EXHIBIT 11


                         INDEPENDENCE HOLDING COMPANY
                       Computation of Per Share Earnings
                   (In Thousands, Except Per Share Amounts)


                                               THREE MONTHS ENDED
                                                   MARCH 31, 
                                               1997          1996    
                                            ------------------------
PRIMARY EARNINGS PER SHARE
INCOME:
  Income from continuing 
   operations..............................$   2,260       $   1,363           
  Income from discontinued 
   operations, net.........................    -                 431      
                                            --------        --------
  Net income...............................$   2,260       $   1,794  
                                            ========        ========
SHARES:
  Weighted average common
   shares outstanding......................    7,432           7,432           
  Shares assumed issued for options........       42              33       
                                            --------        --------
  Average common and common
  equivalents shares outstanding...........    7,474           7,465   
                                            ========        ========
 INCOME PER SHARE:
  Primary income per share from 
   continuing operations...................$     .30       $     .18           
  Primary income per share from
   discontinued operations.................      -               .06  
                                            --------        --------
  Primary net income per share.............$     .30       $     .24   
                                            ========        ========
                                                                  
FULLY DILUTED EARNINGS PER SHARE (A)
 USE OF PROCEEDS:
  Assumed exercise of warrants.............$  32,182       $  32,182  
  Assumed exercise of options..............    2,591           2,203        
  Repurchase of treasury stock at  
   average market price of $7.32 
   and $7.66, respectively.................  (10,880)        (11,387)     
  Assumed payment of debt
   outstanding.............................    -             (12,111)    
                                            --------        --------
  Assumed balance to be invested...........$  23,893       $  10,887 
 INCOME:                                    ========        ========
  Net income from continuing   
   operations..............................$   2,260       $   1,363 
   Pro-forma interest income...............      448             204
   Pro-forma reduction of 
    interest expense.......................    -                 227 
                                            --------        --------
  Adjusted net income from   
   continuing operations...................    2,708           1,794
  Income from discontinued 
   operations, net.........................    -                 431  
                                            --------        --------
  Adjusted net income......................$   2,708       $   2,225    
                                            ========        ========
 SHARES:
  Weighted average shares
  outstanding..............................    7,432           7,432
  Shares assumed issued for warrants.......    1,966           1,817 
  Shares assumed issued for options........      386             316
  Treasury stock assumed purchased.........   (1,486)         (1,486) 
                                            --------        --------
  Adjusted average shares   
   outstanding.............................    8,298           8,079 
                                            ========        ========
 INCOME PER SHARE:
  Fully diluted income per share 
   from continuing operations..............$     .33       $     .22
  Fully diluted income per share
   from discontinued operations............    -                 .06 
                                            --------        --------
  Fully diluted net income per share.......$     .33       $     .28 
                                            ========        ========

(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.