Financial Review

Settlers Life understands that when people purchase one of its insurance products they expect security and peace of mind. One of our primary objectives is making sure that we meet that expectation by properly and wisely managing the premium payments our policyholders place with us. To be "...one of the best small companies selling life insurance in your hometown"^® we also have to be one of the best at managing our money, our assets and our investments. We also have to properly manage our business as a whole - minding our expenses, watching how and where we spend our money, and looking forward as best we can to anticipate tomorrow's needs.

QUALITY OF OUR INVESTMENTS AND OF OUR RESERVES

Our investment policy matches that of our parent, National Guardian Life Insurance Company. We believe that safety and security for our policyholders is our number one concern. Stability should not be sacrificed for short-term yield. Therefore, our portfolio is focused on long-term success.

Settlers Life does not have "junk" or speculative bonds in its portfolio and its exposure in the equity market through common stocks is minimal.