Condensed Financial Information of Parent Company Only Disclosure

12 Months Ended

Dec. 31, 2018

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,
		2018		2017
ASSETS:
Cash and cash equivalents	$	2,700	$	2,304
Fixed maturities, available-for-sale		38,270		27,270
Investments in consolidated subsidiaries		456,304		445,697
Other assets		281		235
TOTAL ASSETS	$	497,555	$	475,506
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and other liabilities	$	10,005	$	8,886
Amounts due to consolidated subsidiaries, net		25,035		25,318
Income taxes payable		6,645		3,411
Dividends payable		2,256		1,583
TOTAL LIABILITIES		43,941		39,198
Redeemable noncontrolling interest		2,183		2,065
STOCKHOLDERS' EQUITY:
Preferred stock (none issued)(A)		-		-
Common stock (B)		18,625		18,625
Paid-in capital		124,395		124,538
Accumulated other comprehensive loss		(8,310)		(4,598)
Treasury stock, at cost (C)		(66,392)		(63,404)
Retained earnings		380,431		356,383
TOTAL IHC’S STOCKHOLDERS' EQUITY		448,749		431,544
NONREDEEMABLE NONCONTROLLING INTERESTS		2,682		2,699
TOTAL EQUITY		451,431		434,243
TOTAL LIABILITIES AND EQUITY	$	497,555	$	475,506

(A)Preferred stock $1.00 par value, 100,000 shares authorized; none issued or outstanding. 

(B)Common stock $1.00 par value, 23,000,000 shares authorized; 18,625,458 shares issued 14,878,248 and 14,890,285 shares outstanding, respectively. 

(C)Treasury stock, at cost; 3,747,210 and 3,735,173 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 thereto.

SCHEDULE II
(Continued)
INDEPENDENCE HOLDING COMPANY
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (In thousands)
(PARENT COMPANY ONLY)
		2018		2017
REVENUES:
Net investment income	$	547	$	576
Net investment gains (losses)		(28)		189
Other income		1,598		1,533
		2,117		2,298
EXPENSES:
General and administrative expenses		7,922		7,675
		7,922		7,675
Loss before income tax benefits and equity in net income of subsidiaries		(5,805)		(5,377)
Equity in net income of subsidiaries		32,459		44,854
Income before income tax benefits		26,654		39,477
Income tax (benefits)		(2,399)		(2,653)
Net income		29,053		42,130
Less income from noncontrolling interests in subsidiaries		(571)		(88)
Net income attributable to IHC	$	28,482	$	42,042
Comprehensive Income:
Net income	$	29,053	$	42,130
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on available-for-sale securities		(130)		73
Equity in unrealized gains (losses) on available-for-sale
securities of subsidiaries		(3,232)		3,108
Other comprehensive income (loss), net of tax		(3,362)		3,181
Comprehensive income, net of tax		25,691		45,311
Less: comprehensive income attributable to noncontrolling interests		(571)		(88)
Comprehensive income, net of tax, attributable to IHC	$	25,120	$	45,223

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)
		2018		2017
CASH FLOWS PROVIDED BY (USED BY)
OPERATING ACTIVITIES:
Net income	$	29,053	$	42,130
Adjustments to net income:
Equity in net income of subsidiaries		(32,459)		(44,854)
Other		2,465		2,521
Changes in other assets and liabilities		2,561		(3,121)
Net change in cash from operating activities		1,620		(3,324)
CASH FLOWS PROVIDED BY (USED BY)
INVESTING ACTIVITIES:
Change in investments in and advances to subsidiaries (A)		17,779		26,847
Net sales and maturities of short-term investments		-		3,499
Purchases of fixed maturities		(16,000)		(46,605)
Sales of fixed maturities		4,469		63,568
Maturities and other repayments of fixed maturities		429		4,640
Net change in cash  from investing activities		6,677		51,949
CASH FLOWS PROVIDED BY (USED BY)
FINANCING ACTIVITIES:
Repurchases of common stock		(4,140)		(46,401)
Dividends paid		(3,712)		(1,928)
Proceeds from stock options exercised		856		-
Payments related to tax withholdings for sharebased compensation		(905)		(1,659)
Net change in cash from financing activities		(7,901)		(49,988)
Net change in cash and cash equivalents		396		(1,363)
Cash and cash equivalents, beginning of year(B)		2,304		3,667
Cash and cash equivalents, end of year(B)	$	2,700	$	2,304

(A)Includes $17,833,000 and $12,100,000 of cash dividends paid to parent company by consolidated subsidiaries for the years ended December 31, 2018 and 2017, respectively. 

(B)The parent company has no restricted cash at December 31, 2018 and 2017. 

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