Independence Holding (IHC) 10-Q7 Aug 152015 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	6 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Jun. 30, 2015	Aug. 01, 2015
Document and Entity Information
Entity Registrant Name	Independence Holding Company
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Entity Central Index Key	701,869
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		17,299,351
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Public Float	$ 98,596
Trading Symbol	ihc

INDEPENDENCE HOLDING COMPANY CO

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (June 30, 2015 Unaudited) - USD ($) $ in Thousands		Jun. 30, 2015		Dec. 31, 2014
Investments:
Short-term investments		$ 50		$ 50
Securities purchased under agreements to resell		23,429		16,790
Trading securities		9,242		11,095
Fixed maturities, available-for-sale		608,256		583,880
Equity securities, available-for-sale		9,051		13,895
Other investments		23,745		25,251
Total investments		673,773		650,961
Cash and cash equivalents		23,547		25,083
Deferred acquisition costs		31,767		30,806
Due and unpaid premiums		66,473		62,628
Due from reinsurers		266,597		278,242
Premium and claim funds		33,061		32,553
Goodwill		56,452		50,318
Other assets		51,533		57,126
TOTAL ASSETS		1,203,203		1,187,717
LIABILITIES:
Policy benefits and claims		249,556		236,803
Future policy benefits		275,501		277,041
Funds on deposit		181,307		186,782
Unearned premiums		12,176		9,455
Other policyholders' funds		17,637		18,802
Due to reinsurers		49,067		47,945
Accounts payable, accruals and other liabilities		66,516		67,641
Debt		7,326		4,000
Junior subordinated debt securities		38,146		38,146
TOTAL LIABILITIES		$ 897,232		$ 886,615
IHC STOCKHOLDERS' EQUITY:
Preferred stock	[1]
Common Stock	[2]	$ 18,553	[3]	$ 18,531	[4]
Paid-in capital		127,451		127,098
Accumulated other comprehensive income (loss)		(3,217)		22
Treasury stock, at cost		(12,880)	[5]	(12,141)	[6]
Retained earnings		167,092		157,667
TOTAL IHC STOCKHOLDERS' EQUITY		296,999		291,177
NONCONTROLLING INTERESTS IN SUBSIDIARIES		8,972		9,925
TOTAL EQUITY		305,971		301,102
TOTAL LIABILITIES AND EQUITY		$ 1,203,203		$ 1,187,717

[1]	None issued.
[2]	$1.00 par value.
[3]	23,000,000 shares authorized, 18,553,183 shares issued and 17,333,307 shares outstanding.
[4]	23,000,000 shares authorized, 18,531,158 shares issued and 17,371,040 shares outstanding.
[5]	1,219,876 treasury shares
[6]	1,160,118 treasury shares

INDEPENDENCE HOLDING COMPANY C3

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (June 30, 2015 Unaudited) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
STATEMENT OF FINANCIAL POSITION
Preferred Stock, shares issued	0	0
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	23,000,000	23,000,000
Common Stock, shares issued	18,553,183	18,531,158
Common Stock, shares outstanding	17,333,307	17,371,040
Treasury Stock, shares	1,219,876	1,160,118

INDEPENDENCE HOLDING COMPANY C4

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUES:
Premiums earned	$ 120,443	$ 121,135	$ 242,557	$ 244,405
Net investment income	4,505	5,434	9,946	11,235
Fee income	4,487	3,861	8,203	13,200
Other income	1,570	1,070	2,564	2,181
Net realized investment gains	2,100	4,519	4,100	6,070
Other-than-temporary impairment losses:
TOTAL REVENUES	133,105	136,019	267,370	277,091
EXPENSES:
Insurance benefits, claims and reserves	79,380	83,263	159,000	168,572
Selling, general and administrative expenses	43,702	44,947	87,851	93,082
Amortization of deferred acquisition costs	1,424	1,189	2,888	2,471
Interest expense on debt	478	337	910	818
TOTAL EXPENSES	124,984	129,736	250,649	264,943
Income (loss) before income taxes	8,121	6,283	16,721	12,148
Income taxes (benefits)	2,965	2,403	6,234	4,263
Net income (loss)	5,156	3,880	10,487	7,885
(Income) loss from noncontrolling interests in subsidiaries	(124)	(32)	(236)	(336)
NET INCOME (LOSS) ATTRIBUTABLE TO IHC	$ 5,032	$ 3,848	$ 10,251	$ 7,549
Basic income (loss) per common share	$ 0.29	$ 0.22	$ 0.59	$ 0.43
WEIGHTED AVERAGE SHARES OUTSTANDING	17,338	17,485	17,351	17,553
Diluted income (loss) per common share	$ 0.29	$ 0.22	$ 0.59	$ 0.43
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING	17,501	17,657	17,516	17,709

INDEPENDENCE HOLDING COMPANY C5

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
STATEMENT OF COMPREHENSIVE INCOME
Net income (loss)	$ 5,156	$ 3,880	$ 10,487	$ 7,885
Available-for-sale securities:
Unrealized gains (losses) on available-for-sale securities	(6,445)	5,003	(5,140)	13,020
Tax (benefit) on unrealized gains (losses) on available-for-sale securities	(2,286)	1,499	(1,889)	3,877
Unrealized gains (losses) on available-for-sale securities, net of tax	(4,159)	3,504	(3,251)	9,143
Cash flow hedge:
Unrealized gains (losses) on cash flow hedge, pre-tax	13	21	28	38
Tax (benefit) on unrealized gains (losses) on cash flow hedge	5	8	11	15
Unrealized gains (losses) on cash flow hedge, net of taxes	8	13	17	23
Other comprehensive income (loss), net of tax	(4,151)	3,517	(3,234)	9,166
Comprehensive income (loss), net of tax	1,005	7,397	7,253	17,051
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests:
(Income) loss from noncontrolling interests in subsidiaries	(124)	(32)	(236)	(336)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests:
Net unrealized (gains) losses on available-for-sale securities, net of tax, attributable to noncontrolling interests	33	(82)	(10)	(213)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	33	(82)	(10)	(213)
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(91)	(114)	(246)	(549)
Comprehensive income (loss), net of tax, attributable to IHC	$ 914	$ 7,283	$ 7,007	$ 16,502

INDEPENDENCE HOLDING COMPANY C6

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	COMMON STOCK	PAID-IN CAPITAL	ACCUMULATED OTHER COMPREHENSIVE INCOME(LOSS)	TREASURY STOCK, AT COST	RETAINED EARNINGS	TOTAL IHC STOCKHOLDERS' EQUITY		NON-CONTROLLING INTERESTS	Total
Stockholders Equity at Dec. 31, 2014	$ 18,531	$ 127,098	$ 22	$ (12,141)	$ 157,667	$ 291,177		$ 9,925	$ 301,102
Net income (loss)					10,251	10,251		236	10,487
Other comprehensive income (loss), net of tax			(3,244)			(3,244)		10	(3,234)
Repurchases of common stock				(739)		(739)			(739)
Common stock dividend					(783)	(783)	[1]		(783)	[1]
Acquisition of Subsidiary								608	608
Purchases of noncontrolling interests		112	5			117		(1,851)	(1,734)
Share-based compensation and related tax effects	22	221				243			243
Other capital transactions		20			(43)	(23)		44	21
Stockholders Equity at Jun. 30, 2015	$ 18,553	$ 127,451	$ (3,217)	$ (12,880)	$ 167,092	$ 296,999		$ 8,972	$ 305,971

[1]	$.045 per share.

INDEPENDENCE HOLDING COMPANY C7

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)	6 Months Ended
	Jun. 30, 2015$ / shares
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Common stock dividends declared, per share	$ 0.045

INDEPENDENCE HOLDING COMPANY C8

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS PROVIDED BY (USED BY) OPERATING ACTIVITIES:
Net income (loss)	$ 10,487	$ 7,885
Adjustments to reconcile net income to net change in cash from operating activities:
Amortization of deferred acquisition costs	2,888	2,471
Net realized investment gains	(4,100)	(6,070)
Equity income from equity method investments	(577)	(741)
Depreciation and amortization	1,572	2,013
Share-based compensation expense	64	683
Deferred tax expense (benefits)	1,370	1,885
Other adjustments to reconcile net income	2,218	2,411
Changes in assets and liabilities:
Net sales (purchases) of trading securities	2,173	(3,603)
Change in insurance liabilities	9,603	(48,149)
(Additions) reductions to deferred acquisition costs, net	(3,939)	(2,974)
Change in amount due from reinsurers	11,646	48,580
Change in premium and claim funds	47	(1,882)
Change in current income tax liability	3,890	4,702
Change in due and unpaid premiums	(3,845)	153
Change in other assets	1,084	6,310
Change in other liabilities	(2,031)	(6,303)
Net change in cash from operating activities	32,550	7,371
CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES:
Net sales (purchases) of securities under resale and repurchase agreements	(6,639)	3,334
Sales of equity securities	9,187	288
Purchases of equity securities	(4,423)	(998)
Sales of fixed maturities	377,835	222,627
Maturities and other repayments of fixed maturities	32,019	28,007
Purchases of fixed maturities	(437,826)	(254,891)
Acquisition of subsidiary, net of cash acquired	511
Other investing activites	(693)	2,082
Net change in cash from investing activities	(30,029)	449
CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES:
Payments for repurchases of common stock	(667)	(2,810)
Cash paid in acquisitions of noncontrolling interests	(1,734)
Proceeds (withdrawals) of investment-type insurance contracts	(1,191)	(1,555)
Dividends paid	(609)	(620)
Proceeds from exercise of stock options	133
Other financing activities	11	(433)
Net change in cash from financing activities	(4,057)	(5,418)
Net change in cash and cash equivalents	(1,536)	2,402
Cash and cash equivalents, beginning of period	25,083	24,229
Cash and cash equivalents, end of period	$ 23,547	$ 26,631

Note 1. Organization, Consolida

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies	6 Months Ended
	Jun. 30, 2015
Notes
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies	Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies (A) Business and Organization Independence Holding Company, a Delaware corporation (IHC), is a holding company principally engaged in the life and health insurance business through: (i) its insurance companies, Standard Security Life Insurance Company of New York ("Standard Security Life"), Madison National Life Insurance Company, Inc. ("Madison National Life"), Independence American Insurance Company (Independence American); and (ii) its marketing and administrative companies, including IHC Risk Solutions, LLC, IHC Health Solutions, Inc., IHC Specialty Benefits Inc. and IHC Carrier Solutions, Inc. IHC also owns a significant equity interest in a managing general underwriter (MGU) that writes medical stop-loss. Standard Security Life, Madison National Life and Independence American are sometimes collectively referred to as the Insurance Group. IHC and its subsidiaries (including the Insurance Group) are sometimes collectively referred to as the "Company", or IHC, or are implicit in the terms we, us and our. Geneve Corporation, a diversified financial holding company, and its affiliated entities, held 52.8% of IHC's outstanding common stock at June 30, 2015. (B) Consolidation American Independence Corp. American Independence Corp. (AMIC) is an insurance holding company engaged in the insurance and reinsurance business. At December 31, 2014, the Company owned approximately 90% of the outstanding common stock of AMIC. In the second quarter of 2015, AMIC acquired Global Accident Facilities, LLC (GAF). See Note 6 for more information regarding the acquisition of GAF. Effects of Ownership Changes in Subsidiaries The following table summarizes the effects of changes in the Companys ownership interests in its subsidiaries on IHCs equity for periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Changes in IHCs paid-in capital: Purchase of AMIC shares $ - $ - $ (199) $ - Purchase remaining IPA Family, LLC interests 311 - 311 - Net transfers from noncontrolling interests $ 311 $ - $ 112 $ - (C) Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Financial Statements are unaudited and include the accounts of IHC and its consolidated subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect: (i) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (ii) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. IHCs annual report on Form 10-K as filed with the Securities and Exchange Commission should be read in conjunction with the accompanying Condensed Consolidated Financial Statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods have been included. The condensed consolidated results of operations for the three months and six months ended June 30, 2015 (D) Reclassifications Certain amounts in prior years Condensed Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2015 presentation. (E) Recent Accounting Pronouncements Recently Adopted Accounting Standards In April 2014, the FASB issued guidance: (i) improving the definition of discontinued operations by limiting the reporting of discontinued operations to disposals of components that represent strategic shifts that have (or will have) a major effect on an entitys operations and financial results; and (ii) requiring expanded disclosures for discontinued operations. The adoption of this guidance did not have any effect on the Companys consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In May 2015, the FASB issued guidance requiring additional disclosures for short-duration contracts regarding the liability for unpaid claims and claim adjustment expenses. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a significant effect on the Companys consolidated financial statements. In February 2015, In June 2014, the FASB issued explicit guidance for entities that grant their employees share-based payments in which the terms of the award include a performance target that affects vesting and could be achieved after the requisite service period. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Earlier adoption is permitted. The guidance may be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of this guidance is not expected to have a material effect on the Companys consolidated financial statements. In May 2014, the FASB issued revenue recognition guidance for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards such as insurance contracts or lease contracts. The amendment provides specific steps that an entity should apply in order to achieve its main objective which is recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and requires one of two specified retrospective methods of application. Early application is prohibited. Management has not yet determined the impact that the adoption of this guidance will have on the Companys consolidated financial statements.

Note 2. Income Per Common Share

Note 2. Income Per Common Share	6 Months Ended
Note 2. Income Per Common Share	Jun. 30, 2015
Notes
Note 2. Income Per Common Share	Note 2. Income Per Common Share Diluted earnings per share was computed using the treasury stock method and includes incremental common shares, primarily from the dilutive effect of share-based payment awards, amounting to 163,000 and 165,000 shares for the three months and six months ended June 30, 2015

Note 3. Investment Securities

Note 3. Investment Securities	6 Months Ended
Note 3. Investment Securities	Jun. 30, 2015
Notes
Note 3. Investment Securities	Note 3. Investment Securities The cost (amortized cost with respect to certain fixed maturities), gross unrealized gains, gross unrealized losses and fair value of investment securities are as follows for the periods indicated (in thousands): June 30, 2015 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 168,186 $ 423 $ (5,256) $ 163,353 CMOs - residential (1) 3,385 4 (19) 3,370 CMOs - commercial 975 258 - 1,233 U.S. Government obligations 221,768 415 (25) 222,158 Agency MBS - residential (2) 50 2 - 52 GSEs (3) 12,086 18 (64) 12,040 States and political subdivisions 200,708 1,887 (2,633) 199,962 Foreign government obligations 1,847 9 - 1,856 Redeemable preferred stocks 4,036 196 - 4,232 Total fixed maturities $ 613,041 $ 3,212 $ (7,997) $ 608,256 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 5,154 $ - $ (263) $ 4,891 Nonredeemable preferred stocks 4,004 156 - 4,160 Total equity securities $ 9,158 $ 156 $ (263) $ 9,051 December 31, 2014 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 264,162 $ 1,076 $ (3,314) $ 261,924 CMOs - residential (1) 5,073 55 (22) 5,106 CMOs - commercial 975 - (22) 953 U.S. Government obligations 22,766 126 - 22,892 Agency MBS - residential (2) 65 4 - 69 GSEs (3) 14,706 36 (86) 14,656 States and political subdivisions 238,514 3,253 (2,386) 239,381 Foreign government obligations 34,863 136 (299) 34,700 Redeemable preferred stocks 4,036 163 - 4,199 Total fixed maturities $ 585,160 $ 4,849 $ (6,129) $ 583,880 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 8,452 $ 1,452 $ (147) $ 9,757 Nonredeemable preferred stocks 4,004 134 - 4,138 Total equity securities $ 12,456 $ 1,586 $ (147) $ 13,895 (1) Collateralized mortgage obligations (CMOs). (2) Mortgage-backed securities (MBS). (3) Government-sponsored enterprises (GSEs) are private enterprises established and chartered by the Federal Government or its various insurance and lease programs which carry the full faith and credit obligation of the U.S. Government. The amortized cost and fair value of fixed maturities available-for-sale at June 30, 2015, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or repayment penalties. CMOs and MBSs are shown separately, as they are not due at a single maturity. AMORTIZED FAIR COST VALUE Due in one year or less $ 3,881 $ 3,893 Due after one year through five years 275,912 275,874 Due after five years through ten years 97,880 96,774 Due after ten years 219,879 216,042 CMOs and MBSs 15,489 15,673 $ 613,041 $ 608,256 The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and gross unrealized loss by length of time those securities that have continuously been in an unrealized loss position for the periods indicated (in thousands): June 30, 2015 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 98,506 $ 3,527 $ 32,146 $ 1,729 $ 130,652 $ 5,256 CMOs - residential 2,030 19 - - 2,030 19 U.S. Government obligations 196,800 25 - - 196,800 25 GSEs 7,853 30 3,133 34 10,986 64 States and political subdivisions 87,890 1,081 42,539 1,552 130,429 2,633 Total fixed maturities 393,079 4,682 77,818 3,315 470,897 7,997 Common stocks 4,891 263 - - 4,891 263 Total equity securities 4,891 263 - - 4,891 263 Total temporarily impaired securities $ 397,970 $ 4,945 $ 77,818 $ 3,315 $ 475,788 $ 8,260 Number of securities in an unrealized loss position 80 26 106 December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 77,868 $ 1,473 $ 69,498 $ 1,841 $ 147,366 $ 3,314 CMOs - residential 2,062 16 1,562 6 3,624 22 CMOs - commercial - - 953 22 953 22 GSEs - - 9,581 86 9,581 86 States and political subdivisions 58,819 744 67,318 1,642 126,137 2,386 Foreign government obligations 21,148 171 12,229 128 33,377 299 Total fixed maturities 159,897 2,404 161,141 3,725 321,038 6,129 Common stocks 2,007 136 348 11 2,355 147 Total equity securities 2,007 136 348 11 2,355 147 Total temporarily impaired securities $ 161,904 $ 2,540 $ 161,489 $ 3,736 $ 323,393 $ 6,276 Number of securities in an unrealized loss position 70 46 116 Substantially all of the unrealized losses on fixed maturities available-for-sale at June 30, 2015 and December 31, 2014 relate to investment grade securities and are attributable to changes in market interest rates. Because the Company does not intend to sell, nor is it more likely than not that the Company will have to sell such investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2015. Net realized investment gains (losses) are as follows for periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Available-for-sale securities: Fixed maturities $ 2,114 $ 4,014 $ 3,414 $ 5,491 Common stocks - - 1,465 - Preferred stocks - (5) - (5) Total available-for-sale securities 2,114 4,009 4,879 5,486 Trading securities 86 25 (421) 30 Total realized gains (losses) 2,200 4,034 4,458 5,516 Unrealized gains (losses) on trading securities: Change in unrealized gains (losses) on trading securities (101) 483 (352) 552 Total unrealized gains (losses) on trading securities (101) 483 (352) 552 Gain (losses) on other investments 1 2 (6) 2 Net realized investment gains $ 2,100 $ 4,519 $ 4,100 $ 6,070 For the three months and six months ended June 30, 2015, proceeds from sales of available-for-sale securities were $279,598,000 and $386,013,000, respectively, and the Company realized gross gains of $2,659,000 and $5,773,000, respectively, and gross losses of $460,000 and $642,000, respectively, as a result of those sales. For the three months and six months ended June 30, 2014, proceeds from sales of available-for-sale securities were $127,977,000 and $225,527,000, respectively, and the Company realized gross gains of $3,999,000 and $6,604,000, respectively, and gross losses of $122,000 and $541,000, respectively, as a result of those sales. Other-Than-Temporary Impairment Evaluations We recognize other-than-temporary impairment losses in earnings in the period that we determine: 1) we intend to sell the security; 2) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or 3) the security has a credit loss. Any non-credit portion of the other-than-temporary impairment loss is recognized in other comprehensive income (loss). See Note 1G(iv) to the Consolidated Financial Statements in the 2014 Annual Report for further discussion of the factors considered by management in its regular review to identify and recognize other-than-temporary impairments on available-for-sale securities. The Company did not recognize any other-than-temporary impairments on available-for-sale securities in 2015 or 2014. Credit losses were recognized on certain fixed maturities for which each security also had an impairment loss recognized in other comprehensive income (loss). The rollforward of these credit losses were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Balance at beginning of year $ 473 $ 473 $ 473 $ 473 Additional credit losses for which an other-than- temporary loss was previously recognized - - - - Securities sold - - - - Balance at end of period $ 473 $ 473 $ 473 $ 473 The after-tax portion of other-than-temporary impairments included in accumulated other comprehensive income (loss) at both June 30, 2015 and December 31, 2014 consists of $335,000 related to CMO securities.

Note 4. Cash Flow Hedge

Note 4. Cash Flow Hedge	6 Months Ended
Note 4. Cash Flow Hedge	Jun. 30, 2015
Notes
Note 4. Cash Flow Hedge	Note 4. Cash Flow Hedge In connection with its outstanding amortizing term loan, a subsidiary of IHC entered into an interest rate swap on July 1, 2011 with the commercial bank lender, for a notional amount equal to the debt principal amount ( $4,000,000 at both June 30, 2015 and December 31, 2014), under which the Company receives a variable rate equal to the rate on the debt and pays a fixed rate ( 1.60% ) in order to manage the risk in overall changes in cash flows attributable to forecasted interest payments. As a result of the interest rate swap, interest payments on this debt are fixed at 4.95% . There was no hedge ineffectiveness on this interest rate swap which was accounted for as a cash flow hedge. At June 30, 2015 and December 31, 2014, the fair value of interest rate swap was $55,000 and $83,000 , respectively, which is included in other liabilities on the accompanying Condensed Consolidated Balance Sheets. See Note 5 for further discussion on the valuation techniques utilized to determine the fair value of the interest rate swap.

Note 5. Fair Value Disclosures

Note 5. Fair Value Disclosures	6 Months Ended
Note 5. Fair Value Disclosures	Jun. 30, 2015
Notes
Note 5. Fair Value Disclosures	Note 5. Fair Value Disclosures For all financial and non-financial assets and liabilities accounted for at fair value on a recurring basis, the Company utilizes valuation techniques based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market expectations. These two types of inputs create the following fair value hierarchy: Level 1 Level 2 Level 3 The following section describes the valuation methodologies we use to measure different assets at fair value. Investments in fixed maturities and equity securities: Available-for-sale securities included in Level 1 are equities with quoted market prices. Level 2 is primarily comprised of our portfolio of government securities, agency mortgage-backed securities, corporate fixed income securities, foreign government obligations, collateralized mortgage obligations, municipals and GSEs that were priced with observable market inputs. Level 3 securities consist primarily of CMO securities backed by commercial mortgages and municipal tax credit strips. For these securities, we use industry-standard pricing methodologies, including discounted cash flow models, whose inputs are based on managements assumptions and available market information. Significant unobservable inputs used in the fair value measurement of CMOs are prepayment rates, probability of default, and loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for loss severity and a directionally opposite change in the assumption used for prepayment rates. Further we retain independent pricing vendors to assist in valuing certain instruments. Trading securities: Trading securities included in Level 1 are equity securities with quoted market prices. Interest rate swap: The financial liability included in Level 2 consists of an interest rate swap on IHC debt. It is valued using market observable inputs including market price, interest rate, and volatility within a Black Scholes model. The following tables present our financial assets and liabilities measured at fair value on a recurring basis for the periods indicated (in thousands): June 30, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 163,353 $ - $ 163,353 CMOs - residential - 3,370 - 3,370 CMOs - commercial - - 1,233 1,233 US Government obligations - 222,158 - 222,158 Agency MBS - residential - 52 - 52 GSEs - 12,040 - 12,040 States and political subdivisions - 197,714 2,248 199,962 Foreign government obligations - 1,856 - 1,856 Redeemable preferred stocks 4,232 - - 4,232 Total fixed maturities 4,232 600,543 3,481 608,256 Equity securities available-for-sale: Common stocks 4,891 - - 4,891 Nonredeemable preferred stocks 4,160 - - 4,160 Total equity securities 9,051 - - 9,051 Trading securities - equities 9,242 - - 9,242 Total trading securities 9,242 - - 9,242 Total Financial Assets $ 22,525 $ 600,543 $ 3,481 $ 626,549 FINANCIAL LIABILITIES: Interest rate swap $ - $ 55 $ - $ 55 December 31, 2014 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 261,924 $ - $ 261,924 CMOs residential - 5,106 - 5,106 CMOs commercial - - 953 953 US Government obligations - 22,892 - 22,892 Agency MBS - residential - 69 - 69 GSEs - 14,656 - 14,656 States and political subdivisions - 237,067 2,314 239,381 Foreign government - 34,700 - 34,700 Redeemable preferred stocks 4,199 - - 4,199 Total fixed maturities 4,199 576,414 3,267 583,880 Equity securities available-for-sale: Common stocks 9,757 - - 9,757 Nonredeemable preferred stocks 4,138 - - 4,138 Total equity securities 13,895 - - 13,895 Trading securities - equities 11,095 - - 11,095 Total trading securities 11,095 - - 11,095 Total Financial Assets $ 29,189 $ 576,414 $ 3,267 $ 608,870 FINANCIAL LIABILITIES: Interest rate swap $ - $ 83 $ - $ 83 It is the Companys policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until such time as observable inputs become available and reliable or the range of available independent prices narrow. The Company did not transfer any securities between Level 1, Level 2 or Level 3 in either 2015 or 2014. The following table presents the changes in fair value of our Level 3 financial instruments for the periods indicated (in thousands): Three Months Ended June 30, 2015 States and CMOs Political Commercial Subdivisions Total Beginning balance $ 1,016 $ 2,281 $ 3,297 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 217 (12) 205 Repayments and amortization of fixed maturities - (21) (21) Balance at end of period $ 1,233 $ 2,248 $ 3,481 Three Months Ended June 30, 2014 States and CMOs Political Commercial Subdivisions Total Beginning balance $ 869 $ 2,410 $ 3,279 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 37 (15) 22 Repayments and amortization of fixed maturities - (16) (16) Balance at end of period $ 906 $ 2,379 $ 3,285 Six Months Ended June 30, 2015 States and CMOs Political Commercial Subdivisions Total Beginning balance $ 953 $ 2,314 $ 3,267 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 280 (25) 255 Repayments and amortization of fixed maturities - (41) (41) Balance at end of period $ 1,233 $ 2,248 $ 3,481 Six Months Ended June 30, 2014 States and CMOs Political Commercial Subdivisions Total Beginning balance $ 593 $ 2,441 $ 3,034 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 313 (31) 282 Repayments and amortization of fixed maturities - (31) (31) Balance at end of period $ 906 $ 2,379 $ 3,285 The following table provides carrying values, fair values and classification in the fair value hierarchy of the Companys financial instruments, for the periods indicated, that are not carried at fair value but are subject to fair value disclosure requirements, for the periods indicated (in thousands): June 30, 2015 December 31, 2014 Level 2 Level 2 Fair Carrying Fair Carrying Value Value Value Value FINANCIAL ASSETS: Policy loans $ 13,139 $ 10,492 $ 13,356 $ 10,667 FINANCIAL LIABILITIES: Funds on deposit $ 181,719 $ 181,307 $ 187,213 $ 186,782 Debt and junior subordinated debt securities $ 46,472 $ 46,472 $ 42,146 $ 42,146 The following methods and assumptions were used to estimate the fair value of the financial instruments that are not carried at fair value in the Condensed Consolidated Financial Statements: (A) Policy Loans The fair value of policy loans included in Level 2 of the fair value hierarchy is estimated by projecting aggregate loan cash flows to the end of the expected lifetime period of the life insurance business at the average policy loan rates, and discounting them at a current market interest rate. (B) Funds on Deposit (C) Debt The fair value of debt with fixed and variable interest rates approximates its carrying amount and is included in Level 2 of the fair value hierarchy.

Note 6. Acquisition

Note 6. Acquisition	6 Months Ended
Note 6. Acquisition	Jun. 30, 2015
Notes
Note 6. Acquisition	Note 6. Acquisition On April 30, 2015 (the "Acquisition Date"), through a settlement with a former owner, AMIC increased its ownership in Global Accident Facilities, LLC (GAF) from 40% to 80%, in order to obtain control of the business it produces for Independence American. GAF and its subsidiaries are principally engaged in the marketing, underwriting and administration of specialty risk insurance, referred to as Occupational Accident and Injury on Duty for Independence American, which are offered exclusively in Texas and Massachusetts, respectively. The consideration transferred in exchange for the additional 40% voting interest consisted of: (i) $325,000 in cash; and (ii) non-monetary consideration, primarily consisting of the settlement of a pre-existing relationship with a former owner, with a fair value of $1,195,000 at the Acquisition Date. The fair value of the settlement of the pre-exiting relationship was based on projected future underwriting results discounted for collectability. The acquisition resulted in AMIC obtaining control of GAF. Immediately preceding the transaction, AMICs carrying value of its investment in GAF was $1,908,000. As a result of AMIC obtaining control, the Company has included GAFs consolidated assets and liabilities and results of operations, subsequent to the Acquisition Date, in its condensed consolidated financial results as of and for the periods ended June 30, 2015. Accordingly, the individual line items on the Condensed Consolidated Statements of Income for 2015 reflect approximately two months of the operations of GAF with no corresponding amounts for 2014. On the Acquisition Date, the Company recognized a net pre-tax gain of $503,000 as follows: (i) a loss of $692,000 was recognized by AMIC as a result of re-measuring its equity interest in GAF to its fair value of $1,216,000 immediately before the acquisition; and (ii) a gain of $1,195,000 was recognized by AMIC as a result of settling the pre-existing relationship with the former owner. The net pre-tax gain of $503,000 is included in the Other income line in the Condensed Consolidated Statements of Income. Upon the acquisition of a controlling interest, the Company consolidated the assets and liabilities of GAF. Accordingly, the Company determined the fair value of the identifiable assets acquired and liabilities assumed from GAF on the Acquisition Date. The following table presents the identifiable assets acquired and liabilities assumed in the acquisition of GAF on the Acquisition Date based on their respective fair values (in thousands): Cash $ 836 Intangible assets 5,500 Other assets 1,249 Total identifiable assets 7,585 Other liabilities 4,849 Deferred tax liability 2,200 Debt 3,326 Total liabilities 10,375 Net identifiable liabilities assumed $ 2,790 Included in other liabilities assumed is a $1,000,000 contingent liability recorded in connection with an earn-out agreement with a former owner of a subsidiary of GAF. In accordance with this agreement, payments are required in 2016 and 2019 based on certain earnings targets. The fair value of the contingent liability is estimated based on projected income. The significant inputs are not observable and thus represent a fair value measurement categorized within Level 3 of the fair value hierarchy. In connection with the acquisition, the Company recorded $6,134,000 of goodwill and $5,500,000 of intangible assets (see Note 7). Goodwill reflects the synergies between GAF and Independence American as GAF is the primary writer of Occupational Accident and Injury on Duty business for Independence American. Goodwill was calculated as the excess of the sum of: (i) the acquisition date fair value of total consideration transferred of $1,520,000; (ii) the acquisition date fair value of the equity interest in GAF immediately preceding the acquisition of $1,216,000; and (iii) the fair value of the noncontrolling interest in GAF of $608,000 on the acquisition date; over (iv) the net liabilities of $2,790,000 that were assumed. The enterprise value of GAF was determined by an independent appraisal using a discounted cash flow model based upon the projected future earnings of GAF including a control premium. The fair value of the non-controlling interest was determined based upon their percentage of the GAF enterprise value discounted for a lack of control. The fair value of the acquired identifiable intangible assets and deferred taxes are provisional pending receipt of the final valuations for those assets and liabilities. The Company expects to finalize the preliminary estimates of the fair value of the intangible assets and deferred taxes by the end of this year. For the period from the Acquisition Date to June 30, 2015, the Companys Condensed Consolidated Statement of Income includes revenues and net income of $1,741,000 and $300,000, respectively, from GAF.

Note 7. Goodwill and Other Inta

Note 7. Goodwill and Other Intangible Assets	6 Months Ended
Note 7. Goodwill and Other Intangible Assets	Jun. 30, 2015
Notes
Note 7. Goodwill and Other Intangible Assets	Note 7. Goodwill and Other Intangible Assets The carrying amount of goodwill was $56,452,000 and $50,318,000 at June 30, 2015 and December 31, 2014, respectively. The Company has net other intangible assets of $16,706,000 and $12,135,000 at June 30, 2015 and December 31, 2014, respectively, which are included in other assets in the Condensed Consolidated Balance Sheets. These intangible assets consist of: (i) finite-lived intangible assets, principally the fair value of acquired agent and broker relationships, which are subject to amortization; and (ii) indefinite-lived intangible assets which consist of the estimated fair value of insurance licenses that are not subject to amortization. The gross carrying amounts of these other intangible assets are as follows for the periods indicated (in thousands): June 30, 2015 December 31, 2014 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Finite-lived Intangible Assets: Agent and broker relationships $ 27,225 $ 19,475 $ 22,725 $ 18,567 Trademarks 1,000 21 - - Total finite-lived $ 28,225 $ 19,496 $ 22,725 $ 18,567 June 30, December 31, 2015 2014 Indefinite-lived Intangible Assets: Insurance licenses $ 7,977 $ 7,977 Total indefinite-lived $ 7,977 $ 7,977 In connection with the acquisition of a controlling interest in GAF during the second quarter of 2015 discussed in Note 6, the Company recorded $6,134,000 of goodwill and $5,500,000 of intangible assets associated with the Fully Insured Health segment. None of the goodwill is deductible for income tax purposes. Of the $5,500,000 of intangible assets recorded, $1,000,000 represents the fair value of trademarks, which is being amortized over a period of 8 years, and $4,500,000 represents the fair value of customer relationships being amortized over a period of 9 years. Amortization expense was $525,000 and $929,000 for the three months and six months ended June 30, 2015, respectively, and was $679,000 and $1,358,000 for the three months and six months ended June 30, 2014.

Note 8. Debt

Note 8. Debt	6 Months Ended
Note 8. Debt	Jun. 30, 2015
Notes
Note 8. Debt	Note 8. Debt In connection with the acquisition of a controlling interest in GAF discussed in Note 6, the Company assumed $3,326,000 of GAFs debt. This debt is comprised of: (i) various term loans with former owners of a subsidiary of GAF, aggregating $3,026,000, with various maturities through

Note 9. Income Taxes

Note 9. Income Taxes	6 Months Ended
Note 9. Income Taxes	Jun. 30, 2015
Notes
Note 9. Income Taxes	Note 9. Income Taxes The provisions for income taxes shown in the Condensed Consolidated Statements of Income were computed based on the Company's actual results, which approximate the effective tax rate expected to be applicable for the balance of the current fiscal year in accordance with consolidated life/non-life group income tax regulations. Such regulations adopt a subgroup method in determining consolidated taxable income, whereby taxable income is determined separately for the life insurance company group and the non-life insurance company group. In connection with the acquisition of GAF discussed in Note 6, the Company assumed $2,200,000 of deferred tax liabilities. At June 30, 2015, AMIC had net operating loss carryforwards of approximately $262,189,000 for federal income tax purposes, which expire in varying amounts through the year 2028, with a significant portion expiring in 2020. The net deferred tax asset relative to AMIC included in other assets on IHCs Condensed Consolidated Balance Sheets was $8,386,000 and $11,517,000 at June 30, 2015 and December 31, 2014, respectively.

Note10. Accumulated Other Compr

Note10. Accumulated Other Comprehensive Income (loss)	6 Months Ended
Note10. Accumulated Other Comprehensive Income (loss)	Jun. 30, 2015
Notes
Note10. Accumulated Other Comprehensive Income (loss)	Note10. Accumulated Other Comprehensive Income (Loss) The components of other comprehensive income (loss) include (i) 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 and (ii) the after-tax unrealized gains and losses on a cash flow hedge. Changes in the balances for each component of accumulated other comprehensive income, shown net of taxes, for the periods indicated were as follows (in thousands): Three Months Ended June 30, 2015 Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Beginning balance $ 942 $ (41) $ 901 Other comprehensive income (loss) before reclassifications (2,791) 8 (2,783) Amounts reclassified from accumulated OCI (1,368) - (1,368) Net other comprehensive income (loss) (4,159) 8 (4,151) Less: Other comprehensive income attributable to noncontrolling interests 33 - 33 Ending balance $ (3,184) $ (33) $ (3,217) Three Months Ended June 30, 2014 Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Beginning balance $ (4,842) $ (112) $ (4,954) Other comprehensive income (loss) before reclassifications 6,145 13 6,158 Amounts reclassified from accumulated OCI (2,641) - (2,641) Net other comprehensive income (loss) 3,504 13 3,517 Less: Other comprehensive income attributable to noncontrolling interests (82) - (82) Ending balance $ (1,420) $ (99) $ (1,519) Six Months Ended June 30, 2015 Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Beginning balance $ 72 $ (50) $ 22 Other comprehensive income (loss) before reclassifications (106) 17 (89) Amounts reclassified from accumulated OCI (3,145) - (3,145) Net other comprehensive income (loss) (3,251) 17 (3,234) Less: Other comprehensive income attributable to noncontrolling interests (10) - (10) Acquired from noncontrolling interests 5 - 5 Ending balance $ (3,184) $ (33) $ (3,217) Six Months Ended June 30, 2014 Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Beginning balance $ (10,350) $ (122) $ (10,472) Other comprehensive income (loss) before reclassifications 12,763 23 12,786 Amounts reclassified from accumulated OCI (3,620) - (3,620) Net other comprehensive income (loss) 9,143 23 9,166 Less: Other comprehensive income attributable to noncontrolling interests (213) - (213) Ending balance $ (1,420) $ (99) $ (1,519) Presented below are the amounts reclassified out of accumulated other comprehensive income (loss) and recognized in earnings for each of the periods indicated (in thousands): Three Months Ended Six months Ended June 30, June 30, 2015 2014 2015 2014 Unrealized gains (losses) on available-for-sale securities reclassified during the period to the following income statement line items: Net realized investment gains $ 2,114 $ 4,009 $ 4,879 $ 5,486 Income before income tax 2,114 4,009 4,879 5,486 Tax effect 746 1,368 1,734 1,866 Net income $ 1,368 $ 2,641 $ 3,145 $ 3,620

Note 11. Share-based Compensati

Note 11. Share-based Compensation	6 Months Ended
Note 11. Share-based Compensation	Jun. 30, 2015
Notes
Note 11. Share-based Compensation	Note11. Share-Based Compensation IHC and AMIC each have share-based compensation plans. The following is a summary of the activity pertaining to each of these plans. A) IHC Share-Based Compensation Plans Under the terms of IHCs stock-based compensation plans, option exercise prices are more than or equal to the quoted market price of the shares at the date of grant; option terms are generally five years; and vesting periods are generally three years. The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. In addition to stock options, the Company has also granted restricted stock units, share appreciation rights (SARs) and share-based performance awards under the plans. Restricted share units are valued at the quoted market price of the shares at the date of grant and have a three year vesting period. Compensation costs for options and restricted share units are recognized over the stated vesting periods on a straight-line basis. Exercise prices of SARs are more than or equal to the quoted market price of IHC shares at the date of the grant and have three year vesting periods. The fair value of SARs is calculated using the Black-Scholes valuation model at the grant date and each subsequent reporting period until settlement. Compensation cost is based on the proportionate amount of the requisite service that has been rendered to date. Once fully vested, changes in fair value of the SARs continue to be recognized as compensation expense in the period of the change until settlement. At , there were 369,861 shares available for future stock-based compensation grants under IHCs stock incentive plans. The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income, applicable to the IHC plans, by award type for each of the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 IHCs Share-based Compensation Plan: Stock options $ - $ 471 $ 55 $ 537 Restricted stock units 23 23 44 42 SARs (28) 158 (57) 77 Share-based compensation expense, pre-tax (5) 652 42 656 Tax benefits (2) 260 17 262 Share-based compensation expense, net $ (3) $ 392 $ 25 $ 394 Stock Options The IHCs stock option activity during 2015 was as follows: Shares Weighted- Average Under Option Exercise Price December 31, 2014 614,680 $ 9.33 Exercised (14,600) 9.09 June 30, 2015 600,080 $ 9.34 In 2015, IHC received $133,000 in cash from the exercise of stock options with an aggregate intrinsic value of $63,000 and realized $10,000 of tax benefits. The following table summarizes information regarding IHCs outstanding and exercisable options: June 30, 2015 Outstanding Exercisable Number of options 600,080 600,080 Weighted average exercise price per share $ 9.34 $ 9.34 Aggregate intrinsic value for all options (in thousands) $ 2,311 $ 2,311 Weighted average contractual term remaining 1.8 years 1.8 years At , all of IHCs outstanding stock options are fully vested and all of the related compensation costs have been recognized. Restricted Stock The following table summarizes restricted stock activity for the six months ended June 30, 2015: No. of Weighted-Average Non-vested Grant-Date Shares Fair Value December 31, 2014 14,850 $ 12.09 Granted 7,425 11.78 Vested (7,425) 11.44 June 30, 2015 14,850 $ 12.26 IHC granted 7,425 shares of restricted stock awards during each of the six months ended June 30, 2015 and 2014 with weighted average grant-date fair values of $11.78 and $13.27, respectively, per share. The total fair value of restricted stock that vested during each of the first six months of 2015 and 2014 was $89,000 and $68,000, respectively. As of , the total unrecognized compensation expense related to non-vested restricted stock unit awards was $174,000 which is expected to be recognized over the remaining requisite weighted-average service period of 2.2 years. SARs IHC had 129,150 and 136,850 of SAR awards outstanding at June 30, 2015 and December 31, 2014, respectively. In 2015, 7,700 SARs were exercised with an aggregate intrinsic value of $38,000. Included in Other Liabilities in the Companys Condensed Consolidated Balance Sheets at June 30, 2015 and December 31, 2014 are liabilities of $696,000 and $791,000, respectively, pertaining to SARs. B) AMIC Share-Based Compensation Plans Under the terms of the AMICs stock-based compensation plan, option exercise prices are equal to the quoted market price of the shares at the date of grant; option terms are ten years; and vesting periods range from three to four years. The Company may also grant shares of restricted stock, stock appreciation rights and share-based performance awards. The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income, applicable to the AMIC share-based compensation plans, by award type for each of the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 AMICs Share-based Compensation Plans: Stock options $ 11 $ 16 $ 22 $ 27 Share-based compensation expense, pre-tax 11 16 22 27 Tax benefits 4 5 8 10 Share-based compensation expense, net $ 7 $ 11 $ 14 $ 17 Stock Options AMICs stock option activity for the six months ended is as follows: Shares Weighted- Average Under Option Exercise Price December 31, 2014 166,616 $ 10.50 Expired (53,500) 13.92 June 30, 2015 113,116 $ 8.88 The following table summarizes information regarding AMICs outstanding and exercisable options as of June 30, 2015: June 30, 2015 Outstanding Exercisable Number of options 113,116 99,782 Weighted average exercise price per share $ 8.88 $ 8.79 Aggregate intrinsic value for all options (in thousands) $ 201 $ 188 Weighted average contractual term remaining 4.10 years 3.50 years As of June 30, 2015, the total unrecognized compensation expense related to AMICs non-vested options was $62,000 which will be recognized over the remaining requisite service periods.

Note 12. Supplemental Disclosur

Note 12. Supplemental Disclosures of Cash Flow Information	6 Months Ended
Note 12. Supplemental Disclosures of Cash Flow Information	Jun. 30, 2015
Notes
Note 12. Supplemental Disclosures of Cash Flow Information	Note 12. Supplemental Disclosures of Cash Flow Information Net cash payments (receipts) for income taxes were $571,000 and $(2,763,000) during the six months ended June 30, 2015 and 2014. Cash payments for interest were $881,000 and $922,000 during the six months ended June 30, 2015 and 2014, respectively.

Note 13. Segment Reporting

Note 13. Segment Reporting	6 Months Ended
Note 13. Segment Reporting	Jun. 30, 2015
Notes
Note 13. Segment Reporting	Note 13. Segment Reporting The Insurance Group principally engages in the life and health insurance business. Information by business segment is presented below for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30 2015 2014 2015 2014 Revenues: Medical Stop-Loss $ 52,228 $ 45,499 $ 108,240 $ 93,087 Fully Insured Health 49,631 60,888 96,163 127,427 Group disability, life, annuities and DBL 20,727 16,716 41,475 33,143 Individual life, annuities and other 8,376 8,347 17,300 17,285 Corporate 43 50 92 79 131,005 131,500 263,270 271,021 Net realized investment gains 2,100 4,519 4,100 6,070 Total revenues $ 133,105 $ 136,019 $ 267,370 $ 277,091 Income before income taxes: Medical Stop-Loss $ 4,554 $ 4,653 $ 9,907 $ 9,391 Fully Insured Health (A) 1,555 47 2,832 1,955 Group disability, life, annuities and DBL 3,159 2,003 6,374 3,180 Individual life, annuities and other (B) (1,332) (2,111) (2,385) (3,220) Corporate (1,437) (2,491) (3,197) (4,410) 6,499 2,101 13,531 6,896 Net realized investment gains 2,100 4,519 4,100 6,070 Interest expense (478) (337) (910) (818) Income before income taxes $ 8,121 $ 6,283 $ 16,721 $ 12,148 (A) (B)

Note 14_ Subsequent Event

Note 14: Subsequent Event	6 Months Ended
Note 14: Subsequent Event	Jun. 30, 2015
Notes
Note 14: Subsequent Event	Note 14. Subsequent Event On July 31, 2015, Madison National Life and Standard Security Life together entered into a coinsurance and sale agreement with an unaffiliated reinsurer, National Guardian Life Insurance Company (NGL), to: (i) cede substantially all of their individual life and annuity policy blocks currently in run-off; and (ii) sell the related infrastructure associated with the administration of such policies. The Company transferred $206,953,000 of cash to NGL, net of the aggregate purchase price of $42,000,000 for the coinsurance and sale transaction. As a result of this transaction, approximately $76,000,000 of the aforementioned life and annuity reserves were assigned and transferred to the reinsurer, contractually relieving the Company of the liability with regards to those policies. For the remaining life and annuity reserves ceded to the reinsurer, the Company recorded corresponding amounts as due from reinsurers. The ceding of reinsurance does not discharge the primary liability of the original insurer to the insured.

Note 1. Organization, Consoli23

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Basis of Presentation	The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Financial Statements are unaudited and include the accounts of IHC and its consolidated subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect: (i) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (ii) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. IHCs annual report on Form 10-K as filed with the Securities and Exchange Commission should be read in conjunction with the accompanying Condensed Consolidated Financial Statements.

Note 1. Organization, Consoli24

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: New Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
New Accounting Pronouncements	Recently Adopted Accounting Standards In April 2014, the FASB issued guidance: (i) improving the definition of discontinued operations by limiting the reporting of discontinued operations to disposals of components that represent strategic shifts that have (or will have) a major effect on an entitys operations and financial results; and (ii) requiring expanded disclosures for discontinued operations. The adoption of this guidance did not have any effect on the Companys consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In May 2015, the FASB issued guidance requiring additional disclosures for short-duration contracts regarding the liability for unpaid claims and claim adjustment expenses. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a significant effect on the Companys consolidated financial statements. In February 2015, In June 2014, the FASB issued explicit guidance for entities that grant their employees share-based payments in which the terms of the award include a performance target that affects vesting and could be achieved after the requisite service period. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Earlier adoption is permitted. The guidance may be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of this guidance is not expected to have a material effect on the Companys consolidated financial statements. In May 2014, the FASB issued revenue recognition guidance for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards such as insurance contracts or lease contracts. The amendment provides specific steps that an entity should apply in order to achieve its main objective which is recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and requires one of two specified retrospective methods of application. Early application is prohibited. Management has not yet determined the impact that the adoption of this guidance will have on the Companys consolidated financial statements.

Note 5. Fair Value Disclosures_

Note 5. Fair Value Disclosures: Fair Value of Financial Instruments, Policy (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Fair Value of Financial Instruments, Policy	For all financial and non-financial assets and liabilities accounted for at fair value on a recurring basis, the Company utilizes valuation techniques based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market expectations. These two types of inputs create the following fair value hierarchy: Level 1 Level 2 Level 3

Note 5. Fair Value Disclosure26

Note 5. Fair Value Disclosures: Fair Value Transfer, Policy (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Fair Value Transfer, Policy	It is the Companys policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until such time as observable inputs become available and reliable or the range of available independent prices narrow.

Note 11. Share-based Compensa27

Note 11. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Policies)	6 Months Ended
	Jun. 30, 2015
Independence Holding Company Share Based Plans Total Member
Share-based Compensation, Option and Incentive Plans Policy	Under the terms of IHCs stock-based compensation plans, option exercise prices are more than or equal to the quoted market price of the shares at the date of grant; option terms are generally five years; and vesting periods are generally three years. The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. In addition to stock options, the Company has also granted restricted stock units, share appreciation rights (SARs) and share-based performance awards under the plans. Restricted share units are valued at the quoted market price of the shares at the date of grant and have a three year vesting period. Compensation costs for options and restricted share units are recognized over the stated vesting periods on a straight-line basis. Exercise prices of SARs are more than or equal to the quoted market price of IHC shares at the date of the grant and have three year vesting periods. The fair value of SARs is calculated using the Black-Scholes valuation model at the grant date and each subsequent reporting period until settlement. Compensation cost is based on the proportionate amount of the requisite service that has been rendered to date. Once fully vested, changes in fair value of the SARs continue to be recognized as compensation expense in the period of the change until settlement.
American Independence Corp Share Based Plans Total Member
Share-based Compensation, Option and Incentive Plans Policy	Under the terms of the AMICs stock-based compensation plan, option exercise prices are equal to the quoted market price of the shares at the date of grant; option terms are ten years; and vesting periods range from three to four years. The Company may also grant shares of restricted stock, stock appreciation rights and share-based performance awards.

Note 1. Organization, Consoli28

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Changes in IHCs paid-in capital: Purchase of AMIC shares $ - $ - $ (199) $ - Purchase remaining IPA Family, LLC interests 311 - 311 - Net transfers from noncontrolling interests $ 311 $ - $ 112 $ -

Note 3. Investment Securities_

Note 3. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Available-for-sale Securities Reconciliation	June 30, 2015 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 168,186 $ 423 $ (5,256) $ 163,353 CMOs - residential (1) 3,385 4 (19) 3,370 CMOs - commercial 975 258 - 1,233 U.S. Government obligations 221,768 415 (25) 222,158 Agency MBS - residential (2) 50 2 - 52 GSEs (3) 12,086 18 (64) 12,040 States and political subdivisions 200,708 1,887 (2,633) 199,962 Foreign government obligations 1,847 9 - 1,856 Redeemable preferred stocks 4,036 196 - 4,232 Total fixed maturities $ 613,041 $ 3,212 $ (7,997) $ 608,256 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 5,154 $ - $ (263) $ 4,891 Nonredeemable preferred stocks 4,004 156 - 4,160 Total equity securities $ 9,158 $ 156 $ (263) $ 9,051 December 31, 2014 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 264,162 $ 1,076 $ (3,314) $ 261,924 CMOs - residential (1) 5,073 55 (22) 5,106 CMOs - commercial 975 - (22) 953 U.S. Government obligations 22,766 126 - 22,892 Agency MBS - residential (2) 65 4 - 69 GSEs (3) 14,706 36 (86) 14,656 States and political subdivisions 238,514 3,253 (2,386) 239,381 Foreign government obligations 34,863 136 (299) 34,700 Redeemable preferred stocks 4,036 163 - 4,199 Total fixed maturities $ 585,160 $ 4,849 $ (6,129) $ 583,880 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 8,452 $ 1,452 $ (147) $ 9,757 Nonredeemable preferred stocks 4,004 134 - 4,138 Total equity securities $ 12,456 $ 1,586 $ (147) $ 13,895 (1) Collateralized mortgage obligations (CMOs). (2) Mortgage-backed securities (MBS). (3) Government-sponsored enterprises (GSEs) are private enterprises established and chartered by the Federal Government or its various insurance and lease programs which carry the full faith and credit obligation of the U.S. Government.

Note 3. Investment Securities30

Note 3. Investment Securities: Investments Classified by Contractual Maturity Date (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Investments Classified by Contractual Maturity Date	AMORTIZED FAIR COST VALUE Due in one year or less $ 3,881 $ 3,893 Due after one year through five years 275,912 275,874 Due after five years through ten years 97,880 96,774 Due after ten years 219,879 216,042 CMOs and MBSs 15,489 15,673 $ 613,041 $ 608,256

Note 3. Investment Securities31

Note 3. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	June 30, 2015 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 98,506 $ 3,527 $ 32,146 $ 1,729 $ 130,652 $ 5,256 CMOs - residential 2,030 19 - - 2,030 19 U.S. Government obligations 196,800 25 - - 196,800 25 GSEs 7,853 30 3,133 34 10,986 64 States and political subdivisions 87,890 1,081 42,539 1,552 130,429 2,633 Total fixed maturities 393,079 4,682 77,818 3,315 470,897 7,997 Common stocks 4,891 263 - - 4,891 263 Total equity securities 4,891 263 - - 4,891 263 Total temporarily impaired securities $ 397,970 $ 4,945 $ 77,818 $ 3,315 $ 475,788 $ 8,260 Number of securities in an unrealized loss position 80 26 106 December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 77,868 $ 1,473 $ 69,498 $ 1,841 $ 147,366 $ 3,314 CMOs - residential 2,062 16 1,562 6 3,624 22 CMOs - commercial - - 953 22 953 22 GSEs - - 9,581 86 9,581 86 States and political subdivisions 58,819 744 67,318 1,642 126,137 2,386 Foreign government obligations 21,148 171 12,229 128 33,377 299 Total fixed maturities 159,897 2,404 161,141 3,725 321,038 6,129 Common stocks 2,007 136 348 11 2,355 147 Total equity securities 2,007 136 348 11 2,355 147 Total temporarily impaired securities $ 161,904 $ 2,540 $ 161,489 $ 3,736 $ 323,393 $ 6,276 Number of securities in an unrealized loss position 70 46 116

Note 3. Investment Securities32

Note 3. Investment Securities: Realized Gain (Loss) on Investments (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Realized Gain (Loss) on Investments	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Available-for-sale securities: Fixed maturities $ 2,114 $ 4,014 $ 3,414 $ 5,491 Common stocks - - 1,465 - Preferred stocks - (5) - (5) Total available-for-sale securities 2,114 4,009 4,879 5,486 Trading securities 86 25 (421) 30 Total realized gains (losses) 2,200 4,034 4,458 5,516 Unrealized gains (losses) on trading securities: Change in unrealized gains (losses) on trading securities (101) 483 (352) 552 Total unrealized gains (losses) on trading securities (101) 483 (352) 552 Gain (losses) on other investments 1 2 (6) 2 Net realized investment gains $ 2,100 $ 4,519 $ 4,100 $ 6,070

Note 3. Investment Securities33

Note 3. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Other than Temporary Impairment, Credit Losses Recognized in Earnings	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Balance at beginning of year $ 473 $ 473 $ 473 $ 473 Additional credit losses for which an other-than- temporary loss was previously recognized - - - - Securities sold - - - - Balance at end of period $ 473 $ 473 $ 473 $ 473

Note 5. Fair Value Disclosure34

Note 5. Fair Value Disclosures: Fair Value Measurements, Recurring and Nonrecurring (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Fair Value Measurements, Recurring and Nonrecurring	June 30, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 163,353 $ - $ 163,353 CMOs - residential - 3,370 - 3,370 CMOs - commercial - - 1,233 1,233 US Government obligations - 222,158 - 222,158 Agency MBS - residential - 52 - 52 GSEs - 12,040 - 12,040 States and political subdivisions - 197,714 2,248 199,962 Foreign government obligations - 1,856 - 1,856 Redeemable preferred stocks 4,232 - - 4,232 Total fixed maturities 4,232 600,543 3,481 608,256 Equity securities available-for-sale: Common stocks 4,891 - - 4,891 Nonredeemable preferred stocks 4,160 - - 4,160 Total equity securities 9,051 - - 9,051 Trading securities - equities 9,242 - - 9,242 Total trading securities 9,242 - - 9,242 Total Financial Assets $ 22,525 $ 600,543 $ 3,481 $ 626,549 FINANCIAL LIABILITIES: Interest rate swap $ - $ 55 $ - $ 55 December 31, 2014 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 261,924 $ - $ 261,924 CMOs residential - 5,106 - 5,106 CMOs commercial - - 953 953 US Government obligations - 22,892 - 22,892 Agency MBS - residential - 69 - 69 GSEs - 14,656 - 14,656 States and political subdivisions - 237,067 2,314 239,381 Foreign government - 34,700 - 34,700 Redeemable preferred stocks 4,199 - - 4,199 Total fixed maturities 4,199 576,414 3,267 583,880 Equity securities available-for-sale: Common stocks 9,757 - - 9,757 Nonredeemable preferred stocks 4,138 - - 4,138 Total equity securities 13,895 - - 13,895 Trading securities - equities 11,095 - - 11,095 Total trading securities 11,095 - - 11,095 Total Financial Assets $ 29,189 $ 576,414 $ 3,267 $ 608,870 FINANCIAL LIABILITIES: Interest rate swap $ - $ 83 $ - $ 83

Note 5. Fair Value Disclosure35

Note 5. Fair Value Disclosures: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation	Three Months Ended June 30, 2015 States and CMOs Political Commercial Subdivisions Total Beginning balance $ 1,016 $ 2,281 $ 3,297 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 217 (12) 205 Repayments and amortization of fixed maturities - (21) (21) Balance at end of period $ 1,233 $ 2,248 $ 3,481 Three Months Ended June 30, 2014 States and CMOs Political Commercial Subdivisions Total Beginning balance $ 869 $ 2,410 $ 3,279 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 37 (15) 22 Repayments and amortization of fixed maturities - (16) (16) Balance at end of period $ 906 $ 2,379 $ 3,285 Six Months Ended June 30, 2015 States and CMOs Political Commercial Subdivisions Total Beginning balance $ 953 $ 2,314 $ 3,267 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 280 (25) 255 Repayments and amortization of fixed maturities - (41) (41) Balance at end of period $ 1,233 $ 2,248 $ 3,481 Six Months Ended June 30, 2014 States and CMOs Political Commercial Subdivisions Total Beginning balance $ 593 $ 2,441 $ 3,034 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 313 (31) 282 Repayments and amortization of fixed maturities - (31) (31) Balance at end of period $ 906 $ 2,379 $ 3,285

Note 5. Fair Value Disclosure36

Note 5. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Fair Value, by Balance Sheet Grouping	June 30, 2015 December 31, 2014 Level 2 Level 2 Fair Carrying Fair Carrying Value Value Value Value FINANCIAL ASSETS: Policy loans $ 13,139 $ 10,492 $ 13,356 $ 10,667 FINANCIAL LIABILITIES: Funds on deposit $ 181,719 $ 181,307 $ 187,213 $ 186,782 Debt and junior subordinated debt securities $ 46,472 $ 46,472 $ 42,146 $ 42,146

Note 6. Acquisition_ Schedule o

Note 6. Acquisition: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	Cash $ 836 Intangible assets 5,500 Other assets 1,249 Total identifiable assets 7,585 Other liabilities 4,849 Deferred tax liability 2,200 Debt 3,326 Total liabilities 10,375 Net identifiable liabilities assumed $ 2,790

Note 7. Goodwill and Other In38

Note 7. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Finite-Lived Intangible Assets	June 30, 2015 December 31, 2014 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Finite-lived Intangible Assets: Agent and broker relationships $ 27,225 $ 19,475 $ 22,725 $ 18,567 Trademarks 1,000 21 - - Total finite-lived $ 28,225 $ 19,496 $ 22,725 $ 18,567

Note 7. Goodwill and Other In39

Note 7. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Indefinite-Lived Intangible Assets	June 30, December 31, 2015 2014 Indefinite-lived Intangible Assets: Insurance licenses $ 7,977 $ 7,977 Total indefinite-lived $ 7,977 $ 7,977

Note10. Accumulated Other Com40

Note10. Accumulated Other Comprehensive Income (loss): Schedule of Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Accumulated Other Comprehensive Income (Loss)	Three Months Ended June 30, 2015 Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Beginning balance $ 942 $ (41) $ 901 Other comprehensive income (loss) before reclassifications (2,791) 8 (2,783) Amounts reclassified from accumulated OCI (1,368) - (1,368) Net other comprehensive income (loss) (4,159) 8 (4,151) Less: Other comprehensive income attributable to noncontrolling interests 33 - 33 Ending balance $ (3,184) $ (33) $ (3,217) Three Months Ended June 30, 2014 Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Beginning balance $ (4,842) $ (112) $ (4,954) Other comprehensive income (loss) before reclassifications 6,145 13 6,158 Amounts reclassified from accumulated OCI (2,641) - (2,641) Net other comprehensive income (loss) 3,504 13 3,517 Less: Other comprehensive income attributable to noncontrolling interests (82) - (82) Ending balance $ (1,420) $ (99) $ (1,519) Six Months Ended June 30, 2015 Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Beginning balance $ 72 $ (50) $ 22 Other comprehensive income (loss) before reclassifications (106) 17 (89) Amounts reclassified from accumulated OCI (3,145) - (3,145) Net other comprehensive income (loss) (3,251) 17 (3,234) Less: Other comprehensive income attributable to noncontrolling interests (10) - (10) Acquired from noncontrolling interests 5 - 5 Ending balance $ (3,184) $ (33) $ (3,217) Six Months Ended June 30, 2014 Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Beginning balance $ (10,350) $ (122) $ (10,472) Other comprehensive income (loss) before reclassifications 12,763 23 12,786 Amounts reclassified from accumulated OCI (3,620) - (3,620) Net other comprehensive income (loss) 9,143 23 9,166 Less: Other comprehensive income attributable to noncontrolling interests (213) - (213) Ending balance $ (1,420) $ (99) $ (1,519)

Note10. Accumulated Other Com41

Note10. Accumulated Other Comprehensive Income (loss): Reclassification out of Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Reclassification out of Accumulated Other Comprehensive Income	Three Months Ended Six months Ended June 30, June 30, 2015 2014 2015 2014 Unrealized gains (losses) on available-for-sale securities reclassified during the period to the following income statement line items: Net realized investment gains $ 2,114 $ 4,009 $ 4,879 $ 5,486 Income before income tax 2,114 4,009 4,879 5,486 Tax effect 746 1,368 1,734 1,866 Net income $ 1,368 $ 2,641 $ 3,145 $ 3,620

Note 11. Share-based Compensa42

Note 11. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Tables)	6 Months Ended
	Jun. 30, 2015
Independence Holding Company Share Based Plans Total Member
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 IHCs Share-based Compensation Plan: Stock options $ - $ 471 $ 55 $ 537 Restricted stock units 23 23 44 42 SARs (28) 158 (57) 77 Share-based compensation expense, pre-tax (5) 652 42 656 Tax benefits (2) 260 17 262 Share-based compensation expense, net $ (3) $ 392 $ 25 $ 394
American Independence Corp Share Based Plans Total Member
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 AMICs Share-based Compensation Plans: Stock options $ 11 $ 16 $ 22 $ 27 Share-based compensation expense, pre-tax 11 16 22 27 Tax benefits 4 5 8 10 Share-based compensation expense, net $ 7 $ 11 $ 14 $ 17

Note 11. Share-based Compensa43

Note 11. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	6 Months Ended
	Jun. 30, 2015
Independence Holding Company Share Based Plans Total Member
Schedule of Share-based Compensation, Stock Options, Activity	Shares Weighted- Average Under Option Exercise Price December 31, 2014 614,680 $ 9.33 Exercised (14,600) 9.09 June 30, 2015 600,080 $ 9.34
American Independence Corp Share Based Plans Total Member
Schedule of Share-based Compensation, Stock Options, Activity	Shares Weighted- Average Under Option Exercise Price December 31, 2014 166,616 $ 10.50 Expired (53,500) 13.92 June 30, 2015 113,116 $ 8.88

Note 11. Share-based Compensa44

Note 11. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding (Tables)	6 Months Ended
	Jun. 30, 2015
Independence Holding Company Share Based Plans Total Member
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding	June 30, 2015 Outstanding Exercisable Number of options 600,080 600,080 Weighted average exercise price per share $ 9.34 $ 9.34 Aggregate intrinsic value for all options (in thousands) $ 2,311 $ 2,311 Weighted average contractual term remaining 1.8 years 1.8 years
American Independence Corp Share Based Plans Total Member
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding	June 30, 2015 Outstanding Exercisable Number of options 113,116 99,782 Weighted average exercise price per share $ 8.88 $ 8.79 Aggregate intrinsic value for all options (in thousands) $ 201 $ 188 Weighted average contractual term remaining 4.10 years 3.50 years

Note 11. Share-based Compensa45

Note 11. Share-based Compensation: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Tables)	6 Months Ended
	Jun. 30, 2015
Independence Holding Company Share Based Plans Total Member
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	No. of Weighted-Average Non-vested Grant-Date Shares Fair Value December 31, 2014 14,850 $ 12.09 Granted 7,425 11.78 Vested (7,425) 11.44 June 30, 2015 14,850 $ 12.26

Note 13. Segment Reporting_ Sch

Note 13. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Segment Reporting Information, by Segment	Three Months Ended Six Months Ended June 30, June 30 2015 2014 2015 2014 Revenues: Medical Stop-Loss $ 52,228 $ 45,499 $ 108,240 $ 93,087 Fully Insured Health 49,631 60,888 96,163 127,427 Group disability, life, annuities and DBL 20,727 16,716 41,475 33,143 Individual life, annuities and other 8,376 8,347 17,300 17,285 Corporate 43 50 92 79 131,005 131,500 263,270 271,021 Net realized investment gains 2,100 4,519 4,100 6,070 Total revenues $ 133,105 $ 136,019 $ 267,370 $ 277,091 Income before income taxes: Medical Stop-Loss $ 4,554 $ 4,653 $ 9,907 $ 9,391 Fully Insured Health (A) 1,555 47 2,832 1,955 Group disability, life, annuities and DBL 3,159 2,003 6,374 3,180 Individual life, annuities and other (B) (1,332) (2,111) (2,385) (3,220) Corporate (1,437) (2,491) (3,197) (4,410) 6,499 2,101 13,531 6,896 Net realized investment gains 2,100 4,519 4,100 6,070 Interest expense (478) (337) (910) (818) Income before income taxes $ 8,121 $ 6,283 $ 16,721 $ 12,148

Note 1. Organization, Consoli47

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies (Details)	Jun. 30, 2015	Dec. 31, 2014
GeneveAffiliatedEntityMember
EntityCommonStockOutstandingOwnershipPercent	52.80%
AMICSubsidiariesMember
Noncontrolling Interest, Ownership Percentage by Parent	92.00%	90.00%

Note 1. Organization, Consoli48

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Net	$ 311	$ 112
AMICSubsidiariesMember
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent		(199)
IPASubsidiariesMember
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent	$ 311	$ 311

Note 2. Income Per Common Sha49

Note 2. Income Per Common Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Details
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	163	172	165	156

Note 3. Investment Securities50

Note 3. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Available For Sale Debt Securities Amortized Cost Basis	$ 613,041	$ 585,160
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	3,212	4,849
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	7,997	6,129
Fixed maturities, available-for-sale	608,256	583,880
Available For Sale Equity Securities Amortized Cost Basis	9,158	12,456
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	156	1,586
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	263	147
Equity securities, available-for-sale	9,051	13,895
Corporate Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	168,186	264,162
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	423	1,076
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	5,256	3,314
Fixed maturities, available-for-sale	163,353	261,924
Residential Mortgage Backed Securities Member
Available For Sale Debt Securities Amortized Cost Basis	3,385	5,073
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	4	55
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	19	22
Fixed maturities, available-for-sale	3,370	5,106
Commercial Mortgage Backed Securities
Available For Sale Debt Securities Amortized Cost Basis	975	975
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	258
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax		22
Fixed maturities, available-for-sale	1,233	953
US Treasury Securities
Available For Sale Debt Securities Amortized Cost Basis	221,768	22,766
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	415	126
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	25
Fixed maturities, available-for-sale	222,158	22,892
US Government Agencies Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	50	65
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2	4
Fixed maturities, available-for-sale	52	69
US Government-sponsored Enterprises Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	12,086	14,706
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	18	36
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	64	86
Fixed maturities, available-for-sale	12,040	14,656
US States and Political Subdivisions Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	200,708	238,514
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	1,887	3,253
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	2,633	2,386
Fixed maturities, available-for-sale	199,962	239,381
Foreign Government Debt
Available For Sale Debt Securities Amortized Cost Basis	1,847	34,863
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	9	136
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax		299
Fixed maturities, available-for-sale	1,856	34,700
Redeemable Preferred Stock
Available For Sale Debt Securities Amortized Cost Basis	4,036	4,036
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	196	163
Fixed maturities, available-for-sale	4,232	4,199
COMMON STOCK
Available For Sale Equity Securities Amortized Cost Basis	5,154	8,452
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax		1,452
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	263	147
Equity securities, available-for-sale	4,891	9,757
Nonredeemable Preferred Stock
Available For Sale Equity Securities Amortized Cost Basis	4,004	4,004
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	156	134
Equity securities, available-for-sale	$ 4,160	$ 4,138

Note 3. Investment Securities51

Note 3. Investment Securities: Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Details
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis	$ 3,881
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	3,893
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost Basis	275,912
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value	275,874
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Amortized Cost Basis	97,880
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Fair Value	96,774
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Amortized Cost Basis	219,879
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value	216,042
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	15,489
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	15,673
Available For Sale Debt Securities Amortized Cost Basis	613,041	$ 585,160
Fixed maturities, available-for-sale	$ 608,256	$ 583,880

Note 3. Investment Securities52

Note 3. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) $ in Thousands	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	$ 397,970	$ 161,904
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	4,945	2,540
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	77,818	161,489
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3,315	3,736
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	475,788	323,393
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 8,260	$ 6,276
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year	80	70
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year	26	46
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	106	116
Corporate Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	$ 98,506	$ 77,868
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	3,527	1,473
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	32,146	69,498
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,729	1,841
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	130,652	147,366
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	5,256	3,314
Residential Mortgage Backed Securities Member
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	2,030	2,062
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	19	16
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		1,562
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		6
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	2,030	3,624
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	19	22
US Treasury Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	196,800
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	25
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	196,800
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	25
US Government-sponsored Enterprises Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	7,853
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	30
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	3,133	9,581
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	34	86
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	10,986	9,581
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	64	86
US States and Political Subdivisions Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	87,890	58,819
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1,081	744
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	42,539	67,318
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,552	1,642
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	130,429	126,137
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	2,633	2,386
Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	393,079	159,897
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	4,682	2,404
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	77,818	161,141
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3,315	3,725
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	470,897	321,038
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	7,997	6,129
COMMON STOCK
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	4,891	2,007
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	263	136
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		348
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		11
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	4,891	2,355
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	263	147
Equity Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	4,891	2,007
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	263	136
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		348
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		11
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	4,891	2,355
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 263	147
Commercial Mortgage Backed Securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		953
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		22
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		953
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		22
Foreign Government Debt
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value		21,148
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		171
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		12,229
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		128
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		33,377
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		$ 299

Note 3. Investment Securities53

Note 3. Investment Securities: Realized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	$ 2,114	$ 4,009	$ 4,879	$ 5,486
Trading Securities, Realized Gain (Loss)	86	25	(421)	30
Marketable Securities, Realized Gain (Loss), Excluding Other than Temporary Impairments	2,200	4,034	4,458	5,516
Trading Securities, Change in Unrealized Holding Gain (Loss)	(101)	483	(352)	552
Marketable Securities, Unrealized Gain (Loss), Excluding Other than Temporary Impairments	(101)	483	(352)	552
Gain (Loss) on Sale of Other Investments	1	2	(6)	2
Net realized investment gains	2,100	4,519	4,100	6,070
Debt Securities
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	$ 2,114	4,014	3,414	5,491
COMMON STOCK
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments			$ 1,465
Nonredeemable Preferred Stock
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments		$ (5)		$ (5)

Note 3. Investment Securities (

Note 3. Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	$ 279,598	$ 127,977	$ 386,013	$ 225,527
Available-for-sale Securities, Gross Realized Gains	2,659	3,999	5,773	6,604
Available-for-sale Securities, Gross Realized Losses	460	$ 122	642	$ 541
Collateralized Mortgage Backed Securities
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities	$ 335		$ 335		$ 335

Note 3. Investment Securities55

Note 3. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - Available-for-sale Securities - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held	$ 473	$ 473	$ 473	$ 473	$ 473
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held	$ 473	$ 473	$ 473	$ 473	$ 473

Note 4. Cash Flow Hedge (Detail

Note 4. Cash Flow Hedge (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Notes Payable to Banks
Long Term Debt Percentage Bearing Fixed Interest Rate	4.95%	4.95%
Interest Rate Swap \| Designated as Hedging Instrument
Derivative Liability Notional Amount	$ 4,000	$ 4,000
Derivative Fixed Interest Rate	1.60%	1.60%
Interest Rate Swap \| Designated as Hedging Instrument \| Accounts Payable and Accrued Liabilities
Derivative Liability, Fair Value, Gross Liability	$ 55	$ 83

Note 5. Fair Value Disclosure57

Note 5. Fair Value Disclosures: Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fixed maturities, available-for-sale	$ 608,256	$ 583,880
Equity securities, available-for-sale	9,051	13,895
Trading securities	9,242	11,095
Corporate Debt Securities
Fixed maturities, available-for-sale	163,353	261,924
Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,370	5,106
Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale	1,233	953
US Treasury Securities
Fixed maturities, available-for-sale	222,158	22,892
US Government Agencies Debt Securities
Fixed maturities, available-for-sale	52	69
US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	12,040	14,656
US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	199,962	239,381
Foreign Government Debt
Fixed maturities, available-for-sale	1,856	34,700
Redeemable Preferred Stock
Fixed maturities, available-for-sale	4,232	4,199
COMMON STOCK
Equity securities, available-for-sale	4,891	9,757
Nonredeemable Preferred Stock
Equity securities, available-for-sale	4,160	4,138
Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	608,256	583,880
Equity securities, available-for-sale	9,051	13,895
Trading securities	9,242	11,095
Financial Assets, Fair Value Disclosure	626,549	608,870
Fair Value, Measurements, Recurring \| Interest Rate Swap
Derivative Liability, Fair Value, Gross Liability	55	83
Fair Value, Measurements, Recurring \| Corporate Debt Securities
Fixed maturities, available-for-sale	163,353	261,924
Fair Value, Measurements, Recurring \| Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,370	5,106
Fair Value, Measurements, Recurring \| Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale	1,233	953
Fair Value, Measurements, Recurring \| US Treasury Securities
Fixed maturities, available-for-sale	222,158	22,892
Fair Value, Measurements, Recurring \| US Government Agencies Debt Securities
Fixed maturities, available-for-sale	52	69
Fair Value, Measurements, Recurring \| US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	12,040	14,656
Fair Value, Measurements, Recurring \| US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	199,962	239,381
Fair Value, Measurements, Recurring \| Foreign Government Debt
Fixed maturities, available-for-sale	1,856	34,700
Fair Value, Measurements, Recurring \| Redeemable Preferred Stock
Fixed maturities, available-for-sale	4,232	4,199
Fair Value, Measurements, Recurring \| COMMON STOCK
Equity securities, available-for-sale	4,891	9,757
Fair Value, Measurements, Recurring \| Nonredeemable Preferred Stock
Equity securities, available-for-sale	4,160	4,138
Fair Value, Measurements, Recurring \| Equity Securities
Trading securities	9,242	11,095
Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	4,232	4,199
Equity securities, available-for-sale	9,051	13,895
Trading securities	9,242	11,095
Financial Assets, Fair Value Disclosure	22,525	29,189
Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring \| Redeemable Preferred Stock
Fixed maturities, available-for-sale	4,232	4,199
Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring \| COMMON STOCK
Equity securities, available-for-sale	4,891	9,757
Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring \| Nonredeemable Preferred Stock
Equity securities, available-for-sale	4,160	4,138
Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring \| Equity Securities
Trading securities	9,242	11,095
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	600,543	576,414
Financial Assets, Fair Value Disclosure	600,543	576,414
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| Interest Rate Swap
Derivative Liability, Fair Value, Gross Liability	55	83
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| Corporate Debt Securities
Fixed maturities, available-for-sale	163,353	261,924
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,370	5,106
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| US Treasury Securities
Fixed maturities, available-for-sale	222,158	22,892
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| US Government Agencies Debt Securities
Fixed maturities, available-for-sale	52	69
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	12,040	14,656
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	197,714	237,067
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| Foreign Government Debt
Fixed maturities, available-for-sale	1,856	34,700
Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	3,481	3,267
Financial Assets, Fair Value Disclosure	3,481	3,267
Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring \| Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale	1,233	953
Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring \| US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	$ 2,248	$ 2,314

Note 5. Fair Value Disclosure58

Note 5. Fair Value Disclosures: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 3,297	$ 3,279	$ 3,267	$ 3,034
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	205	22	255	282
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(21)	(16)	(41)	(31)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	3,481	3,285	3,481	3,285
Commercial Mortgage Backed Securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,016	869	953	593
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	217	37	280	313
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,233	906	1,233	906
US States and Political Subdivisions Debt Securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	2,281	2,410	2,314	2,441
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(12)	(15)	(25)	(31)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(21)	(16)	(41)	(31)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 2,248	$ 2,379	$ 2,248	$ 2,379

Note 5. Fair Value Disclosure59

Note 5. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Funds on deposit	$ 181,307	$ 186,782
Estimate of Fair Value, Fair Value Disclosure \| Fair Value, Inputs, Level 2
Policy Loans Receivable	13,139	13,356
Funds on deposit	181,719	187,213
Long-term Debt	46,472	42,146
Carrying (Reported) Amount, Fair Value Disclosure
Policy Loans Receivable	10,492	10,667
Funds on deposit	181,307	186,782
Long-term Debt	$ 46,472	$ 42,146

Note 6. Acquisition (Details)

Note 6. Acquisition (Details) - USD ($) $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended		6 Months Ended
Note 6. Acquisition (Details) - USD ($) $ in Thousands	Apr. 30, 2015	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Goodwill		$ 56,452	$ 56,452		$ 56,452		$ 50,318
TOTAL REVENUES			133,105	$ 136,019	267,370	$ 277,091
Net income (loss)			$ 5,156	$ 3,880	$ 10,487	$ 7,885
GAF Acquiree Member
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage	40.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage	80.00%
Business Combination, Step Acquisition, Percentage of Interest Acquired	40.00%
Payments to Acquire Businesses, Gross	$ 325
Business Combination, Consideration Transferred, Other	1,195
Equity Method Investments	1,908
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss	692
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value	1,216
Nonmonetary Transaction, Gain (Loss) Recognized on Transfer	1,195
Goodwill	6,134
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	5,500
Business Combination, Consideration Transferred	1,520
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value	608
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	(2,790)
TOTAL REVENUES		1,741
Net income (loss)		$ 300
GAF Acquiree Member \| Accounts Payable and Accrued Liabilities \| Fair Value, Inputs, Level 3
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability	1,000
GAF Acquiree Member \| Other Income
Business Combination, Step Acquisition, Total Gain (Loss)	$ 503

Note 6. Acquisition_ Schedule61

Note 6. Acquisition: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - GAF Acquiree Member $ in Thousands	Apr. 30, 2015USD ($)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	$ 836
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	1,249
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	7,585
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	4,849
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent	2,200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	3,326
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	10,375
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	$ (2,790)

Note 7. Goodwill and Other In62

Note 7. Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Goodwill		$ 56,452		$ 56,452		$ 50,318
Intangible Assets, Net (Excluding Goodwill)		16,706		16,706		$ 12,135
Amortization of Intangible Assets		525	$ 679	929	$ 1,358
Fully Insured Segment Member
Amortization of Intangible Assets		$ 382	$ 492	$ 645	$ 984
GAF Acquiree Member
Goodwill	$ 6,134
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5,500
GAF Acquiree Member \| Fully Insured Segment Member
Goodwill	6,134
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5,500
GAF Acquiree Member \| Fully Insured Segment Member \| Trademarks
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 1,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	8 years
GAF Acquiree Member \| Fully Insured Segment Member \| Customer Relationships
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 4,500
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	9 years

Note 7. Goodwill and Other In63

Note 7. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets, Gross	$ 28,225	$ 22,725
Finite-Lived Intangible Assets, Accumulated Amortization	19,496	18,567
Customer Relationships
Finite-Lived Intangible Assets, Gross	27,225	22,725
Finite-Lived Intangible Assets, Accumulated Amortization	19,475	$ 18,567
Trademarks
Finite-Lived Intangible Assets, Gross	1,000
Finite-Lived Intangible Assets, Accumulated Amortization	$ 21

Note 7. Goodwill and Other In64

Note 7. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 7,977	$ 7,977
Licensing Agreements
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 7,977	$ 7,977

Note 8. Debt (Details)

Note 8. Debt (Details) - Apr. 30, 2015 - GAF Acquiree Member - USD ($) $ in Thousands	Total
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	$ 3,326
Notes Payable, Other Payables
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	$ 3,026
Debt Instrument, Maturity Date Range, End	Jan. 2, 2019
Long Term Debt Percentage Bearing Fixed Interest Rate	2.50%
Line of Credit
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	$ 300
Long Term Debt Percentage Bearing Fixed Interest Rate	4.00%

Note 9. Income Taxes (Details)

Note 9. Income Taxes (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Apr. 30, 2015	Dec. 31, 2014
AMICSubsidiariesMember
Deferred Tax Assets, Net		$ 8,386		$ 11,517
AMIC \| Domestic Tax Authority
Operating Loss Carryforwards	[1]	$ 262,189
GAF Acquiree Member
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent			$ 2,200

[1]	Which expire in varying amounts through 2028, a significant portion expires in 2020.

Note10. Accumulated Other Com67

Note10. Accumulated Other Comprehensive Income (loss): Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated other comprehensive income (loss)	$ 901	$ (4,954)	$ 22	$ (10,472)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(2,783)	6,158	(89)	12,786
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	1,368	2,641	3,145	3,620
Other comprehensive income (loss), net of tax	(4,151)	3,517	(3,234)	9,166
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	33	(82)	(10)	(213)
Accumulated other comprehensive income (loss)	(3,217)	(1,519)	(3,217)	(1,519)
Unrealized Gains/Losses Purchased from Noncontrolling Interests			5
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated other comprehensive income (loss)	942	(4,842)	72	(10,350)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(2,791)	6,145	(106)	12,763
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	1,368	2,641	3,145	3,620
Other comprehensive income (loss), net of tax	(4,159)	3,504	(3,251)	9,143
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	33	(82)	(10)	(213)
Accumulated other comprehensive income (loss)	(3,184)	(1,420)	(3,184)	(1,420)
Unrealized Gains/Losses Purchased from Noncontrolling Interests			5
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated other comprehensive income (loss)	(41)	(112)	(50)	(122)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	8	13	17	23
Other comprehensive income (loss), net of tax	8	13	17	23
Accumulated other comprehensive income (loss)	$ (33)	$ (99)	$ (33)	$ (99)

Note10. Accumulated Other Com68

Note10. Accumulated Other Comprehensive Income (loss): Reclassification out of Accumulated Other Comprehensive Income (Details) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net realized investment gains	$ 2,100	$ 4,519	$ 4,100	$ 6,070
Income (loss) before income taxes	8,121	6,283	16,721	12,148
Income taxes (benefits)	2,965	2,403	6,234	4,263
Net income (loss)	5,156	3,880	10,487	7,885
Accumulated Net Unrealized Investment Gain (Loss)
Net realized investment gains	2,114	4,009	4,879	5,486
Income (loss) before income taxes	2,114	4,009	4,879	5,486
Income taxes (benefits)	746	1,368	1,734	1,866
Net income (loss)	$ 1,368	$ 2,641	$ 3,145	$ 3,620

Note 11. Share-based Compensa69

Note 11. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Details)	6 Months Ended
	Jun. 30, 2015
Independence Holding Company Share Based Plans Total Member \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Independence Holding Company Share Based Plans Total Member \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Independence Holding Company Share Based Plans Total Member \| Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
American Independence Corp Share Based Plans Total Member \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
American Independence Corp Share Based Plans Total Member \| Employee Stock Option \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
American Independence Corp Share Based Plans Total Member \| Employee Stock Option \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years

Note 11. Share-based Compensa70

Note 11. Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Independence Holding Company Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	369,861
Independence Holding Company Share Based Plans Total Member \| Employee Stock Option
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options	$ 133
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	63
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	$ 10
Independence Holding Company Share Based Plans Total Member \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	7,425	7,425
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 11.78	$ 13.27
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 89	$ 68
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options	$ 174
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Period For Recognition 1	2 years 2 months 12 days
Independence Holding Company Share Based Plans Total Member \| Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	129,150		136,850
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised	7,700
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid	$ 38
Independence Holding Company Share Based Plans Total Member \| Stock Appreciation Rights (SARs) \| Accounts Payable and Accrued Liabilities
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent	696		$ 791
American Independence Corp Share Based Plans Total Member \| Employee Stock Option
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options	$ 62

Note 11. Share-based Compensa71

Note 11. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Independence Holding Company Share Based Plans Total Member
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ (2)	$ 260	$ 17	$ 262
Allocated Share-based Compensation Expense, Net of Tax	(3)	392	25	394
Independence Holding Company Share Based Plans Total Member \| Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	(5)	652	42	656
Independence Holding Company Share Based Plans Total Member \| Employee Stock Option \| Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense		471	55	537
Independence Holding Company Share Based Plans Total Member \| Restricted Stock Units (RSUs) \| Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	23	23	44	42
Independence Holding Company Share Based Plans Total Member \| Stock Appreciation Rights (SARs) \| Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	(28)	158	(57)	77
American Independence Corp Share Based Plans Total Member
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	4	5	8	10
Allocated Share-based Compensation Expense, Net of Tax	7	11	14	17
American Independence Corp Share Based Plans Total Member \| Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	11	16	22	27
American Independence Corp Share Based Plans Total Member \| Employee Stock Option \| Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	$ 11	$ 16	$ 22	$ 27

Note 11. Share-based Compensa72

Note 11. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Details) - 6 months ended Jun. 30, 2015 - Employee Stock Option - $ / shares	Total
Independence Holding Company Share Based Plans Total Member
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	614,680
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 9.33
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	14,600
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 9.09
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	600,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 9.34
American Independence Corp Share Based Plans Total Member
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	166,616
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 10.50
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	113,116
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 8.88
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	53,500
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 13.92

Note 11. Share-based Compensa73

Note 11. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding (Details) - Jun. 30, 2015 - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands	Total
Independence Holding Company Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	600,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	600,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 9.34
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price	$ 9.34
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	$ 2,311
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$ 2,311
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	1 year 9 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	1 year 9 months 18 days
American Independence Corp Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	113,116
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	99,782
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 8.88
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price	$ 8.79
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	$ 201
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$ 188
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	4 years 1 month 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	3 years 6 months

Note 11. Share-based Compensa74

Note 11. Share-based Compensation: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Details) - Independence Holding Company Share Based Plans Total Member - Restricted Stock Units (RSUs) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	14,850
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 12.09
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	7,425	7,425
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 11.78	$ 13.27
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	7,425
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 11.44
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	14,850
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 12.26

Note 12. Supplemental Disclos75

Note 12. Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Details
Income Taxes Paid (Refunds), Net	$ 571	$ (2,763)
Interest Paid	$ 881	$ 922

Note 13. Segment Reporting_ S76

Note 13. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
TOTAL REVENUES	$ 133,105	$ 136,019	$ 267,370	$ 277,091
Income (loss) before income taxes	8,121	6,283	16,721	12,148
Operating Segments
TOTAL REVENUES	131,005	131,500	263,270	271,021
Income (loss) before income taxes	6,499	2,101	13,531	6,896
Segment Reconciling Items \| Net realized investment gains
TOTAL REVENUES	2,100	4,519	4,100	6,070
Income (loss) before income taxes	2,100	4,519	4,100	6,070
Segment Reconciling Items \| Interest Expense
Income (loss) before income taxes	(478)	(337)	(910)	(818)
Medical Stop-Loss Segment Member
TOTAL REVENUES	52,228	45,499	108,240	93,087
Income (loss) before income taxes	4,554	4,653	9,907	9,391
Fully Insured Segment Member
TOTAL REVENUES	49,631	60,888	96,163	127,427
Income (loss) before income taxes	1,555	47	2,832	1,955
Group disability, life annuities and DBL Segment Member
TOTAL REVENUES	20,727	16,716	41,475	33,143
Income (loss) before income taxes	3,159	2,003	6,374	3,180
Individual life annuities and other Segment Member
TOTAL REVENUES	8,376	8,347	17,300	17,285
Income (loss) before income taxes	(1,332)	(2,111)	(2,385)	(3,220)
Corporate
TOTAL REVENUES	43	50	92	79
Income (loss) before income taxes	$ (1,437)	$ (2,491)	$ (3,197)	$ (4,410)

Note 13. Segment Reporting (Det

Note 13. Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Amortization of Intangible Assets	$ 525	$ 679	$ 929	$ 1,358
Fully Insured Segment Member
Amortization of Intangible Assets	382	492	645	984
Individual life annuities and other Segment Member
Amortization of Other Deferred Charges	$ 62	$ 1,128	$ 416	$ 1,239

Note 14_ Subsequent Event (Deta

Note 14: Subsequent Event (Details) - 1 months ended Jul. 31, 2015 - USD ($) $ in Thousands	Total
Material Nonrecurring Reinsurance Transactions	On July 31, 2015, Madison National Life and Standard Security Life together entered into a coinsurance and sale agreement with an unaffiliated reinsurer, National Guardian Life Insurance Company (NGL), to: (i) cede substantially all of their individual life and annuity policy blocks currently in run-off; and (ii) sell the related infrastructure associated with the administration of such policies. The Company transferred $206,953,000 of cash to NGL, net of the aggregate purchase price of $42,000,000 for the coinsurance and sale transaction. As a result of this transaction, approximately $76,000,000 of the aforementioned life and annuity reserves were assigned and transferred to the reinsurer, contractually relieving the Company of the liability with regards to those policies. For the remaining life and annuity reserves ceded to the reinsurer, the Company recorded corresponding amounts as due from reinsurers. The ceding of reinsurance does not discharge the primary liability of the original insurer to the insured.
Coinsurance And Sale Transaction With National Guardian Life Insurance Company Member
Payment To Reinsurer For Coinsurance And Sale Transaction	$ 206,953
Purchase Price Received	42,000
Coinsurance And Sale Transaction With National Guardian Life Insurance Company Member \| Life and Annuity Insurance Product Line
Liability for Future Policy Benefits, Other Increase (Decrease)	$ (76,000)