Schedule II - Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2012

Notes

Schedule II - Condensed Financial Information of Parent Company

SCHEDULE II

AMERICAN INDEPENDENCE CORP.

BALANCE SHEETS

(PARENT COMPANY ONLY)

(In thousands, except share data)

		As of December 31,
		2012		2011
ASSETS:
Cash and cash equivalents	$	3,170	$	460
Fixed maturities available-for-sale, at fair value		-		3,556
Investments in continuing consolidated subsidiaries		86,568		80,010
Other receivables		1,250		1,025
Other assets		496		502
Deferred tax asset		13,024		8,992
TOTAL ASSETS	$	104,508	$	94,545
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and other liabilities	$	284	$	556
TOTAL LIABILITIES		284		556
STOCKHOLDERS' EQUITY
Preferred stock (none issued)		-		-
Common stock (A)		92		92
Paid-in capital		479,451		479,418
Accumulated other comprehensive income		1,829		1,278
Treasury stock (B)		(9,107)		(9,107)
Accumulated deficit		(368,113)		(377,692)
TOTAL AMIC STOCKHOLDERS' EQUITY		104,152		93,989
NON-CONTROLLING INTEREST IN SUBSIDIARIES		72		-
TOTAL EQUITY		104,224		93,989
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	104,508	$	94,545

(A)   Common stock $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares issued; 8,272,332 shares outstanding.

(B)   Treasury stock, at cost; 909,461 shares.

The financial information of American Independence Corp. (Parent Company Only) should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

SCHEDULE II

(Continued)

AMERICAN INDEPENDENCE CORP.

STATEMENTS OF OPERATIONS

(PARENT COMPANY ONLY)

(In thousands)

		YEAR ENDED
		DECEMBER 31,
		2012		2011		2010
REVENUES:
Net investment income	$	50	$	45	$	16
Net realized investment gains (losses)		15		11		(1,266)
Other income		-		-		-
		65		56		(1,250)
EXPENSES:
General and administrative expenses and other		1,752		1,838		1,589
		1,752		1,838		1,589
Loss before income tax expense		(1,687)		(1,782)		(2,839)
Income tax benefit		(6,488)		(620)		(989)
Income before equity in net income of subsidiaries		4,801		(1,162)		(1,850)
Equity in net income of subsidiaries, net of tax		5,741		4,346		4,832
Net income		10,542		3,184		2,982
(Income) loss from non-controlling interests in subsidiaries		(950)		(690)		(883)
Net income attributable to American Independence Corp.	$	9,592	$	2,494	$	2,099

The financial information of American Independence Corp. (Parent Company Only) should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

SCHEDULE II

(Continued)

AMERICAN INDEPENDENCE CORP.

STATEMENTS OF CASH FLOWS

(PARENT COMPANY ONLY)

(In thousands)

		YEAR ENDED
		DECEMBER 31,
		2012		2011		2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	10,542	$	3,184	$	2,982
Adjustments to reconcile net income to net cash
provided from operating activities:
Deferred tax expense (benefit)		(3,965)		1,389		1,154
Equity in net income of subsidiaries		(5,741)		(4,346)		(4,832)
Net realized investment (gains) losses		(15)		(11)		1,266
Non-cash compensation expense		33		43		74
Change in operating assets and liabilities:
Change in deferred tax asset		(67)		(131)		(131)
Change in other assets and liabilities		(310)		(893)		288
Net cash provided by (used by) operating activities of continuing
operations		477		(765)		801
Net cash used by operating activities of discontinued operations		-		-		(93)
Net cash provided by (used by) operating activities		477		(765)		708
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in investments in and advances to
consolidated subsidiaries		(1,107)		1,958		3,023
IPA acquisition of non-controlling interest		-		(525)		-
Change in loan receivable		(175)		(750)		-
Purchases of fixed maturities		(2,154)		-		(4,747)
Sales of fixed maturities		5,669		1,201
Net cash provided by (used by) investing activities		2,233		1,884		(1,724)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		-		57		45
Repurchase of common stock		-		(1,310)		(60)
Net cash used by financing activities		-		(1,253)		(15)
Increase (decrease) in cash and cash equivalents		2,710		(134)		(1,031)
Cash and cash equivalents, beginning of period		460		594		1,625
Cash and cash equivalents, end of period	$	3,170	$	460	$	594
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$	5	$	7	$	9

The financial information of American Independence Corp. (Parent Company Only) should be read in conjunction with the Consolidated Financial Statements and Notes thereto.