AMIC American Independence Corp.

Independence Holding Company (NYSE:IHC) today reported 2015 fourth-quarter and annual results.  As a result of the delay in reporting these results, IHC is currently working on its 2016 first-quarter results.

Financial Results

Net income attributable to IHC increased to $.28 per share, diluted, or $4,933,000, for the three months ended December 31, 2015 compared to $.23 per share, diluted, or $4,034,000, for the three months ended December 31, 2014. Net income attributable to IHC increased to $1.71 per share, diluted, or $29,944,000, for the year ended December 31, 2015 compared to $.92 per share, diluted, or $16,293,000, for the year ended December 31, 2014.

Revenues decreased to $125,080,000 for the three months ended December 31, 2015 as compared to revenues for the three months ended December 31, 2014 of $127,090,000; and revenues decreased to $532,868,000 for the year ended December 31, 2015 compared to revenues for the year ended December 31, 2014 of $533,933,000.  Revenues decreased primarily due to a reduction in premiums from having exited the major medical market and a decrease in realized gains.  Exiting the major medical line, which was triggered by the requirements of the Affordable Care Act (“ACA”), resulted in a reduction in revenue of $15,856,000 for the fourth quarter and $58,382,000 for the year ended December 31, 2015. These reductions were partially offset by an increase in medical stop-loss and specialty health premiums and from gains due to the following transactions which closed in 2015: (i) the reinsurance of substantially all of our run-off blocks of individual life and annuities and the sale of the infrastructure related to those blocks; and (ii) the joint venture with Ebix, Inc. to form Ebix Health Exchange Holdings, LLC, which acquired our subsidiary Ebix Health Administration Exchange (f.k.a. IHC Health Solutions, Inc.).

Chief Executive Officer’s Comments

Roy T. K. Thung, Chief Executive Officer, commented, “With the sale of our stop-loss business, we are now focused on growing our remaining lines of business: group long term disability and life, statutory disability benefit policies (DBL) in New York, pet, group and individual specialty health insurance.  All of these lines performed very well in 2015, and the pet and specialty health lines grew significantly.  We anticipate continued growth and good underwriting results from these lines of business in 2016.  Our overall investment portfolio continues to be very highly rated (on average, AA) and has a duration of approximately five and a half years. Our book value increased to $18.73 per share at December 31, 2015 from $17.25 per share at December 31, 2014, and our total stockholders’ equity increased to $323 million at December 31, 2015 compared to $300 million at December 31, 2014.  Both of these are all-time highs. As previously reported, we have sold IHC Risk Solutions LLC and the stop-loss business it produced on March 31, 2016 and that transaction will further increase our stockholders’ equity by approximately $100 million.”

About The IHC Group

Independence Holding Company (NYSE:IHC) is a holding company that is principally engaged in underwriting, administering and/or distributing group and individual disability, specialty and supplemental health, pet, and life insurance through its subsidiaries since 1980.  The IHC Group (including through its 91% ownership of American Independence Corp. (NASDAQ:AMIC)) owns  three insurance companies (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company), a majority of Ebix Health Administration Exchange, Inc., a fully insured third party administrator, and IHC Specialty Benefits, Inc., which is a technology-driven insurance sales and marketing company that creates value for insurance producers, carriers and consumers (both individuals and small businesses) through a suite of proprietary tools and products (including ACA plans and small group medical stop-loss).  All products are placed with highly rated carriers.

Forward-looking Statements

Certain statements and information contained in this release may be considered “forward-looking statements,” such as statements relating to management's views with respect to future events and financial performance.  Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements.  Potential risks and uncertainties include, but are not limited to, economic conditions in the markets in which IHC operates, new federal or state governmental regulation, IHC’s ability to effectively operate, integrate and leverage any past or future strategic acquisition, and other factors which can be found in IHC’s other news releases and filings with the Securities and Exchange Commission.  IHC expressly disclaims any duty to update its forward-looking statements unless required by applicable law.

INDEPENDENCE HOLDING COMPANY
FOURTH QUARTER REPORT
December 31, 2015
(In Thousands, Except Per Share Data)
		Three Months Ended								Year Ended
		December 31,								December 31,
			2015				2014				2015				2014
REVENUES:
Premiums earned	$		117,939		$		116,938		$		479,534		$		479,048
Net investment income			3,414				5,018				17,298				21,692
Fee income			1,925				2,633				12,954				20,646
Other income			1,920				1,727				10,276				4,859
Gain on sale of subsidiary to joint venture			(221	)			-				9,940				-
Net realized investment gains			103				774				3,094				7,688
Net impairment losses recognized in earnings			-				-				(228	)			-
			125,080				127,090				532,868				533,933
EXPENSES:
Insurance benefits, claims and reserves			73,960				82,547				307,178				326,035
Selling, general and administrative expenses			42,345				39,850				172,180				177,848
Amortization of deferred acquisitions costs			78				1,054				3,524				4,941
Interest expense on debt			444				440				1,798				1,797
			116,827				123,891				484,680				510,621
Income before income taxes			8,253				3,199				48,188				23,312
Income tax expense (benefit)			3,106				(1,013	)			17,666				6,391
Net income			5,147				4,212				30,522				16,921
Less: income from noncontrolling interests
in subsidiaries			(214	)			(178	)			(578	)			(628	)
NET INCOME ATTRIBUTABLE TO IHC	$		4,933		$		4,034		$		29,944		$		16,293
Basic income per common share	$	.29			$	.23			$		1.73		$	.93
WEIGHTED AVERAGE SHARES OUTSTANDING			17,262				17,371				17,314				17,471
Diluted income per common share	$	.28			$	.23			$		1.71		$	.92
WEIGHTED AVERAGE DILUTED SHARES
OUTSTANDING			17,447				17,549				17,484				17,636

As of May 31, 2016, there were 17,223,233 common shares outstanding, net of treasury shares.

INDEPENDENCE HOLDING COMPANY
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
						December 31,					December 31,
							2015					2014
ASSETS:
	Investments:
		Short-term investments			$		50			$		50
		Securities purchased under agreements to resell					28,285					16,790
		Trading securities					1,259					11,095
		Fixed maturities, available-for-sale					428,601					583,880
		Equity securities, available-for-sale					8,426					13,895
		Other investments					21,538					25,251
			Total investments				488,159					650,961
	Cash and cash equivalents						19,171					25,083
	Deferred acquisition costs						499					30,806
	Due and unpaid premiums						69,075					62,628
	Due from reinsurers						480,859					278,242
	Premium and claim funds						22,755					32,553
	Goodwill						52,940					50,318
	Other assets						64,505					65,636
			TOTAL ASSETS		$		1,197,963			$		1,196,227
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
	Policy benefits and claims				$		245,443			$		236,803
	Future policy benefits						270,624					277,041
	Funds on deposit						173,350					186,782
	Unearned premiums						10,236					9,455
	Other policyholders' funds						11,822					18,802
	Due to reinsurers						44,141					47,945
	Accounts payable, accruals and other liabilities						66,308					67,641
	Debt						5,189					4,000
	Junior subordinated debt securities						38,146					38,146
			TOTAL LIABILITIES				865,259					886,615
STOCKHOLDERS’ EQUITY:
IHC STOCKHOLDERS' EQUITY:
	Preferred stock (none issued)						-					-
	Common stock						18,569					18,531
	Paid-in capital						127,733					127,098
	Accumulated other comprehensive income (loss)						(3,440	)				22
	Treasury stock, at cost						(13,961	)				(12,141	)
	Retained earnings						194,450					166,177
TOTAL IHC STOCKHOLDERS’ EQUITY							323,351					299,687
NONCONTROLLING INTERESTS IN SUBSIDIARIES							9,353					9,925
			TOTAL EQUITY				332,704					309,612
			TOTAL LIABILITIES AND EQUITY		$		1,197,963			$		1,196,227

CONTACT: Loan Nisser
(646) 509-2107
www.IHCGroup.com