ended September 30, 2011.Revenues increased to
$72.5 million for the nine months ended September 30, 2012, compared to
revenues of $66.7 million for the nine months ended September 30, 2011,
primarily due to an increase in premiums.

The Company's operating income^1 for the three months ended September 30, 2012
was $1.5 million ($.18 per share, diluted), as compared to $1.2 million ($.14
per share, diluted) for the three months ended September 30, 2011.Operating
income was $3.7 million ($.45 per share, diluted), for the nine months ended
September 30, 2012, as compared to $2.8 million ($.32 per share, diluted) for
the nine months ended September 30, 2011.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "Net income increased this
quarter primarily due to improved underwriting results in our fully insured
segment.We continue to experience growth and improved loss ratio results in
our stop-loss line from business underwritten by IHC Risk Solutions.We have
begun to write pet insurance in many key states and preliminary results look
promising.Our financial condition and balance sheet remain strong.We have no
debt and have grown our book value to $11.79 per share at September 30, 2012
from $11.36 per share at December 31, 2011."

Non-GAAP Financial Measures

The Company provides non-GAAP financial measures to complement its
consolidated financial statements presented in accordance with GAAP: (i)
Operating income is net income attributable to AMIC excluding non-cash charges
related to the amortization of intangible assets recorded in purchase
accounting, net realized investment gains (losses), and the federal income tax
charge related to deferred taxes due to its federal net operating loss
carryforwards, and (ii) Operating income per share is operating income (loss)
on a per share basis. These non-GAAP financial measures are intended to
supplement the user's overall understanding of the Company's current financial
performance and its prospects for the future.Specifically, the Company
believes the non-GAAP results provide useful information to both management
and investors by identifying certain expenses that, when excluded from the
GAAP results, may provide additional understanding of the Company's core
operating results or business performance.However, these non-GAAP financial
measures are not intended to supersede or replace the Company's GAAP
results.A reconciliation of the non-GAAP results to the GAAP results is
provided in the "Reconciliation of GAAP Income from Continuing Operations to
Non-GAAP Income from Continuing Operations" schedule below.

About American Independence Corp.

AMIC, through Independence American Insurance Company and its other
subsidiaries, offers major medical for individuals and families, medical
stop-loss, small group major medical, short-term medical, and pet
insurance.AMIC provides to the individual and self-employed markets health
insurance and related products, which are distributed through its
subsidiaries, Independent Producers of America, LLC, healthinsurance.org, LLC,
and IHC Specialty Benefits, Inc.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 which 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 or earnings guidance, and does not undertake to provide any such
guidance in the future.

^1 Operating income is a non-GAAP measure and is defined as net income
attributable to AMIC excluding non-cash charges related to the amortization of
certain intangible assets recorded in purchase accounting, net realized
investment gains and losses, and the federal income tax charge related to
deferred taxes. The Company believes that the presentation of operating income
may offer a better understanding of the core operating results of the
Company.A reconciliation of income from continuing operations to operating
income is included in this press release.


AMERICAN INDEPENDENCE CORP.
THIRD QUARTER REPORT
SEPTEMBER 30, 2012
(In thousands except per share data)
                                                                  
                                        Three Months Ended  Nine Months Ended
                                        September 30,       September 30,
                                        2012       2011     2012     2011
                                                                  
Premiums earned                          $22,281 $19,138 $60,072 $54,573
Fee and agency income                   3,882     2,906   10,749  9,805
Net investment income                    586       615     1,582   1,730
Net realized investment gains            30        238     200     323
Net impairment losses recognized in      --        --      (189)    (20)
earnings
Other income                            26        72      100     250
                                                                  
Revenues                                 26,805    22,969  72,514  66,661
                                                                  
Insurance benefits, claims and reserves 14,981    12,150  40,938  36,116
Selling, general and administrative      9,877     9,099   26,887  26,347
expenses
Amortization and depreciation            182       214     272     645
                                                                  
Expenses                                 25,040    21,463  68,097  63,108
                                                                  
Income before income tax                 1,765     1,506   4,417   3,553
Provision for income taxes               491       443     1,295   1,009
                                                                  
Net income                               1,274     1,063   3,122   2,544
Less: Net income attributable to the     (268)      (150)    (688)    (557)
non-controlling interest
                                                                  
Net income attributable to American      $1,006    $913    $2,434  $1,987
Independence Corp.
                                                                  
Basic income per common share:                                     
                                                                  
Net income attributable to American      $.12      $.11    $.29    $.23
Independence Corp. common stockholders
                                                                  
Weighted-average shares outstanding      8,272     8,524   8,272   8,518
                                                                  
Diluted income per common share:                                   
                                                                  
Net income attributable toAmerican      $.12      $.11    $.29    $.23
Independence Corp. common stockholders
                                                                  
Weighted-average diluted shares          8,272     8,524   8,272   8,518
outstanding
                                                                  
As of September 30, 2012 there were 8,272,332 common shares outstanding, net
of treasury shares.


AMERICAN INDEPENDENCE CORP.
RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS TO NON-GAAP INCOME
FROM CONTINUING OPERATIONS
(In thousands except per share data)
                                                                  
                                         Three Months Ended Nine Months Ended
                                         September 30,      September 30,
                                         2012      2011     2012     2011
                                                                  
Net income attributable to AMIC           $ 1,006  $ 913   $ 2,434 $ 1,987
Amortization of intangible assets related 30       34      94      101
to purchase accounting
Net realized investment gains             (30)      (238)    (200)    (323)
Net impairment losses recognized in       --       --      189     20
earnings
Federal income tax charge related to      511      451     1,221   967
deferred taxes for operating income
                                                                  
                                                                  
Operating Income from continuing          $ 1,517  $ 1,160 $ 3,738 $ 2,752
operations
                                                                  
Non - GAAP Basic Income Per Common Share: $ .18    $ .14   $ .45   $ .32
                                                                  
Non - GAAP Diluted Income Per Common      $ .18    $ .14   $ .45   $ .32
Share:

CONTACT: DAVID T. KETTIG
         (212) 355-4141 Ext. 3047
         www.americanindependencecorp.com
 
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