American Independence Corp. Announces 2013 Second-Quarter and Six-Month Results 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
CONTACT: DAVID T. KETTIG (212) 355-4141 Ext. 3047 www.americanindependencecorp.com American Independence Corp. http://phx.corporate-ir.net/...le_Print&ID=1845863&highlight= |