2018 Annual Report DOH

Financial Report We made history in 2018, as net income and surplus grew to record levels. In addition, total adjusted capital and the risk-based capital ratio reached all-time highs. These results affirm our tradition of financial strength and sustainability to better serve our Society and its members. • Net income rose 19 percent to $14.3 million in 2018, up from $12.05 million in 2017 • Surplus increased 13 percent from $88 million to more than $99 million, the highest in the Society’s history • Total adjusted capital was more than $110 million in 2018, up from $99 million in 2017 • Risk-based capital (RBC) ratio increased to 949 percent from 930 percent in 2017 • Our persistency, a reflection of our members’ loyalty and recognition of the value they receive, remains high at 96.5 percent • Kroll Bond Rating Agency reaffirmed our A- financial strength rating and stable outlook

Net Income (in millions)

15.0

14.3

12.05

12.0

11.6

9.0

6.0

$ in Millions

3.0

0.0

2016 2017 2018

Total Adjusted Capital (in millions)

120

110.0

100

99.0

80

79.9

60

40

$ in Millions

20

0

2016 2017 2018

[3] THANK YOU FOR BEING A PART OF SOMETHING GREATER THAN YOURSELF.