Schedule II - Condensed Financial Information of Parent Company: Cash Flow Statement of Parent Only (Tables) (Parent Company)

12 Months Ended

Dec. 31, 2012

Parent Company

Tables/Schedules

Cash Flow Statement of Parent Only

SCHEDULE II
(Continued)
INDEPENDENCE HOLDING COMPANY
CONDENSED STATEMENTS OF CASH FLOWS (In thousands)
(PARENT COMPANY ONLY)
		2012		2011		2010
CASH FLOWS PROVIDED BY (USED BY)
OPERATING ACTIVITIES:
Net income	$	22,611	$	14,766	$	23,413
Adjustments to net income:
Equity in net income of subsidiaries		(25,102)		(15,776)		(24,554)
Loss from discontinued operations		-		-		256
Other		604		(1,470)		(640)
Changes in other assets and liabilities		(439)		1,828		368
Net change in cash from operating activities		(2,326)		(652)		(1,157)
CASH FLOWS PROVIDED BY (USED BY)
INVESTING ACTIVITIES:
Decrease in investments in and advances to consolidated subsidiaries		5,109		2,264		1,762
Purchases of fixed maturities		(11,781)		(497)		(2,567)
Sales of fixed maturities		6,109		1,271		5,377
Net distributions from (additions to) other  investments		3,152		2,025		(659)
Other investing activities		-		-		(199)
Net change in cash  from investing activities		2,589		5,063		3,714
CASH FLOWS PROVIDED BY (USED BY)
FINANCING ACTIVITIES:
Repurchases of common stock		(941)		(911)		(1,591)
Cash paid in acquisitions of noncontrolling interests		(58)		(62)		-
Excess tax benefits from exercises of common stock options
and vesting of restricted stock		(94)		(164)		(51)
Dividends paid		(1,681)		(777)		(767)
Other financing activities		2		-		-
Net change in cash from financing activities		(2,772)		(1,914)		(2,409)
Net change in cash and cash equivalents		(2,509)		2,497		148
Cash and cash equivalents, beginning of year		3,098		601		453
Cash and cash equivalents, end of year	$	589	$	3,098	$	601