SEC Schedule, Article 12-04, Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2011

SEC Schedule, Article 12-04, Condensed Financial Information of Registrant

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

	SCHEDULE II
INDEPENDENCE HOLDING COMPANY
BALANCE SHEETS
(PARENT COMPANY ONLY)

					DECEMBER 31,
					2011		2010
					(In thousands, except share data)
ASSETS:
	Cash and cash equivalents			$	3,098	$	601
	Fixed maturities, available-for-sale				-		771
	Other investments				4,298		6,323
	Investments in continuing consolidated subsidiaries				331,784		310,814
	Taxes receivable				16,233		13,626
	Goodwill				228		228
	Other assets				56		59
		TOTAL ASSETS		$	355,697	$	332,422
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
	Accounts payable and other liabilities			$	4,586	$	4,207
	Amounts due to consolidated subsidiaries, net				28,813		23,269
	Income taxes payable				7,597		5,374
	Net liabilities related to discontinued operations				-		771
	Junior subordinated debt securities				38,146		38,146
	Dividends payable				411		381
		TOTAL LIABILITIES			79,553		72,148
STOCKHOLDERS' EQUITY:
	Preferred stock (none issued)				-		-
	Common stock, $1.00 par value, 20,000,000 shares authorized;
			16,774,540 and 15,472,020 shares issued,
			16,412,405 and 15,232,865 shares outstanding		16,775		15,472
	Paid-in capital				111,814		101,003
	Accumulated other comprehensive income				7,853		633
	Treasury stock, at cost;  362,052 and 239,155 shares				(2,928)		(1,917)
	Retained earnings				127,563		115,437
		TOTAL IHC’S STOCKHOLDERS' EQUITY			261,077		230,628
		NONCONTROLLING INTERESTS IN SUBSIDIARIES			15,067		29,646
		TOTAL EQUITY			276,144		260,274
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	355,697	$	332,422

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

	SCHEDULE II
	(Continued)
INDEPENDENCE HOLDING COMPANY
STATEMENTS OF OPERATIONS
(PARENT COMPANY ONLY)

			2011		2010		2009
			(In thousands)
REVENUES:
	Net investment income	$	929	$	746	$	1,298
	Net realized investment gains (losses)		23		62		(2)
	Other-than-temporary impairment losses		-		-		(1,735)
	Other income		3,138		3,142		3,357
			4,090		3,950		2,918
EXPENSES:
	Interest expense on debt		1,575		1,589		2,269
	General and administrative expenses		4,088		3,805		4,229
			5,663		5,394		6,498
Loss before tax benefit			(1,573)		(1,444)		(3,580)
Income tax benefit			(563)		(559)		(1,446)
Loss before equity in net income (loss) of subsidiaries			(1,010)		(885)		(2,134)
Equity in net income (loss) of subsidiaries			15,776		24,554		(5,299)
Income (loss) from continuing operations			14,766		23,669		(7,433)
Discontinued operations:
	Income (loss) from discontinued operations		-		(256)		301
Net income (loss)			14,766		23,413		(7,132)
(Income) loss from noncontrolling interests in
	subsidiaries		(1,763)		(1,676)		10
Net loss attributable to IHC		$	13,003	$	21,737	$	(7,122)

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

	SCHEDULE II
	(Continued)
INDEPENDENCE HOLDING COMPANY
STATEMENTS OF CASH FLOWS
(PARENT COMPANY ONLY)

								2011		2010		2009
								(In thousands)
CASH FLOWS PROVIDED BY (USED BY)
	OPERATING ACTIVITIES:
			Net income (loss)				$	14,766	$	23,413	$	(7,132)
			Adjustments to net income (loss):
					Equity in net (income) loss of subsidiaries			(15,776)		(24,554)		5,299
					(Income) loss from discontinued operations			-		256		(301)
					Other			(1,470)		(640)		(248)
		Changes in other assets and liabilities						1,828		368		6,223
						Net change in cash from operating activities		(652)		(1,157)		3,841
CASH FLOWS PROVIDED BY (USED BY)
	INVESTING ACTIVITIES:
			Decrease in investments in and advances to consolidated
				subsidiaries				2,264		1,762		2,500
			Purchases of fixed maturities					(497)		(2,567)		(5,007)
			Sales of fixed maturities					1,271		5,377		1,501
			Net distributions from (additions to) other  investments					2,025		(659)		(1,174)
			Other investing activities					-		(199)		-
						Net change in cash  from investing activities		5,063		3,714		(2,180)
CASH FLOWS PROVIDED BY (USED BY)
	FINANCING ACTIVITIES:
			Proceeds from issuance of common stock					-		-		1
			Repurchases of common stock					(911)		(1,591)		-
			Cash paid in acquisitions of noncontrolling interests					(62)		-		-
			Excess tax benefits from exercises of common stock options
				and vesting of restricted stock				(164)		(51)		(720)
			Dividends paid					(777)		(767)		(746)
						Net change in cash from financing activities		(1,914)		(2,409)		(1,465)
			Net change in cash and cash equivalents					2,497		148		196
			Cash and cash equivalents, beginning of year					601		453		257
			Cash and cash equivalents, end of year				$	3,098	$	601	$	453

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