The Lafayette Life Insurance CompanyInsurance for Business
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Indexed Annuities

2008 Statutory Quick Facts

Insurance In Force: $18.7 billion
Total Assets: $2.0 billion
Surplus and Asset Valuation Reserve (AVR): $112.2 million
Net Yield on Investment Portfolio: 5.7%
Annual Effective Yield on New Investments: 6.5%
First Year Ordinary Life Premium CAGR* (2003-2008): 14.6%
* Compound Annual Growth Rate  
Asset Compound Growth Rate (2003-2008): 4.8%
A.M. Best: A+ (Superior)
Fitch: AA (Very Strong)
Standard & Poor's: AA+ (Very Strong)

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 2008 comprised 76.1% of our invested assets. the quality of these assets is evidenced by the fact that 95.2% 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. The bond portfolio does not contain any subprime mortgages or other structured products that have caused stress at other financial institutions.

Mortgage loan investments total 12.0% 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 5.7% and net investment yield was 5.3%.

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