EXHIBIT 11
     
                         INDEPENDENCE HOLDING COMPANY
                       COMPUTATION OF PER SHARE EARNINGS
                   (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                                          THREE MONTHS ENDED      
                                               MARCH 31,          
                                            1995       1994      
                                         --------------------

Proceeds from assumed exercise of
 stock warrants.........................$ 32,186     $ 42,294    
Proceeds from assumed exercise
 of stock options.......................   1,521          133     
Repurchase of treasury stock
 under paragraph 38(a) of APB
 No. 15 at the average market
 price of $3.09 and $3.29, 
 respectively...........................  (9,570)     (10,410)    
Assumed payment of debt          
 outstanding............................ (21,865)     (20,107)    
                                         -------      -------
Balance to be invested per   
 paragraph 38(b) of APB No. 15..........$  2,272     $ 11,910  
                                         =======      =======
Net Income applicable to common and
 common equivalent shares...............$    737     $  1,772   
Add:
 Pro-forma interest income..............      45          268
 Pro-forma reduction of interest........     437          503   
                                         -------      -------
Adjusted net income.....................$  1,219     $  2,543 
                                         =======      =======

Weighted average shares outstanding.....  15,486       15,821
                                         -------      -------             
 Add:
  Shares assumed issued for warrants....   3,633        4,774    
  Shares assumed issued for options.....     455           32 
 Less:
  Treasury stock purchased..............  (3,097)      (3,164)  
                                         -------      -------
 Incremental shares issued..............     991        1,642    
                                         -------      -------
Total common and common 
 equivalent shares......................  16,477       17,463
                                         =======      =======
Primary net income per common share.....$    .05     $    .11
                                         =======      =======
Primary net income per common and 
 common equivalent shares...............$    .07     $    .15
                                         =======      =======