What is American Independence Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, American Independence's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of American Independence's Probability of Financial Distress (%)
For the Insurance - Life subindustry, American Independence's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Independence's Probability of Financial Distress (%) Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, American Independence's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where American Independence's Probability of Financial Distress (%) falls into.
American Independence Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For insurance companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
American Independence (American Independence) Business Description
Traded in Other Exchanges
N/A
Address
American Independence Corp is a Delaware corporation. The Company is an insurance holding Company, which provides specialized health coverage and related services to commercial customers and individuals. The Company focuses on niche health products and/or narrowly defined distribution channels in the United States. It's wholly owned subsidiary, Independence American Insurance Company, markets its products through IHC Risk Solutions, LLC, IHC Specialty Benefits, Inc., and IPA Family, LLC, which are subsidiaries of AMIC, and through independent brokers, producers and agents. Independence American is licensed to write property and/or casualty insurance in all 50 states and the District of Columbia, and has an A- (Excellent) rating from A.M. Best Company, Inc. Risk Solutions is a full-service direct writer of medical stop-loss insurance for self-insured employer groups. Risk Solutions has offices near Hartford, Connecticut and Philadelphia, Pennsylvania, and markets and underwrites employer medical stop-loss and group life mainly for Standard Security Life Insurance Company of New York. It also writes, to a much lesser extent, for three other carriers, including Madison National Life Insurance Company, Inc. and Independence American. Independence Holding Company and its subsidiaries including, among others, Standard Security Life and Madison National Life are collectively referred to as "IHC". Independence American writes group important medical, medical stop-loss, crucial medical plans for individuals and families, short-term medical, and dental, and began writing pet insurance in 2012.Independence American competes with many larger insurance and reinsurance companies and managed care organizations. Risk Solutions competes with many other managing general underwriters, insurance companies, and MCOs. AMIC is an insurance holding company; as such, AMIC and its subsidiaries are subject to regulation and supervision by multiple state insurance regulators, including the Office of the Insurance Commissioner of the State of Delaware.
Executives
| Teresa A Herbert |
director, officer: CFO & SVP |
96 CUMMINGS POINT RD, STAMFORD CT 06902 |
| Ronald I Simon |
director |
485 MADISON AVENUE, 14TH FLOOR, NEW YORK NY 10022 |
| Thung Roy T K |
director, officer: CEO |
96 CUMMINGS POINT RD STAMFORD CT 06902 |
| James G Tatum |
director |
96 CUMMINGS POINT RD STAMFORD CT 06902 |
| David T Kettig |
director, officer: President |
96 CUMMINGS POINT RD STAMFORD CT 06902 |
| Steven B Lapin |
director |
96 CUMMINGS POINT RD STAMFORD CT 06902 |
| Brian Schlier |
officer: Corporate Vice President - Tax |
96 CUMMINGS POINT RD STAMFORD CT 06902 |
| Gary Balzofiore |
officer: Corporate Vice President |
485 MADISON AVENUE, NEW YORK NY 10022 |
| Jeffrey C Smedsrud |
officer: Senior Vice President |
8009 34TH AVENUE SOUTH #360 BLOOMINGTON MN 55420 |
| Erickson Bernon Reneld Jr |
officer: Chief Health Actuary and SVP |
INDEPENDENCE HOLDING COMPANY 485 MADISON AVENUE, 14TH FLOOR NEW YORK NY 10022 |
| Scott Michael Wood |
officer: Senior Vice President |
2101 W. PEORIA AVE, SUITE 100 PHOENIX AZ 85029 |
| Paul R Janerico |
officer: VP - Internal Audit |
96 CUMMINGS POINT RD STAMFORD CT 06902 |
| Henry B Spencer |
officer: VP - Investments |
96 CUMMINGS POINT ROAD STAMFORD CT 06902 |
| Roy L Standfest |
officer: V.P.& Chief Investment Officer |
96 CUMMINGS POINT RD STAMFORD CT 06902 |
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