NEW YORK, Aug. 15, 2016 (GLOBE NEWSWIRE) -- American Independence Corp. (NASDAQ:AMIC) today reported 2016 second-quarter and six-month results.

Financial Results

On March 31, 2016, AMIC completed the sale of IHC Risk Solutions, LLC (“Risk Solutions”) and the medical stop-loss business it produced 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 Insurance Company 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 $1.3 million ($.16 per diluted share) for the three months ended June 30, 2016 compared to $0.9 million ($.11 per diluted share) for the three months ended June 30, 2015.  Income from continuing operations was $1.4 million ($.16 per diluted share), and $1.0 million ($.11 per diluted share), for the three months ended June 30, 2016 and 2015, respectively.

AMIC reported net income of $115.5 million ($14.22 per diluted share) for the six months ended June 30, 2016 compared to $1.6 million ($.20 per diluted share) for the six months ended June 30, 2015.  Income from continuing operations was $1.8 million ($.19 per diluted share), and $1.2 million ($.14 per diluted share), for the six months ended June 30, 2016 and 2015, respectively.

Revenues decreased to $29.4 million and $58.8 million for the three months and six months ended June 30, 2016, respectively, compared to revenues of $42.2 million and $81.6 million for the three months and six months ended June 30, 2015, respectively, primarily due to the sale of Risk Solutions and the exit from the medical stop-loss business. 

Independence Holding Company (“IHC”) intends to take the Company private on or about August 31, 2016 by way of a statutory “short-form" merger.  As a result, IHC will indirectly own all of the outstanding shares of common stock of AMIC.

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.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
				Three Months								Six Months
				Ended June 30,								Ended June 30,
					2016				2015			2016		2015
REVENUES:
	Premiums earned		$		21,735		$		37,232		$	42,831	$	73,449
	Agency income				5,094				3,639			10,594		6,116
	Net investment income				1,155				485			2,625		1,084
	Net realized investment gains (losses)				389				211			603		352
	Other income				1,073				593			2,195		594
					29,446				42,160			58,848		81,595
EXPENSES
	Insurance benefits, claims and reserves				13,508				25,296			28,474		49,266
	Selling, general and administrative expenses				13,573				15,168			27,079		30,120
	Amortization and depreciation				303				217			583		332
					27,384				40,681			56,136		79,718
Income from continuing operations before income taxes					2,062				1,479			2,712		1,877
Provision for income taxes					669				527			903		667
Income from continuing operations					1,393				952			1,809		1,210
Discontinued operations:
	Income (loss) from discontinued operations, before income taxes				-				(18	)		122,034		819
	Income taxes on discontinued operations				(22	)			(4	)		8,047		320
	Income (loss) from discontinued operations				22				(14	)		113,987		499
Net income					1,415				938			115,796		1,709
	Less: Net (income) loss attributable to the non-controlling interest				88				51			266		100
Net income attributable to American Independence Corp.			$		1,327		$		887		$	115,530	$	1,609
Basic income per common share:
	Income from continuing operations		$	.16			$	.11			$	.19	$	.14
	Income from discontinued operations				-				-			14.06		.06
		Basic income per common share	$	.16			$	.11			$	14.25	$	.20
Weighted-average shares outstanding					8,119				8,079			8,110		8,079
Diluted income per common share:
	Income from continuing operations		$	.16			$	.11			$	.19	$	.14
	Income from discontinued operations				-				-			14.03		.06
		Diluted income per common share	$	.16			$	.11			$	14.22	$	.20
Weighted-average diluted shares outstanding					8,148				8,094			8,125		8,093

American Independence Corp.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
						June 30,
							2016				December 31,
ASSETS:						(Unaudited)						2015
		Investments:
		Securities purchased under agreements to resell			$		7,527			$		4,595
		Fixed maturities available-for-sale, at fair value					201,707					84,933
		Equity securities available-for-sale, at fair value					2,608					2,594
		Total investments					211,842					92,122
		Cash and cash equivalents					7,824					4,861
		Restricted cash					1,379					1,377
		Accrued investment income					1,626					727
		Premiums receivable					15,988					16,654
		Net deferred tax asset					14,723					13,944
		Due from reinsurers					36,161					4,950
		Goodwill					5,703					5,703
		Intangible assets					12,814					13,327
		Due from securities brokers					403					1,051
		Other assets					12,623					10,540
		Assets attributable to discontinued operations (Note 3)					-					31,718
				TOTAL ASSETS	$		321,086			$		196,974
LIABILITIES AND STOCKHOLDERS’ EQUITY:
		LIABILITIES:
		Policy benefits and claims			$		47,512			$		43,764
		Premium and claim funds payable					1,379					1,377
		Commission payable					7,294					5,817
		Accounts payable, accruals and other liabilities					10,396					11,192
		Debt					2,025					3,189
		State income taxes payable					5,904					-
		Due to securities brokers					1,973					-
		Due to reinsurers					18,436					100
		Liabilities attributable to discontinued operations (Note 3)					953					24,337
				Total liabilities			95,872					89,776
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; 8,118,551 and 8,088,105 shares outstanding, respectively				92					92
			Additional paid-in capital				88,658					88,637
			Accumulated other comprehensive gain (loss)				1,740					(197	)
			Treasury stock, at cost, 1,063,242 and 1,093,688 shares, respectively				(9,878	)				(10,161	)
			Retained earnings				141,026					25,549
				Total American Independence Corp. stockholders’ equity			221,638					103,920
	Non-controlling interest in subsidiaries						3,576					3,278
				Total equity			225,214					107,198
				TOTAL LIABILITIES AND EQUITY	$		321,086			$		196,974

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

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