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American Independence Corp. Announces 2012 Fourth-Quarter and Annual Results



American Independence Corp. Announces 2012 Fourth-Quarter and Annual Results

NEW YORK, March 7, 2013 (GLOBE NEWSWIRE) -- American Independence Corp.
(Nasdaq:AMIC) today reported 2012 fourth-quarter and annual 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 attributable to AMIC increased to $7.2 million ($.87 per share,
diluted), for the three months ended December 31, 2012, compared to $0.5
million ($.06 per share, diluted), for the three months ended December 31,
2011. Due to our profitability in 2012 and projected continuing profitable
results, AMIC's net income and operating income for the fourth quarter and
year ended December 31, 2012 were positively impacted by an increase of $5.9
million in the deferred tax asset related to our federal net operating loss
carryforwards ("NOLs").

Revenues increased to $29.4 million for the three months ended December 31,
2012, compared to revenues of $21.4 million for the three months ended
December 31, 2011, primarily due to an increase in premiums.

Net income attributable to AMIC increased to $9.6 million ($1.16 per share,
diluted), for the year ended December 31, 2012, compared to $2.5 million ($.29
per share, diluted), for the year ended December 31, 2011. Revenues increased
to $101.9 million for the year ended December 31, 2012, compared to revenues
of $88.0 million for the year ended December 31, 2011, primarily due to an
increase in premiums.

The Company's operating income^1 for the three months ended December 31, 2012
was $1.5 million ($.19 per share, diluted), as compared to $0.7 million ($.08
per share, diluted) for the three months ended December 31, 2011. Operating
income was $5.3 million ($.64 per share, diluted), for the year ended December
31, 2012, as compared to $3.5 million ($.41 per share, diluted) for the year
ended December 31, 2011.

^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 and reduction
of valuation allowance related to deferred tax asset. 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.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "We continue to experience
growth and improved loss ratio results in our stop-loss line from business
underwritten by IHC Risk Solutions. We are excited by the growth and returns
on our pet line of business and our expansion into new lines of business,
including non-subscriber occupational accident and international insurance,
and our new direct-to-consumer tools and distribution platforms. Our financial
condition and balance sheet remain strong. We have no debt and have grown our
book value to $12.59 per share at December 31, 2012 from $11.36 per share at
December 31, 2011."

Valuation Allowance Relating to the Deferred Tax Asset

In the fourth quarter of 2012, the Company further reduced the valuation
allowance relating to the deferred tax asset, which caused a corresponding
increase in such deferred tax asset. The valuation allowance relates to the
likelihood that AMIC might not be able to fully utilize its prior tax year
federal NOLs. AMIC reviews the valuation allowance on a quarterly basis to
determine the reasonableness of the amount. Based upon AMIC's profitability in
2012 and projections of future profitable results, it was appropriate to
further reduce the valuation allowance in the fourth quarter of 2012 in the
amount of $5.9 million, which resulted in an increase in net income. 

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, various supplemental
products, pet insurance, and non-subscriber occupational accident and
international coverages. 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, 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.

AMERICAN INDEPENDENCE CORP.
FOURTH QUARTER REPORT
December 31, 2012
(In thousands except per share data)
                                                                       
                                          Three Months Ended Year Ended
                                          December 31,       December 31,
                                          2012      2011     2012     2011
                                                                       
Premiums earned                           $23,706   $17,875  $83,778  $72,448 
Fee and agency income                     4,692     2,842    15,441   12,647 
Net investment income                     544       459      2,126    2,189 
Net realized investment gains             403       197      603      520 
Net impairment losses recognized in       --        (69)     (189)    (89)
earnings
Other income                              26        73       126      323 
                                                                       
Revenues                                  29,371    21,377   101,885  88,038 
                                                                       
Insurance benefits, claims and reserves   15,911    11,652   56,849   47,768 
Selling, general and administrative       10,988    8,577    37,875   34,924 
expenses 
Amortization and depreciation             237       210      509      855 
                                                                       
Expenses                                  27,136    20,439   95,233   83,547 
                                                                       
Income before income tax                  2,235     938      6,652    4,491 
State income tax                          (43)      (39)     (81)     (49)
Federal income tax – current and deferred (672)     (259)    (1,929)  (1,258)
Federal income tax – reduction of         5,900     --       5,900    -- 
valuation allowance
                                                                       
Net income                                7,420     640      10,542   3,184 
Less: Net income attributable to the      (262)     (133)    (950)    (690)
non-controlling interest
                                                                       
Net income attributable to American       $7,158    $507     $9,592   $2,494 
Independence Corp.
                                                                       
Basic income per common share:                                         
Net income attributable to                                             
American Independence Corp. common        $.87      $.06     $1.16    $.29 
stockholders
                                                                       
Weighted-average shares outstanding       8,272     8,434    8,272    8,497 
                                                                       
Diluted income per common share:                                       
Net income attributable to                                             
American Independence Corp. common        $.87      $.06     $1.16    $.29 
stockholders
                                                                       
Weighted-average diluted shares           8,272     8,434    8,272    8,497 
outstanding
                                                                       
As of December 31, 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 Year Ended
                                          December 31,       December 31,
                                          2012       2011    2012     2011
                                                                       
Net income attributable to AMIC            $ 7,158    $ 507   $ 9,592  $ 2,494
Amortization of intangible assets related 30         34      124      135
to purchase accounting
Net realized investment gains             (403)      (197)   (603)    (520)
Net impairment losses recognized in       --         69      189      89
earnings
Federal income tax charge related to      647        291     1,868    1,258
deferred taxes for operating income
Reduction of valuation allowance related  (5,900)    --      (5,900)  --
to deferred tax asset
                                                                       
                                                                       
Operating Income from continuing          $ 1,532    $ 704   $ 5,270  $ 3,456
operations
                                                                       
Non - GAAP Basic Income Per Common Share: $ .19      $ .08   $ .64    $ .41
                                                                       
Non - GAAP Diluted Income Per Common       $ .19      $ .08   $ .64    $ .41
Share:
                                                                       

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