Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

12 Months Ended

Dec. 31, 2017

Notes

Investments in and Advances to Affiliates, Schedule of Investments

Note 6.Other Investments, Including Variable Interest Entities 

Other investments consist of the following for the periods indicated (in thousands): 

		December 31,
		2017		2016
Equity method investments	$	15,385	$	19,747
Cost method investments		3,125		3,750
Other investments and securities, at cost		37		37
	$	18,547	$	23,534

In 2017 the Company received a $5,246,000 cash distribution from an equity investment representing a return of capital.

Included in equity method investments above is our investment 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 amounted to $8,188,000 and $8,770,000 at December 31, 2017 and 2016, respectively, and the Company recorded $629,000, $(743,000) and $(271,000), respectively, of equity income (loss) from its investment for the years ended December 31, 2017, 2016 and 2015.

Effective July 1, 2016, Ebix exercised its right to increase its ownership in Ebix Health Exchange by purchasing an additional 11% of Ebix Health Exchange for $2,000,000. As a result of the transaction, the Company’s ownership interest in Ebix Health Exchange decreased to 49%. In accordance with the terms of the original sale and joint venture agreement, IHC was obligated to fund any negative cash flow through December 31, 2016 in the form of a loan to the joint venture. A portion of the loan at December 31, 2016 was converted to capital. In 2016, the Company reduced the contingent liability, previously recognized on the acquisition date (see Note 7), by $1,038,000, for cash operating losses reported during the period.

At December 31, 2017 and 2016, the Company’s Consolidated Balance Sheets includes $1,859,000 and $570,000, respectively, of notes and other amounts receivable from Ebix Health Exchange, and include $1,139,000 and $938,000, 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.  For the years ended December 31, 2017, 2016 and 2015, the Company’s Consolidated Statements of Income include $0, $366,000 and $80,000, respectively, in fee income from Ebix Health Exchange, and include $10,306,000, $5,937,000 and $1,477,000, respectively, of administrative fee expenses to Ebix Health Exchange, which are included in fee income and selling, general and administrative expenses, respectively.

During 2016, the Company acquired several other investments, including an equity method investment and certain cost method investments, for an aggregate $5,250,000.

Investments in certain unconsolidated trust subsidiaries were liquidated in connection with the Company’s redemption of its junior subordinated debt in 2016 (see Note 11).

Variable Interest Entities

Other investments at December 31, 2017 and 2016 include $3,993,000 and $8,961,000, respectively, of noncontrolling interests in certain limited partnerships that we have determined to be Variable Interest Entities (“VIEs”).  The aforementioned VIEs are not required to be consolidated in the Company’s consolidated financial statements as we are not the primary beneficiary since we do not have the power to direct the activities that most significantly impact the VIEs’ economic performance.

The Company will periodically reassess whether it is the primary beneficiary in any of these investments. The reassessment process will consider whether it has acquired the power to direct the most significant activities of the VIEs through changes in governing documents or other circumstances. The Company’s maximum loss exposure is limited to the combined $3,993,000 carrying value in these equity investments and the Company has no future funding obligations to them.