American Independence Corp. (AMIC, Financial) filed Quarterly Report for the period ended 2010-03-31.
American Independence Corp. has a market cap of $42.96 million; its shares were traded at around $5.05 with a P/E ratio of 11.22 and P/S ratio of 0.41. AMIC is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jim Simons of Renaissance Technologies LLC, Jim Simons of Renaissance Technologies LLC.
For the three months ended March 31, 2010 and 2009, Independence American wrote $3.4 million and $2.1 million, respectively, of individual health business produced by our marketing organization IPA. Independence American retains 50% of the risk on this business.
Premiums Earned. Premiums earned decreased 16%, or $3,536,000, to $18,411,000 for the three months ended March 31, 2010, compared to $21,947,000 for the three months ended March 31, 2009. The Company currently has three lines of business. Premiums relating to medical stop-loss business were $9,510,000 and $11,881,000 for the three months ended March 31, 2010 and 2009, respectively. This is due to a decrease in medical stop-loss premiums assumed by Independence American ($2,406,000). Premiums relating to fully insured health consisting of group major medical, limited medical, short-term medical, dental, vision, and individual health were $8,105,000 and $9,190,000 for the three months ended March 31, 2010 and 2009, respectively. The decrease is primarily due to a decrease in group major medical premiums written by Independence American ($1,265,000) and a decrease in group major medical premiums assumed from IHC ($667,000), offset by an increase in individual health premiums written by Independence American ($655,000). Premiums relating to DBL were $796,000 and $876,000 for the three months ended March 31, 2010 and 2009, respectively. For the three months ended March 31, 2010, Independence American assumed 10% of IHCs short-term medical business, approximately 9% of certain of IHCs group major medical business, 20% of IHCs DBL business and
MGU and Agency Income. MGU and agency income decreased $111,000 to $3,643,000 for the three months ended March 31, 2010, compared to $3,754,000 for the three months ended March 31, 2009. MGU fee income-administration decreased $367,000 to $1,103,000 for the three months ended March 31, 2010, compared to $1,470,000 for the three months ended March 31, 2009, as our MGUs have decreased their volume of business as a result of stricter underwriting guidelines. MGU fee income-profit commission increased $140,000 to $261,000 for the three months ended March 31, 2010, compared to $121,000 for the three months ended March 31, 2009. Profit commissions for a given year are based primarily on the performance of business written during portions of the three preceding years. Therefore, profit commissions for 2010 are based on business written during portions of 2007, 2008 and 2009. For the three months ended March 31, 2010, income from our Agencies consisted of commission income and other fees of $1,558,000 from IPA, revenue of $598,000 from HIO, and $123,000 of claims administration fees from ECA. For the three months ended March 31, 2009, income from our Agencies consisted of commission income and other fees of $1,712,000 from IPA and revenue of $335,000 from HIO, and $116,000 of claims administration fees from ECA.
Net Investment Income. Net investment income decreased $99,000 to $614,000 for the three months ended March 31, 2010, compared to $713,000 for the three months ended March 31, 2009. The investment yields were 3.8% for the three months ended March 31, 2010 and 4.6% for the comparable period in 2009. The lower yield is due to a decrease in investments in corporate debt, collateralized mortgage obligations and mortgage-backed securities, and an increase in U.S. Government and municipal investments which bear lower interest rates.
Other Income (Loss). Other income (loss) was ($10,000) for the three months ended March 31, 2010 compared to $42,000 for the three months ended March 31, 2009. Included in the three months ended March 31, 2009 is income of $43,000 representing a decrease in the fair value of the derivative liability relating to
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American Independence Corp. has a market cap of $42.96 million; its shares were traded at around $5.05 with a P/E ratio of 11.22 and P/S ratio of 0.41. AMIC is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jim Simons of Renaissance Technologies LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net income per share decreased to $.10 per share, diluted, or $0.8 million, for the three months ended March 31, 2010, compared to $.16 per share, diluted, or $1.4 million for the three months ended March 31, 2009.For the three months ended March 31, 2010 and 2009, Independence American wrote $3.4 million and $2.1 million, respectively, of individual health business produced by our marketing organization IPA. Independence American retains 50% of the risk on this business.
Premiums Earned. Premiums earned decreased 16%, or $3,536,000, to $18,411,000 for the three months ended March 31, 2010, compared to $21,947,000 for the three months ended March 31, 2009. The Company currently has three lines of business. Premiums relating to medical stop-loss business were $9,510,000 and $11,881,000 for the three months ended March 31, 2010 and 2009, respectively. This is due to a decrease in medical stop-loss premiums assumed by Independence American ($2,406,000). Premiums relating to fully insured health consisting of group major medical, limited medical, short-term medical, dental, vision, and individual health were $8,105,000 and $9,190,000 for the three months ended March 31, 2010 and 2009, respectively. The decrease is primarily due to a decrease in group major medical premiums written by Independence American ($1,265,000) and a decrease in group major medical premiums assumed from IHC ($667,000), offset by an increase in individual health premiums written by Independence American ($655,000). Premiums relating to DBL were $796,000 and $876,000 for the three months ended March 31, 2010 and 2009, respectively. For the three months ended March 31, 2010, Independence American assumed 10% of IHCs short-term medical business, approximately 9% of certain of IHCs group major medical business, 20% of IHCs DBL business and
MGU and Agency Income. MGU and agency income decreased $111,000 to $3,643,000 for the three months ended March 31, 2010, compared to $3,754,000 for the three months ended March 31, 2009. MGU fee income-administration decreased $367,000 to $1,103,000 for the three months ended March 31, 2010, compared to $1,470,000 for the three months ended March 31, 2009, as our MGUs have decreased their volume of business as a result of stricter underwriting guidelines. MGU fee income-profit commission increased $140,000 to $261,000 for the three months ended March 31, 2010, compared to $121,000 for the three months ended March 31, 2009. Profit commissions for a given year are based primarily on the performance of business written during portions of the three preceding years. Therefore, profit commissions for 2010 are based on business written during portions of 2007, 2008 and 2009. For the three months ended March 31, 2010, income from our Agencies consisted of commission income and other fees of $1,558,000 from IPA, revenue of $598,000 from HIO, and $123,000 of claims administration fees from ECA. For the three months ended March 31, 2009, income from our Agencies consisted of commission income and other fees of $1,712,000 from IPA and revenue of $335,000 from HIO, and $116,000 of claims administration fees from ECA.
Net Investment Income. Net investment income decreased $99,000 to $614,000 for the three months ended March 31, 2010, compared to $713,000 for the three months ended March 31, 2009. The investment yields were 3.8% for the three months ended March 31, 2010 and 4.6% for the comparable period in 2009. The lower yield is due to a decrease in investments in corporate debt, collateralized mortgage obligations and mortgage-backed securities, and an increase in U.S. Government and municipal investments which bear lower interest rates.
Other Income (Loss). Other income (loss) was ($10,000) for the three months ended March 31, 2010 compared to $42,000 for the three months ended March 31, 2009. Included in the three months ended March 31, 2009 is income of $43,000 representing a decrease in the fair value of the derivative liability relating to
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