NEW YORK, Aug. 01, 2016 (GLOBE NEWSWIRE) -- American Independence Corp. (NASDAQ:AMIC) today reported 2016 first-quarter results.

Financial Results

AMIC completed the sale of IHC Risk Solutions LLC (“Risk Solutions”) and the medical stop-loss business it produced on March 31, 2016 and realized an after tax gain of approximately $114 million.  In addition, under the purchase and sale agreement, all of the in-force medical stop-loss business of Independence American produced by Risk Solutions is 100% co-insured as of January 1, 2016.  AMIC’s block of medical stop-loss business is in run-off.  The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company’s operations and financial results.  The disposal transaction qualifies for reporting as discontinued operations in the first quarter of 2016.  

AMIC reported net income of $114.2 million ($14.10 per diluted share) for the three months ended March 31, 2016 compared to $0.7 million ($.09 per diluted share) for the three months ended March 31, 2015.  Income from continuing operations was $0.4 million ($.03 per diluted share), and $0.3 million ($.03 per diluted share), for the three months ended March 31, 2016 and 2015, respectively.

Revenues decreased to $29.4 million for the three months ended March 31, 2016 compared to revenues of $39.4 million for the three months ended March 31, 2015, primarily due to the sale of Risk Solutions and the exit from the medical stop-loss business. 

Independence Holding Company (“IHC”) has announced a “going private” transaction by way of a statutory “short-form" merger of AMIC with and into AMIC Holdings, Inc. (“Holdings”), a newly formed subsidiary into which IHC and one of its subsidiaries will contribute their shares of AMIC common stock, with Holdings continuing as the surviving corporation.  Once the transaction is consummated, Holdings will own all of the outstanding shares of common stock of AMIC.  IHC is under no obligation to consummate the merger and could decide to withdraw from the transaction at any time before it becomes effective.

Chief Executive Officer’s Comments

Roy T. K. Thung, Chief Executive Officer, commented, “Our financial condition and balance sheet remain strong.  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.  AMIC has re-positioned itself as a specialty health underwriter and sales and marketing company, and produced solid growth and underwriting results in these lines in the first quarter.  Our occupational accident line has been underperforming, and we are implementing changes to improve our results.”

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 and, 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.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
   Three Months
   Ended March 31,
   2016  2015 
 Premiums earned $21,096 $36,217 
 Agency income  5,500  2,477 
 Net investment income  1,470  599 
 Net realized investment gains (losses)  214  141 
 Other income  1,122  1 
   29,402  39,435 
 Insurance benefits, claims and reserves  14,966  23,970 
 Selling, general and administrative expenses  13,506  14,952 
 Amortization and depreciation  280  115 
   28,752  39,037 
Income from continuing operations before income taxes  650  398 
Provision for income taxes  234  140 
Income from continuing operations  416  258 
Discontinued operations: (Note 3)       
 Income from discontinued operations, before income taxes  122,034  837 
 Income taxes on discontinued operations  8,069  324 
 Income from discontinued operations  113,965  513 
Net income  114,381  771 
 Less: Net (income) loss attributable to the non-controlling interest  178  49 
Net income attributable to American Independence Corp. $114,203 $722 
Basic income per common share:       
 Income from continuing operations $.03 $.03 
 Income from discontinued operations  14.07  .06 
   Basic income per common share $14.10 $.09 
Weighted-average shares outstanding  8,101  8,079 
Diluted income per common share:       
 Income from continuing operations $.03 $.03 
 Income from discontinued operations  14.04  .06 
   Basic income per common share $14.07 $.09 
Weighted-average diluted shares outstanding  8,119  8,094 

American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
  March 31,   
  2016   December 31,
ASSETS: (Unaudited)  2015 
 Securities purchased under agreements to resell$1,629   $4,595  
 Fixed maturities available-for-sale, at fair value 181,158    84,933  
 Equity securities available-for-sale, at fair value 2,603    2,594  
 Total investments 185,390    92,122  
 Cash and cash equivalents 134,415    4,861  
 Restricted cash 966    1,377  
 Accrued investment income 769    727  
 Premiums receivable 16,005    16,654  
 Net deferred tax asset 15,848    13,944  
 Due from reinsurers 19,987    4,950  
 Goodwill 5,703    5,703  
 Intangible assets 13,086    13,327  
 Due from securities brokers 111    1,051  
 Other assets 18,037    10,540  
 Assets attributable to discontinued operations    31,718  
 TOTAL ASSETS$410,317   $196,974  
 Policy benefits and claims$47,386   $43,764  
 Premium and claim funds payable 966    1,377  
 Commission payable 8,444    5,817  
 Accounts payable, accruals and other liabilities 13,346    11,192  
 Debt 2,250    3,189  
 State income taxes payable 5,882     
 Due to securities brokers 99,777     
 Due to reinsurers 8,896    100  
 Liabilities attributable to discontinued operations 953    24,337  
 Total liabilities 187,900    89,776  
 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; 8,101,883 and 8,088,105     
    shares outstanding, respectively 92    92  
  Additional paid-in capital 88,648    88,637  
  Accumulated other comprehensive gain (loss) 484    (197)
  Treasury stock, at cost, 1,079,910 and 1,093,688 shares, respectively (10,033)  (10,161)
  Retained earnings 139,749    25,549  
  Total American Independence Corp. stockholders’ equity 218,940    103,920  
 Non-controlling interest in subsidiaries 3,477    3,278  
  Total equity 222,417    107,198  
  TOTAL LIABILITIES AND EQUITY$410,317   $196,974  
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