EXHIBIT 11 INDEPENDENCE HOLDING COMPANY Computation of Per Share Earnings (In Thousands, Except Per Share Amounts) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 1998 1997 1998 1997 ------------------ ----------------- INCOME: Net income................$ 2,947 $ 3,191 $ 5,438 $ 5,451 ======= ======= ======= ======= SHARES: Weighted average common shares outstanding....... 7,435 7,432 7,433 7,432 ======= ======= ======= ======= BASIC INCOME PER SHARE: Net income per share.......$ .40 $ .43 $ .73 $ .73 ======= ======= ======= ======= DILUTED EARNINGS PER SHARE (A) USE OF PROCEEDS: Assumed exercise of options..................$ 2,690 $ 2,297 $ 2,533 $ 1,835 Tax benefit from assumed exercise of options...... 1,105 - 962 - Repurchase of treasury stock at the average market price per share of $15.24, $7.95, $14.14 and $7.64, respectively.. (3,795) (2,297) (3,495) (1,835) ------- ------- ------- ------- Assumed balance to be reinvested...............$ - $ - $ - $ - ======= ======= ======= ======= SHARES: Weighted average shares outstanding............... 7,435 7,432 7,433 7,432 Shares assumed issued for options............... 390 354 379 294 Treasury stock assumed purchased................. (249) (289) (247) (240) ------- ------- ------- ------- Adjusted average shares outstanding................ 7,576 7,497 7,565 7,486 ======= ======= ======= ======= DILUTED INCOME PER SHARE: Net income per share.......$ .39 $ .43 $ .72 $ .73 ======= ======= ======= ======= (A) Warrants were not assumed to be exercised as the effect would have been anti-dilutive.