American Independence Corp. Announces 2009 Third-Quarter and Nine-Months Results

• Press Release
• Source: American Independence Corp.
• On 5:01 pm EST, Monday November 9, 2009

NEW YORK, Nov. 9, 2009 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC - News) today reported 2009 third-quarter and nine-months results. This press release contains both GAAP and non-GAAP financial information for which reconciliations can be found at the end of this release.

Related Quotes

Symbol	Price	Change
AMIC	4.76	0.00

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Financial Results

The Company's operating income(1) for the three months ended September 30, 2009 was $0.4 million ($.05 per share, diluted), as compared to $1.2 million ($.15 per share, diluted) for the three months ended September 30, 2008. Operating income for the nine months ended September 30, 2009 was $3.0 million ($.35 per share, diluted), as compared to $3.9 million ($.46 per share, diluted) for the nine months ended September 30, 2008.

Revenues decreased to $25.7 million for the three months ended September 30, 2009, compared to revenues of $29.8 million for the three months ended September 30, 2008. Net income decreased to $0.2 million ($.03 per share, diluted), for the three months ended September 30, 2009, compared to $0.6 million ($.07 per share, diluted), for the three months ended September 30, 2008. Revenues decreased to $79.2 million for the nine months ended September 30, 2009, compared to revenues of $87.4 million for the nine months ended September 30, 2008. Net income was $2.1 million ($.25 per share, diluted), for the nine months ended September 30, 2009, compared to $2.2 million ($.26 per share, diluted), for the nine months ended September 30, 2008.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "The third quarter of 2009 was adversely impacted by the continuing decrease in premiums of 12% for the nine months ended September 30, 2009 compared to the first nine months of 2008 due to recessionary pressures and tighter underwriting guidelines. Although the Company recorded improved loss ratios in both fully insured medical and medical stop-loss for the nine month period, the current quarter stop-loss loss ratio was impacted by unexpected development due to a prior treaty year. In addition, other income declined $1.3 million due to a release of a contingent payment to a marketing organization recorded in the third quarter of 2008 compared to a much smaller corresponding credit in the third quarter of 2009. Even in the current challenging economy, our financial condition remains strong. Our insurance company's statutory surplus at September 30, 2009 is at an all-time high. We have grown our book value to $10.40 per share at September 30, 2009 from $9.75 per share at December 31, 2008."

Non-GAAP Financial Measures

The Company provides non-GAAP financial measures to complement its consolidated financial statements presented in accordance with GAAP: (i) Operating income is net income excluding non-cash charges related to the amortization of intangible assets recorded in purchase accounting, net realized investment gains (losses) and the federal income tax charge related to deferred taxes due to its federal net operating loss carryforwards, and (ii) Operating income per share is operating income (loss) on a per share basis. These non-GAAP financial measures are intended to supplement the user's overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by identifying certain expenses that, when excluded from the GAAP results, may provide additional understanding of the Company's core operating results or business performance. However, these non-GAAP financial measures are not intended to supersede or replace the Company's GAAP results. A reconciliation of the non-GAAP results to the GAAP results is provided in the "Reconciliation of GAAP Income from Continuing Operations to Non-GAAP Operating Income from Continuing Operations" schedule below.

About American Independence Corp.

AMIC, through Independence American Insurance Company and its other subsidiaries, offers health insurance solutions to individuals and employer groups. AMIC provides to the individual and self-employed markets health insurance and related products, which are distributed through its subsidiaries, Independent Producers of America, LLC and healthinsurance.org, LLC. AMIC markets medical stop-loss through managing general underwriters, including Marlton Risk Group LLC and Risk Assessment Strategies, Inc.

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.

(1) Operating income is a non-GAAP measure and is defined as net income excluding non-cash charges related to the amortization of certain intangible assets recorded in purchase accounting, net realized investment losses, losses from discontinued operations and the federal income tax charge related to deferred taxes. The Company believes that the presentation of operating income may offer a better understanding of the core operating results of the Company. A reconciliation of net income to operating income is presented as an attachment to this press release.

                      AMERICAN INDEPENDENCE CORP.
                         THIRD QUARTER REPORT
                          SEPTEMBER 30, 2009
                 (In thousands except per share data)

                               Three Months Ended    Nine Months Ended
                                  September 30,         September 30,
                               ------------------   ------------------
                                 2009      2008       2009      2008
                               --------  --------   --------  --------

 Premiums earned               $ 20,987  $ 23,881   $ 65,063  $ 73,846
 MGU and agency income            3,968     4,092     11,406    10,575
 Net investment income              783       843      2,261     2,576
 Net realized investment
  gains (losses)                    (27)       27        234       114
 Total other-than-temporary
  impairment losses                  --      (297)        --      (669)
 Other income                        24     1,302        207       972
                               --------  --------   --------  --------

   Revenues                      25,735    29,848     79,171    87,414
                               --------  --------   --------  --------

 Insurance benefits,
  claims and reserves            15,414    18,786     44,801    53,256
 Selling, general and
  administrative expenses         9,569     9,742     30,039    29,835
 Amortization and
  depreciation                      210       224        629       585
                               --------  --------   --------  --------

   Expenses                      25,193    28,752     75,469    83,676
                               --------  --------   --------  --------

 Income before income tax           542     1,096      3,702     3,738
 Provision for income taxes         141       331      1,168     1,231
                               --------  --------   --------  --------

 Net income                         401       765      2,534     2,507
  Less: Net income
   attributable to the
   noncontrolling interest         (176)     (169)      (443)     (321)
                               --------  --------   --------  --------

 Net income attributable
  to American
  Independence Corp.           $    225  $    596   $  2,091  $  2,186
                               ========  ========   ========  ========

 Basic income per common
  share:
  Net income attributable
   to American Independence
   Corp. common
   shareholders                $    .03  $    .07   $    .25  $    .26
                               ========  ========   ========  ========

 Weighted-average shares
  outstanding                     8,506     8,504      8,505     8,504
                               ========  ========   ========  ========

 Diluted income per common
  share:
  Net income attributable
   to American Independence
   Corp. common
   shareholders                $    .03  $    .07   $    .25  $    .26
                               ========  ========   ========  ========

 Weighted-average diluted
  shares outstanding              8,506     8,504      8,505     8,504
                               ========  ========   ========  ========

 As of September 30, 2009 there were 8,506,489 common shares
 outstanding, net of treasury shares.


        RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS
        TO NON-GAAP OPERATING INCOME FROM CONTINUING OPERATIONS
                 (In thousands except per share data)

                               Three Months Ended    Nine Months Ended
                                 September 30,         September 30,
                               ------------------   ------------------
                                 2009      2008       2009      2008
                               --------  --------   --------  --------

 Income from continuing
  operations                   $    225  $    596   $  2,091  $  2,186
 Amortization of intangible
  assets related to
  purchase accounting                34        55        101        75
 Net realized investment
  (gains) losses                     27       (27)      (234)     (114)
 Total other-than-temporary
  impairment losses                  --       297         --       669
 Federal income tax charge
  related to deferred
  taxes for operating
  income                            115       317      1,048     1,092
                               --------  --------   --------  --------


 Operating Income from
  continuing operations        $    401  $  1,238   $  3,006  $  3,908
                               ========  ========   ========  ========

 Non - GAAP Basic Income
  Per Common Share:

   Operating Income from
    continuing operations      $    .05  $    .15   $    .35  $    .46
                               ========  ========   ========  ========

 Non - GAAP Diluted Income
  Per Common Share:

   Operating Income from
    continuing operations      $    .05  $    .15   $    .35  $    .46
                               ========  ========   ========  ========

American Independence Corp.
David T. Kettig
(212) 355-4141 Ext. 3047
www.americanindependencecorp.com