CSG Actuarial has updated our MarketAdvisor database with information from the leading supplemental health insurance carriers’ third quarter financial statements. Over the past three years the supplemental Accident and Health market has been steadily growing and CSG Actuarial expects this trend to continue as carriers look for product and distribution opportunities to increase market share.

Just as we saw in 2012, Total Earned Premium from AFLAC, Colonial Life, Torchmark and Washington National remained relatively flat compared to second quarter results but both second quarter and third quarter results showed an increase of 6% versus 2012 amounts.

1

Aflac (US Operations)

Aflac is the market leader in the supplemental health insurance market with total earned premium of $4.99 billion in 2012. Aflac reported earned premium of $1.293 billion in the third quarter of 2013 which is a 3% increase compared to 2012. This marks the 10th straight quarter where they have posted an increase of at least 3% over the same quarter in the prior year. Third quarter new sales were heavily concentrated in Short-term Disability, Accident, Critical Care and Hospital Indemnity. These product lines represented 85% of the reported new sales.

2

Colonial Life and Accident Company

Colonial Life and Accident Company (a segment of UNUM) reported premium income for their Accident, Sickness, Disability, Cancer and Critical Illness products of over $253 million in third quarter, a 3% increase compared to 2012. Colonial Life’s new sales continued were down slightly compared to 2012 and continue to be dominated by their Accident, Sickness and Disability products (66%).

3

Washington National

Washington National (a segment of CNO Financial Group) is another leading provider of Cancer and Critical Illness Insurance products. They reported earned premium of $121.1 million in the third quarter, which is an increase of 6% versus the same period in 2012. New sales for third quarter were down slightly from 2012 results ($25 million vs $29 million).

Torchmark Corporation

Torchmark reported supplemental health plan premium of just under $110 million, down just slightly from each of the first two quarters in 2013. Their 2012 acquisition of Family Heritage Life continues to be a source of profitable growth for the company and has placed them in the list of top five Cancer and Critical Illness direct writers. Third quarter new sales came in just under $23 million, representing a 54% increase from 2012.

About CSG Actuarial
CSG Actuarial is a leading provider of actuarial and competitive information for supplemental products. CSG has more than 50 years of actuarial experience with pricing, product development and competitive intelligence within the Medicare Supplement, Critical Illness, Cancer, Final Expense, and Hospital Indemnity markets. Call 855-861-8776 or email info@csgactuarial.com to learn more.