Supplementary Insurance Information, for Insurance Companies Disclosure

12 Months Ended

Dec. 31, 2016

Notes

Supplementary Insurance Information, for Insurance Companies Disclosure

	SCHEDULE III
	INDEPENDENCE HOLDING COMPANY
	SUPPLEMENTARY INSURANCE INFORMATION
	(in thousands)
			FUTURE
			POLICY				INSURANCE	AMORTIZATION	SELLING
		DEFERRED	BENEFITS,		NET	NET	BENEFITS,	OF DEFERRED	GENERAL &		NET
		ACQUISITION	LOSSES &	UNEARNED	PREMIUMS	INVESTMENT	CLAIMS &	ACQUISTION	ADMINISTRATIVE		PREMIUMS
		COSTS (1)	CLAIMS	PREMIUMS	EARNED	INCOME (2)	RESERVES	COSTS (1)	EXPENSES (3)		WRITTEN
December 31, 2016
Medical Stop-Loss	$	-	54,760	-	12,070	1,700	10,427	-	(1,546)	$	12,070
Specialty Health		-	50,943	6,320	154,397	3,272	81,215	-	84,730		154,333
Group disability; life
and DBL		-	137,428	3,305	96,190	6,469	52,245	-	33,386		96,454
Individual life, annuities
and other		-	341,181	161	47	2,255	1,344	-	3,952		46
Corporate		-	-	-	-	2,874	-	-	11,652		-
	$	-	584,312	9,786	262,704	16,570	145,231	-	132,174	$	262,903
December 31, 2015
Medical Stop-Loss	$	-	100,088	-	209,765	4,374	153,919	-	41,392	$	209,765
Specialty Health		-	42,165	7,005	171,912	1,813	93,916	-	85,506		171,731
Group disability; life
and DBL		-	141,837	3,060	85,953	3,699	47,646	-	26,857		86,304
Individual life, annuities
and other		-	405,327	171	11,904	7,146	11,697	-	15,544		11,901
Corporate		-	-	-	-	205	-	-	8,342		-
	$	-	689,417	10,236	479,534	17,237	307,178	-	177,641	$	479,701
December 31, 2014
Medical Stop-Loss	$	-	80,128	-	176,941	4,249	122,469	-	38,971	$	176,941
Specialty Health		-	50,767	6,568	218,949	2,202	146,431	-	94,657		215,844
Group disability; life
and DBL		-	147,823	2,700	64,260	3,156	37,537	-	17,936		64,632
Individual life, annuities
and other		-	421,908	187	18,898	11,830	19,598	-	21,571		18,894
Corporate		-	-	-	-	177	-	-	8,252		-
	$	-	700,626	9,455	479,048	21,614	326,035	-	181,387	$	476,311

(1)         In 2015, the Company ceded substantially all of its individual life and annuity policy blocks in run-off and as a result, the remaining balance of deferred acquisition costs is insignificant at December 31, 2015 and 2016 and is included in other assets on the accompanying Consolidated Balance Sheets. At December 31, 2014, the Company had $30,806,000 of deferred acquisition costs on its Consolidated Balance Sheet. Amortization of deferred acquisition costs was $319,000, $3,524,000 and $4,941,000 for the years ended December 31, 2016, 2015 and 2014, respectively, and is included in selling, general and administrative expenses on the Consolidated Statements of Income for those periods.

(2)         Net investment income is allocated between product lines based on the mean reserve method.

(3)         Where possible, direct operating expenses are specifically identified and charged to product lines. Indirect expenses are allocated based on time studies; however, other acceptable methods of allocation might produce different results.