Stockholders' Equity Note Disclosure [Text Block]

12 Months Ended

Dec. 31, 2018

Notes

Stockholders' Equity Note Disclosure

Note 12.Stockholders’ Equity 

Treasury Stock

In 1991, IHC initiated a program of repurchasing shares of its common stock. In August 2016, the Board of Directors increased the number of shares that can be repurchased to 3,000,000 shares of IHC common stock. At December 31, 2018, there were 1,855,747 shares still authorized to be repurchased under the plan authorized by the Board of Directors.

In 2018, the Company repurchased 135,311 shares of its common stock for an aggregate cost of $4,019,000. All of the shares were purchased in the open market. In 2017, the Company repurchased 2,289,502 shares of its common stock for an aggregate cost of $46,527,000. Of that amount, 703,000 shares were repurchased in private transactions for an aggregate cost of $13,975,000; 1,385,118 shares were repurchased for an aggregate cost of $27,702,000 pursuant to the terms of a tender offer; and the remaining shares were repurchased in the open market.

The Company issued 123,274 and 72,312 shares from treasury stock in 2018 and 2017, respectively, as a result of option exercises and the vesting of restricted stock units during the period. 

Accumulated Other Comprehensive Income (Loss)

Other comprehensive income (loss) includes the after-tax net unrealized gains and losses on investment securities available-for-sale, including the subsequent increases and decreases in fair value of available-for-sale securities previously impaired and the non-credit related component of other-than-temporary impairments of fixed maturities. In 2018, investment securities available-for-sale consist of only fixed maturities. Prior to January 1, 2018, the Company classified certain equity securities as available-for-sale. Changes to the fair value of those equity securities classified as available-for-sale were recorded in other comprehensive income (loss) for the corresponding periods in 2017 and prior. Upon the adoption of new accounting guidance on January 1, 2018, the Company: (i) recorded a cumulative-effect adjustment to reclassify the existing amounts reported in accumulated other comprehensive income on that date for equity securities previously classified as available-for-sale, to retained earnings; and (ii) recorded the subsequent changes in the fair value of those equity securities in net income.

Changes in the balances for each component of accumulated other comprehensive income (loss), shown net of taxes, for the years indicated were as follows (in thousands):

		2018		2017
Beginning balance	$	(4,598)	$	(6,964)
Cumulative-effect of new accounting principles		(350)		-
Other comprehensive income (loss):
Other comprehensive income (loss) before reclassifications		(3,974)		4,892
Amounts reclassified from accumulated OCI		612		(1,711)
Net other comprehensive income (loss)		(3,362)		3,181
Reclassification of the stranded tax effects in accumulated
other comprehensive income		-		(815)
Ending balance	$	(8,310)	$	(4,598)

Presented below are the amounts reclassified out of accumulated other comprehensive income (loss) and recognized in earnings for each of the years indicated (in thousands):

		2018		2017
Unrealized gains (losses) on available-for-sale securities
reclassified during the period to the following income
statement line items:
Net investment gains (losses)	$	775	$	2,640
Income (loss) before income tax		775		2,640
Tax effect		163		929
Net income (loss)	$	612	$	1,711