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,         
                                  1997       1996          1997      1996      
                                --------------------    --------------------
PRIMARY EARNINGS PER SHARE
INCOME:
  Income from continuing 
   operations..................$   3,191   $   1,469   $   5,451   $   2,832   
  Income from discontinued 
   operations, net.............    -             596       -           1,027 
                                --------    --------    --------    --------
  Net income...................$   3,191   $   2,065   $   5,451   $   3,859 
                                ========    ========    ========    ========
SHARES:
  Weighted average common
   shares outstanding..........    7,432       7,432       7,432       7,432
  Shares assumed issued 
   for options.................       61          67          51          51 
                                --------    --------    --------    --------
  Average common and common
  equivalents shares 
  outstanding..................    7,493       7,499       7,483       7,483  
                                ========    ========    ========    ======== 
 INCOME PER SHARE:
  Primary income per share from 
   continuing operations.......$     .43   $     .20   $     .73   $     .38
  Primary income per share from
   discontinued operations.....    -             .08       -             .14   
                                --------    --------    --------    --------
  Primary net income per share.$     .43   $     .28   $     .73   $     .52   
                                ========    ========    ========    ========

FULLY DILUTED EARNINGS 
 PER SHARE (A)
 USE OF PROCEEDS:
  Assumed exercise of warrants.$  32,182   $  32,182   $  32,182   $  32,182
  Assumed exercise of options..    2,603       2,387       2,603       2,387
  Repurchase of treasury stock at   
   average market price of $7.95,
   $8.75, $7.64, and $8.21, 
   respectively................  (11,817)    (13,006)    (11,356)    (12,203)
  Assumed payment of debt
   outstanding.................    -         (12,736)      -         (12,527)
                                --------    --------    --------    --------
  Assumed balance to be 
   invested....................$  22,968   $   8,827   $  23,429   $   9,839
                                ========    ========    ========    ========
 INCOME:
  Net income from continuing   
   operations..................$   3,191   $   1,469   $   5,451   $   2,832 
  Pro-forma interest income....      431         166         879         369
  Pro-forma reduction of 
    interest expense...........    -             239       -             470  
                                --------    --------    --------    --------
  Adjusted net income from   
   continuing operations.......    3,622       1,874       6,330       3,671
  Income from discontinued 
   operations, net.............    -             596       -           1,027  
                                --------    --------    --------    --------
  Adjusted net income..........$   3,622   $   2,470   $   6,330   $   4,698
                                ========    ========    ========    ========
 SHARES:
  Weighted average shares
   outstanding.................    7,432       7,432       7,432       7,432
  Shares assumed issued 
   for warrants................    1,966       1,816       1,966       1,816
  Shares assumed issued 
   for options.................      386         336         386         336
  Treasury stock assumed 
   purchased...................   (1,486)     (1,486)     (1,486)     (1,486)  
                                --------    --------    --------    --------  
  Adjusted average shares  
   outstanding.................    8,298       8,098       8,298       8,098   
                                ========    ========    ========    ========
 INCOME PER SHARE:
  Fully diluted income per 
   share from continuing 
   operations..................$     .44   $     .24   $     .76   $     .45
  Fully diluted income per 
   share from discontinued 
   operations..................    -             .07       -             .13
                                --------    --------    --------    --------
  Fully diluted net income 
   per share...................$     .44   $     .31   $     .76   $     .58 
                                ========    ========    ========    ========

(A)   The fully diluted earnings per share calculation, utilizing
      the treasury stock method as prescribed by paragraphs 38(a)
      and 38(b) of APB No. 15, is anti-dilutive.