Independence Holding (IHC) 10-Q 1 Aug 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Jul. 30, 2016	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	Independence Holding Company
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Entity Central Index Key	701,869
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		17,170,933
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Public Float			$ 131,292
Trading Symbol	ihc

INDEPENDENCE HOLDING COMPANY CO

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (March 31, 2016 Unaudited) - USD ($) $ in Thousands		Mar. 31, 2016		Dec. 31, 2015
Investments:
Short-term investments		$ 50		$ 50
Securities purchased under agreements to resell		21,196		28,285
Trading securities		1,190		1,259
Fixed maturities, available-for-sale		520,638		428,601
Equity securities, available-for-sale		8,714		8,426
Other investments		20,501		21,538
Total investments		572,289		488,159
Cash and cash equivalents		145,696		17,500
Due and unpaid premiums		64,645		69,075
Due from reinsurers		462,087		483,073
Premium and claim funds		41,576		22,015
Goodwill		47,276		47,276
Other assets		48,257		57,934
Assets attributable to discontinued operations				12,931
TOTAL ASSETS		1,381,826		1,197,963
LIABILITIES:
Policy benefits and claims		247,900		245,443
Future policy benefits		235,251		270,624
Funds on deposit		149,147		173,350
Unearned premiums		13,350		10,236
Other policyholders' funds		9,675		11,822
Due to reinsurers		70,283		46,355
Due to securities brokers		99,803		998
Accounts payable, accruals and other liabilities		57,020		63,111
Liabilities attributable to discontinued operations		6,085		(15)
Debt		4,250		5,189
Junior subordinated debt securities		38,146		38,146
TOTAL LIABILITIES		930,910		865,259
IHC STOCKHOLDERS' EQUITY:
Preferred stock	[1]
Common Stock		18,569	[2]	18,569	[3]
Paid-in capital		128,053		127,733
Accumulated other comprehensive income (loss)		(479)		(3,440)
Treasury stock, at cost		(14,782)	[4]	(13,961)	[5]
Retained earnings		300,457		194,450
TOTAL IHC STOCKHOLDERS' EQUITY		431,818		323,351
NONCONTROLLING INTERESTS IN SUBSIDIARIES		19,098		9,353
TOTAL EQUITY		450,916		332,704
TOTAL LIABILITIES AND EQUITY		$ 1,381,826		$ 1,197,963
[1]	None issued.
[2]	$1 par value; 23,000,000 shares authorized, 18,569,183 shares issued and 17,215,758 shares outstanding.
[3]	$1 par value; 23,000,000 shares authorized, 18,569,183 shares issued and 17,265,758 shares outstanding.
[4]	1,353,425 treasury shares
[5]	1,303,425 treasury shares

INDEPENDENCE HOLDING COMPANY C3

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (March 31, 2016 Unaudited) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
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	18,569,183	18,569,183
Common Stock, shares outstanding	17,215,758	17,265,758
Treasury Stock, shares	1,353,425	1,303,425

INDEPENDENCE HOLDING COMPANY C4

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
REVENUES:
Premiums earned	$ 62,562	$ 122,114
Net investment income	4,436	5,422
Fee income	5,079	2,577
Other income	3,258	992
Net realized investment gains	560	2,000
Net impairment losses recognized in earnings	0	0
TOTAL REVENUES	75,895	133,105
EXPENSES:
Insurance benefits, claims and reserves	30,743	79,620
Selling, general and administrative expenses	35,227	45,484
Interest expense on debt	453	432
TOTAL EXPENSES	66,423	125,536
Income (loss) from continuing operations before income taxes	9,472	7,569
Income taxes (benefits)	3,576	2,868
Income from continuing operations	5,896	4,701
Discontinued operations: (Note 3)
Income from discontinued operations, before income taxes	117,636	1,031
Income taxes on discontinued operations	7,866	401
Income from discontinued operations	109,770	630
Net income (loss)	115,666	5,331
(Income) loss from noncontrolling interests in subsidiaries	(9,656)	(112)
NET INCOME (LOSS) ATTRIBUTABLE TO IHC	$ 106,010	$ 5,219
Basic income per common share: (Note 2)
Basic income (loss) per common share from continuing operations	$ 0.34	$ 0.27
Basic income (loss) per common share from discontinued operations	5.81	0.03
Basic income (loss) per common share	$ 6.15	$ 0.30
WEIGHTED AVERAGE SHARES OUTSTANDING	17,243	17,364
Diluted income per common share: (Note 2)
Diluted income (loss) per common share from continuing operations	$ 0.33	$ 0.27
Diluted income (loss) per common share from discontinued operations	5.75	0.03
Diluted income (loss) per common share	$ 6.08	$ 0.30
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING	17,449	17,531

INDEPENDENCE HOLDING COMPANY C5

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
STATEMENT OF COMPREHENSIVE INCOME
Net income (loss)	$ 115,666	$ 5,331
Available-for-sale securities:
Unrealized gains (losses) on available-for-sale securities	4,703	1,320
Tax (benefit) on unrealized gains (losses) on available-for-sale securities	1,685	403
Unrealized gains (losses) on available-for-sale securities, net of tax	3,018	917
Other comprehensive income (loss), net of tax	3,018	917
Comprehensive income (loss), net of tax	118,684	6,248
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests:
(Income) loss from noncontrolling interests in subsidiaries	(9,656)	(112)
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	(57)	(43)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(57)	(43)
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(9,713)	(155)
Comprehensive income (loss), net of tax, attributable to IHC	$ 108,971	$ 6,093

INDEPENDENCE HOLDING COMPANY C6

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	COMMON STOCK, AMOUNT	PAID-IN CAPITAL	ACCUMULATED OTHER COMPREHENSIVE INCOME(LOSS)	TREASURY STOCK, AT COST, AMOUNT	RETAINED EARNINGS	TOTAL IHC STOCKHOLDERS' EQUITY	NON-CONTROLLING INTERESTS	Total
Stockholders Equity at Dec. 31, 2015	$ 18,569	$ 127,733	$ (3,440)	$ (13,961)	$ 194,450	$ 323,351	$ 9,353	$ 332,704
Net income (loss)					106,010	106,010	9,656	115,666
Other comprehensive income (loss), net of tax			2,961			2,961	57	3,018
Repurchases of common stock				(821)		(821)		(821)
Share-based compensation and related tax effects		193				193		193
Other capital transactions		127			(3)	124	32	156
Stockholders Equity at Mar. 31, 2016	$ 18,569	$ 128,053	$ (479)	$ (14,782)	$ 300,457	$ 431,818	$ 19,098	$ 450,916

INDEPENDENCE HOLDING COMPANY C7

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS PROVIDED BY (USED BY) OPERATING ACTIVITIES:
Net income (loss)	$ 115,666	$ 5,331
Adjustments to reconcile net income to net change in cash from operating activities:
Gain on disposal of discontinued operations	(109,304)
Amortization of deferred acquisition costs	86	1,464
Net realized investment gains	(560)	(2,000)
Equity income from equity method investments	30	(365)
Depreciation and amortization	472	536
Deferred tax expense (benefits)	(901)	3,251
Other adjustments to reconcile net income	3,105	2,341
Changes in assets and liabilities:
Net sales (purchases) of trading securities	3,180	1,291
Change in insurance liabilities	(31,725)	2,935
Change in amount due from reinsurers	20,985	4,531
Change in premium and claim funds	(19,562)	(376)
Change in current income tax liability	(1,428)	(789)
Change in due and unpaid premiums	4,430	(14,183)
Other operating activities	(6,057)	2,749
Net change in cash from operating activities	(21,583)	6,716
CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES:
Net sales (purchases) of securities under resale and repurchase agreements	7,089	(34,147)
Sales of equity securities		3,902
Sales of fixed maturities	32,447	92,089
Maturities and other repayments of fixed maturities	10,342	12,067
Purchases of fixed maturities	(30,723)	(81,963)
Proceeds from sales of subsidiaries, net of cash divested	134,625
Other investing activites	(1,107)	10
Net change in cash from investing activities	152,673	(8,042)
CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES:
Payments for repurchases of common stock	(821)	(597)
Cash paid in acquisitions of noncontrolling interests		(1,609)
Proceeds (withdrawals) of investment-type insurance contracts	(500)	(607)
Repayment of long-term debt	(939)
Dividends paid	(779)	(609)
Other financing activities	145	144
Net change in cash from financing activities	(2,894)	(3,278)
Net change in cash and cash equivalents	128,196	(4,604)
Cash and cash equivalents, beginning of period	17,500	23,408
Cash and cash equivalents, end of period	$ 145,696	$ 18,804

Note 1. Organization, Consolida

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies	3 Months Ended
	Mar. 31, 2016
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 Specialty Benefits Inc. and IHC Carrier Solutions, Inc. IHC also owns a significant equity interest in: (i) Ebix Health Exchange Holdings, LLC (“Ebix Health Exchange”), an administration exchange for health and pet insurance; and (ii) a managing general underwriter (“MGU”) that writes medical stop-loss. On March 31, 2016, the Company sold IHC Risk Solutions, LLC (“Risk Solutions”), its managing general underwriter of excess or stop-loss insurance. 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 approximately 53% of IHC's outstanding common stock at March 31, 2016. (B) Consolidation American Independence Corp. At March 31, 2016 and December 31, 2015, the Company owned approximately 92% , respectively, of the outstanding common stock of American Independence Corp. ("AMIC"). In June 2016, IHC started the necessary proceedings to take AMIC private. AMIC is an insurance holding company engaged in the insurance and reinsurance business. Effects of Ownership Changes in Subsidiaries The following table summarizes the effects of changes in the Company’s ownership interests in its subsidiaries on IHC’s equity for the periods indicated (in thousands): Three Months Ended March 31, 2016 2015 Changes in IHC’s paid-in capital: Purchases of AMIC shares $ - $ (199) Net transfers from noncontrolling interests $ - $ (199) (C) Basis of Presentation The unaudited 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 unaudited Condensed Consolidated Financial Statements 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. IHC’s annual report on Form 10-K as filed with the Securities and Exchange Commission should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements. On March 31, 2016, the Company sold Risk Solutions, its managing general underwriter of excess or stop-loss insurance for self-insured employer groups that desire to manage the risk of large medical claims (“Medical Stop-Loss”). In addition, under the purchase and sale agreement, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions is 100% co-insured as of January 1, 2016. IHC’s block of Medical Stop-Loss business is in run-off. The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company’s operations and financial results. The disposal transaction qualified for reporting as a discontinued operation in the first quarter of 2016 as a result of the Board of Directors commitment to a plan for its disposal in January 2016. The assets, liabilities, and related income and expenses associated with the disposal group are presented as discontinued operations in the accompanying condensed consolidated financial statements and Notes thereto. See Note 3 for more information. 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 ended March 31, 2016 (D) Reclassifications Certain amounts in prior year’s consolidated financial statements and Notes thereto have been reclassified to conform to the 2016 presentation, primarily for the effects of discontinued operations. (E) Recent Accounting Pronouncements Recently Adopted Accounting Standards In September 2015, the FASB issued guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination and eliminate the requirement to retrospectively account for those adjustments. The adoption of this guidance is did not have a material effect on the Company’s 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. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued guidance requiring financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. An allowance for credit losses will be deducted from the amortized cost basis to present the net carrying value at the amount expected to be collected with changes in the allowance recorded in earnings. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than a write-down, which would be limited to the amount by which fair value is below the amortized cost. Certain existing requirements used to evaluate credit losses have been removed. For public entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The amendments in this Update should be applied through a cumulative effect adjustment to retained earnings upon adoption as of the beginning of the first reporting period in which the guidance is effective. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance that simplify several aspects of accounting for sharebased payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance that eliminates the requirement for retroactive adjustments on the date that a previously held investment qualifies for the equity method of accounting as a result of an increase in ownership interest or degree of influence. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 and should be applied prospectively upon their effective date. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued guidance that requires lessees to recognize the assets and liabilities that arise from leases, including operating leases, on the statement of financial position. The amendments in this Update are effective for fiscal years beginning after December 31, 2018, including interim periods within those fiscal years, using a modified retrospective approach. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In January 2016, the FASB issued guidance that eliminates the requirement to classify equity securities with readily determinable fair values as trading or available-for-sale. The guidance requires equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income, simplifies the impairment assessment of equity securities without readily determinable fair values and requires changes in disclosure requirements. For public entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted in certain circumstances. The amendments in this Update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Balance Sheet or IHC’s stockholders’ equity. 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 Company’s 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. In 2016, additional guidance was issued to clarify certain aspects of the implementation guidance and to clarify the identification of performance obligations. In August 2015, the effective date of this guidance has been deferred. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and requires one of two specified retrospective methods of application. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Management has not yet determined the impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

Note 2. Income Per Common Share

Note 2. Income Per Common Share	3 Months Ended
	Mar. 31, 2016
Notes
Note 2. Income Per Common Share	Note 2. Income Per Common Share Diluted income 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 206,000 and 167,000 shares for the three months ended March 31, 2016 and 2015 The following is a reconciliation of income available to common shareholders used to calculate income per share for the periods indicated (in thousands): Three Months Ended March 31 2016 2015 Income from continuing operations $ 5,896 $ 4,701 Less: Income from continuing operations attributable to noncontrolling interests (106) (70) Income from continuing operations attributable to IHC common shareholders $ 5,790 $ 4,631 Income from discontinued operations $ 109,770 $ 630 Less: Income from discontinued operations attributable to noncontrolling interests (9,550) (42) Income from discontinued operations attributable to IHC common shareholders $ 100,220 $ 588

Note 3. Discontinued Operations

Note 3. Discontinued Operations	3 Months Ended
	Mar. 31, 2016
Notes
Note 3. Discontinued Operations	Note 3. Discontinued Operations On March 31, 2016, IHC and its subsidiary Independence American sold the stock of Risk Solutions to Swiss Re Corporate Solutions, a division of Swiss Re (“Swiss Re”). In addition, under the purchase and sale agreement, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions is co-insured by Westport Insurance Corporation (“Westport”), Swiss Re’s largest US carrier, as of January 1, 2016. The aggregate purchase price was $152,500,000 in cash, subject to adjustments and settlements. Approximately 89% of the purchase price was allocated to AMIC, with the balance being paid to Standard Security Life and other IHC subsidiaries. The Company recorded a gain of $99,793,000 , net of taxes and amounts attributable to noncontrolling interests, as a result of the transaction. The aforementioned transaction, which includes the sale of Risk Solutions and the corresponding coinsurance agreement, is collectively referred to as the “Risk Solutions Sale and Coinsurance Transaction”. IHC’s block of Medical Stop-Loss business is in run-off. The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company’s operations and financial results. The disposal transaction qualified for reporting as a discontinued operation in the first quarter of 2016 as a result of the Board of Directors commitment to a plan for its disposal in January 2016. Aside from reinsurance and marketing of Westport small group stop-loss, there will be no further involvement with the discontinued operation. The following is a reconciliation of the major line items constituting the pretax profit of discontinued operations for the periods indicated (in thousands): Three Months Ended March 31, 2016 2015 Revenue $ 6,406 $ 1,160 Selling, general and administrative expenses 5,689 129 Pretax profit of discontinued operations 717 1,031 Gain on disposal of discontinued operations, pretax 116,919 - Income from discontinued operations, before income taxes 117,636 1,031 Income taxes on discontinued operations 7,866 401 Income from discontinued operations $ 109,770 $ 630 The following is a reconciliation of the carrying amounts of major classes of assets and liabilities for discontinued operations for the periods indicated (in thousands): March 31, 2016 December 31, 2015 Major classes of assets included in discontinued operations: Cash $ - $ 1,671 Goodwill - 5,664 Intangible assets - 919 Other assets - 4,677 Assets attributable to discontinued operations $ - $ 12,931 Major classes of liabilities included in discontinued operations: Accounts payable and accrued liabilities $ 6,085 $ (15) Liabilities attributable to discontinued operations $ 6,085 $ (15) Total operating cash flows from discontinued operations for the three months ended March 31, 2016 and 2015 amounted to $339,000 and $116,000, respectively. The Company elected to classify the proceeds received from the sale of discontinued operations in the investing activities section of the Condensed Consolidated Statement of Cash Flows. In connection with the Risk Solutions Sale and Coinsurance Transaction in March 2016, AMIC utilized a significant amount of its Federal NOL carryforwards and made a corresponding adjustment to its valuation allowance (see Note 9). On a consolidated basis, the Company recorded income taxes on discontinued operations of $7,866,000 for the three months ended March 31, 2016, consisting of $5,799,000 of state taxes and $2,067,000 of Federal taxes, net of a $38,565,000 decrease in AMIC’s valuation allowance.

Note 4. Investment Securities

Note 4. Investment Securities	3 Months Ended
	Mar. 31, 2016
Notes
Note 4. Investment Securities	Note 4. 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): March 31, 2016 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 183,587 $ 1,145 $ (4,844) $ 179,888 CMOs - residential (1) 2,986 63 - 3,049 U.S. Government obligations 124,898 421 (7) 125,312 Agency MBS - residential (2) 32 1 - 33 GSEs (3) 10,715 2 (208) 10,509 States and political subdivisions 192,965 3,675 (1,112) 195,528 Foreign government obligations 2,301 70 - 2,371 Redeemable preferred stocks 4,036 85 (173) 3,948 Total fixed maturities $ 521,520 $ 5,462 $ (6,344) $ 520,638 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 4,926 $ 155 $ (24) $ 5,057 Nonredeemable preferred stocks 3,588 95 (26) 3,657 Total equity securities $ 8,514 $ 250 $ (50) $ 8,714 December 31, 2015 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 172,621 $ 93 $ (5,868) $ 166,846 CMOs - residential (1) 3,068 2 (14) 3,056 CMOs - commercial 899 296 - 1,195 U.S. Government obligations 44,738 120 (64) 44,794 Agency MBS - residential (2) 34 1 - 35 GSEs (3) 11,814 2 (254) 11,562 States and political subdivisions 194,364 2,159 (1,857) 194,666 Foreign government obligations 2,318 12 (6) 2,324 Redeemable preferred stocks 4,036 101 (14) 4,123 Total fixed maturities $ 433,892 $ 2,786 $ (8,077) $ 428,601 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 4,926 $ - $ (142) $ 4,784 Nonredeemable preferred stocks 3,588 56 (2) 3,642 Total equity securities $ 8,514 $ 56 $ (144) $ 8,426 (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 March 31, 2016, 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 prepayment 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 $ 23,979 $ 23,519 Due after one year through five years 180,141 180,071 Due after five years through ten years 126,709 128,460 Due after ten years 176,959 174,997 CMOs and MBSs 13,732 13,591 $ 521,520 $ 520,638 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): March 31, 2016 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 43,714 $ 687 $ 71,655 $ 4,157 $ 115,369 $ 4,844 U.S. Government obligations 104,478 7 - - 104,478 7 GSEs 3,578 66 6,907 142 10,485 208 States and political subdivisions 38,859 584 20,900 528 59,759 1,112 Redeemable preferred stocks 3,590 173 - - 3,590 173 Total fixed maturities 194,219 1,517 99,462 4,827 293,681 6,344 Common stocks 478 24 - - 478 24 Nonredeemable preferred stocks - - 1,301 26 1,301 26 Total equity securities 478 24 1,301 26 1,779 50 Total temporarily impaired securities $ 194,697 $ 1,541 $ 100,763 $ 4,853 $ 295,460 $ 6,394 Number of securities in an unrealized loss position 80 30 110 December 31, 2015 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 101,903 $ 2,559 $ 55,217 $ 3,309 $ 157,120 $ 5,868 CMO’s - residential 2,867 14 - - 2,867 14 U.S. Government obligations 19,809 64 - - 19,809 64 GSEs 6,539 128 4,997 126 11,536 254 States and political subdivisions 68,898 780 31,351 1,077 100,249 1,857 Foreign government obligations 484 6 - - 484 6 Redeemable preferred stocks 3,749 14 - - 3,749 14 Total fixed maturities 204,249 3,565 91,565 4,512 295,814 8,077 Common stocks 4,784 142 - - 4,784 142 Nonredeemable preferred stocks 1,324 2 - - 1,324 2 Total equity securities 6,108 144 - - 6,108 144 Total temporarily impaired securities $ 210,357 $ 3,709 $ 91,565 $ 4,512 $ 301,922 $ 8,221 Number of securities in an unrealized loss position 99 31 130 Substantially all of the unrealized losses on fixed maturities available-for-sale at March 31, 2016 and December 31, 2015 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 March 31, 2016. Net realized investment gains are as follows for periods indicated (in thousands): Three Months Ended March 31, 2016 2015 Available-for-sale securities: Fixed maturities $ 628 $ 1,300 Common stocks - 1,465 Total sales of available-for-sale securities 628 2,765 Trading securities - (507) Total realized gains 628 2,258 Unrealized gains (losses) on trading securities: Change in unrealized gains (losses) on trading securities (70) (251) Total unrealized gains (losses) on trading securities (70) (251) Gains (losses) on other investments 2 (7) Net realized investment gains $ 560 $ 2,000 For the three months ended March 31, 2016 and 2015, proceeds from sales of available-for-sale securities were $31,494,000 and $106,415,000, respectively, and the Company realized gross gains of $615,000 and $3,114,000, respectively, and gross losses of $17,000 and $182,000, respectively, on 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 1H(iv) to the Consolidated Financial Statements in the 2015 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 the first three months of 2016 or 2015. 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 March 31, 2016 2015 Balance at beginning of year $ 473 $ 473 Securities sold (473) - Balance at end of period $ - $ 473

Note 5. Fair Value Disclosures

Note 5. Fair Value Disclosures	3 Months Ended
	Mar. 31, 2016
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 management’s assumptions and available market information. Significant unobservable inputs used in the fair value measurement of CMO’s 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. Contingent liabilities: Contingent liabilities classified in Level 3 include; (i) a contingent liability assumed in connection with an acquisition related to an earn-out agreement whereby significant unobservable inputs are based on projected income; and (ii) a contingent liability recognized in connection with the deconsolidation of a former subsidiary and a newly formed joint venture transaction whereby significant unobservable inputs are based on projected cash flows. The following tables present our financial assets and liabilities measured at fair value on a recurring basis for the periods indicated (in thousands): March 31, 2016 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 179,888 $ - $ 179,888 CMOs - residential - 3,049 - 3,049 US Government obligations - 125,312 - 125,312 Agency MBS - residential - 33 - 33 GSEs - 10,509 - 10,509 States and political subdivisions - 193,385 2,143 195,528 Foreign government obligations - 2,371 - 2,371 Redeemable preferred stocks 3,948 - - 3,948 Total fixed maturities 3,948 514,547 2,143 520,638 Equity securities available-for-sale: Common stocks 5,057 - - 5,057 Nonredeemable preferred stocks 3,657 - - 3,657 Total equity securities 8,714 - - 8,714 Trading securities - equities 1,190 - - 1,190 Total trading securities 1,190 - - 1,190 Total Financial Assets $ 13,852 $ 514,547 $ 2,143 $ 530,542 FINANCIAL LIABILITIES: Contingent liabilities $ - $ - $ 1,555 $ 1,555 Total Financial Liabilities $ - $ - $ 1,555 $ 1,555 December 31, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 166,846 $ - $ 166,846 CMOs - residential - 3,056 - 3,056 CMOs - commercial - - 1,195 1,195 US Government obligations - 44,794 - 44,794 Agency MBS - residential - 35 - 35 GSEs - 11,562 - 11,562 States and political subdivisions - 192,487 2,179 194,666 Foreign government obligations - 2,324 - 2,324 Redeemable preferred stocks 4,123 - - 4,123 Total fixed maturities 4,123 421,104 3,374 428,601 Equity securities available-for-sale: Common stocks 4,784 - - 4,784 Nonredeemable preferred stocks 3,642 - - 3,642 Total equity securities 8,426 - - 8,426 Trading securities - equities 1,259 - - 1,259 Total trading securities 1,259 - - 1,259 Total Financial Assets $ 13,808 $ 421,104 $ 3,374 $ 438,286 FINANCIAL LIABILITIES: Interest rate swap $ - $ 11 $ - $ 11 Contingent liabilities - - 1,650 1,650 Total Financial Liabilities $ - $ 11 $ 1,650 $ 1,661 It is the Company’s 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 2016 or 2015. The following table presents the changes in fair value of our Level 3 financial instruments for the periods indicated (in thousands): Financial Assets: Financial Liabilities: States and Total Total CMOs Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Balance at December 31, 2015 $ 1,195 $ 2,179 $ 3,374 $ 1,650 $ 1,650 Gains (losses) included in earnings: Net investment income - - - (633) (633) Net realized investment gains 141 - 141 - - Other income - - - 538 538 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) (296) (11) (307) - - Repayments and amortization of fixed maturities (74) (25) (99) - - Sales (966) - (966) - - Balance at March 31, 2016 $ - $ 2,143 $ 2,143 $ 1,555 $ 1,555 Three Months Ended March 31, 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) 63 (13) 50 Repayments and amortization of fixed maturities - (20) (20) Balance at end of period $ 1,016 $ 2,281 $ 3,297 The following table provides carrying values, fair values and classification in the fair value hierarchy of the Company’s 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): March 31, 2016 December 31, 2015 Level 2 Level 2 Fair Carrying Fair Carrying Value Value Value Value FINANCIAL ASSETS: Policy loans $ 38 $ 38 $ 38 $ 38 FINANCIAL LIABILITIES: Funds on deposit $ 149,404 $ 149,147 $ 173,625 $ 173,350 Debt and junior subordinated debt securities $ 42,344 $ 42,396 $ 43,283 $ 43,335 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 variable interest rates approximates its carrying amount and is included in Level 2 of the fair value hierarchy.

Note 6. Variable Interest Entit

Note 6. Variable Interest Entities	3 Months Ended
	Mar. 31, 2016
Notes
Note 6. Variable Interest Entities	Note 6. Variable Interest Entities The Company has a minority interest in certain limited partnerships that we have determined to be Variable Interest Entities (“VIEs”). The aforementioned VIEs are not required to be consolidated in the Company’s condensed consolidated financial statements as we are not the primary beneficiary since we do not have the power to direct the activities that most significantly impact the VIEs’ economic performance. The Company will periodically reassess whether we are the primary beneficiary in any of these investments. The reassessment process will consider whether we have acquired the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. Our maximum loss exposure is limited to our combined $8,844,000 carrying value in these equity investments that are included in other investments in the Condensed Consolidated Balance Sheet as of March 31, 2016.

Note 7. Related Party Transacti

Note 7. Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Notes
Note 7. Related Party Transactions	Note 7. Related Party Transactions Through a joint venture consummated in 2015, the Company has a significant equity interest in Ebix Health Exchange. Ebix Health Exchange administers various lines of health insurance for IHC’s insurance subsidiaries. The carrying value of the Company’s equity investment in Ebix Health Exchange was $9,061,000 and 9,838,000 at March 31, 2016 and December 31, 2015, respectively. Ebix Health Exchange reported a net loss of $821,000 for the three months ended March 31, 2016. The Company recorded $188,000 of the loss in earnings and reduced the contingent liability, previously recognized on the acquisition date, by $633,000 of cash operating losses for the period. The Company’s Consolidated Balance Sheets at March 31, 2016 and December 31, 2015 include $2,403,000 and $1,397,000, respectively, of notes and other amounts receivable from, and $1,083,000 and $405,000, respectively, of administrative fees and other expenses payable to, Ebix Health Exchange which are included in other assets and accounts payable, accruals and other liabilities, respectively. The Company’s Consolidated Statements of Income include $113,000 in fee income from, and $1,247,000 of administrative fee expenses to, Ebix Health Exchange which are included in fee income and selling, general and administrative expenses, respectively, for the three months ended March 31, 2016. There are no comparable amounts for the three months ended March 31, 2015.

Note 8. Goodwill and Other Inta

Note 8. Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2016
Notes
Note 8. Goodwill and Other Intangible Assets	Note 8. Goodwill and Other Intangible Assets Certain prior year balances of goodwill and intangible assets were reclassified to assets attributable to discontinued operations on the accompanying Condensed Consolidated Balance Sheet as of December 31, 2015 to conform to the 2016 presentation (see Notes 1 and 3). The carrying amount of goodwill was $47,276,000 at March 31, 2016 and December 31, 2015. The Company has net other intangible assets of $14,258,000 and $14,598,000 at March 31, 2016 and December 31, 2015, 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): March 31, 2016 December 31, 2015 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Finite-lived Intangible Assets: Agent and broker relationships $ 18,201 $ 12,805 $ 18,201 $ 12,497 Trademarks 1,000 115 1,000 83 Total finite-lived 19,201 $ 12,920 $ 19,201 $ 12,580 March 31, December 31, 2016 2015 Indefinite-lived Intangible Assets: Insurance licenses $ 7,977 $ 7,977 Total indefinite-lived $ 7,977 $ 7,977 Amortization expense was $340,000 and $404,000 for the three months ended March 31, 2016 and 2015, respectively.

Note 9. Income Taxes

Note 9. Income Taxes	3 Months Ended
	Mar. 31, 2016
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. As a result of the Risk Solutions Sale and Coinsurance Transaction (see Note 3), AMIC utilized approximately $110,185,000 of its operating loss carryforwards and made a corresponding adjustment to its valuation allowance. At March 31, 2016, AMIC had remaining net operating loss carryforwards of approximately $148,294,000 for federal income tax purposes, which expire in varying amounts through the year 2028, with a significant portion expiring in 2020.

Note 10. Reinsurance

Note 10. Reinsurance	3 Months Ended
	Mar. 31, 2016
Notes
Note 10. Reinsurance	Note 10. Reinsurance Effective January 1, 2016, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions was co-insured i Risk Solutions Sale and Coinsurance Transaction (see Note 3). As a result of this transaction, the Company recorded $56,055,000 of estimated amounts due from reinsurers.

Note 11. Stockholders' Equity

Note 11. Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Notes
Note 11. Stockholders' Equity	Note 11. Stockholders’ Equity Treasury Stock In 2016, IHC repurchased 50,000 shares of its common stock in a private transaction for $821,000. Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) includes the after-tax net unrealized gains and losses on investment securities available-for-sale, including the subsequent increases and decreases in fair value of available-for-sale securities previously impaired and the non-credit related component of other-than-temporary impairments of fixed maturities. Changes in the balances of accumulated other comprehensive income, shown net of taxes, for the periods indicated were as follows (in thousands): Three Months Ended March 31, 2016 2015 Beginning balance $ (3,440) $ 22 Other comprehensive income (loss) before reclassifications 3,424 2,694 Amounts reclassified from accumulated OCI (406) (1,777) Net other comprehensive income 3,018 917 Less: Other comprehensive income attributable to noncontrolling interests (57) (43) Acquired from noncontrolling interests - 5 Ending balance $ (479) $ 901 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 March 31, 2016 2015 Unrealized gains (losses) on available-for-sale securities reclassified during the period to the following income statement line items: Net realized investment gains $ 628 $ 2,765 Income before income tax 628 2,765 Tax effect 222 988 Net income $ 406 $ 1,777

Note 12. Share-based Compensati

Note 12. Share-based Compensation	3 Months Ended
	Mar. 31, 2016
Notes
Note 12. Share-based Compensation	Note 12. 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 IHC’s stock-based compensation plan, 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 and share appreciation rights (“SARs”) under the plan. 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 no shares available for future stock-based compensation grants under IHC’s 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 March 31, 2016 2015 IHC’s Share-based Compensation Plan: Stock options $ 170 $ 55 Restricted stock units 23 21 SARs 258 (29) Share-based compensation expense, pre-tax 451 47 Tax benefits 180 19 Share-based compensation expense, net $ 271 $ 28 Stock Options The IHC’s stock option activity during 2016 was as follows: Shares Weighted- Average Under Option Exercise Price December 31, 2015 584,080 $ 9.35 Exercised - - March 31, 2016 584,080 $ 9.35 In the first quarter of 2016, option agreements affecting 13 employees were modified to extend the expirations of their terms from 2017 to 2019 and as a result, the Company recorded incremental compensation costs of $170,000 . The following table summarizes information regarding IHC’s outstanding and exercisable options: March 31, 2016 Outstanding Exercisable Number of options 584,080 584,080 Weighted average exercise price per share $ 9.35 $ 9.35 Aggregate intrinsic value for all options (in thousands) $ 3,840 $ 3,840 Weighted average contractual term remaining 2.5 years 2.5 years As of , all of IHC’s outstanding stock options are fully vested and all of the related compensation costs have been recognized. Restricted Stock At March 31, 2016 and December 31, 2015, there were 14,850 unvested restricted stock units outstanding with a weighted average grant-date fair value of $12.26 per share. As of , the total unrecognized compensation expense related to non-vested restricted stock unit awards was $106,000 which is expected to be recognized over the remaining requisite weighted-average service period of 1.5 years. SARs IHC had 123,000 and 125,850 of SAR awards outstanding at March 31, 2016 and December 31, 2015, respectively. In the first quarter of 2016, 2,850 SARs were exercised with an aggregate intrinsic value of $16,000. Included in Other Liabilities in the Company’s Condensed Consolidated Balance Sheets at March 31, 2016 and December 31, 2015 are liabilities of $985,000 and $743,000, respectively, pertaining to SARs. B) AMIC Share-Based Compensation Plans Under the terms of the AMIC’s 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 have various vesting criteria depending on the grant with most grants vesting ratably over 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 March 31, 2016 2015 AMIC’s Share-based Compensation Plans: Stock options $ 11 $ 11 Share-based compensation expense, pre-tax 11 11 Tax benefits 4 4 Share-based compensation expense, net $ 7 $ 7 Stock Options AMIC’s stock option activity for the three months ended is as follows: Shares Weighted- Average Under Option Exercise Price December 31, 2015 71,558 $ 8.88 Exercised (13,778) 10.52 March 31, 2016 57,780 $ 8.49 The following table summarizes information regarding AMIC’s outstanding and exercisable options as of March 31, 2016: March 31, 2016 Outstanding Exercisable Number of options 57,780 58,224 Weighted average exercise price per share $ 8.49 $ 8.24 Aggregate intrinsic value for all options (in thousands) $ 490 $ 403 Weighted average contractual term remaining 4.50 years 3.88 years During the first quarter of 2016, AMIC received $145,000 in cash from the exercise of stock options with aggregate intrinsic values of $(2,000). As of March 31, 2016, the total unrecognized compensation expense related to AMIC’s non-vested options was $29,000 which will be recognized over the remaining requisite service periods.

Note 13. Supplemental Disclosur

Note 13. Supplemental Disclosures of Cash Flow Information	3 Months Ended
	Mar. 31, 2016
Notes
Note 13. Supplemental Disclosures of Cash Flow Information	Note 13. Supplemental Disclosures of Cash Flow Information Net cash payments (receipts) for income taxes were $5,591,000 and $(132,000) during the three months ended March 31, 2016 and 2015. Cash payments for interest were $505,000 and $438,000 during the three months ended March 31, 2016 and 2015, respectively.

Note 14. Segment Reporting

Note 14. Segment Reporting	3 Months Ended
	Mar. 31, 2016
Notes
Note 14. Segment Reporting	Note 14. 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 March 31, 2016 2015 Revenues: Medical Stop-Loss $ 7,850 $ 54,851 Fully Insured Health 40,087 46,532 Group disability, life and DBL 25,536 20,748 Individual life, annuities and other 751 8,925 Corporate 1,111 49 75,335 131,105 Net realized investment gains 560 2,000 Total revenues $ 75,895 $ 133,105 Income from continuing operations before income taxes: Medical Stop-Loss $ 7,802 $ 4,321 Fully Insured Health (A) 395 1,277 Group disability, life and DBL 6,701 3,215 Individual life, annuities and other (B) (1,793) (1,052) Corporate (3,740) (1,760) 9,365 6,001 Net realized investment gains 560 2,000 Interest expense (453) (432) Income from continuing operations before income taxes $ 9,472 $ 7,569 (A) (B)

Note 1. Organization, Consoli22

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Basis of Accounting, Policy (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Basis of Accounting, Policy	The unaudited 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 unaudited Condensed Consolidated Financial Statements 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. IHC’s annual report on Form 10-K as filed with the Securities and Exchange Commission should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements. On March 31, 2016, the Company sold Risk Solutions, its managing general underwriter of excess or stop-loss insurance for self-insured employer groups that desire to manage the risk of large medical claims (“Medical Stop-Loss”). In addition, under the purchase and sale agreement, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions is 100% co-insured as of January 1, 2016. IHC’s block of Medical Stop-Loss business is in run-off. The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company’s operations and financial results. The disposal transaction qualified for reporting as a discontinued operation in the first quarter of 2016 as a result of the Board of Directors commitment to a plan for its disposal in January 2016. The assets, liabilities, and related income and expenses associated with the disposal group are presented as discontinued operations in the accompanying condensed consolidated financial statements and Notes thereto. See Note 3 for more information. 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 ended March 31, 2016

Note 1. Organization, Consoli23

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Reclassification, Policy (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Reclassification, Policy	Certain amounts in prior year’s consolidated financial statements and Notes thereto have been reclassified to conform to the 2016 presentation, primarily for the effects of discontinued operations.

Note 1. Organization, Consoli24

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: New Accounting Pronouncements, Policy (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
New Accounting Pronouncements, Policy	Recently Adopted Accounting Standards In September 2015, the FASB issued guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination and eliminate the requirement to retrospectively account for those adjustments. The adoption of this guidance is did not have a material effect on the Company’s 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. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued guidance requiring financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. An allowance for credit losses will be deducted from the amortized cost basis to present the net carrying value at the amount expected to be collected with changes in the allowance recorded in earnings. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than a write-down, which would be limited to the amount by which fair value is below the amortized cost. Certain existing requirements used to evaluate credit losses have been removed. For public entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The amendments in this Update should be applied through a cumulative effect adjustment to retained earnings upon adoption as of the beginning of the first reporting period in which the guidance is effective. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance that simplify several aspects of accounting for sharebased payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance that eliminates the requirement for retroactive adjustments on the date that a previously held investment qualifies for the equity method of accounting as a result of an increase in ownership interest or degree of influence. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 and should be applied prospectively upon their effective date. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued guidance that requires lessees to recognize the assets and liabilities that arise from leases, including operating leases, on the statement of financial position. The amendments in this Update are effective for fiscal years beginning after December 31, 2018, including interim periods within those fiscal years, using a modified retrospective approach. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In January 2016, the FASB issued guidance that eliminates the requirement to classify equity securities with readily determinable fair values as trading or available-for-sale. The guidance requires equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income, simplifies the impairment assessment of equity securities without readily determinable fair values and requires changes in disclosure requirements. For public entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted in certain circumstances. The amendments in this Update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Balance Sheet or IHC’s stockholders’ equity. 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 Company’s 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. In 2016, additional guidance was issued to clarify certain aspects of the implementation guidance and to clarify the identification of performance obligations. In August 2015, the effective date of this guidance has been deferred. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and requires one of two specified retrospective methods of application. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Management has not yet determined the impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

Note 2. Income Per Common Sha25

Note 2. Income Per Common Share: Earnings Per Share, Policy (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Earnings Per Share, Policy	Diluted income 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 206,000 and 167,000 shares for the three months ended March 31, 2016 and 2015

Note 5. Fair Value Disclosures_

Note 5. Fair Value Disclosures: Fair Value of Financial Instruments, Policy (Policies)	3 Months Ended
	Mar. 31, 2016
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 Disclosure27

Note 5. Fair Value Disclosures: Fair Value Transfer, Policy (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Fair Value Transfer, Policy	It is the Company’s 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 12. Share-based Compensa28

Note 12. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Policies)	3 Months Ended
	Mar. 31, 2016
Independence Holding Company Share Based Plans Total Member
Share-based Compensation, Option and Incentive Plans Policy	Under the terms of IHC’s stock-based compensation plan, 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 and share appreciation rights (“SARs”) under the plan. 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 AMIC’s 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 have various vesting criteria depending on the grant with most grants vesting ratably over four years. The Company may also grant shares of restricted stock, stock appreciation rights and share-based performance awards.

Note 1. Organization, Consoli29

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net	Three Months Ended March 31, 2016 2015 Changes in IHC’s paid-in capital: Purchases of AMIC shares $ - $ (199) Net transfers from noncontrolling interests $ - $ (199)

Note 2. Income Per Common Sha30

Note 2. Income Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended March 31 2016 2015 Income from continuing operations $ 5,896 $ 4,701 Less: Income from continuing operations attributable to noncontrolling interests (106) (70) Income from continuing operations attributable to IHC common shareholders $ 5,790 $ 4,631 Income from discontinued operations $ 109,770 $ 630 Less: Income from discontinued operations attributable to noncontrolling interests (9,550) (42) Income from discontinued operations attributable to IHC common shareholders $ 100,220 $ 588

Note 3. Discontinued Operatio31

Note 3. Discontinued Operations: Disposal Groups, Including Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Disposal Groups, Including Discontinued Operations	The following is a reconciliation of the major line items constituting the pretax profit of discontinued operations for the periods indicated (in thousands): Three Months Ended March 31, 2016 2015 Revenue $ 6,406 $ 1,160 Selling, general and administrative expenses 5,689 129 Pretax profit of discontinued operations 717 1,031 Gain on disposal of discontinued operations, pretax 116,919 - Income from discontinued operations, before income taxes 117,636 1,031 Income taxes on discontinued operations 7,866 401 Income from discontinued operations $ 109,770 $ 630 The following is a reconciliation of the carrying amounts of major classes of assets and liabilities for discontinued operations for the periods indicated (in thousands): March 31, 2016 December 31, 2015 Major classes of assets included in discontinued operations: Cash $ - $ 1,671 Goodwill - 5,664 Intangible assets - 919 Other assets - 4,677 Assets attributable to discontinued operations $ - $ 12,931 Major classes of liabilities included in discontinued operations: Accounts payable and accrued liabilities $ 6,085 $ (15) Liabilities attributable to discontinued operations $ 6,085 $ (15)

Note 4. Investment Securities_

Note 4. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Available-for-sale Securities Reconciliation	March 31, 2016 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 183,587 $ 1,145 $ (4,844) $ 179,888 CMOs - residential (1) 2,986 63 - 3,049 U.S. Government obligations 124,898 421 (7) 125,312 Agency MBS - residential (2) 32 1 - 33 GSEs (3) 10,715 2 (208) 10,509 States and political subdivisions 192,965 3,675 (1,112) 195,528 Foreign government obligations 2,301 70 - 2,371 Redeemable preferred stocks 4,036 85 (173) 3,948 Total fixed maturities $ 521,520 $ 5,462 $ (6,344) $ 520,638 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 4,926 $ 155 $ (24) $ 5,057 Nonredeemable preferred stocks 3,588 95 (26) 3,657 Total equity securities $ 8,514 $ 250 $ (50) $ 8,714 December 31, 2015 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 172,621 $ 93 $ (5,868) $ 166,846 CMOs - residential (1) 3,068 2 (14) 3,056 CMOs - commercial 899 296 - 1,195 U.S. Government obligations 44,738 120 (64) 44,794 Agency MBS - residential (2) 34 1 - 35 GSEs (3) 11,814 2 (254) 11,562 States and political subdivisions 194,364 2,159 (1,857) 194,666 Foreign government obligations 2,318 12 (6) 2,324 Redeemable preferred stocks 4,036 101 (14) 4,123 Total fixed maturities $ 433,892 $ 2,786 $ (8,077) $ 428,601 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 4,926 $ - $ (142) $ 4,784 Nonredeemable preferred stocks 3,588 56 (2) 3,642 Total equity securities $ 8,514 $ 56 $ (144) $ 8,426 (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 4. Investment Securities33

Note 4. Investment Securities: Investments Classified by Contractual Maturity Date (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Investments Classified by Contractual Maturity Date	AMORTIZED FAIR COST VALUE Due in one year or less $ 23,979 $ 23,519 Due after one year through five years 180,141 180,071 Due after five years through ten years 126,709 128,460 Due after ten years 176,959 174,997 CMOs and MBSs 13,732 13,591 $ 521,520 $ 520,638

Note 4. Investment Securities34

Note 4. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	March 31, 2016 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 43,714 $ 687 $ 71,655 $ 4,157 $ 115,369 $ 4,844 U.S. Government obligations 104,478 7 - - 104,478 7 GSEs 3,578 66 6,907 142 10,485 208 States and political subdivisions 38,859 584 20,900 528 59,759 1,112 Redeemable preferred stocks 3,590 173 - - 3,590 173 Total fixed maturities 194,219 1,517 99,462 4,827 293,681 6,344 Common stocks 478 24 - - 478 24 Nonredeemable preferred stocks - - 1,301 26 1,301 26 Total equity securities 478 24 1,301 26 1,779 50 Total temporarily impaired securities $ 194,697 $ 1,541 $ 100,763 $ 4,853 $ 295,460 $ 6,394 Number of securities in an unrealized loss position 80 30 110 December 31, 2015 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 101,903 $ 2,559 $ 55,217 $ 3,309 $ 157,120 $ 5,868 CMO’s - residential 2,867 14 - - 2,867 14 U.S. Government obligations 19,809 64 - - 19,809 64 GSEs 6,539 128 4,997 126 11,536 254 States and political subdivisions 68,898 780 31,351 1,077 100,249 1,857 Foreign government obligations 484 6 - - 484 6 Redeemable preferred stocks 3,749 14 - - 3,749 14 Total fixed maturities 204,249 3,565 91,565 4,512 295,814 8,077 Common stocks 4,784 142 - - 4,784 142 Nonredeemable preferred stocks 1,324 2 - - 1,324 2 Total equity securities 6,108 144 - - 6,108 144 Total temporarily impaired securities $ 210,357 $ 3,709 $ 91,565 $ 4,512 $ 301,922 $ 8,221 Number of securities in an unrealized loss position 99 31 130

Note 4. Investment Securities35

Note 4. Investment Securities: Realized Gain (Loss) on Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Realized Gain (Loss) on Investments	Three Months Ended March 31, 2016 2015 Available-for-sale securities: Fixed maturities $ 628 $ 1,300 Common stocks - 1,465 Total sales of available-for-sale securities 628 2,765 Trading securities - (507) Total realized gains 628 2,258 Unrealized gains (losses) on trading securities: Change in unrealized gains (losses) on trading securities (70) (251) Total unrealized gains (losses) on trading securities (70) (251) Gains (losses) on other investments 2 (7) Net realized investment gains $ 560 $ 2,000

Note 4. Investment Securities36

Note 4. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Other than Temporary Impairment, Credit Losses Recognized in Earnings	Three Months Ended March 31, 2016 2015 Balance at beginning of year $ 473 $ 473 Securities sold (473) - Balance at end of period $ - $ 473

Note 5. Fair Value Disclosure37

Note 5. Fair Value Disclosures: Fair Value, Assets Measured on Recurring Basis (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Fair Value, Assets Measured on Recurring Basis	March 31, 2016 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 179,888 $ - $ 179,888 CMOs - residential - 3,049 - 3,049 US Government obligations - 125,312 - 125,312 Agency MBS - residential - 33 - 33 GSEs - 10,509 - 10,509 States and political subdivisions - 193,385 2,143 195,528 Foreign government obligations - 2,371 - 2,371 Redeemable preferred stocks 3,948 - - 3,948 Total fixed maturities 3,948 514,547 2,143 520,638 Equity securities available-for-sale: Common stocks 5,057 - - 5,057 Nonredeemable preferred stocks 3,657 - - 3,657 Total equity securities 8,714 - - 8,714 Trading securities - equities 1,190 - - 1,190 Total trading securities 1,190 - - 1,190 Total Financial Assets $ 13,852 $ 514,547 $ 2,143 $ 530,542 FINANCIAL LIABILITIES: Contingent liabilities $ - $ - $ 1,555 $ 1,555 Total Financial Liabilities $ - $ - $ 1,555 $ 1,555 December 31, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 166,846 $ - $ 166,846 CMOs - residential - 3,056 - 3,056 CMOs - commercial - - 1,195 1,195 US Government obligations - 44,794 - 44,794 Agency MBS - residential - 35 - 35 GSEs - 11,562 - 11,562 States and political subdivisions - 192,487 2,179 194,666 Foreign government obligations - 2,324 - 2,324 Redeemable preferred stocks 4,123 - - 4,123 Total fixed maturities 4,123 421,104 3,374 428,601 Equity securities available-for-sale: Common stocks 4,784 - - 4,784 Nonredeemable preferred stocks 3,642 - - 3,642 Total equity securities 8,426 - - 8,426 Trading securities - equities 1,259 - - 1,259 Total trading securities 1,259 - - 1,259 Total Financial Assets $ 13,808 $ 421,104 $ 3,374 $ 438,286 FINANCIAL LIABILITIES: Interest rate swap $ - $ 11 $ - $ 11 Contingent liabilities - - 1,650 1,650 Total Financial Liabilities $ - $ 11 $ 1,650 $ 1,661

Note 5. Fair Value Disclosure38

Note 5. Fair Value Disclosures: Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation	Financial Assets: Financial Liabilities: States and Total Total CMOs Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Balance at December 31, 2015 $ 1,195 $ 2,179 $ 3,374 $ 1,650 $ 1,650 Gains (losses) included in earnings: Net investment income - - - (633) (633) Net realized investment gains 141 - 141 - - Other income - - - 538 538 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) (296) (11) (307) - - Repayments and amortization of fixed maturities (74) (25) (99) - - Sales (966) - (966) - - Balance at March 31, 2016 $ - $ 2,143 $ 2,143 $ 1,555 $ 1,555 Three Months Ended March 31, 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) 63 (13) 50 Repayments and amortization of fixed maturities - (20) (20) Balance at end of period $ 1,016 $ 2,281 $ 3,297

Note 5. Fair Value Disclosure39

Note 5. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Fair Value, by Balance Sheet Grouping	March 31, 2016 December 31, 2015 Level 2 Level 2 Fair Carrying Fair Carrying Value Value Value Value FINANCIAL ASSETS: Policy loans $ 38 $ 38 $ 38 $ 38 FINANCIAL LIABILITIES: Funds on deposit $ 149,404 $ 149,147 $ 173,625 $ 173,350 Debt and junior subordinated debt securities $ 42,344 $ 42,396 $ 43,283 $ 43,335

Note 8. Goodwill and Other In40

Note 8. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Finite-Lived Intangible Assets	March 31, 2016 December 31, 2015 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Finite-lived Intangible Assets: Agent and broker relationships $ 18,201 $ 12,805 $ 18,201 $ 12,497 Trademarks 1,000 115 1,000 83 Total finite-lived 19,201 $ 12,920 $ 19,201 $ 12,580

Note 8. Goodwill and Other In41

Note 8. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Indefinite-Lived Intangible Assets	March 31, December 31, 2016 2015 Indefinite-lived Intangible Assets: Insurance licenses $ 7,977 $ 7,977 Total indefinite-lived $ 7,977 $ 7,977

Note 11. Stockholders' Equity_

Note 11. Stockholders' Equity: Schedule of Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Accumulated Other Comprehensive Income (Loss)	Three Months Ended March 31, 2016 2015 Beginning balance $ (3,440) $ 22 Other comprehensive income (loss) before reclassifications 3,424 2,694 Amounts reclassified from accumulated OCI (406) (1,777) Net other comprehensive income 3,018 917 Less: Other comprehensive income attributable to noncontrolling interests (57) (43) Acquired from noncontrolling interests - 5 Ending balance $ (479) $ 901

Note 11. Stockholders' Equity43

Note 11. Stockholders' Equity: Reclassification out of Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Reclassification out of Accumulated Other Comprehensive Income	Three Months Ended March 31, 2016 2015 Unrealized gains (losses) on available-for-sale securities reclassified during the period to the following income statement line items: Net realized investment gains $ 628 $ 2,765 Income before income tax 628 2,765 Tax effect 222 988 Net income $ 406 $ 1,777

Note 12. Share-based Compensa44

Note 12. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 IHC’s Share-based Compensation Plan: Stock options $ 170 $ 55 Restricted stock units 23 21 SARs 258 (29) Share-based compensation expense, pre-tax 451 47 Tax benefits 180 19 Share-based compensation expense, net $ 271 $ 28
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 March 31, 2016 2015 AMIC’s Share-based Compensation Plans: Stock options $ 11 $ 11 Share-based compensation expense, pre-tax 11 11 Tax benefits 4 4 Share-based compensation expense, net $ 7 $ 7

Note 12. Share-based Compensa45

Note 12. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2015 584,080 $ 9.35 Exercised - - March 31, 2016 584,080 $ 9.35
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, 2015 71,558 $ 8.88 Exercised (13,778) 10.52 March 31, 2016 57,780 $ 8.49

Note 12. Share-based Compensa46

Note 12. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding (Tables)	3 Months Ended
	Mar. 31, 2016
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	March 31, 2016 Outstanding Exercisable Number of options 584,080 584,080 Weighted average exercise price per share $ 9.35 $ 9.35 Aggregate intrinsic value for all options (in thousands) $ 3,840 $ 3,840 Weighted average contractual term remaining 2.5 years 2.5 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	March 31, 2016 Outstanding Exercisable Number of options 57,780 58,224 Weighted average exercise price per share $ 8.49 $ 8.24 Aggregate intrinsic value for all options (in thousands) $ 490 $ 403 Weighted average contractual term remaining 4.50 years 3.88 years

Note 14. Segment Reporting_ Sch

Note 14. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Segment Reporting Information, by Segment	Three Months Ended March 31, 2016 2015 Revenues: Medical Stop-Loss $ 7,850 $ 54,851 Fully Insured Health 40,087 46,532 Group disability, life and DBL 25,536 20,748 Individual life, annuities and other 751 8,925 Corporate 1,111 49 75,335 131,105 Net realized investment gains 560 2,000 Total revenues $ 75,895 $ 133,105 Income from continuing operations before income taxes: Medical Stop-Loss $ 7,802 $ 4,321 Fully Insured Health (A) 395 1,277 Group disability, life and DBL 6,701 3,215 Individual life, annuities and other (B) (1,793) (1,052) Corporate (3,740) (1,760) 9,365 6,001 Net realized investment gains 560 2,000 Interest expense (453) (432) Income from continuing operations before income taxes $ 9,472 $ 7,569

Note 1. Organization, Consoli48

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
GeneveAffiliatedEntityMember
EntityCommonStockOutstandingOwnershipPercent	53.00%
AMICSubsidiariesMember
Noncontrolling Interest, Ownership Percentage by Parent	92.00%	92.00%
Stop-Loss Coinsurance Transaction With Westport Insurance Corporation Member | Medical Stop-Loss Product Line Produced By Risk Solutions Member
Coinsurance, Ceded Percentage	100.00%

Note 1. Organization, Consoli49

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2015USD ($)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Net	$ (199)
AMICSubsidiariesMember
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent	$ (199)

Note 1. Organization, Consoli50

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Basis of Accounting, Policy (Details)	3 Months Ended
	Mar. 31, 2016
Stop-Loss Coinsurance Transaction With Westport Insurance Corporation Member | Medical Stop-Loss Product Line Produced By Risk Solutions Member
Coinsurance, Ceded Percentage	100.00%

Note 2. Income Per Common Sha51

Note 2. Income Per Common Share: Earnings Per Share, Policy (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	206	167

Note 2. Income Per Common Sha52

Note 2. Income Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Income from continuing operations	$ 5,896	$ 4,701
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest	106	70
Income (Loss) from Continuing Operations Attributable to Parent	5,790	4,631
Income from discontinued operations	109,770	630
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest	9,550	42
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	$ 100,220	$ 588

Note 3. Discontinued Operatio53

Note 3. Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Provided by (Used in) Operating Activities, Discontinued Operations	$ 339	$ 116
Income taxes on discontinued operations	$ 7,866	401
Risk Solutions Sale and Coinsurance Transaction Member | AMICSubsidiariesMember
Aggregate Consideration Allocated To An Entity, Expressed As A Percent	89.00%
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale
Income taxes on discontinued operations	$ 7,866
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale | State and Local Jurisdiction
Income taxes on discontinued operations	5,799
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale | Domestic Tax Authority
Income taxes on discontinued operations	2,067
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	(38,565)
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale | Medical Stop-Loss Segment Member
Disposal Group, Including Discontinued Operation, Consideration	152,500
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Portion Attributable to Parent	99,793
Income taxes on discontinued operations	$ 7,866	$ 401

Note 3. Discontinued Operatio54

Note 3. Discontinued Operations: Disposal Groups, Including Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income from discontinued operations, before income taxes	$ 117,636	$ 1,031
Income taxes on discontinued operations	7,866	401
Income from discontinued operations	109,770	630
Assets attributable to discontinued operations			$ 12,931
Liabilities attributable to discontinued operations	6,085		(15)
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale
Income taxes on discontinued operations	7,866
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale | Medical Stop-Loss Segment Member
Disposal Group, Including Discontinued Operation, Revenue	6,406	1,160
Disposal Group, Including Discontinued Operation, General and Administrative Expense	5,689	129
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax	717	1,031
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	116,919
Income from discontinued operations, before income taxes	117,636	1,031
Income taxes on discontinued operations	7,866	401
Income from discontinued operations	109,770	$ 630
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents			1,671
Disposal Group, Including Discontinued Operation, Goodwill			5,664
Disposal Group, Including Discontinued Operation, Intangible Assets			919
Disposal Group, Including Discontinued Operation, Other Assets			4,677
Assets attributable to discontinued operations			12,931
Disposal Group, Including Discontinued Operation, Accounts Payable and Accrued Liabilities	6,085		(15)
Liabilities attributable to discontinued operations	$ 6,085		$ (15)

Note 4. Investment Securities55

Note 4. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Available For Sale Debt Securities Amortized Cost Basis	$ 521,520	$ 433,892
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	5,462	2,786
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	6,344	8,077
Fixed maturities, available-for-sale	520,638	428,601
Available For Sale Equity Securities Amortized Cost Basis	8,514	8,514
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	250	56
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	50	144
Equity securities, available-for-sale	8,714	8,426
Corporate Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	183,587	172,621
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	1,145	93
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	4,844	5,868
Fixed maturities, available-for-sale	179,888	166,846
Residential Mortgage Backed Securities Member
Available For Sale Debt Securities Amortized Cost Basis	2,986	3,068
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	63	2
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax		14
Fixed maturities, available-for-sale	3,049	3,056
US Treasury Securities
Available For Sale Debt Securities Amortized Cost Basis	124,898	44,738
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	421	120
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	7	64
Fixed maturities, available-for-sale	125,312	44,794
US Government Agencies Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	32	34
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	1	1
Fixed maturities, available-for-sale	33	35
US Government-sponsored Enterprises Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	10,715	11,814
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2	2
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	208	254
Fixed maturities, available-for-sale	10,509	11,562
US States and Political Subdivisions Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	192,965	194,364
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	3,675	2,159
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	1,112	1,857
Fixed maturities, available-for-sale	195,528	194,666
Foreign Government Debt
Available For Sale Debt Securities Amortized Cost Basis	2,301	2,318
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	70	12
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax		6
Fixed maturities, available-for-sale	2,371	2,324
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	85	101
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	173	14
Fixed maturities, available-for-sale	3,948	4,123
COMMON STOCK, AMOUNT
Available For Sale Equity Securities Amortized Cost Basis	4,926	4,926
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	155
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	24	142
Equity securities, available-for-sale	5,057	4,784
Nonredeemable Preferred Stock
Available For Sale Equity Securities Amortized Cost Basis	3,588	3,588
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	95	56
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	26	2
Equity securities, available-for-sale	$ 3,657	3,642
Commercial Mortgage Backed Securities
Available For Sale Debt Securities Amortized Cost Basis		899
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		296
Fixed maturities, available-for-sale		$ 1,195

Note 4. Investment Securities56

Note 4. Investment Securities: Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Details
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis	$ 23,979
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	23,519
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost Basis	180,141
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value	180,071
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Amortized Cost Basis	126,709
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Fair Value	128,460
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Amortized Cost Basis	176,959
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value	174,997
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	13,732
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	13,591
Available For Sale Debt Securities Amortized Cost Basis	521,520	$ 433,892
Fixed maturities, available-for-sale	$ 520,638	$ 428,601

Note 4. Investment Securities57

Note 4. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) $ in Thousands	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	$ 194,697	$ 210,357
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1,541	3,709
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	100,763	91,565
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	4,853	4,512
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	295,460	301,922
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 6,394	$ 8,221
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year	80	99
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year	30	31
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	110	130
Corporate Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	$ 43,714	$ 101,903
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	687	2,559
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	71,655	55,217
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	4,157	3,309
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	115,369	157,120
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	4,844	5,868
US Treasury Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	104,478	19,809
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	7	64
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	104,478	19,809
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	7	64
US Government-sponsored Enterprises Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	3,578	6,539
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	66	128
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	6,907	4,997
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	142	126
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	10,485	11,536
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	208	254
US States and Political Subdivisions Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	38,859	68,898
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	584	780
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	20,900	31,351
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	528	1,077
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	59,759	100,249
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	1,112	1,857
Redeemable Preferred Stock
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	3,590	3,749
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	173	14
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	3,590	3,749
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	173	14
Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	194,219	204,249
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1,517	3,565
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	99,462	91,565
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	4,827	4,512
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	293,681	295,814
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	6,344	8,077
COMMON STOCK, AMOUNT
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	478	4,784
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	24	142
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	478	4,784
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	24	142
Nonredeemable Preferred Stock
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value		1,324
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		2
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,301
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	26
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,301	1,324
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	26	2
Equity Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	478	6,108
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	24	144
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,301
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	26
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,779	6,108
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 50	144
Residential Mortgage Backed Securities Member
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value		2,867
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		14
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		2,867
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		14
Foreign Government Debt
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value		484
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		6
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		484
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		$ 6

Note 4. Investment Securities58

Note 4. Investment Securities: Realized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	$ 628	$ 2,765
Trading Securities, Realized Gain (Loss)		(507)
Marketable Securities, Realized Gain (Loss), Excluding Other than Temporary Impairments	628	2,258
Trading Securities, Change in Unrealized Holding Gain (Loss)	(70)	(251)
Marketable Securities, Unrealized Gain (Loss), Excluding Other than Temporary Impairments	(70)	(251)
Gain (Loss) on Sale of Other Investments	2	(7)
Net realized investment gains	560	2,000
Debt Securities
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	$ 628	1,300
COMMON STOCK, AMOUNT
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments		$ 1,465

Note 4. Investment Securities (

Note 4. Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	$ 31,494	$ 106,415
Available-for-sale Securities, Gross Realized Gains	615	3,114
Available-for-sale Securities, Gross Realized Losses	17	182
Net impairment losses recognized in earnings	$ 0	$ 0

Note 4. Investment Securities60

Note 4. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - Available-for-sale Securities - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held		$ 473	$ 473
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold	$ 473

Note 5. Fair Value Disclosure61

Note 5. Fair Value Disclosures: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fixed maturities, available-for-sale	$ 520,638	$ 428,601
Equity securities, available-for-sale	8,714	8,426
Trading securities	1,190	1,259
Corporate Debt Securities
Fixed maturities, available-for-sale	179,888	166,846
Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,049	3,056
US Treasury Securities
Fixed maturities, available-for-sale	125,312	44,794
US Government Agencies Debt Securities
Fixed maturities, available-for-sale	33	35
US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	10,509	11,562
US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	195,528	194,666
Foreign Government Debt
Fixed maturities, available-for-sale	2,371	2,324
Redeemable Preferred Stock
Fixed maturities, available-for-sale	3,948	4,123
COMMON STOCK, AMOUNT
Equity securities, available-for-sale	5,057	4,784
Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,657	3,642
Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale		1,195
Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	520,638	428,601
Equity securities, available-for-sale	8,714	8,426
Trading securities	1,190	1,259
Assets, Fair Value Disclosure, Recurring	530,542	438,286
Contingent Liabilities	1,555	1,650
Liabilities, Fair Value Disclosure, Recurring	1,555	1,661
Fair Value, Measurements, Recurring | Interest Rate Swap
Derivative Liability, Fair Value, Gross Liability		11
Fair Value, Measurements, Recurring | Corporate Debt Securities
Fixed maturities, available-for-sale	179,888	166,846
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,049	3,056
Fair Value, Measurements, Recurring | US Treasury Securities
Fixed maturities, available-for-sale	125,312	44,794
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities
Fixed maturities, available-for-sale	33	35
Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	10,509	11,562
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	195,528	194,666
Fair Value, Measurements, Recurring | Foreign Government Debt
Fixed maturities, available-for-sale	2,371	2,324
Fair Value, Measurements, Recurring | Redeemable Preferred Stock
Fixed maturities, available-for-sale	3,948	4,123
Fair Value, Measurements, Recurring | COMMON STOCK, AMOUNT
Equity securities, available-for-sale	5,057	4,784
Fair Value, Measurements, Recurring | Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,657	3,642
Fair Value, Measurements, Recurring | Equity Securities
Trading securities	1,190	1,259
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale		1,195
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	3,948	4,123
Equity securities, available-for-sale	8,714	8,426
Trading securities	1,190	1,259
Assets, Fair Value Disclosure, Recurring	13,852	13,808
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Redeemable Preferred Stock
Fixed maturities, available-for-sale	3,948	4,123
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | COMMON STOCK, AMOUNT
Equity securities, available-for-sale	5,057	4,784
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,657	3,642
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Equity Securities
Trading securities	1,190	1,259
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	514,547	421,104
Assets, Fair Value Disclosure, Recurring	514,547	421,104
Liabilities, Fair Value Disclosure, Recurring		11
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Interest Rate Swap
Derivative Liability, Fair Value, Gross Liability		11
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate Debt Securities
Fixed maturities, available-for-sale	179,888	166,846
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,049	3,056
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Treasury Securities
Fixed maturities, available-for-sale	125,312	44,794
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Government Agencies Debt Securities
Fixed maturities, available-for-sale	33	35
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	10,509	11,562
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	193,385	192,487
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign Government Debt
Fixed maturities, available-for-sale	2,371	2,324
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	2,143	3,374
Assets, Fair Value Disclosure, Recurring	2,143	3,374
Contingent Liabilities	1,555	1,650
Liabilities, Fair Value Disclosure, Recurring	1,555	1,650
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	$ 2,143	2,179
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale		$ 1,195

Note 5. Fair Value Disclosure62

Note 5. Fair Value Disclosures: Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 3,374	$ 3,267
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	1,650
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(307)	50
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(99)	(20)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(966)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	2,143	3,297
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	1,555
Investment Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(633)
Net realized investment gains
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	141
Other Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	538
Contingent Liability Member
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	1,650
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	1,555
Contingent Liability Member | Investment Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(633)
Contingent Liability Member | Other Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	538
Commercial Mortgage Backed Securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,195	953
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(296)	63
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(74)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(966)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		1,016
Commercial Mortgage Backed Securities | Net realized investment gains
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	141
US States and Political Subdivisions Debt Securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	2,179	2,314
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(11)	(13)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(25)	(20)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 2,143	$ 2,281

Note 5. Fair Value Disclosure63

Note 5. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Funds on deposit	$ 149,147	$ 173,350
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2
Policy Loans Receivable	38	38
Funds on deposit	149,404	173,625
Long-term Debt	42,344	43,283
Carrying (Reported) Amount, Fair Value Disclosure
Policy Loans Receivable	38	38
Funds on deposit	149,147	173,350
Long-term Debt	$ 42,396	$ 43,335

Note 6. Variable Interest Ent64

Note 6. Variable Interest Entities (Details) $ in Thousands	Mar. 31, 2016USD ($)
Other Investments
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 8,844

Note 7. Related Party Transac65

Note 7. Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Equity income from equity method investments	$ (30)	$ 365
Ebix Health Exchange Member | Fee Income Member
Revenue from Related Parties	113
Ebix Health Exchange Member | Selling, General and Administrative Expenses
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	1,247
Ebix Health Exchange Member | Other Assets
Due from Related Parties	2,403		$ 1,397
Ebix Health Exchange Member | Accounts Payable and Accrued Liabilities
Due to Related Parties	1,083		405
IHC Health Solutions Sale Transaction Member
Loss Contingency Accrual, Period Increase (Decrease)	(633)
Ebix Health Exchange Holdings Member
Equity Method Investments	9,061		$ 9,838
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	(821)
Equity income from equity method investments	$ (188)

Note 8. Goodwill and Other In66

Note 8. Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Details
Goodwill	$ 47,276		$ 47,276
Intangible Assets, Net (Excluding Goodwill)	14,258		$ 14,598
Amortization of Intangible Assets	$ 340	$ 404

Note 8. Goodwill and Other In67

Note 8. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets, Gross	$ 19,201	$ 19,201
Finite-Lived Intangible Assets, Accumulated Amortization	12,920	12,580
Customer Relationships
Finite-Lived Intangible Assets, Gross	18,201	18,201
Finite-Lived Intangible Assets, Accumulated Amortization	12,805	12,497
Trademarks
Finite-Lived Intangible Assets, Gross	1,000	1,000
Finite-Lived Intangible Assets, Accumulated Amortization	$ 115	$ 83

Note 8. Goodwill and Other In68

Note 8. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 7,977	$ 7,977
Licensing Agreements
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 7,977	$ 7,977

Note 9. Income Taxes (Details)

Note 9. Income Taxes (Details) - AMIC - Domestic Tax Authority $ in Thousands	1 Months Ended
	Mar. 31, 2016USD ($)
Operating Loss Carryforwards, Utilization, Amount	$ 110,185
Operating Loss Carryforwards	$ 148,294	[1]
[1]	Which expire in varying amounts through 2028, a significant portion expires in 2020.

Note 10. Reinsurance (Details)

Note 10. Reinsurance (Details) - USD ($) $ in Thousands	1 Months Ended
	Jan. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Due from reinsurers		$ 462,087	$ 483,073
Stop-Loss Coinsurance Transaction With Westport Insurance Corporation Member
Material Nonrecurring Reinsurance Transactions	Effective January 1, 2016, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions was co-insured in connection with the Risk Solutions Sale and Coinsurance Transaction (see Note 3). As a result of this transaction, the Company recorded $56,055,000 of estimated amounts due from reinsurers.
Due from reinsurers	$ 56,055

Note 11. Stockholders' Equity (

Note 11. Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Payments for repurchases of common stock	$ 821	$ 597
Private Placement Member
Treasury Stock, Shares, Acquired	50
Payments for repurchases of common stock	$ 821

Note 11. Stockholders' Equity72

Note 11. Stockholders' Equity: Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated other comprehensive income (loss)	$ (3,440)
Other comprehensive income (loss), net of tax	3,018	$ 917
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(57)	(43)
Accumulated other comprehensive income (loss)	(479)
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated other comprehensive income (loss)	(3,440)	22
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	3,424	2,694
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	406	1,777
Other comprehensive income (loss), net of tax	3,018	917
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(57)	(43)
Unrealized Gains/Losses Purchased from Noncontrolling Interests		5
Accumulated other comprehensive income (loss)	$ (479)	$ 901

Note 11. Stockholders' Equity73

Note 11. Stockholders' Equity: Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net realized investment gains	$ 560	$ 2,000
Income taxes (benefits)	3,576	2,868
Net income (loss)	115,666	5,331
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss)
Net realized investment gains	628	2,765
Income (loss) before income taxes	628	2,765
Income taxes (benefits)	222	988
Net income (loss)	$ 406	$ 1,777

Note 12. Share-based Compensa74

Note 12. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Details)	3 Months Ended
	Mar. 31, 2016
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 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years

Note 12. Share-based Compensa75

Note 12. Share-based Compensation (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares
Independence Holding Company Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares	0
Independence Holding Company Share Based Plans Total Member | Modified Stock Option Awards Member
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected	13
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost	$ 170
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, Nonvested, Number | shares	14,850	14,850
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares	$ 12.26	$ 12.26
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options	$ 106
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Period For Recognition 1	1 year 6 months
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 | shares	123,000	125,850
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | shares	2,850
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid	$ 16
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	985	$ 743
American Independence Corp Share Based Plans Total Member | Employee Stock Option
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options	145
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	(2)
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options	$ 29

Note 12. Share-based Compensa76

Note 12. 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
	Mar. 31, 2016	Mar. 31, 2015
Independence Holding Company Share Based Plans Total Member
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 180	$ 19
Allocated Share-based Compensation Expense, Net of Tax	271	28
Independence Holding Company Share Based Plans Total Member | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	451	47
Independence Holding Company Share Based Plans Total Member | Employee Stock Option | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	170	55
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs) | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	23	21
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs) | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	258	(29)
American Independence Corp Share Based Plans Total Member
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	4	4
Allocated Share-based Compensation Expense, Net of Tax	7	7
American Independence Corp Share Based Plans Total Member | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	11	11
American Independence Corp Share Based Plans Total Member | Employee Stock Option | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	$ 11	$ 11

Note 12. Share-based Compensa77

Note 12. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Details) - Employee Stock Option	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Independence Holding Company Share Based Plans Total Member
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | shares	584,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 9.35
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | shares	584,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 9.35
American Independence Corp Share Based Plans Total Member
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | shares	71,558
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 8.88
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares	13,778
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares	$ 10.52
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | shares	57,780
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 8.49

Note 12. Share-based Compensa78

Note 12. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding (Details) - Employee Stock Option $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
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 | shares	584,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares	584,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares	$ 9.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ / shares	$ 9.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $	$ 3,840
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $	$ 3,840
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	2 years 6 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	2 years 6 months
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 | shares	57,780
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares	58,224
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares	$ 8.49
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ / shares	$ 8.24
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $	$ 490
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $	$ 403
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	4 years 6 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	3 years 10 months 17 days

Note 13. Supplemental Disclos79

Note 13. Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Income Taxes Paid (Refunds), Net	$ 5,591	$ (132)
Interest Paid	$ 505	$ 438

Note 14. Segment Reporting_ S80

Note 14. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
TOTAL REVENUES	$ 75,895	$ 133,105
Income (loss) from continuing operations before income taxes	9,472	7,569
Operating Segments
TOTAL REVENUES	75,335	131,105
Income (loss) from continuing operations before income taxes	9,365	6,001
Segment Reconciling Items | Net realized investment gains
TOTAL REVENUES	560	2,000
Income (loss) from continuing operations before income taxes	560	2,000
Segment Reconciling Items | Interest Expense
Income (loss) from continuing operations before income taxes	(453)	(432)
Medical Stop-Loss Segment Member
TOTAL REVENUES	7,850	54,851
Income (loss) from continuing operations before income taxes	7,802	4,321
Fully Insured Segment Member
TOTAL REVENUES	40,087	46,532
Income (loss) from continuing operations before income taxes	395	1,277
Group disability, life and DBL Segment Member
TOTAL REVENUES	25,536	20,748
Income (loss) from continuing operations before income taxes	6,701	3,215
Individual life annuities and other Segment Member
TOTAL REVENUES	751	8,925
Income (loss) from continuing operations before income taxes	(1,793)	(1,052)
Corporate
TOTAL REVENUES	1,111	49
Income (loss) from continuing operations before income taxes	$ (3,740)	$ (1,760)

Note 14. Segment Reporting (Det

Note 14. Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Amortization of Intangible Assets	$ 340	$ 404
Fully Insured Segment Member
Amortization of Intangible Assets	340	263
Individual life annuities and other Segment Member
Amortization of Other Deferred Charges	$ 1,370	$ 354