LETTER FROM THE CEO ACHIEVEMENTS FINANCIALS COMMUNITY IMPACT TECHNOLOGY HIGHLIGHTS LEADERSHIP When Protection Matters Most 2020 humbled humanity in so many ways. It reminded us the future is unpredictable. It reminded us of our deep interconnectedness. It reminded us of the importance of health and financial protection and well-being. Operating from a position of record financial strength, Assurity stood ready to extend a hand in support of new and existing customers with better ways to help them protect those they love. Read our Annual Report to learn how Assurity’s proven ability to thrive in difficult times guided us through a year when protection mattered most. Letter from the CEO Dear Fellow Policyholders and Friends, In 2020, the COVID-19 pandemic overtook all of our lives, presenting unprecedented medical, economic and human challenges. It’s been a year unlike any other in modern history. During my 45-year tenure in the financial services industry, I’ve never experienced a crisis of this proportion – one that forced us to adapt to a drastically different operating environment nobody could have anticipated when the year began. We were hurled into the worst recession since the 1930s. Unemployment peaked at 14.7% in April and the U.S. economy suffered its poorest period ever in the second quarter with GDP falling by 32.9%. Interest rates fell precipitously – the 10-year U.S. Treasury rate began the year at 1.92% and hit a low of 0.52% in early August. Although faced with a very difficult situation, I want to discuss how three of our corporate values have helped us navigate this period and lay the groundwork for greater success in the future.... Read more Integrity Meeting the Moment Assurity responded to the challenges of 2020 with a sense of urgency and a commitment to doing what's right. By always being prepared and able to adapt and change with the times, we ended 2020 in the strongest financial position of our 130-year history. Here’s what we accomplished: With almost $137 million provided in benefits to our customers, we continued to provide protection when it matters most. Our Worksite team’s strong momentum led to another year of sales growth. Assurity was named one of the top three carriers in Newsweek’s 2021 America’s Best Customer Service Companies in the life insurance category. Over the prior year, our net income increased by 6%, while our surplus and asset valuation reserve grew by 7.6% — a record high. From introducing new e-apps and quoters to expanding our enrollment capabilities, we’ve made insurance easier than ever – for customers and distributors alike. Our risk-based capital (RBC) ratio remains strong at 583%. 2020 Financial Summary $274.6 million DIRECT PREMIUMS AND DEPOSITS $2.6 billion TOTAL ASSETS $417.3 million TOTAL SURPLUS AND AVR* $12.6 million NET INCOME 15.8% SURPLUS & AVR* (AS A PERCENTAGE OF ASSETS) $23 billion LIFE INSURANCE IN FORCE $10.2 million CUSTOMER DIVIDENDS PAID $136.8 million BENEFITS TO CUSTOMERS 583% RISK-BASED CAPITAL (RBC) RATIO * AVR = Asset Valuation Reserve Connectedness Coming Together In a year that kept us all apart, we were reminded of our human need to engage with others, and learned how to do so in new ways. Our interconnectedness was never more apparent as we looked to extend generosity and service in both familiar and fresh directions. A Commitment to Community $187,000 DONATED TO THE UNITED WAY $30,000 DONATED TO THE LINCOLN PUBLIC SCHOOLS COVID-19 RESPONSE FUND $15,000 DONATED TO FEEDING AMERICA 300+ meals DELIVERED BY ASSOCIATES THROUGH MEALS ON WHEELS 2,000+ masks DONATED TO BRYAN HOSPITALS 2 MAJOR TRAIL PROJECTS FUNDED Agility Work is Where We Are In 2020, businesses everywhere had to adapt to a socially distanced world. From homes throughout the area, our associates maintained the trusted service levels we're known for, while working to make insurance easier for our customers. Within a week in March, we shifted 90% of the Assurity workforce from our headquarters to their homes. As a tight-knit, engaged community, we continued to work hard for our customers – and for each other. Leadership Our Leadership The diversity of talents and backgrounds of our board of directors helped us successfully navigate these unprecedented times. From left, board members: David S. Graff, Ryan D. Downs, Mark E. LeBaron, Kathleen A. Farrell, Lyn Wallin Ziegenbein, Thomas E. Henning, Steven D. Erwin, Angela L. Muhleisen, Caren L. Hamilton and William R. Cintani Board of Directors Thomas E. Henning, CLU, ChFC, CFA CHAIRMAN, PRESIDENT & CEO, ASSURITY LIFE INSURANCE COMPANY, LINCOLN, NEBRASKA Angela L. Muhleisen PRESIDENT & CEO, UNION BANK & TRUST COMPANY, LINCOLN, NEBRASKA Steven D. Erwin RETIRED PRESIDENT, NEBRASKA WESTERN IOWA/U.S. BANK NATIONAL ASSOCIATION, LINCOLN, NEBRASKA Ryan D. Downs FORMER CEO, PROXIBID, OMAHA, NEBRASKA Lyn Wallin Ziegenbein EXECUTIVE DIRECTOR EMERITA, PETER KIEWIT FOUNDATION, LINCOLN, NEBRASKA Marc E. LeBaron CHAIRMAN & CEO, LINCOLN INDUSTRIES, LINCOLN, NEBRASKA Kathleen A. Farrell, PhD DEAN, COLLEGE OF BUSINESS, UNIVERSITY OF NEBRASKA-LINCOLN, LINCOLN, NEBRASKA William R. Cintani PRESIDENT & CEO, MAPES INDUSTRIES, LINCOLN, NEBRASKA David S. Graff CEO, HUDL, LINCOLN, NEBRASKA Caren L. Hamilton AUTO DEALERSHIP EXECUTIVE, BELLEVUE AND KEARNEY, NEBRASKA Management Team SENIOR LEADERSHIP Thomas E. Henning, CLU, ChFC, CFA CHAIRMAN, PRESIDENT & CEO Susan L. Keisler-Munro, FSA, MAAA SENIOR VICE PRESIDENT, CHIEF OF OPERATIONS Todd W. Reimers, CLU, LLIF SENIOR VICE PRESIDENT, CHIEF MARKETING & SALES OFFICER VICE PRESIDENTS Susan M. Becker Jared I. Carlson John R. "Jack" Douglas Kevin G. Faltin Jill D. Fiddler David D. Lockwood Eric L. Otterstein Scott A. Zagurski SENIOR DIRECTORS Tara D. Benson Douglas I. Blum Kevin W. Hammond Steven H. Hill Victor D. Weber Brett D. West DIRECTORS Steven J. Coleman Eunice J. Cramer Amanda L. Crume Jason L. Damme Heith L. Fulmer Michael J. Harshman Timothy S. Janousek Mitch K. Lee Mary L. Lenners Jenny L. Oelke Susan M. Otterstein Bruce K. Scheiber Apandeep Singh Nicholas A. Stremlau Bridget E. Tupa Go to Assurity.com