EXHIBIT 11 INDEPENDENCE HOLDING COMPANY Computation of Per Share Earnings (In Thousands, Except Per Share Amounts) THREE MONTHS ENDED MARCH 31, 1999 1998 ------------------- INCOME: Net income..............................$ 2,443 $ 2,491 ======= ======= SHARES: Weighted average common shares outstanding..................... 7,361 7,430 ======= ======= BASIC INCOME PER SHARE: Net income per share....................$ .33 $ .34 ======= ======= DILUTED EARNINGS PER SHARE (A) USE OF PROCEEDS: Assumed exercise of options.............$ 2,278 $ 2,541 Tax benefit from assumed exercise of options................................ 846 823 Repurchase of treasury stock at the average market price per share of $12.97 and $13.03, respectively........ (3,124) (3,364) ------- ------- Assumed balance to be invested..........$ - $ - ======= ======= SHARES: Weighted average shares outstanding..... 7,361 7,430 Shares assumed issued for options....... 368 381 Treasury stock assumed purchased........ (241) (258) ------- ------- Adjusted average shares outstanding..... 7,488 7,553 ======= ======= DILUTED INCOME PER SHARE: Net income per share.....................$ .33 $ .33 ======= ======= (A) Warrants were not assumed to be exercised as the effect would have been anti-dilutive.