NEW YORK, March 16, 2009 (GLOBE NEWSWIRE) -- American Independence Corp. (Nasdaq:AMIC) today reported 2008 fourth-quarter and annual results. This press release contains both GAAP and non-GAAP financial information for which a reconciliation can be found on the final page.
Financial Results
The Company's operating income(1) for the three months ended December 31, 2008 was $0.6 million ($.08 per share, diluted), as compared to $0.4 million ($.04 per share, diluted) for the three months ended December 31, 2007. The Company's operating income was $4.5 million ($.53 per share, diluted) for the year ended December 31, 2008, as compared to $1.5 million ($.18 per share, diluted) for the year ended December 31, 2007.
Revenues decreased to $25.9 million for the three months ended December 31, 2008, compared to revenues of $28.5 million for the three months ended December 31, 2007. Net income (loss) decreased to $(1.2) million ($(.14) per share), net of an income tax benefit of $(0.6) million, for the three months ended December 31, 2008, compared to $0.3 million ($.04 per share, diluted), net of a provision for income taxes of $0.2 million, for the three months ended December 31, 2007. As of December 31, 2008, AMIC had approximately $276 million of federal net operating loss carryforwards. To the extent that AMIC utilizes any such carryforwards, it will not pay any income taxes, except for federal alternative minimum taxes and state income taxes. In the fourth quarter of 2008, the Company became aware of certain activities engaged in by the non-affiliate broker-dealer that managed a trading account of the Company. The Company recorded a loss of $1.3 million, net of tax ($.15 per share) in the fourth quarter of 2008 relating to assets invested with this broker-dealer. The Company also recorded a loss on the impairment of certain securities of $0.2 million, net of tax ($.03 per share) in the fourth quarter of 2008 relating to bonds of financial institutions. The decrease in market value of these securities was deemed to be other than temporary in nature and these investments were written-down accordingly.
AMIC also reported net income of $1.0 million ($.11 per share, diluted), net of a provision for income taxes of $0.6 million, for the year ended December 31, 2008, compared to $1.1 million ($.13 per share, diluted), net of a provision for income taxes of $0.7 million, for the year ended December 31, 2007. The Company recorded a loss on the impairment of certain securities of $0.7 million, net of tax ($.08 per share, diluted) for the year ended 2008 relating to bonds and preferred stocks of financial institutions. Revenues decreased to $113.3 million for the year ended December 31, 2008, compared to revenues of $119.1 million for the year ended December 31, 2007.
Chief Executive Officer's Comments
Roy Thung, Chief Executive Officer, commented, "We are pleased that our operating income from continuing operations increased to $.53 per share, diluted, for the year ended December 31, 2008, as compared to $.18 per share, diluted, for the year ended December 31, 2007. The decrease in net income for 2008 as compared to 2007 is primarily due to realized losses of $2.9 million. The improvement in operating income is largely due to improved underwriting results on our medical stop-loss line of business, offset by reduced medical stop-loss premiums and lower margins on certain group major medical lines of business. In addition, the individual health business produced by our affiliate, Independent Producers of America (IPA), continues to grow as planned. Independence American Insurance Company's annualized earned premium produced by IPA has grown from $2.2 million prior to our acquiring them to $7.4 million as of December 31, 2008. Underwriting profit for business generated by IPA is achieving expected results. We are confident that our improved overall operating results will continue in 2009."
Non-GAAP Financial Measures
The Company provides non-GAAP financial measures to complement its consolidated financial statements presented in accordance with GAAP.
