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American Independence Corp. Announces 2013 Third-Quarter and Nine-Month Results



American Independence Corp. Announces 2013 Third-Quarter and Nine-Month
Results

NEW YORK, Nov. 6, 2013 (GLOBE NEWSWIRE) -- American Independence Corp.
(Nasdaq:AMIC) today reported 2013 third-quarter and nine-month results.

Financial Results

Net income attributable to AMIC amounted to $0.7 million ($.09 per share,
diluted), for the three months ended September 30, 2013 compared to $1.0
million ($.12 per share, diluted) for the three months ended September 30,
2012. Revenues increased to $37.6 million for the three months ended September
30, 2013 compared to revenues of $26.8 million for the three months ended
September 30, 2012, primarily due to an increase in premiums.

Net income attributable to AMIC increased to $2.9 million ($.36 per share,
diluted) for the nine months ended September 30, 2013 compared to $2.4 million
($.29 per share, diluted) for the nine months ended September 30, 2012.
Revenues increased to $110.3 million for the nine months ended September 30,
2013 compared to revenues of $72.5 million for the nine months ended September
30, 2012, primarily due to an increase in premiums.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "Earned premium for medical
stop-loss grew substantially over the same quarter last year and we expect
approximately 25% growth for the business written on a direct basis in 2013 as
compared to the prior year. We attribute the growth in our direct distribution
to our enhanced sales force, focused underwriting and employer groups moving
from fully insured to self-funding as they consider alternatives as a result
of health care reform.  Profitability of this line in respect of business
written on a direct basis continues at expected levels.  We expect this growth
to continue in 2014.  We are also encouraged by the growth in our pet
insurance line and, as a result of an equity investment in a producer of
non-subscriber occupational accident, we anticipate significant premiums from
this new line of business in 2014."

About American Independence Corp.

AMIC, through Independence American Insurance Company and its other
subsidiaries, offers pet insurance, non-subscriber occupational accident,
international coverages, small-group major medical and short-term
medical. 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 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 and 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.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
                                                              
                                          Three Months Ended Nine Months Ended
                                          September 30,      September 30,
                                          2013      2012     2013     2012
                                                                       
Premiums earned                           $ 31,844  $ 22,281 $ 93,458 $ 60,072
Fee and agency income                     5,038     3,882    13,973   10,749
Net investment income                     537       586      1,542    1,582
Net realized investment gains             46        30       973      200
Other-than-temporary impairment losses    --        --       --       (189)
Other income                              125       26       377      100
                                                                       
Revenues                                  37,590    26,805   110,323  72,514
                                                                       
Insurance benefits, claims and reserves   22,203    14,981   63,630   40,938
Selling, general and administrative       13,834    9,877    40,835   26,887
expenses 
Amortization and depreciation             252       182      736      272
                                                                       
Expenses                                  36,289    25,040   105,201  68,097
                                                                       
Income before income tax                  1,301     1,765    5,122    4,417
Provision for income taxes                397       491      1,590    1,295
                                                                       
Net income                                904       1,274    3,532    3,122
Less: Net income attributable to the      (201)     (268)    (634)    (688)
non-controlling interest
                                                                       
Net income attributable to American       $ 703     $ 1,006  $ 2,898  $ 2,434
Independence Corp.
                                                                       
Basic income per common share:                                         
Net income attributable to American       $ .09     $ .12    $ .36    $ .29
Independence Corp. common stockholders
                                                                       
Weighted-average shares outstanding       8,073     8,272    8,077    8,272
                                                                       
Diluted income per common share:                                       
Net income attributable to American       $ .09     $ .12    $ .36    $ .29
Independence Corp. common stockholders
                                                                       
Weighted-average diluted shares           8,081     8,272    8,083    8,272
outstanding

 
American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
                                                                   
                                                                   
                                                    September 30,
ASSETS:                                             2013          December 31,
                                                    (Unaudited)   2012
Investments:                                                       
Securities purchased under agreements to resell     $ 5,064       $ 5,234
Trading securities                                  772           1,056
Fixed maturities available-for-sale, at fair value  68,225        58,329
Equity securities available-for-sale, at fair value 1,008         2,507
                                                                   
Total investments                                   75,069        67,126
                                                                   
Cash and cash equivalents                           3,018         4,576
Restricted cash                                     9,814         13,321
Accrued investment income                           595           755
Premiums receivable                                 12,726        10,387
Net deferred tax asset                              11,525        13,024
Due from reinsurers                                 8,176         6,307
Goodwill                                            23,561        23,561
Intangible assets                                   2,539         3,379
Accrued fee income                                  2,738         3,122
Due from securities brokers                         1,027         61
Other assets                                        14,026        13,364
                                                                   
TOTAL ASSETS                                        $ 164,814     $ 158,983
                                                                   
LIABILITIES AND STOCKHOLDERS' EQUITY:                              
LIABILITIES:                                                       
Insurance reserves                                  $ 33,315      $ 24,993
Premium and claim funds payable                     9,814         13,321
Commission payable                                  5,216         4,329
Accounts payable, accruals and other liabilities    10,659        10,118
State income taxes payable                          559           545
Due to securities brokers                           1,023         22
Due to reinsurers                                   1,135         1,431
                                                                   
Total liabilities                                   61,721        54,759
                                                                   
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;  92            92
8,072,548 and 8,272,332 shares outstanding,
respectively
Additional paid-in capital                          479,469       479,451
Accumulated other comprehensive income (loss)       (1,000)       1,829
Treasury stock, at cost, 1,109,245 shares and       (10,305)      (9,107)
909,461 shares, respectively
Accumulated deficit                                 (365,239)     (368,113)
Total American Independence Corp. stockholders'     103,017       104,152
equity 
Non-controlling interest in subsidiaries            76            72
Total equity                                        103,093       104,224
TOTAL LIABILITIES AND EQUITY                        $ 164,814     $ 158,983

CONTACT: ADAM C. VANDERVOORT
         (646) 509-2156
         www.americanindependencecorp.com
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