American Independence Corporation (AMIC) is an insurance company that micro-cap investors should avoid. In this article, I will argue that the company's ownership structure prevents outside shareholders from realizing any value on their investment and that the recent improvement in operating results and market sentiment are transitory.
Conflicts of Interest
Independence Holding Company (IHC), which owns a variety of different operating companies in the insurance industry, is the controlling owner of AMIC. From AMIC's latest 10-Q:
Since November 2002, AMIC has been affiliated with Independence Holding Company ("IHC"), which owned 80.6% of AMIC's stock as of March 31, 2013. The senior management of IHC provides direction to the Company through a service agreement between the Company...