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President's Message
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Every company seeks to create a lasting legacy — a tradition of excellence that defines the organization to
its peers, its industry, and its customers. At The Lafayette Life Insurance Company, we’re proud to have created
An Enduring Tradition of Trust.
For more than 103 years, we have remained dedicated
to serving our policyholders and producers, our business partners and our community, pledging to act with integrity and leadership in everything we do. And after another record-setting year in 2008, we are confident that our focus on building and maintaining that trust is the right decision for our organization.
Today, the topic of “trust” is of particular concern for many Americans. We are currently in an unprecedented time in the history of both our industry and the global financial markets. Market volatility and institutional turmoil have caused consumers and the general public
to question the financial and management integrity of many companies. To survive long term, a company must earn the lasting trust of its producers and policyholders.
Fortunately, you need look only as far as our mission statement to understand the importance of integrity to Lafayette Life, as
we seek to maintain our organization as a financially sound, quality-driven, growth-oriented company dedicated to exceeding our customers’
requirements for life insurance and related financial services and distributing our products to well-defined
U.S. market segments.
From our commitment to providing a Complete Value Package to our producers, to designing and updating valuable products for our policyholders, to our employees’ generosity of service both in their work and in their community, Lafayette Life understands the importance of building and maintaining trust.
The following highlights of 2008 demonstrate our commitment to
earning that trust, every day:
- A Strategic Exit from the Group Life Insurance Business. On October 8, we announced that we would be exiting Group life insurance and its ancillary businesses, a business segment with which we had been involved for more
than 30 years. This was not a decision we made lightly, as 30 of our employees and their positions were transitioned out of the company. However, it was
the right decision for Lafayette Life, allowing us to concentrate our resources more fully on our core businesses of individual life, annuity products and
retirement services.
- A Record-Setting Year for New Sales. 2008 marks our best year ever for
new sales of life insurance, with premium in excess of $41 million for the year. This outstanding performance is a continuation of a trend started in 2006, which up to that point had been the best premium year for the company. Then, 2007 earned that award, and now 2008 stands as the best year ever. This solid, upward trend, producing a 14.3 percent 10-year compound annual growth rate, has
been driven by our relationships with our producers and by our expertise in whole life insurance.
- Continued Insurance Ratings Stability. Perhaps the best indicator of our commitment to building trust is our consistently outstanding ratings, including A.M. Best’s highest rating available, A++ (Superior).
After 38 years in the industry, I can attest that this year yielded more unsolicited calls and questions than I have ever received on the state of our financials and our business — questions from both our policyholders and field associates. I am happy to report that, as a member company of Western & Southern Financial Group, Lafayette Life entered the period of market turmoil extremely well
capitalized, and we have built our company on the kind of conservative investment strategy that will help ensure our stability for the long term.
- An Emphasis on Building Relationships. At Lafayette Life, our focus is on developing our relationships with producers. Our field force can trust us, and
the answers we give, because we have proven our constancy and commitment over time.
Our recruiting efforts in 2008 brought many new producers into the Lafayette Life family, and our Sales Vice President team continues to contribute to our successful growth. The team’s experience and dedication to service are truly remarkable, and key components of the value we bring to producers.
- The Development and Refinement of Valuable Product Lines. With the input of our producers, we refined our product lines in 2008, particularly the
Centennial Series of Whole Life Products and the Marquis Series
of Indexed Annuities, and developed new term life products.
In addition, we are still one of only a very few companies to specialize in creating qualified retirement plans for small businesses of 1–100 employees. Our Retirement Services team offers experienced, highly trained support to producers and their clients to create customized qualified retirement plans.
Finally, our complete suite of whole life products continues to offer high value, as the industry witnesses
a flight to quality and guarantees.
- Our Complete Value Package. In today’s highly competitive marketplace, you can no longer just offer products — or ratings — or service, and expect to attract and retain the highest-level producers. The Lafayette Life Complete Value Package offers a “value difference” to our producers and policyholders, including products, financial strength, relationships, access to senior management, and many others. It is a package that gives Lafayette Life — and those who do business with us —
a competitive edge.
- Continued Service to the Lafayette Community. Once again, Lafayette Life was named one of the top
10 companies in Tippecanoe County for total giving
to the United Way campaign. Even with arguably
greater financial challenges than ever before, our home
office staff increased their average 2008 charitable gift
amount by 7 percent over 2007. And even with only
152 employees, Lafayette Life once again ranked 7th
in giving out of 100 companies in the community—
many with a far greater employee base.
The leadership we demonstrate both in our United Way campaign and our other charitable activities is a testament to the generosity and spirit of our people, and their commitment to the community in which we live.
As I conclude my first full year as president, I am struck by how much the element of trust has resulted in a smooth management transition. The trust that has
been placed in me, and in the strategic direction of
the organization, has been gratifying. Even in the face
of difficult times, our associates, our policyholders,
and our producers know that Lafayette Life will meet
all challenges.
As we move into 2009, I look forward to another year
of strong performance and unwavering integrity that
has proven to be the hallmark of Lafayette Life since
its founding in 1905. In continuing to build An Enduring Tradition of Trust, we will work tirelessly toward the long-term success of our great company, our policyholders, and our producers.
Sincerely,
Jerry B. Stillwell, CLU, ChFC, RHU, LLIF, LUTCF
President and Chief Executive Officer
The Lafayette Life Insurance Company
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