AMIC American Independence Corp.

American Independence Corp. (NASDAQ:AMIC) today reported 2015 fourth-quarter and annual results.  As a result of the delay in reporting these results, AMIC is currently working on its 2016 first-quarter results.

Financial Results

AMIC reported net income of $0.3 million ($.03 per diluted share) for the three months ended December 31, 2015 compared to $2.1 million ($.26 per diluted share) for the three months ended December 31, 2014.  AMIC reported net income of $3.5 million ($.44 per diluted share) for the twelve months ended December 31, 2015 compared to $5.3 million ($.65 per diluted share) for the twelve months ended December 31, 2014.  Income excluding taxes for the 2014 fourth quarter and year was positively impacted by an increase of $2.5 million in the deferred tax asset related to our federal net operating loss carryforward, with no corresponding amount in 2015.

Revenues increased to $47.4 million for the three months ended December 31, 2015 compared to revenues of $40.6 million for the three months ended December 31, 2014, primarily due to an increase in premiums, agency income and fee income.  Revenues increased to $183.3 million for the twelve months ended December 31, 2015 compared to revenues of $164.9 million for the twelve months ended December 31, 2014, primarily due to an increase in premiums and fee income, offset by a decrease in agency income and realized gains. 

Chief Executive Officer’s Comments

Roy T. K. Thung, Chief Executive Officer, commented, “Our financial condition and balance sheet remain strong.  We have grown our book value to $12.85 per share at December 31, 2015 from $12.39 per share at December 31, 2014.  As previously announced, AMIC completed the sale of IHC Risk Solutions LLC and the stop-loss business it produced on March 31, 2016 and realized an after tax gain of approximately $114 million.  This gain will further increase our book value per share from the December 31, 2015 value.  AMIC is now re-positioning itself as a specialty health and pet insurance underwriter and sales and marketing company, and will focus on the growth of these lines of business in 2016 and beyond.”

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.
Consolidated Statements of Income
(In thousands, except per share data)
					Three Months Ended								Twelve Months Ended
					December 31,								December 31,
						2015				2014				2015				2014
Premiums earned				$		37,925		$		33,551		$		148,803		$		133,606
Fee and agency income						8,520				6,437				30,963				27,918
Net investment income						551				557				2,247				2,202
Net realized investment gains						70				104				260				967
Other income (loss)						302				(37	)			993				183
		Revenues				47,368				40,612				183,266				164,876
Insurance benefits, claims and reserves						25,286				24,875				98,741				88,887
Selling, general and administrative expenses						20,477				16,049				76,410				69,752
Amortization and depreciation						477				412				1,605				1,692
		Expenses				46,240				41,336				176,756				160,331
Income (loss) before income tax						1,128				(724	)			6,510				4,545
Provision (benefit) for income taxes						658				(2,790	)			2,695				(802	)
Net income						470				2,066				3,815				5,347
	Less: Net (income) loss attributable to the non-controlling interest					(191	)			28				(286	)			(97	)
Net income attributable to American Independence Corp.				$		279		$		2,094		$		3,529		$		5,250
Basic income per common share:
	Net income attributable to
			American Independence Corp. common stockholders	$	.03			$	.26			$	.44			$	.65
Weighted-average shares outstanding						8,088				8,079				8,082				8,077
Diluted income per common share:
	Net income attributable to
			American Independence Corp. common stockholders	$	.03			$	.26			$	.44			$	.65
Weighted-average diluted shares outstanding						8,094				8,093				8,094				8,103
As of June 1, 2016, there were 8,118,551 common shares outstanding, net of treasury shares.

American Independence Corp.
Consolidated Balance Sheets
(In thousands, except per share data)
					December 31,					December 31,
ASSETS:						2015					2014
	Investments:
	Securities purchased under agreements to resell			$		4,595			$		3,143
	Trading securities					-					1,138
	Fixed maturities available-for-sale, at fair value					84,933					73,608
	Equity securities available-for-sale, at fair value					2,594					1,013
	Total investments					92,122					78,902
	Cash and cash equivalents					5,765					4,569
	Restricted cash					21,735					18,881
	Accrued investment income					733					652
	Premiums receivable					16,654					13,257
	Net deferred tax asset					16,215					19,977
	Due from reinsurers					4,950					5,532
	Goodwill					5,703					-
	Intangible assets					14,113					9,915
	Accrued fee income					5,307					4,469
	Due from securities brokers					1,051					293
	Other assets					12,626					17,247
			TOTAL ASSETS	$		196,974			$		173,694
LIABILITIES AND STOCKHOLDERS’ EQUITY:
	LIABILITIES:
	Policy benefits and claims			$		43,764			$		33,616
	Premium and claim funds payable					21,735					18,881
	Commission payable					6,302					4,672
	Accounts payable, accruals and other liabilities					14,686					11,283
	Debt					3,189					-
	Due to securities brokers					-					58
	Due to reinsurers					100					2,334
			Total liabilities			89,776					70,844
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; 8,088,105 and 8,079,215 shares outstanding, respectively				92					92
		Additional paid-in capital				88,637					88,256
		Accumulated other comprehensive loss				(197	)				(154	)
		Treasury stock, at cost, 1,093,688 and 1,102,578 shares, respectively				(10,161	)				(10,243	)
		Retained earnings				25,549					22,139
			Total American Independence Corp. stockholders’ equity			103,920					100,090
	Non-controlling interest in subsidiaries					3,278					2,760
			Total equity			107,198					102,850
			TOTAL LIABILITIES AND EQUITY	$		196,974			$		173,694

CONTACT: LOAN NISSER
(646) 509-2107
www.americanindependencecorp.com