NEWS RELEASE

INDEPENDENCE HOLDING COMPANY ANNOUNCES

2017 FIRST-QUARTER RESULTS

Stamford, Connecticut, June 16, 2017. Independence Holding
Company (NYSE: IHC) today reported 2017 first-quarter results.

Financial Results

Income from continuing operations decreased to $.29 per share,
diluted, or $5,009,000, for the three months ended March 31,
2017 compared to $.33 per share, diluted, or $5,896,000, for
the three months ended March 31, 2016.

On March 31, 2016, IHC completed the sale of IHC Risk Solutions
LLC (Risk Solutions), exited the medical stop-loss business and
realized an after tax gain of approximately $99,793,000, net of
noncontrolling interest. In addition, under the purchase and
sale agreement, all of IHCs in-force medical stop-loss business
produced by Risk Solutions was 50% co-insured as of January 1,
2016 and will be run out in 2017 as evidenced by the decrease
in income from the stop-loss segment in the first quarter of
2017. Net income attributable to IHC of $4,936,000, or $.29 per
share diluted, for the three months ended March 31, 2017
decreased from $106,010,000, or $6.08 per share diluted, in the
same period of 2016 primarily due to the gain on sale of Risk
Solutions.

The Company reported revenues of $71,840,000 for the three
months ended March 31, 2017 compared to revenues for the three
months ended March 31, 2016 of $75,895,000. Revenues decreased
primarily due to a reduction in premiums from the 50%
co-insurance of the Companys stop-loss business produced by
Risk Solutions.

Chief Executive Officers Comments

Roy T. K. Thung, Chief Executive Officer, commented, We are
pleased with our first quarter results, particularly when
considering that the first quarter of 2016 included $7.0
million more in earnings from the medical stop-loss segment
than did the comparable quarter in 2017, which was largely
offset by increased earnings from the specialty health segment,
an increase in corporate investment income on the proceeds from
the sale of Risk Solutions, and cost cutting and certain other
expense reductions. As a result of the sale of Risk Solutions
and exiting the medical stop-loss segment, we have an abundance
of capital. We have redeployed a relatively small amount of
this capital to improve our specialty health infrastructure,
acquire equity stakes in several companies that distribute our
products as well as PetPartners, Inc., a pet insurance
administrator. We have also become an attractive developer of
specialty health products for other insurance companies, and
two of the largest health insurers in the United States are now
distributing a significant amount of our products. For all
these reasons, we believe that we will write significantly more
premiums in this segment in 2018. We believe we are very well
positioned regardless of the outcome of the ongoing debate over
health insurance.

Mr. Thung continued, As recently announced, we have commenced a
tender offer to purchase up to 2,000,000 shares of our common
stock at a price per share of $20.00, which ends on June 26,
2017, unless extended, and separately bought back 724,769
shares in the

first quarter of 2017 at a cost of $14.4 million. Our parent
companys balance sheet is very strong, we have no debt, and we
still have over $160 million in cash and undeployed capital
prior to giving effect to the tender offer. Our overall
investment portfolio continues to be very highly rated (on
average, AA) and has a duration of approximately five years.
Our book value increased to $26.24 per share at March 31, 2017
from $25.53 per share at December 31, 2016.

THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY
AND DOES NOT CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF
AN OFFER TO SELL SHARES OF INDEPENDENCE HOLDING COMPANY COMMON
STOCK. THE TENDER OFFER FOR SHARES OF INDEPENDENCE HOLDING
COMPANY COMMON STOCK DESCRIBED IN THIS PRESS RELEASE IS BEING
MADE ONLY