NEW YORK, Aug. 15, 2016 (GLOBE NEWSWIRE) -- American Independence Corp. 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 | |||||||||
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
