Schedule II - Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2014

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,
		2014		2013
ASSETS:
Cash and cash equivalents	$	708	$	1,446
Investments in continuing consolidated subsidiaries		79,439		73,236
Other receivables		1,828		1,300
Other assets		535		521
Net deferred tax asset		12,025		11,172
TOTAL ASSETS	$	94,535	$	87,675
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and other liabilities	$	195	$	292
TOTAL LIABILITIES		195		292
STOCKHOLDERS' EQUITY
Preferred stock (none issued)		-		-
Common stock (A)		92		92
Paid-in capital		79,746		79,694
Accumulated other comprehensive loss		(154)		(2,152)
Treasury stock (B)		(10,243)		(10,305)
Retained earnings		22,139		16,970
TOTAL AMIC STOCKHOLDERS' EQUITY		91,580		84,299
NON-CONTROLLING INTEREST IN SUBSIDIARIES		2,760		3,084
TOTAL EQUITY		94,340		87,383
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	94,535	$	87,675

(A)   Common stock $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares issued; 8,079,215 and 8,072,548 shares outstanding, respectively.

(B)   Treasury stock, at cost; 1,102,578 and 1,109,245 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)
		SUCCESSOR				PREDECESSOR
		YEAR ENDED				YEAR ENDED
		DECEMBER 31,				DECEMBER 31,
		2014		2013		2012
REVENUES:
Net investment income	$	65	$	47	$	50
Net realized investment gains (losses)		-		(31)		15
		65		16		65
EXPENSES:
General and administrative expenses and other		1,656		1,903		1,752
		1,656		1,903		1,752
Loss before income tax expense		(1,591)		(1,887)		(1,687)
Income tax benefit		(3,055)		(659)		(6,488)
Income (loss) before equity in net income of subsidiaries		1,464		(1,228)		4,801
Equity in net income of subsidiaries, net of tax		3,883		5,093		5,741
Net income		5,347		3,865		10,542
Income from non-controlling interests in subsidiaries		(97)		(983)		(950)
Net income attributable to American Independence Corp.	$	5,250	$	2,882	$	9,592

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)
		SUCCESSOR				PREDECESSOR
		YEAR ENDED				YEAR ENDED
		DECEMBER 31,				DECEMBER 31,
		2014		2013		2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	5,347	$	3,865	$	10,542
Adjustments to reconcile net income to net cash
provided from operating activities:
Deferred tax expense (benefit)		(3,057)		(661)		(3,965)
Equity in net income of subsidiaries		(3,883)		(5,093)		(5,741)
Net realized investment (gains) losses		-		31		(15)
Non-cash compensation expense		52		42		33
Change in operating assets and liabilities:
Change in deferred tax asset		-		-		(67)
Change in other assets and liabilities		(123)		(6)		(310)
Net cash provided by (used by) operating activities		(1,664)		(1,822)		477
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in investments in and advances to
consolidated subsidiaries		1,421		2,627		(1,107)
Change in loan receivable		(528)		(1,300)		(175)
Purchases of fixed maturities		-		(1,746)		(2,154)
Sales of fixed maturities		-		1,715		5,669
Net cash provided by investing activities		893		1,296		2,233
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		33		-		-
Repurchase of common stock		-		(1,198)		-
Net cash provided by (used by) financing activities		33		(1,198)		-
Increase (decrease) in cash and cash equivalents		(738)		(1,724)		2,710
Cash and cash equivalents, beginning of period		1,446		3,170		460
Cash and cash equivalents, end of period	$	708	$	1,446	$	3,170
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$	8	$	32	$	5

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.