<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from the
Independence Holding Company Form 10-Q for the period ended September 30, 1997
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               SEP-30-1997
<DEBT-HELD-FOR-SALE>                       183,504,000
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                  14,391,000
<MORTGAGE>                                     314,000
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             268,095,000
<CASH>                                       1,325,000
<RECOVER-REINSURE>                          86,944,000
<DEFERRED-ACQUISITION>                      10,959,000
<TOTAL-ASSETS>                             386,949,000
<POLICY-LOSSES>                            151,233,000
<UNEARNED-PREMIUMS>                         23,735,000
<POLICY-OTHER>                              65,535,000
<POLICY-HOLDER-FUNDS>                        2,268,000
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     7,432,000
<OTHER-SE>                                  80,746,000
<TOTAL-LIABILITY-AND-EQUITY>               386,949,000
<PREMIUMS>                                  60,557,000
<INVESTMENT-INCOME>                         15,763,000
<INVESTMENT-GAINS>                            (70,000)
<OTHER-INCOME>                               2,165,000
<BENEFITS>                                  43,231,000
<UNDERWRITING-AMORTIZATION>                  2,195,000
<UNDERWRITING-OTHER>                                 0
<INCOME-PRETAX>                              9,412,000
<INCOME-TAX>                                 1,136,000
<INCOME-CONTINUING>                          8,276,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 8,276,000
<EPS-PRIMARY>                                     1.10
<EPS-DILUTED>                                     1.14
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                             00