Financial Results

The Company's operating income(1) for the three months ended June 30, 2009 was $0.7 million ($.08 per share, diluted), as compared to $1.4 million ($.17 per share, diluted) for the three months ended June 30, 2008. Operating income for the six months ended June 30, 2009 was $2.6 million ($.31 per share, diluted), as compared to $2.7 million ($.31 per share, diluted) for the six months ended June 30, 2008.

Revenues decreased to $26.8 million for the three months ended June 30, 2009, compared to revenues of $29.2 million for the three months ended June 30, 2008. Net income decreased to $0.5 million ($.06 per share, diluted), net of a provision for income taxes of $0.3 million, for the three months ended June 30, 2009, compared to $0.8 million ($.09 per share, diluted), net of a provision for income taxes of $0.4 million, for the three months ended June 30, 2008. Revenues decreased to $53.4 million for the six months ended June 30, 2009, compared to revenues of $57.6 million for the six months ended June 30, 2008. Net income was $1.9 million ($.22 per share, diluted), net of provision for income taxes of $1.0 million, for the six months ended June 30, 2009, compared to $1.6 million ($.19 per share, diluted), net of a provision for income taxes of $0.9 million, for the six months ended June 30, 2008.

As of June 30, 2009, AMIC had approximately $274 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.

Chief Executive Officer's Comments

Roy Thung, Chief Executive Officer, commented, "The second quarter of 2009 was adversely impacted by significantly higher loss ratios in our fully insured health line on business generated by one producer. We have taken measures to correct the situation and are optimistic that we will see improvement in future quarters. Our premiums have decreased almost 12% for the six months ended June 30, 2009 compared to the first six months of 2008 due to recessionary pressures and tighter underwriting guidelines. Even in the current challenging economy, our financial condition remains strong. Our insurance company's statutory surplus at June 30, 2009 is at an all-time high. We have grown our book value to $10.15 per share at June 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, (ii) Operating income per share is operating income (loss) on a per share basis, and (iii) Adjusted book value per share represents AMIC's book value per share excluding the per share value of net unrealized investment gains and losses (per SFAS 115), after taxes. 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.