The Protector Press

Winter 2009

The Standard's Financial strength

The economic landscape is undeniably turbulent. While a number of financial institutions are reeling from these circumstances, The Standard continues to exceed expectations. That's because we know our most important promise is the one we make to our customers — to be there when you need us. Backing this up is the strength that stems from our disciplined financial practices and stability resulting from our long-term outlook. Fiscally conservative management allows us to weather economic uncertainty and ensures that we will keep our financial commitment to you.

Our balance sheet is the cornerstone of our financial strength and has provided us with a foundation for profitability through a wide range of economic cycles.

Bond portfolio

Our bond portfolio is strong. Our strategy is to maintain a diversified portfolio of high quality fixed-maturity securities to keep us well protected if any industry experiences difficulties.

• Average portfolio rating of "A" as measured by Standard & Poor's
• No preferred or common equities
• No direct exposure to sub-prime or alt-A mortgages
• No credit default swaps, collateralized debt obligations or commercial paper
• No mortgage-backed securities of any kind

Commercial mortgage loan portfolio

The profile of our commercial mortgage loan portfolio is entirely different from the mortgages that have been the subject of so much concern. We offer small commercial mortgage loans to borrowers who want a fixed rate over time, and we rigorously underwrite every commercial mortgage loan we make. The quality of our commercial mortgage loans is excellent, and our delinquency rates are very low.

• The average loan-to-value ratio on new loans was 64 percent in 2008
• As of December 31, 2008, the average loan-to-value ratio in our overall commercial mortgage portfolio was 59 percent

The Standard stands the test of time

In the July 2008 issue of Best's Review, Standard Insurance Company was recognized for maintaining an "A" rating or higher from A.M. Best Company since 1928. The Standard was honored to be among one of only 15 life/health insurers to consistently achieve an "A" rating or higher for more than 75 years. Given the rapidly evolving markets, changing customer needs and challenging economic times, this is a significant accomplishment. We are proud of this longstanding track record of financial strength.

This information is also available as a preprinted flyer, form 13983B, that you can order online at www.standard.com/di at Find Marketing Materials.