AMERICAN INDEPENDENCE CORP

CIK:0000097196|SEC Filings

American Independence Corp. and Subsidiaries - Condensed Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2016

Jun. 30, 2015

REVENUES:

Premiums earned

$ 21,735

^[1]

$ 37,232

^[2]

$ 42,831

^[3]

$ 73,449

^[4]

Fee and 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

TOTAL REVENUES

29,446

42,160

58,848

81,595

EXPENSES

Insurance benefits, claims and reserves

13,508

^[5]

25,296

^[6]

28,474

^[7]

49,266

^[8]

Selling, general and administrative expenses

13,573

^[9]

15,168

^[10]

27,079

^[11]

30,120

^[12]

Amortization and depreciation

303

217

583

332

TOTAL EXPENSES

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

Income from discontinued operations, before income taxes

(18)

122,034

819

Income taxes on discontinued operations

(22)

(4)

8,047

320

Income from discontinued operations

(14)

113,987

499

Net income

1,415

938

115,796

1,709

Less: Net income 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:

Basic income per share attributable to American Independence Corp. common stockholders from continuing operations

$ 0.16

$ 0.11

$ 0.19

$ 0.14

Basic income per share attributable to American Independence Corp. common stockholders from discontinued operations

$ 0.00

$ 14.06

$ 0.06

Weighted-average basic shares outstanding

8,119

8,079

8,110

8,079

Diluted income per common share:

Diluted income per share attributable to American Independence Corp. common stockholders from continuing operations

$ 0.16

$ 0.11

$ 0.19

$ 0.14

Diluted income per share attributable to American Independence Corp. common stockholders from discontinued operations

$ 0.00

$ 14.03

$ 0.06

Weighted-average diluted shares outstanding

8,148

8,094

8,125

8,093

[1]	$6,392 from related parties
[2]	$20,726 from related parties
[3]	$14,449 from related parties
[4]	$40,509 from related parties
[5]	$4,076 from related parties
[6]	$12,817 from related parties
[7]	$6,943 from related parties
[8]	$25,494 from related parties
[9]	$3,579 from related parties
[10]	$5,888 from related parties
[11]	$6,820 from related parties
[12]	$11,693 from related parties

American Independence Corp. and Subsidiaries - Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 115,796	$ 1,709
Adjustments to reconcile net income to net change in cash from operating activities:
Net realized investment gains	(603)	(352)
(Gain) loss on disposal of discontinued operations (net of tax)	(113,521)	0
Amortization and depreciation	583	332
Equity (income) loss	0	(93)
Net gain on step acquisition of GAF and settlement of pre-existing relationships	0	(503)
Deferred tax expense	366	962
Non-cash stock compensation expense	21	22
Amortization of bond premiums and discounts	447	301
Change in operating assets and liabilities:
Change in trading securities	0	23
Change in policy benefits and claims	3,748	7,481
Change in net amounts due from and to reinsurers	(12,875)	(1,909)
Change in accrued fee income	0	7
Change in claims fund	(1,128)	8
Change in commissions payable	1,477	874
Change in premiums receivable	666	(3,650)
Change in income taxes	(3,085)	(216)
Dividends received	120	0
Change in other assets and other liabilities	(1,584)	1,728
Net cash provided by operating activities	(9,572)	6,724
CASH FLOWS FROM INVESTING ACTIVITIES:
Net sales of securities under resale and repurchase agreements	(2,932)	(5,084)
Sales of and principal repayments on fixed maturities	100,070	39,226
Maturities and other repayments of fixed maturities	11,413	2,207
Purchases of fixed maturities	(222,514)	(43,227)
Change in loan receivable	(255)	33
Cash paid in acquisitions, net of cash acquired	(275)	0
Proceeds from sales of subsidiaries, net of cash divested	127,961	511
Other investing activities	(31)	(28)
Net cash provided by (used by) investing activities	13,437	(6,362)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	262	0
Repayment of debt	(1,164)	0
IPA Acquisition of non-controlling interest	0	(126)
Net cash provided (used) by financing activities	(902)	(126)
Increase (decrease) in cash and cash equivalents	2,963	236
Cash and cash equivalents, beginning of period	4,861	3,706
Cash and cash equivalents, end of period	7,824	3,942
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	3,310	10
Cash paid for interest	$ 77	$ 11

American Independence Corp. and Subsidiaries - Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Jun. 30, 2016

Dec. 31, 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

^[1]

16,654

^[2]

Net deferred tax asset

14,723

13,944

Assets attributable to discontinued operations

31,718

Due from reinsurers

36,161

^[3]

4,950

^[4]

Goodwill

5,703

Intangible assets

12,814

13,327

Due from securities brokers

403

1,051

Other assets

12,623

10,540

TOTAL ASSETS

321,086

196,974

LIABILITIES:

Policy benefits and claims

47,512

^[5]

43,764

^[6]

Premium and claim funds payable

1,379

1,377

Commission payable

7,294

^[7]

5,817

^[8]

Accounts payable, accruals and other liabilities

16,300

^[9]

11,192

^[10]

Liabilities attributable to discontinued operations

953

24,337

Due to securities brokers

1,973

Due to reinsurers

18,436

100

Debt

2,025

3,189

TOTAL LIABILITIES

95,872

89,776

AMIC STOCKHOLDERS' EQUITY:

Common stock

Additional paid-in capital

88,658

88,637

Accumulated other comprehensive gain (loss)

1,740

(197)

Treasury stock, at cost

(9,878)

(10,161)

Accumulated deficit

141,026

25,549

TOTAL AMIC STOCKHOLDERS' EQUITY

221,638

103,920

NON-CONTROLLING INTERESTS IN SUBSIDIARIES

3,576

3,278

TOTAL EQUITY

225,214

107,198

TOTAL LIABILITIES AND EQUITY

$ 321,086

$ 196,974

[1]	$14,137 restricted by related parties
[2]	$14,009 restricted by related parties
[3]	$1,276 due from related parties
[4]	$3,330 due from related parties
[5]	$28,267 due from related parties
[6]	$27,110 due from related parties
[7]	$4,126 due from related parties
[8]	$5,221 due from related parties
[9]	$2,960 due from related parties
[10]	$2,435 due from related parties