AMIC American Independence Corp.

Independence Holding Company (NYSE:IHC) today reported a special 10% stock dividend payable to shareholders of record on February 17, 2012 with a distribution date of March 5, 2012. Fractional shares will be paid in cash in lieu of stock. IHC also announced that it will increase its annual dividend from $.05 to $.07 per share. The first semi-annual dividend of $.035 per share will be payable in July, 2012.

Roy Thung, Chief Executive Officer, commented, "After considering IHC's strong financial position, which improved despite the global economic crisis, and management's continued optimism as to the Company's future prospects, including as a result of its expanded strategies and increase in earnings related to medical stop-loss, the Board of Directors has enhanced the cash dividend from $.05 to $.07 per share annually. This is effectively a 54% increase after taking into consideration the special stock dividend. This stock dividend should improve market liquidity, thereby broadening our investor base and enhancing shareholder value."

About Independence Holding Company

IHC is a holding company principally engaged in the life and health insurance business and the acquisition of blocks of policies through its insurance company subsidiaries (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company) and its managing general underwriters, third-party administrators, and marketing affiliates. Standard Security Life markets medical stop-loss, small group major medical, short-term medical, major medical for individuals and families, limited medical, group long and short-term disability and life, dental, vision and managed health care products. Madison Life sells group life and disability, employer medical stop-loss, small group major medical, major medical for individuals and families, short-term medical, dental, vision, and individual life insurance. Independence American offers major medical for individuals and families, medical stop-loss, small group major medical, short-term medical, and pet insurance. IHC owns certain subsidiaries through its majority ownership of American Independence Corp. (Nasdaq:AMIC), which is a holding company principally engaged in the insurance and reinsurance business.

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 which 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.

CONTACT: David T. Kettig
         (212) 355-4141
         www.ihcgroup.com