Note 7. Related Party Transactions

6 Months Ended

Jun. 30, 2016

Notes

Note 7. Related Party Transactions

Note 7.                        Related Party Transactions

            Through a joint venture consummated in 2015, the Company has a significant equity interest in Ebix Health Exchange. Ebix Health Exchange administers various lines of health insurance for IHC’s insurance subsidiaries. The carrying value of the Company’s equity investment in Ebix Health Exchange was $8,771,000 and 9,838,000 at June 30, 2016 and December 31, 2015, respectively.  Ebix Health Exchange reported a net loss of $367,000 and $1,188,000 for the three months and six months ended June 30, 2016, respectively. The Company recorded $257,000 and $445,000 of the losses in earnings for the three months and six months ended June 30, 2016, respectively; and reduced the contingent liability, previously recognized on the acquisition date, by $110,000 and $743,000, respectively, during the three months and six months ended June 30, 2016 representing cash operating losses.

The Company’s Condensed Consolidated Balance Sheets at June 30, 2016 and December 31, 2015 include $2,930,000 and $1,397,000, respectively, of notes and other amounts receivable from Ebix Health Exchange, and include $1,970,000 and $405,000, respectively, of administrative fees and other expenses payable to Ebix Health Exchange, which are included in other assets and accounts payable, accruals and other liabilities, respectively.  The Company’s Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2016 include $89,000 and $202,000, respectively, of fee income from Ebix Health Exchange, and include $1,338,000 and $2,585,000, respectively, of administrative fee expenses to Ebix Health Exchange, which are included in fee income and selling, general and administrative expenses. There are no comparable amounts for the three months and six months ended June 30, 2015.