UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) June 6, 2016

INDEPENDENCE HOLDING COMPANY

(Exact name of registrant as specified in its charter)

Delaware	001-32244	58-1407235
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
96 Cummings Point Road, Stamford, Connecticut		06902
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code:  (203) 358-8000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

The information set forth under this Item 2.02 (Results of Operations and Financial Condition) is intended to be furnished. Such information, including the Exhibit attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities and Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.

On June 6, 2016, Independence Holding Company issued a news release announcing its 2015 Fourth-Quarter and Annual results, a copy of which is attached as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(c)  

Exhibits:

Exhibit 99.1

News Release of Independence Holding Company dated June 6, 2016: Independence Holding Company Announces 2015 Fourth-Quarter and Annual results.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

INDEPENDENCE HOLDING COMPANY

(Registrant)

By: Teresa A. Herbert


/s/ Teresa A. Herbert Teresa A. Herbert Senior Vice President and Chief Financial Officer
Date:
June 6, 2016

INDEPENDENCE HOLDING COMPANY	CONTACT:  LOAN NISSER
96 CUMMINGS POINT ROAD	(646) 509-2107
STAMFORD, CONNECTICUT 06902	www.IHCGroup.com
NYSE: IHC

NEWS RELEASE

INDEPENDENCE HOLDING COMPANY ANNOUNCES

2015 FOURTH-QUARTER AND ANNUAL RESULTS

Stamford, Connecticut, June 6, 2016. Independence Holding Company (NYSE: IHC) today reported 2015 fourth-quarter and annual results.  As a result of the delay in reporting these results, IHC is currently working on its 2016 first-quarter results.

Financial Results

 Net income attributable to IHC increased to $.28 per share, diluted, or $4,933,000, for the three months ended December 31, 2015 compared to $.23 per share, diluted, or $4,034,000, for the three months ended December 31, 2014. Net income attributable to IHC increased to $1.71 per share, diluted, or $29,944,000, for the year ended December 31, 2015 compared to $.92 per share, diluted, or $16,293,000, for the year ended December 31, 2014.

Revenues decreased to $125,080,000 for the three months ended December 31, 2015 as compared to revenues for the three months ended December 31, 2014 of $127,090,000; and revenues decreased to $532,868,000 for the year ended December 31, 2015 compared to revenues for the year ended December 31, 2014 of $533,933,000.  Revenues decreased primarily due to a reduction in premiums from having exited the major medical market and a decrease in realized gains.  Exiting the major medical line, which was triggered by the requirements of the Affordable Care Act (“ACA”), resulted in a reduction in revenue of $15,856,000 for the fourth quarter and $58,382,000 for the year ended December 31, 2015. These reductions were partially offset by an increase in medical stop-loss and specialty health premiums and from gains due to the following transactions which closed in 2015: (i) the reinsurance of substantially all of our run-off blocks of individual life and annuities and the sale of the infrastructure related to those blocks; and (ii) the joint venture with Ebix, Inc. to form Ebix Health Exchange Holdings, LLC, which acquired our subsidiary Ebix Health Administration Exchange (f.k.a. IHC Health Solutions, Inc.).

Chief Executive Officer’s Comments

Roy T. K. Thung, Chief Executive Officer, commented, “With the sale of our stop-loss business, we are now focused on growing our remaining lines of business: group long term disability and life, statutory disability benefit policies (DBL) in New York, pet, group and individual specialty health insurance.  All of these lines performed very well in 2015, and the pet and specialty health lines grew significantly.  We anticipate continued growth and good underwriting results from these lines of business in 2016.  Our overall investment portfolio continues to be very highly rated (on average, AA) and has a duration of approximately five and a half years. Our book value increased to $18.73 per share at December 31, 2015 from $17.25 per share at December 31, 2014, and our total stockholders’ equity increased to $323 million at December 31, 2015 compared to $300 million at December 31, 2014.  Both of these are all-time highs. As previously reported, we have sold IHC Risk Solutions LLC and the stop-loss business it produced on March 31, 2016 and that transaction will further increase our stockholders’ equity by approximately $100 million.”  

About The IHC Group

Independence Holding Company (NYSE: IHC) is a holding company that is principally engaged in underwriting, administering and/or distributing group and individual disability, specialty and supplemental health, pet, and life insurance through its subsidiaries since 1980.  The IHC Group (including through its 91% ownership of American Independence Corp. (NASDAQ: AMIC)) owns  three insurance companies (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company), a majority of Ebix Health Administration Exchange, Inc., a fully insured third party administrator, and IHC Specialty Benefits, Inc., which is a technology-driven insurance sales and marketing company that creates value for insurance producers, carriers and consumers (both individuals and small businesses) through a suite of proprietary tools and products (including ACA plans and small group medical stop-loss).  All products are placed with highly rated carriers.

Forward-looking Statements

Certain statements and information contained in this release may be considered “forward-looking statements,” such as statements relating to management's views with respect to future events and financial performance.  Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements.  Potential risks and uncertainties include, but are not limited to, economic conditions in the markets in which IHC operates, new federal or state governmental regulation, IHC’s ability to effectively operate, integrate and leverage any past or future strategic acquisition, and other factors which can be found in IHC’s other news releases and filings with the Securities and Exchange Commission.  IHC expressly disclaims any duty to update its forward-looking statements unless required by applicable law.

INDEPENDENCE HOLDING COMPANY

FOURTH QUARTER REPORT

December 31, 2015

(In Thousands, Except Per Share Data)

			Three Months Ended				Year Ended
			December 31,				December 31,
			2015		2014		2015		2014
REVENUES:
Premiums earned		$	117,939	$	116,938	$	479,534	$	479,048
Net investment income			3,414		5,018		17,298		21,692
Fee income			1,925		2,633		12,954		20,646
Other income			1,920		1,727		10,276		4,859
Gain on sale of subsidiary to joint venture			(221)		-		9,940		-
Net realized investment gains			103		774		3,094		7,688
Net impairment losses recognized in earnings			-		-		(228)		-
			125,080		127,090		532,868		533,933
EXPENSES:
Insurance benefits, claims and reserves			73,960		82,547		307,178		326,035
Selling, general and administrative expenses			42,345		39,850		172,180		177,848
Amortization of deferred acquisitions costs			78		1,054		3,524		4,941
Interest expense on debt			444		440		1,798		1,797
			116,827		123,891		484,680		510,621
Income before income taxes			8,253		3,199		48,188		23,312
Income tax expense (benefit)			3,106		(1,013)		17,666		6,391
Net income			5,147		4,212		30,522		16,921
Less: income from noncontrolling interests
	in subsidiaries		(214)		(178)		(578)		(628)
NET INCOME ATTRIBUTABLE TO IHC		$	4,933	$	4,034	$	29,944	$	16,293
Basic income per common share		$	.29	$	.23	$	1.73	$	.93
WEIGHTED AVERAGE SHARES OUTSTANDING			17,262		17,371		17,314		17,471
Diluted income per common share		$	.28	$	.23	$	1.71	$	.92
WEIGHTED AVERAGE DILUTED SHARES
	OUTSTANDING		17,447		17,549		17,484		17,636

As of May 31, 2016, there were 17,223,233 common shares outstanding, net of treasury shares.

INDEPENDENCE HOLDING COMPANY

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Data)

					December 31,		December 31,
					2015		2014
ASSETS:
	Investments:
		Short-term investments		$	50	$	50
		Securities purchased under agreements to resell			28,285		16,790
		Trading securities			1,259		11,095
		Fixed maturities, available-for-sale			428,601		583,880
		Equity securities, available-for-sale			8,426		13,895
		Other investments			21,538		25,251
			Total investments		488,159		650,961
	Cash and cash equivalents				19,171		25,083
	Deferred acquisition costs				499		30,806
	Due and unpaid premiums				69,075		62,628
	Due from reinsurers				480,859		278,242
	Premium and claim funds				22,755		32,553
	Goodwill				52,940		50,318
	Other assets				64,505		65,636
			TOTAL ASSETS	$	1,197,963	$	1,196,227
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
	Policy benefits and claims			$	245,443	$	236,803
	Future policy benefits				270,624		277,041
	Funds on deposit				173,350		186,782
	Unearned premiums				10,236		9,455
	Other policyholders' funds				11,822		18,802
	Due to reinsurers				44,141		47,945
	Accounts payable, accruals and other liabilities				66,308		67,641
	Debt				5,189		4,000
	Junior subordinated debt securities				38,146		38,146
			TOTAL LIABILITIES		865,259		886,615
STOCKHOLDERS’ EQUITY:
IHC STOCKHOLDERS' EQUITY:
	Preferred stock (none issued)				-		-
	Common stock				18,569		18,531
	Paid-in capital				127,733		127,098
	Accumulated other comprehensive income (loss)				(3,440)		22
	Treasury stock, at cost				(13,961)		(12,141)
	Retained earnings				194,450		166,177
TOTAL IHC STOCKHOLDERS’ EQUITY					323,351		299,687
NONCONTROLLING INTERESTS IN SUBSIDIARIES					9,353		9,925
			TOTAL EQUITY		332,704		309,612
			TOTAL LIABILITIES AND EQUITY	$	1,197,963	$	1,196,227