<TABLE> <S> <C>

<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from the
Independence Holding Company Form 10-Q for the quarter period ended September
30, 1996 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<RESTATED> 
<CIK> 0000701869
<NAME> INDEPENDENCE HOLDING COMPANY
       
<S>                             <C>                     <C>
<PERIOD-TYPE>                   9-MOS                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996             DEC-31-1995
<PERIOD-END>                               SEP-30-1996             SEP-30-1995
<DEBT-HELD-FOR-SALE>                       165,617,000             131,489,000
<DEBT-CARRYING-VALUE>                                0                       0
<DEBT-MARKET-VALUE>                            499,000                       0
<EQUITIES>                                   5,201,000              17,805,000
<MORTGAGE>                                     346,000                 477,000
<REAL-ESTATE>                                  817,000                 928,000
<TOTAL-INVEST>                             222,638,000             196,030,000
<CASH>                                       7,741,000              13,006,000
<RECOVER-REINSURE>                          41,308,000              46,582,000
<DEFERRED-ACQUISITION>                      11,052,000               9,292,000
<TOTAL-ASSETS>                             311,548,000             288,824,000
<POLICY-LOSSES>                            141,985,000             107,441,000
<UNEARNED-PREMIUMS>                         12,701,000              13,867,000
<POLICY-OTHER>                              33,837,000              33,989,000
<POLICY-HOLDER-FUNDS>                        2,238,000               2,131,000
<NOTES-PAYABLE>                                      0                       0
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                          0                       0
<COMMON>                                     7,432,000               7,518,000
<OTHER-SE>                                  66,861,000              59,685,000
<TOTAL-LIABILITY-AND-EQUITY>               311,548,000             288,824,000
<PREMIUMS>                                  50,632,000              40,309,000
<INVESTMENT-INCOME>                         12,099,000              10,268,000
<INVESTMENT-GAINS>                           (460,000)               (377,000)
<OTHER-INCOME>                               3,114,000               1,867,000
<BENEFITS>                                  36,650,000              28,590,000
<UNDERWRITING-AMORTIZATION>                  2,935,000               2,971,000
<UNDERWRITING-OTHER>                                 0                       0
<INCOME-PRETAX>                              4,219,000               1,934,000
<INCOME-TAX>                                 (569,000)             (1,059,000)
<INCOME-CONTINUING>                          4,788,000               2,993,000
<DISCONTINUED>                               1,558,000               1,558,000
<EXTRAORDINARY>                                      0                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                 6,346,000               4,551,000
<EPS-PRIMARY>                                      .85                     .59
<EPS-DILUTED>                                      .94                     .73
<RESERVE-OPEN>                                       0                       0
<PROVISION-CURRENT>                                  0                       0
<PROVISION-PRIOR>                                    0                       0
<PAYMENTS-CURRENT>                                   0                       0
<PAYMENTS-PRIOR>                                     0                       0
<RESERVE-CLOSE>                                      0                       0
<CUMULATIVE-DEFICIENCY>                              0                       0
        

</TABLE>