The President's Message

As the financial services industry reported record low sales and struggled with a tepid economic environment in 2009, Columbus Life's associates and producers demonstrated real strength. In spite of the turbulent financial year, we provided outstanding service to our partners and clients and created a year filled with positive highlights.

Through adversity grows greater strength, and this was demonstrated in our 2009 annuity sales. Columbus Life's high ratings and superior financial strength supported the efforts of independent producers in marketing our fixed annuity products. This resulted in a record year of $132 million in annuity sales, a 78 percent increase over 2008 and all-time record for Columbus Life. Real strength indeed!

Columbus Life's fortress-like balance sheet proved to be a strong incentive for recruiting in 2009 as well. Our financial strength proved valuable during these turbulent financial times. Financial professionals seek strong, stable financial services organizations to best serve their clients. Thanks to tireless efforts from our recruiting team and Columbus Life's reputation for stability and consistently high ratings, we enjoyed a record year in attracting new producing general agents to join Columbus Life. As proof of this flight to quality, we saw a 39 percent increase in new producers with paid business, as compared to those who joined in 2008.

This new class of recruits with paid business joins our already stellar and inspiring group of professionals. We believe that our independent producers are among the best and most effective in the industry. We listen to our representatives and get to know them personally because they are our most valuable asset and vitally important members of our family. In fact, we have families of producers who have been contracted with us for more than 50 years.

Our life sales reflected anemic industry trends, as our paid premium took a downward turn in 2009. This trend mirrored overall U.S. life insurance sales, which at one point experienced the worst industry-wide six-month decline since 1942. On the positive side, Columbus Life's policy count for new life insurance saw an 8 percent increase in covered lives over 2008 statistics. Looking forward, we will strive for innovation, and maintain and develop our field relationships. We've already started to make business processes easier for our independent producers, through electronic transmittal of business and simplified underwriting. There are many business-enhancing changes we have in development, and it will be exciting to see them implemented in 2010.

Overall, our organizational goal is to develop lifetime relationships with producers and consumers. We see you as real people, with real lives and real concerns, and Columbus Life is the company you have entrusted with the things that are most important to you. We value that role, and will endeavor to continue to earn your business. Should you have any feedback during our journey together, please call or drop me a note.

As always, my door and my mind are open.

J.J. Miller, FSA, CLU, ChFC
President and Chief Executive Officer
Columbus Life Insurance Company