CSG Actuarial has updated our MarketAdvisor™ database with information from the leading supplemental health insurance carriers’ fourth 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.

2013 Total Earned Premium for AFLAC, Colonial Life, Torchmark and Washington National for the entire year ended 5% higher than 2012 continuing the trend from 2011 to 2012.

F 1

Fourth quarter Total Earned Premium remained relatively flat compared to third quarter results but were 3% higher than fourth quarter results for 2012.

Aflac (US Operations)

Aflac is the market leader in the supplemental health insurance market with total earned premium of $5.15 billion in 2013 compared to $4.97 billion in 2012. The 3% increase is down slightly from the previous year over year increase of 5%.

F 2

Furthermore, Aflac reported earned premium of $1.285 billion in the fourth quarter of 2013 which is a 2% increase compared to 2012. Fourth quarter new sales were heavily concentrated in Short-term Disability, Accident, Critical Care and Hospital Indemnity. These product lines represented 90% of the reported new sales.

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 $1.0 billion in 2013 compared to $984 million in 2012.

F 3

Colonial Life’s new sales premium was up 13% in fourth quarter 2013 compared to fourth quarter 2012 with the majority of the sales being Cancer and Critical Illness and Accident, Sickness, and Disability products (82%).

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 over $480 million in 2013 compared to $454 million in 2012. The 7% increase is up compared to the prior year over year increase of 6%.

F 4

Washington National also reported $126.4 million in the fourth quarter, which is an increase of 10% versus the same period in 2012. New sales for fourth quarter 2013 were up from 2012 results ($26 million vs $23 million).

Torchmark Corporation

Torchmark reported supplemental health plan premium of just over $446 million in 2013 compared to $299 million in 2012. 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.

F 5

Torchmark’s fourth quarter new sales came in just over $17 million, representing a 26% 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.