American Independence Corp. Announces 2014 First-Quarter Results

American Independence Corp. Announces 2014 First-Quarter Results

NEW YORK, May 8, 2014 (GLOBE NEWSWIRE) -- American Independence Corp.
(Nasdaq:AMIC) today reported 2014 first-quarter results.

Financial Results

AMIC reported net income of $0.8 million ($.09 per diluted share) for the
three months ended March 31, 2014 compared to $0.7 million ($.09 per diluted
share) for the three months ended March 31, 2013.

Revenues increased to $43.1 million for the three months ended March 31, 2014
compared to revenues of $35.4 million for the three months ended March 31,
2013, primarily due to an increase in premiums and agency income.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "Earned premium for medical
stop-loss, our largest line, grew substantially over the same quarter of last
year. This growth is being driven by the business IHC Risk Solutions writes on
a direct basis. 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. Business written on a direct basis performed very
profitably, but overall performance of the stop-loss line was impacted due to
two non-owned MGU programs, both of which were terminated during 2013. We
expect continued growth of business written as evidenced by the 30% growth in
our direct business written for the twelve months ended April 30, 2014. We are
also encouraged by the growth in our pet insurance and non-subscriber
occupational accident lines, and we anticipate growth in premiums to continue
throughout 2014. Our financial condition and balance sheet remain strong. We
have no debt and have grown our book value to $12.94 per share at March 31,
2014 from $12.68 per share at December 31, 2013."

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, IHC Specialty Benefits, Inc., and
IPA Direct, LLC.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)
                                                          
                                                          Three Months Ended
                                                          March 31,
                                                          2014      2013
                                                                   
Premiums earned                                            $ 32,484 $ 29,996
Fee and agency income                                      9,976    4,247
Net investment income                                      536      504
Net realized investment gains                              48       540
Other income                                               43       73
                                                                   
Revenues                                                   43,087   35,360
                                                                   
Insurance benefits, claims and reserves                    21,786   21,233
Selling, general and administrative expenses               19,649   12,604
Amortization and depreciation                              237      228
                                                                   
Expenses                                                   41,672   34,065
                                                                   
Income before income tax                                   1,415    1,295
Provision for income taxes                                 409      372
                                                                   
Net income                                                 1,006    923
Less: Net income attributable to the non-controlling       (240)     (232)
interest
                                                                   
Net income attributable to American Independence Corp.     $ 766    $ 691
                                                                   
Basic income per common share:                                      
Net income attributable to                                          
American Independence Corp. common stockholders            $ .09    $ .09
                                                                   
Weighted-average shares outstanding                        8,073    8,086
                                                                   
Diluted income per common share:                                    
Net income attributable to                                          
American Independence Corp. common stockholders            $ .09    $ .09
                                                                   
Weighted-average diluted shares outstanding                8,098    8,086



American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
                                                                
                                                      March 31,  December 31,
ASSETS:                                                2014       2013
Investments:                                                     
Securities purchased under agreements to resell        $ 2,049   $ 3,563
Trading securities                                     1,207     859
Fixed maturities available-for-sale, at fair value     72,232    68,222
Equity securities available-for-sale, at fair value    1,002     988
                                                                
Total investments                                      76,490    73,632
                                                                
Cash and cash equivalents                              3,140     4,424
Restricted cash                                        14,693    10,067
Accrued investment income                              665       604
Premiums receivable                                    14,915    14,364
Net deferred tax asset                                 10,850    11,248
Due from reinsurers                                    6,507     7,549
Goodwill                                               23,561    23,561
Intangible assets                                      2,138     2,336
Accrued fee income                                     2,818     2,332
Due from securities brokers                            154       172
Other assets                                           24,040    18,105
                                                                
TOTAL ASSETS                                           $ 179,971 $ 168,394
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY:                            
LIABILITIES:                                                     
Policy benefits and claims                             $ 34,806  $ 35,252
Premium and claim funds payable                        14,693    10,067
Commission payable                                     6,430     5,455
Accounts payable, accruals and other liabilities       17,145    13,250
State income taxes payable                             535       544
Due to securities brokers                              98        45
Due to reinsurers                                      1,553     1,177
                                                                
Total liabilities                                      75,260    65,790
                                                                
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 shares outstanding, respectively
Additional paid-in capital                             479,493   479,481
Accumulated other comprehensive loss                   (845)      (2,152)
Treasury stock, at cost, 1,109,245 shares,             (10,305)   (10,305)
respectively
Accumulated deficit                                    (363,977)  (364,730)
Total American Independence Corp. stockholders' equity 104,458   102,386
Non-controlling interest in subsidiaries               253       218
Total equity                                           104,711   102,604
TOTAL LIABILITIES AND EQUITY                           $ 179,971 $ 168,394

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