INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (September 30, 2012 Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Investments:
Short-term investments	$ 50		$ 50
Securities purchased under agreements to resell	14,982		17,258
Trading securities	5,858
Fixed maturities, available-for-sale	736,584		842,873
Equity securities, available-for-sale	28,093		37,541
Other investments	34,606		35,223
Total investments	820,173		932,945
Cash and cash equivalents	14,564		18,227
Due from securities brokers	6,636		12,106
Deferred acquisition costs	34,029		37,101
Due and unpaid premiums	45,507		37,341
Due from reinsurers	167,685		159,729
Premium and claim funds	39,626		43,604
Notes and other receivables	17,916		15,500
Goodwill	50,318		50,318
Other assets	43,054		51,988
TOTAL ASSETS	1,239,508		1,358,859
LIABILITIES:
Insurance reserves-health	178,531		179,042
Insurance reserves-life and annuity	278,195		279,636
Funds on deposit	279,947		417,310
Unearned premiums	7,326		4,319
Policy claims-health	13,369		13,945
Policy claims-life	10,409		11,948
Other policyholders' funds	22,686		21,546
Due to securities brokers	230		383
Due to reinsurers	42,836		40,030
Accounts payable, accruals and other liabilities	64,208		66,410
Debt	8,000		10,000
Junior subordinated debt securities	38,146		38,146
TOTAL LIABILITIES	943,883		1,082,715
IHC STOCKHOLDERS' EQUITY:
Common Stock	18,462	[1],[2]	18,451	[1],[3]
Paid-in capital	126,547		126,298
Accumulated other comprehensive income (loss)	16,633		7,853
Treasury stock, at cost	(4,397)	[4]	(3,277)	[5]
Retained earnings	122,494		111,752
TOTAL IHC STOCKHOLDERS' EQUITY	279,739		261,077
NONCONTROLLING INTERESTS IN SUBSIDIARIES	15,886		15,067
TOTAL EQUITY	295,625		276,144
TOTAL LIABILITIES AND EQUITY	$ 1,239,508		$ 1,358,859

[1] $1.00 par value.

[2] 23,000,000 shares authorized, 18,461,992 shares issued and 17,947,330 shares outstanding.

[3] 20,000,000 shares authorized, 18,450,917 shares issued and 18,052,660 shares outstanding.

[4] 514,662 treasury shares

[5] 398,257 treasury shares