Quick Facts Summary

As of December 31, 2006

Details

INVESTMENTS

The Bottom Line

For a company, the “bottom line” – a solid financial foundation – must be sound. Without it, the company ceases to exist and people suffer. With it, an economic enterprise can flourish, helping more people, meeting more needs.

Lafayette Life has never failed to pay policyowners an annual dividend1. Our bond portfolio at year end 2006 comprised 75.5% of our invested assets. The quality of these assets is evidenced by the fact that 97% are rated or evaluated as investment grade BAA or better. The average quality of the portfolio has consistently been maintained at a single “A” level, or better, for more than 20 years. The bond portfolio is well diversified across industries and companies, with no one credit representing more than 1% of assets.

Mortgage loan investments total 12.1% of invested assets. The mortgage portfolio is well diversified by property type, geographic location and tenant. None of the mortgages in our portfolio were delinquent or in the process of foreclosure. We are proud of this high quality mortgage loan portfolio.

In summary, Lafayette Life has taken a very conservative, yet aggressively managed approach to investment policy. As a result, a very high quality investment portfolio has produced favorable yields. At year end, the gross investment yield was 6.38% and net investment yield was 5.9%.

¹ Dividends are not guaranteed and may be changed by the Company at anytime for any reason.