INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (June 30, 2012 Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012		Dec. 31, 2011
Investments:
Short-term investments	$ 50		$ 50
Securities purchased under agreements to resell	21,637		17,258
Trading securities	6,383
Fixed maturities, available-for-sale	717,158		842,873
Equity securities, available-for-sale	30,541		37,541
Other investments	32,245		35,223
Total investments	808,014		932,945
Cash and cash equivalents	13,401		18,227
Due from securities brokers	11,296		12,106
Deferred acquisition costs	35,601		37,101
Due and unpaid premiums	40,772		37,341
Due from reinsurers	309,299		159,729
Premium and claim funds	41,717		43,604
Notes and other receivables	17,513		15,500
Goodwill	50,318		50,318
Other assets	44,073		51,988
TOTAL ASSETS	1,372,004		1,358,859
LIABILITIES:
Insurance reserves-health	177,341		179,042
Insurance reserves-life and annuity	279,190		279,636
Funds on deposit	420,249		417,310
Unearned premiums	5,837		4,319
Policy claims-health	14,176		13,945
Policy claims-life	10,888		11,948
Other policyholders' funds	22,563		21,546
Due to securities brokers	4,887		383
Due to reinsurers	40,507		40,030
Accounts payable, accruals and other liabilities	61,127		66,410
Debt	10,000		10,000
Junior subordinated debt securities	38,146		38,146
TOTAL LIABILITIES	1,084,911		1,082,715
IHC STOCKHOLDERS' EQUITY:
Common Stock	18,460	[1],[2]	18,451	[1],[3]
Paid-in capital	126,474		126,298
Accumulated other comprehensive income (loss)	12,452		7,853
Treasury stock, at cost	(4,303)	[4]	(3,277)	[5]
Retained earnings	118,576		111,752
TOTAL IHC STOCKHOLDERS' EQUITY	271,659		261,077
NONCONTROLLING INTERESTS IN SUBSIDIARIES	15,434		15,067
TOTAL EQUITY	287,093		276,144
TOTAL LIABILITIES AND EQUITY	$ 1,372,004		$ 1,358,859

[1] $1.00 par value.

[2] 23,000,000 shares authorized, 18,459,514 shares issued and 17,954,387 shares outstanding.

[3] 20,000,000 shares authorized, 18,450,917 shares issued and 18,052,661 shares outstanding.

[4] 505,127 treasury shares

[5] 398,257 treasury shares