NEW YORK, Aug. 7, 2013 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2013 second-quarter and six-month results.
Financial Results
Net income attributable to AMIC increased to $1.5 million ($.19 per share, diluted), for the three months ended June 30, 2013 compared to $0.3 million ($.04 per share, diluted), for the three months ended June 30, 2012. Revenues increased to $37.4 million for the three months ended June 30, 2013 compared to revenues of $23.5 million for the three months ended June 30, 2012, primarily due to an increase in premiums.
Net income attributable to AMIC increased to $2.2 million ($.27 per share, diluted), for the six months ended June 30, 2013 compared to $1.4 million ($.17 per share, diluted), for the six months ended June 30, 2012. Revenues increased to $72.7 million for the six months ended June 30, 2013 compared to revenues of $45.7 million for the six months ended June 30, 2012, primarily due to an increase in premiums.
Chief Executive Officer's Comments
Roy Thung, Chief Executive Officer, commented, "Earned premium for our medical stop-loss for the second quarter grew 22% over the same quarter last year, driven by annual growth rates at IHC Risk Solutions of 28% in our direct-written business. Profitability of this line of business continues at expected levels. We see a significant portion of this growth arising from employer groups moving from fully insured to self-funding as they consider their alternatives as a result of changes being brought about by health care reform. We expect a continuation of these trends through the remainder of this year and into 2014. Our financial condition and balance sheet remain strong. We have no debt and have grown our book value to $12.67 per share at June 30, 2013 from $12.59 per share at December 31, 2012."
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. | ||||
| Condensed Consolidated Statements of Income | ||||
| (In thousands, except per share data) | ||||
| (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Premiums earned | $ 31,618 | $ 19,334 | $ 61,614 | $ 37,791 |
| Fee and agency income | 4,688 | 3,739 | 8,935 | 6,867 |
| Net investment income | 501 | 500 | 1,005 | 996 |
| Net realized investment gains | 387 | 44 | 927 | 170 |
| Other-than-temporary impairment losses | -- | (189) | -- | (189) |
| Other income | 179 | 47 | 252 | 74 |
| Revenues | 37,373 | 23,475 | 72,733 | 45,709 |
| Insurance benefits, claims and reserves | 20,194 | 14,266 | 41,427 | 25,957 |
| Selling, general and administrative expenses | 14,397 | 8,417 | 27,001 | 17,010 |
| Amortization and depreciation | 256 | 45 | 484 | 90 |
| Expenses | 34,847 | 22,728 | 68,912 | 43,057 |
| Income before income tax | 2,526 | 747 | 3,821 | 2,652 |
| Provision for income taxes | 821 | 196 | 1,193 | 804 |
| Net income | 1,705 | 551 | 2,628 | 1,848 |
| Less: Net income attributable to the non-controlling interest | (201) | (242) | (433) | (420) |
| Net income attributable to American Independence Corp. | $ 1,504 | $ 309 | $ 2,195 | $ 1,428 |
| Basic income per common share: | ||||
| Net income attributable to American Independence Corp. common stockholders | $ .19 | $ .04 | $ .27 | $ .17 |
| Weighted-average shares outstanding | 8,073 | 8,272 | 8,079 | 8,272 |
| Diluted income per common share: | ||||
| Net income attributable to American Independence Corp. common stockholders | $ .19 | $ .04 | $ .27 | $ .17 |
| Weighted-average diluted shares outstanding | 8,076 | 8,272 | 8,079 | 8,272 |
| American Independence Corp. | ||
| Condensed Consolidated Balance Sheets | ||
| (In thousands, except per share data) | ||
| June 30, | ||
| 2013 | December 31, | |
| ASSETS: | (Unaudited) | 2012 |
| Investments: | ||
| Securities purchased under agreements to resell | $ 5,288 | $ 5,234 |
| Trading securities | 1,066 | 1,056 |
| Fixed maturities available-for-sale, at fair value | 67,129 | 58,329 |
| Equity securities available-for-sale, at fair value | 997 | 2,507 |
| Total investments | 74,480 | 67,126 |
| Cash and cash equivalents | 1,152 | 4,576 |
| Restricted cash | 10,554 | 13,321 |
| Accrued investment income | 601 | 755 |
| Premiums receivable | 17,267 | 10,387 |
| Net deferred tax asset | 11,891 | 13,024 |
| Due from reinsurers | 6,672 | 6,307 |
| Goodwill | 23,561 | 23,561 |
| Intangible assets | 2,752 | 3,379 |
| Accrued fee income | 2,459 | 3,122 |
| Due from securities brokers | 112 | 61 |
| Other assets | 12,888 | 13,364 |
| TOTAL ASSETS | $ 164,389 | $ 158,983 |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
| LIABILITIES: | ||
| Insurance reserves | $ 34,218 | $ 24,993 |
| Premium and claim funds payable | 10,554 | 13,321 |
| Commission payable | 5,837 | 4,329 |
| Accounts payable, accruals and other liabilities | 9,602 | 10,118 |
| State income taxes payable | 555 | 545 |
| Due to securities brokers | 171 | 22 |
| Due to reinsurers | 1,019 | 1,431 |
| Total liabilities | 61,956 | 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; 8,072,548 and 8,272,332 shares outstanding, respectively |
92 | 92 |
| Additional paid-in capital | 479,456 | 479,451 |
| Accumulated other comprehensive income (loss) | (1,030) | 1,829 |
| Treasury stock, at cost, 1,109,245 shares and 909,461 shares, respectively | (10,305) | (9,107) |
| Accumulated deficit | (365,915) | (368,113) |
| Total American Independence Corp. stockholders' equity | 102,298 | 104,152 |
| Non-controlling interest in subsidiaries | 135 | 72 |
| Total equity | 102,433 | 104,224 |
| TOTAL LIABILITIES AND EQUITY | $ 164,389 | $ 158,983 |