Schedule II - Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2015

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,
		2015		2014
ASSETS:
Cash and cash equivalents	$	1,501	$	708
Investments in continuing consolidated subsidiaries		89,854		79,997
Other receivables		95		1,828
Other assets		819		535
Net deferred tax asset		16,215		19,977
TOTAL ASSETS	$	108,484	$	103,045
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and other liabilities	$	1,286	$	195
TOTAL LIABILITIES		1,286		195
STOCKHOLDERS' EQUITY
Preferred stock (none issued)		-		-
Common stock (A)		92		92
Paid-in capital		88,637		88,256
Accumulated other comprehensive loss		(197)		(154)
Treasury stock (B)		(10,161)		(10,243)
Retained earnings		25,549		22,139
TOTAL AMIC STOCKHOLDERS' EQUITY		103,920		100,090
NON-CONTROLLING INTEREST IN SUBSIDIARIES		3,278		2,760
TOTAL EQUITY		107,198		102,850
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	108,484	$	103,045

(A)   Common stock   $0.01 par value, 15,000,000 shares authorized; 9,181,793 shares issued; 8,088,105 and 8,079,215 shares outstanding, respectively.

(B)   Treasury stock, at cost; 1,093,688 and 1,102,578 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,
		2015		2014		2013
REVENUES:
Net investment income	$	93	$	65	$	47
Net realized investment gains (losses)		-		-		(31)
Other Income		96		-		-
		189		65		16
EXPENSES:
General and administrative expenses and other		2,034		1,656		1,903
		2,034		1,656		1,903
Loss before income tax expense		(1,845)		(1,591)		(1,887)
Income tax benefit		(644)		(3,055)		(659)
Income (loss) before equity in net income of subsidiaries		(1,201)		1,464		(1,228)
Equity in net income of subsidiaries, net of tax		5,016		3,883		5,093
Net income		3,815		5,347		3,865
Income from non-controlling interests in subsidiaries		(286)		(97)		(983)
Net income attributable to American Independence Corp.	$	3,529	$	5,250	$	2,882

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,
		2015		2014		2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	3,815	$	5,347	$	3,865
Adjustments to reconcile net income to net cash
provided from operating activities:
Deferred tax expense (benefit)		(646)		(3,057)		(661)
Equity in net income of subsidiaries		(5,016)		(3,883)		(5,093)
Net gain on step acquisition of GAF and settlement of
pre-existing relationships (see Note 2)		(503)		-		-
Net realized investment (gains) losses		-		-		31
Non-cash compensation expense		43		52		42
Change in operating assets and liabilities:
Change in other assets and liabilities		200		(123)		(6)
Net cash used by operating activities		(2,107)		(1,664)		(1,822)
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in investments in and advances to
consolidated subsidiaries		3,266		1,421		2,627
Change in loan receivable		33		(528)		(1,300)
Cash paid in step acquisition of GAF		(325)		-		-
Purchases of fixed maturities		-		-		(1,746)
Sales of fixed maturities		-		-		1,715
Net cash provided by investing activities		2,974		893		1,296
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		52		33		-
IPA acquisition of non-controlling interest		(126)		-		-
Repurchase of common stock		-		-		(1,198)
Net cash provided by (used by) financing activities		(74)		33		(1,198)
Increase (decrease) in cash and cash equivalents		793		(738)		(1,724)
Cash and cash equivalents, beginning of period		708		1,446		3,170
Cash and cash equivalents, end of period	$	1,501	$	708	$	1,446
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$	28	$	8	$	32

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.