Supplementary Insurance Information, for Insurance Companies Disclosure

12 Months Ended

Dec. 31, 2019

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, 2019
Specialty Health	$	-	42,495	3,110	177,991	4,330	75,539	-	110,527	$	177,438
Group disability, life,
DBL and PFL		-	146,080	4,000	160,702	7,774	97,335	-	49,894		162,972
Individual life, annuities
and other		-	318,236	172	48	1,294	1.382	-	1,720		48
Medical Stop-Loss		-	147	-	-	6	(135)	-	(163)		-
Corporate		-	-	-	-	2,239	-	-	13,001		-
	$	-	506,958	7,282	338,741	15,643	174,121	-	174,979	$	340,458
December 31, 2018
Specialty Health	$	-	38,154	3,635	184,512	4,386	60,749	-	113,454	$	184,513
Group disability, life,
DBL and PFL		-	148,012	1,737	136,709	7,029	82,948	-	42,818		135,662
Individual life, annuities
and other		-	324,063	185	27	1,535	796	-	1,572		27
Medical Stop-Loss		-	431	-	-	39	(287)	-	150		-
Corporate		-	-	-	-	2,032	-	-	11,034		-
	$	-	510,660	5,557	321,248	15,021	144,206	-	169,028	$	320,202

(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 not material at December 31, 2019 and 2018 and is included in other assets on the accompanying Consolidated Balance Sheets. Amortization of deferred acquisition costs was $1,036,000 and $982,000 for the years ended December 31, 2019 and 2018, 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.