Tom Kilian Believe Quotations

Our Senior Segment premiums rose 13%, or $23.6 million, for the year compared to 2004 due to new business and 2005 rate increases. To improve our results going forward, we believe that we implemented the necessary rate increases on our Medicare supplement blocks of business as we continue to focus on actuarial analysis and pricing. As we proactively face these challenges, we remain confident that our Medicare supplement plans will be a positive market for us in the future.

Finally, in both of our segments we remain committed to providing 'World Class Sales Support' to agents. Over the past two years we have made significant enhancements to our marketing platform, which we believe will fuel future growth in our selected niche markets.

In closing, we are extremely enthusiastic about all of our strategic plans. We remain committed to our long-term strategy. Simply stated, we believe that our core objectives position us well for positive results going forward.

We believe we have put in place an aggressive but achievable plan to reach our goals this year. As an integral part of this, we will continue to sharpen our marketing focus in each of our business segments.