Condensed Financial Information of Parent Company Only Disclosure

12 Months Ended

Dec. 31, 2014

Notes

Condensed Financial Information of Parent Company Only Disclosure

SCHEDULE II
INDEPENDENCE HOLDING COMPANY
CONDENSED BALANCE SHEETS (In thousands, except share data)
(PARENT COMPANY ONLY)
		DECEMBER 31,
		2014		2013
ASSETS:
Cash and cash equivalents	$	389	$	61
Fixed maturities, available-for-sale		9,647		2,406
Trading securities		1,916		944
Other investments		1,146		1,146
Investments in consolidated subsidiaries		387,270		356,378
Deferred tax assets, net		11,414		13,347
Goodwill		228		228
Other assets		97		69
TOTAL ASSETS	$	412,107	$	374,579
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and other liabilities	$	7,140	$	6,403
Amounts due to consolidated subsidiaries, net		57,220		45,000
Income taxes payable		7,871		6,096
Junior subordinated debt securities		38,146		38,146
Dividends payable		628		628
TOTAL LIABILITIES		111,005		96,273
STOCKHOLDERS' EQUITY:
Preferred stock (none issued)		-		-
Common stock (A)		18,531		18,524
Paid-in capital		127,098		126,239
Accumulated other comprehensive income (loss)		22		(10,472)
Treasury stock, at cost (B)		(12,141)		(8,169)
Retained earnings		157,667		142,669
TOTAL IHC’S STOCKHOLDERS' EQUITY		291,177		268,791
NONCONTROLLING INTERESTS IN SUBSIDIARIES		9,925		9,515
TOTAL EQUITY		301,102		278,306
TOTAL LIABILITIES AND EQUITY	$	412,107	$	374,579

(A)    Common stock $1.00 par value, 23,000,000 shares authorized; 18,531,158 and 18,523,733 shares issued, respectively, 17,371,040 and 17,660,390 shares outstanding, respectively.

(B)    Treasury stock, at cost; 1,160,118 and 863,343 shares, respectively, outstanding.

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

SCHEDULE II
(Continued)
INDEPENDENCE HOLDING COMPANY
CONDENSED STATEMENTS OF INCOME (In thousands)
(PARENT COMPANY ONLY)
		2014		2013		2012
REVENUES:
Net investment income	$	112	$	61	$	491
Net realized investment gains (losses)		(78)		349		2
Other income		2,129		2,327		2,251
		2,163		2,737		2,744
EXPENSES:
Interest expense on debt		1,546		1,563		1,638
General and administrative expenses		5,606		4,301		5,125
		7,152		5,864		6,763
Loss before tax benefit and equity in net income of subsidiaries		(4,989)		(3,127)		(4,019)
Income taxes (benefits)		(2,389)		(1,228)		(1,528)
Equity in net income of subsidiaries		19,521		17,155		25,102
Net income		16,921		15,256		22,611
Less income from noncontrolling interests in
subsidiaries		(628)		(1,477)		(2,950)
Net income attributable to IHC	$	16,293	$	13,779	$	19,661

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
CONDENSED STATEMENTS OF CASH FLOWS (In thousands)
(PARENT COMPANY ONLY)
		2014		2013		2012
CASH FLOWS PROVIDED BY (USED BY)
OPERATING ACTIVITIES:
Net income	$	16,921	$	15,256	$	22,611
Adjustments to net income:
Equity in net income of subsidiaries		(19,521)		(17,155)		(25,102)
Other		3,748		4,398		604
Changes in other assets and liabilities		440		(1,609)		(439)
Net change in cash from operating activities		1,588		890		(2,326)
CASH FLOWS PROVIDED BY (USED BY)
INVESTING ACTIVITIES:
Change in investments in and advances to subsidiaries		11,138		6,708		5,109
Purchases of fixed maturities		(9,953)		-		(11,781)
Sales of fixed maturities		2,751		3,260		6,109
Change in other  investments		-		-		3,152
Net change in cash  from investing activities		3,936		9,968		2,589
CASH FLOWS PROVIDED BY (USED BY)
FINANCING ACTIVITIES:
Repurchases of common stock		(3,972)		(3,636)		(941)
Cash paid in acquisitions of noncontrolling interests		-		(7,626)		(58)
Dividends paid		(1,233)		(620)		(1,681)
Proceeds from exercise of stock options		-		430		-
Other financing activities		9		66		(92)
Net change in cash from financing activities		(5,196)		(11,386)		(2,772)
Net change in cash and cash equivalents		328		(528)		(2,509)
Cash and cash equivalents, beginning of year		61		589		3,098
Cash and cash equivalents, end of year	$	389	$	61	$	589

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