Schedule II - Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2013

Notes

Schedule II - Condensed Financial Information of Parent Company

SCHEDULE II
AMERICAN INDEPENDENCE CORP.
CONDENSED BALANCE SHEETS (In thousands, except share data)
(PARENT COMPANY ONLY)
		DECEMBER 31,
		2013		2012
ASSETS:
Cash and cash equivalents	$	1,446	$	3,170
Investments in continuing consolidated subsidiaries		88,381		86,568
Other receivables		1,300		1,250
Other assets		521		496
Net federal deferred tax asset		11,248		13,024
TOTAL ASSETS	$	102,896	$	104,508
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and other liabilities	$	292	$	284
TOTAL LIABILITIES		292		284
STOCKHOLDERS' EQUITY
Preferred stock (none issued)		-		-
Common stock (A)		92		92
Paid-in capital		479,481		479,451
Accumulated other comprehensive income (loss)		(2,152)		1,829
Treasury stock (B)		(10,305)		(9,107)
Accumulated deficit		(364,730)		(368,113)
TOTAL AMIC STOCKHOLDERS' EQUITY		102,386		104,152
NON-CONTROLLING INTEREST IN SUBSIDIARIES		218		72
TOTAL EQUITY		102,604		104,224
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	102,896	$	104,508

(A)   Common stock $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares issued; 8,072,548 and 8,272,332 shares outstanding, respectively.

(B)   Treasury stock, at cost; 1,109,245 and 909,461 shares, respectively.

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

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II
(Continued)
AMERICAN INDEPENDENCE CORP.
CONDENSED STATEMENTS OF INCOME (In thousands)
(PARENT COMPANY ONLY)
		YEAR ENDED
		DECEMBER 31,
		2013		2012		2011
REVENUES:
Net investment income	$	47	$	50	$	45
Net realized investment gains (losses)		(31)		15		11
		16		65		56
EXPENSES:
General and administrative expenses and other		1,903		1,752		1,838
		1,903		1,752		1,838
Loss before income tax expense		(1,887)		(1,687)		(1,782)
Income tax benefit		(659)		(6,488)		(620)
Income (loss) before equity in net income of subsidiaries		(1,228)		4,801		(1,162)
Equity in net income of subsidiaries, net of tax		5,646		5,741		4,346
Net income		4,418		10,542		3,184
Income from non-controlling interests in subsidiaries		(983)		(950)		(690)
Net income attributable to American Independence Corp.	$	3,435	$	9,592	$	2,494

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

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II
(Continued)
AMERICAN INDEPENDENCE CORP.
CONDENSED STATEMENTS OF CASH FLOWS (In thousands)
(PARENT COMPANY ONLY)
		YEAR ENDED
		DECEMBER 31,
		2013		2012		2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	4,418	$	10,542	$	3,184
Adjustments to reconcile net income to net cash
provided from operating activities:
Deferred tax expense (benefit)		(661)		(3,965)		1,389
Equity in net income of subsidiaries		(5,646)		(5,741)		(4,346)
Net realized investment (gains) losses		31		(15)		(11)
Non-cash compensation expense		42		33		43
Change in operating assets and liabilities:
Change in deferred tax asset		-		(67)		(131)
Change in other assets and liabilities		(6)		(310)		(893)
Net cash provided by (used by) operating activities		(1,822)		477		(765)
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in investments in and advances to
consolidated subsidiaries		2,627		(1,107)		1,958
IPA Family acquisition of non-controlling interest		-		-		(525)
Change in loan receivable		(1,300)		(175)		(750)
Purchases of fixed maturities		(1,746)		(2,154)		-
Sales of fixed maturities		1,715		5,669		1,201
Net cash provided by investing activities		1,296		2,233		1,884
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		-		-		57
Repurchase of common stock		(1,198)		-		(1,310)
Net cash used by financing activities		(1,198)		-		(1,253)
Increase (decrease) in cash and cash equivalents		(1,724)		2,710		(134)
Cash and cash equivalents, beginning of period		3,170		460		594
Cash and cash equivalents, end of period	$	1,446	$	3,170	$	460
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$	32	$	5	$	7

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

See accompanying Report of Independent Registered Public Accounting Firm.