Reflect ing on more than 40 years of Companion Life Insurance Company business, Reflect ing on more than 40 years of Companion Life Insurance Company business,

there is so much to consider. We have earned many accolades for performing at there is so much to consider. We have earned many accolades for performing at

the top of our field, and we can look out over a sea of figures, boast ing record year the top of our field, and we can look out over a sea of figures, boast ing record year

after record year. As we close out another successful decade and watch the t ide after record year. As we close out another successful decade and watch the t ide

r ise toward the future, what matters most to Companion Life is you.r ise toward the future, what matters most to Companion Life is you.

Our longevity, expert ise and all the ways we’ve flour ished over the years are a Our longevity, expert ise and all the ways we’ve flour ished over the years are a

product of relat ionships built and so deeply valued along the way. The strength product of relat ionships built and so deeply valued along the way. The strength

of our professional name would carry l i ttle weight without the abil i ty to provide of our professional name would carry l i ttle weight without the abil i ty to provide

the personal ized service that keeps our relat ionship with you, the driving force of the personal ized service that keeps our relat ionship with you, the driving force of

our business. our business.

My priority, upon moving into the role of president last June, was focusing on the My priority, upon moving into the role of president last June, was focusing on the

future. Moving Companion Life forward is about maintaining the balance of strength future. Moving Companion Life forward is about maintaining the balance of strength

and agil ity that brought us to where we are. I am committed to growing with and and agil ity that brought us to where we are. I am committed to growing with and

rewarding agents, to invest ing in better technology for our cl ients, to honor ing rewarding agents, to invest ing in better technology for our cl ients, to honor ing

the values that made us one of the leaders in the industry while strategiz ing for the values that made us one of the leaders in the industry while strategiz ing for

future growth.future growth.

This past year showcased our financial strength, as we broke records in gross This past year showcased our financial strength, as we broke records in gross

premium, pretax income and net revenue. Our Accident and Health products, premium, pretax income and net revenue. Our Accident and Health products,

part i cular ly Employer Stop Loss , showed impress ive growth , whi le anc i l lary part i cular ly Employer Stop Loss , showed impress ive growth , whi le anc i l lary

products remained significant. The year 2019 was also about prepar ing to grow products remained significant. The year 2019 was also about prepar ing to grow

with you and for you in the years to come. We felt the brimming potent ial of a new with you and for you in the years to come. We felt the brimming potent ial of a new

decade as we invested in technologies to broaden our digital capabil it ies, streamline decade as we invested in technologies to broaden our digital capabil it ies, streamline

processes and make us more competit ive in the field. We introduced new contract processes and make us more competit ive in the field. We introduced new contract

incent ives designed to help agents thrive and earned our 18th consecut ive AM Best incent ives designed to help agents thrive and earned our 18th consecut ive AM Best

A+* rat ing.A+* rat ing.

I n 20 19 , a s i n t h e 40 yea r s t ha t came b e fo re , t h e re have b een many I n 20 19 , a s i n t h e 40 yea r s t ha t came b e fo re , t h e re have b een many

accompl ishments . Every t ime we come together as a team to consider the accompl ishments . Every t ime we come together as a team to consider the

meaning behind who we are and all the goals we have, we always find ourselves meaning behind who we are and all the goals we have, we always find ourselves

returning to the same conclusion. It is our people and the relat ionships we have returning to the same conclusion. It is our people and the relat ionships we have

that set us apart. that set us apart.

I want to thank you for doing business with Companion Life. Thank you for trust ing I want to thank you for doing business with Companion Life. Thank you for trust ing

in the power of our agil i ty, our years of expert ise and our vision for the future. in the power of our agil i ty, our years of expert ise and our vision for the future.

I want to thank our deeply dedicated senior team, our exceptional network of agents, I want to thank our deeply dedicated senior team, our exceptional network of agents,

underwriters, producers and our dil igent staff. I could imagine no greater or more underwriters, producers and our dil igent staff. I could imagine no greater or more

talented group to have by my side as we move into the future.talented group to have by my side as we move into the future.

Sincerely,Sincerely,

John WilburJohn Wilbur

PresidentPresident

m y p r i o r i t y . . . m y p r i o r i t y . . .

f o c u s i n g o n f o c u s i n g o n

t h e f u t u r e t h e f u t u r e

. . . m a i n t a i n i n g . . . m a i n t a i n i n g

t h e b a l a n c e t h e b a l a n c e

o f s t r e n g t h o f s t r e n g t h

a n d a g i l i t ya n d a g i l i t y

w a t c h t h e t i d e w a t c h t h e t i d e

r i s e t o w a r d r i s e t o w a r d

t h e f u t u r e , t h e f u t u r e ,

w h a t m a t t e r s w h a t m a t t e r s

m o s t t o m o s t t o

C o m p a n i o n L i f e C o m p a n i o n L i f e

i s y o ui s y o u

A N C I L L A R YA N C I L L A R Y

All products are offered on a voluntary basis.All products are offered on a voluntary basis.

D E N T A L D E N T A L I N S U R A N C E I N S U R A N C E P L A NP L A N

Dental by DesignDental by Design® Insurance Insurance

A portfol io of dental insurance products that lets employers create their own plans. A portfol io of dental insurance products that lets employers create their own plans.

Includes three standard base plan opt ions.Includes three standard base plan opt ions.

L I F E I N S U R A N C EL I F E I N S U R A N C E

Group Term Li fe Insurance and Accidental Death and Group Term Li fe Insurance and Accidental Death and

Dismemberment Insurance (AD&D) Dismemberment Insurance (AD&D)

A variety of plans for groups of all sizes. This program is flexible in design, with A variety of plans for groups of all sizes. This program is flexible in design, with

competit ive rates and guaranteed issue amounts.competit ive rates and guaranteed issue amounts.

Voluntary Group Term Li fe Insurance Companion Choice Plus Voluntary Group Term Li fe Insurance Companion Choice Plus

This plan offers broad coverage for famil ies — depending on the level of employee This plan offers broad coverage for famil ies — depending on the level of employee

part icipat ion and group size. Five-year premium rate lock available. part icipat ion and group size. Five-year premium rate lock available.

D I S A B I L I T Y I N C O M E I N S U R A N C E P L A N SD I S A B I L I T Y I N C O M E I N S U R A N C E P L A N S

Short Term Disabi l i ty Insurance (STD)Short Term Disabi l i ty Insurance (STD)

Plans are available as a freestanding product or as a part of a larger benefits package.Plans are available as a freestanding product or as a part of a larger benefits package.

Long Term Disabi l i ty Insurance (LTD)Long Term Disabi l i ty Insurance (LTD)

It can be offered as a freestanding product or as part of a benefits package. All It can be offered as a freestanding product or as part of a benefits package. All

LTD plans include Disabil i tyGuidance and are available to groups of all sizes.LTD plans include Disabil i tyGuidance and are available to groups of all sizes.

Voluntary Cr i t ical I l lness Insurance Voluntary Cr i t ical I l lness Insurance

This plan covers 12 condi t ions and all amounts are guaranteed issue, wi th no This plan covers 12 condi t ions and all amounts are guaranteed issue, wi th no

pre-exist ing condit ion l imitat ions. Includes five-year age band rate lock.pre-exist ing condit ion l imitat ions. Includes five-year age band rate lock.

V I S I O N V I S I O N I N S U R A N C E I N S U R A N C E P L A N P L A N

Vision by DesignVision by Design® Insurance Insurance

Opt ions are flexible and fit nearly any size budget.Opt ions are flexible and fit nearly any size budget.

Value-Added Non-Insurance BenefitsValue-Added Non-Insurance Benefits

H E A R I N G S E R V I C E S P L A NH E A R I N G S E R V I C E S P L A N

Hear ing Services Plan Hear ing Services Plan

Th i s p lan i s prov ided at no add i t iona l cost to employees enro l led i n any Th i s p lan i s prov ided at no add i t iona l cost to employees enro l led i n any

Companion Life dental insurance plan. It combines unl imited choice with qual ity and Companion Life dental insurance plan. It combines unl imited choice with qual ity and

value and may be extended to any family member.value and may be extended to any family member.

Speci f ic and Aggregate Medical Stop Loss Insurance Speci f ic and Aggregate Medical Stop Loss Insurance

( Including Level Self-Funded) ( Including Level Self-Funded)

Offers flexible coverage for self-insured companies want ing to assume part of the Offers flexible coverage for self-insured companies want ing to assume part of the

r isk for their employees’ health care claims. Includes many choices with specific r isk for their employees’ health care claims. Includes many choices with specific

plan l imits. Aggregate stop loss insurance is available to cover the employer’s r isk plan l imits. Aggregate stop loss insurance is available to cover the employer’s r isk

once all employee claims accumulate and reach a selected amount.once all employee claims accumulate and reach a selected amount.

Limited Benefi t Health Insurance Plan Limited Benefi t Health Insurance Plan

Offers indemnity structured insurance plans for small and larger employers seeking Offers indemnity structured insurance plans for small and larger employers seeking

a way to insure part-t ime and temporary employees or professional associat ions a way to insure part-t ime and temporary employees or professional associat ions

looking to provide addit ional benefits to members. looking to provide addit ional benefits to members.

Occupat ional Accident Insurance Occupat ional Accident Insurance

Provides workplace injury coverage for an employer that has non-subscr ibed Provides workplace injury coverage for an employer that has non-subscr ibed

or “opted out” of the Texas workers’ compensat ion system. Standard coverage or “opted out” of the Texas workers’ compensat ion system. Standard coverage

Insurance includes accident medical expense, AD&D and accident disabil i ty.Insurance includes accident medical expense, AD&D and accident disabil i ty.

Short-Term Medical Insurance Short-Term Medical Insurance

(Also referred to as Short-Term Limited Durat ion Insurance)(Also referred to as Short-Term Limited Durat ion Insurance)

P rov i des i nd i v i dua l s w i t h med i ca l I n su rance cove rage on a sho r t - t e rm P rov i des i nd i v i dua l s w i t h med i ca l I n su rance cove rage on a sho r t - t e rm

bas i s . Coverage cou ld be fo r days o r up to severa l months . I t p rov ides bas i s . Coverage cou ld be fo r days o r up to severa l months . I t p rov ides

insurance opt ions for indiv iduals who are unemployed or recently graduated, insurance opt ions for indiv iduals who are unemployed or recently graduated,

or as an alternat ive to COBRA.or as an alternat ive to COBRA.

Group Supplemental ExpenseGroup Supplemental Expense

Complements major medical insurance plans by helping to cover out-of-pocket Complements major medical insurance plans by helping to cover out-of-pocket

expenses, such as deduct ibles, copays and coinsurance. Base plans offer benefits expenses, such as deduct ibles, copays and coinsurance. Base plans offer benefits

to help cover hospital stays with opt ional benefi ts for outpat ient treatment and to help cover hospital stays with opt ional benefi ts for outpat ient treatment and

physician office visits.physician office visits.

Other Health Insurance/ Other Health Insurance/

Group Product That Is a Supplement to Medicare Part D Group Product That Is a Supplement to Medicare Part D

Provides employers with ret ired employees above the age of 65 with supplemental Provides employers with ret ired employees above the age of 65 with supplemental

insurance coverage. insurance coverage.

Medicare Supplement Medicare Supplement

Provides individuals with coverage for the port ion of health care costs that Medicare Provides individuals with coverage for the port ion of health care costs that Medicare

Parts A and B don’t cover. Parts A and B don’t cover.

A C C I D E N T A C C I D E N T

A N D H E A L T HA N D H E A L T H

*Companion Life has an AM Best rat ing of A+ (Superior). Rat ing as of Dec. 10, 2019. For the *Companion Life has an AM Best rat ing of A+ (Superior). Rat ing as of Dec. 10, 2019. For the

latest rat ing, access www.ambest.com. The rat ing represents an independent opinion from latest rat ing, access www.ambest.com. The rat ing represents an independent opinion from

the leading provider of insurer rat ings of a company’s financial strength and abil i ty to meet the leading provider of insurer rat ings of a company’s financial strength and abil i ty to meet

its obl igat ions to pol icyholders.its obl igat ions to pol icyholders.

Some products not available in all states.Some products not available in all states.

A D M I T T E D A S S E T S , L I A B I L I T I E S A N D S U R P L U S A D M I T T E D A S S E T S , L I A B I L I T I E S A N D S U R P L U S STAT U TORY BAS I S ( I N T HOUSAN DS )STAT U TORY BAS I S ( I N T HOUSAN DS )

December 31,December 31, 2019 20182019 2018A D M I T T E D A S S E T SA D M I T T E D A S S E T S

BondsBonds $ 204,528 $ 182,250 Common stocksCommon stocks 119,511 98,994CashCash 39,270 28,351 Reinsurance receivables and reinsurance funds heldReinsurance receivables and reinsurance funds held 7,267 8,214 Deferred tax asset – netDeferred tax asset – net − 443 Premiums due, deferred and uncollectedPremiums due, deferred and uncollected 23,939 7,070 Investment income due and accruedInvestment income due and accrued 1,512 1,581 Managing general underwriters receivablesManaging general underwriters receivables 57,689 57,484Other assetsOther assets 10,612 11,297To t a l a d m i t t e d a s s e t sTo t a l a d m i t t e d a s s e t s $ 464,328 $ 395,684$ 464,328 $ 395,684

L I A B I L I T I E S L I A B I L I T I E S Aggregate reserves for future pol icy benefits:Aggregate reserves for future pol icy benefits:

Life, annuity and supplementary contractsLife, annuity and supplementary contracts $ 4,820 $ 7,321Accident and healthAccident and health 564 271

Pol icy claim reserves:Pol icy claim reserves: Life Life 5,221 3,841 Accident and healthAccident and health 65,971 40,789

Premiums received in advancePremiums received in advance 279 436 Commissions to agents due or accruedCommissions to agents due or accrued 6,601 4,738Experience rat ing refundsExperience rat ing refunds 722 741 Taxes (excluding federal income), l icenses and feesTaxes (excluding federal income), l icenses and fees 11,681 13,659 Net de fe r red tax l i ab i l i t yNe t de fe r red tax l i ab i l i t y 3,333 − Asse t va lua t i on rese rveAsse t va lua t i on rese rve 15,969 6,359 FFedera l i ncome taxesedera l i ncome taxes 1,883 793 Funds held under reinsuranceFunds held under reinsurance 68,006 69,256 Other l iabil i t iesOther l iabil i t ies 25,247 19,332 To t a l l i a b i l i t i e sTo t a l l i a b i l i t i e s $ 210,297 $ 167,536 $ 210,297 $ 167,536 S T O C K H O L D E R ' S E Q U I T YS T O C K H O L D E R ' S E Q U I T Y Common capital stockCommon capital stock 2,500 2,500Contributed capitalContributed capital 31,652 31,652 Unassigned surplusUnassigned surplus 219,879 193,996 To t a l s t o c k h o l d e r ' s e qu i t y To t a l s t o c k h o l d e r ' s e qu i t y 254,031 228,148254,031 228,148 To t a l l i a b i l i t i e s a n d s t o c k h o l d e r ' s e qu i t y To t a l l i a b i l i t i e s a n d s t o c k h o l d e r ' s e qu i t y $ $ 464,328 $ 395,684464,328 $ 395,684

2 0 1 9 2 0 1 9

F I N A N C I A L SF I N A N C I A L S

O P E R A T I O N S O P E R A T I O N S STAT U TORY BAS I S ( I N T HOUSAN DS )STAT U TORY BAS I S ( I N T HOUSAN DS )

December 31,December 31, 2019 20182019 2018R E V E N U E SR E V E N U E S

PremiumsPremiums $ 323,993 $ 279,851 Net investment incomeNet investment income 8,819 7,401 Net real ized capital gainsNet real ized capital gains 8 − OtherOther 21,045 21,453 To t a l R e v e n u e sTo t a l R e v e n u e s 353,865 308,705 353,865 308,705

B E N E F I T S A N D E X P E N S E S B E N E F I T S A N D E X P E N S E S Death, annuity and accident and health benefitsDeath, annuity and accident and health benefits 229,628 183,163Increase (decrease) in aggregate reserves for future pol icy benefitsIncrease (decrease) in aggregate reserves for future pol icy benefits (321) (1,238) CommissionsCommissions 63,311 56,376Salaries and general insurance expenses Salaries and general insurance expenses 31,512 35,365 Taxes (excluding federal income), l icenses and feesTaxes (excluding federal income), l icenses and fees 5,274 10,242 I nc rease (dec rease ) i n load i ngInc rease (dec rease ) i n load i ng 21 (73 To t a l b e n e f i t s a n d e x p e n s e sTo t a l b e n e f i t s a n d e x p e n s e s 329,425 283,835 329,425 283,835

I n c o m e b e fo r e f e d e r a l i n c o m e t a xe sI n c o m e b e fo r e f e d e r a l i n c o m e t a xe s 24,440 24,870 P r o v i s i on fo r f e d e r a l i n c o m e t a xe sP r o v i s i on fo r f e d e r a l i n c o m e t a xe s 5,619 6,120

N e t i n c o m e N e t i n c o m e $ $ 18,821 $ 18,75018,821 $ 18,750

2 0 1 9 2 0 1 9

F I N A N C I A L SF I N A N C I A L S

)

o u r p e o p l e o u r p e o p l e

a n d t h e a n d t h e

r e l a t i o n s h i p s r e l a t i o n s h i p s

w e h a v e w e h a v e

s e t u s a p a r t s e t u s a p a r t

C O L U M B I A , S O U T H C A R O L I N AC O L U M B I A , S O U T H C A R O L I N A

8 0 0 - 7 5 3 - 0 4 0 4 F A X : 8 0 3 - 7 3 5 - 0 7 3 68 0 0 - 7 5 3 - 0 4 0 4 F A X : 8 0 3 - 7 3 5 - 0 7 3 6

Diane FischerDiane Fischer

Vice President and Chief Financial OfficerVice President and Chief Financial Officer

Michael FlockMichael Flock

Vice President of Operat ionsVice President of Operat ions

Sean K. KingSean K. King

Assistant Vice President, System Security OfficerAssistant Vice President, System Security Officer

Harvey Myer Harvey Myer

Vice President and Chief Underwriter, Ancillary ProductsVice President and Chief Underwriter, Ancillary Products

Aust in Scott , Aust in Scott ,

Assistant Vice President, Sales and Market ing, Accident and HealthAssistant Vice President, Sales and Market ing, Accident and Health

Stephanie CooperStephanie Cooper

Assistant Vice President, Ancillary OversightAssistant Vice President, Ancillary Oversight

F O R T WA Y N E , I N D I A N AF O R T WA Y N E , I N D I A N A

2 6 0 - 4 1 4 - 5 3 2 02 6 0 - 4 1 4 - 5 3 2 0

Jon Anderson Jon Anderson

Vice President of Market ing and Chief Strategy Officer, Stop LossVice President of Market ing and Chief Strategy Officer, Stop Loss

L E X I N G T O N , K E N T U C K YL E X I N G T O N , K E N T U C K Y

8 0 0 - 7 5 3 - 0 4 0 48 0 0 - 7 5 3 - 0 4 0 4

J im HeltonJ im Helton

Vice President, ActuarialVice President, Actuarial

E A G L E , I D A H OE A G L E , I D A H O

2 0 8 - 3 4 0 - 7 4 4 72 0 8 - 3 4 0 - 7 4 4 7

Mark SmidtMark Smidt

Vice President and Chief Risk Officer, Accident and HealthVice President and Chief Risk Officer, Accident and Health

S I G N A L M O U N T A I N , T E N N E S S E ES I G N A L M O U N T A I N , T E N N E S S E E

4 2 3 - 7 1 0 - 4 9 3 6 F A X : 8 0 3 - 7 3 5 - 0 7 3 64 2 3 - 7 1 0 - 4 9 3 6 F A X : 8 0 3 - 7 3 5 - 0 7 3 6

Eddie Smith Eddie Smith

Senior Director of Market ingSenior Director of Market ing

G A R D E N G R O V E , C A L I F O R N I AG A R D E N G R O V E , C A L I F O R N I A

7 1 4 - 4 7 3 - 2 9 2 9 F A X : 7 1 4 - 8 9 3 - 6 5 3 37 1 4 - 4 7 3 - 2 9 2 9 F A X : 7 1 4 - 8 9 3 - 6 5 3 3

Steve Course Steve Course

Director of Market ingDirector of Market ing

C O L U M B I A , S O U T H C A R O L I N A C O L U M B I A , S O U T H C A R O L I N A

8 0 0 - 7 5 3 - 0 4 0 4 , E X T . 4 5 0 1 2 F A X : 8 0 3 - 7 3 5 - 0 7 3 68 0 0 - 7 5 3 - 0 4 0 4 , E X T . 4 5 0 1 2 F A X : 8 0 3 - 7 3 5 - 0 7 3 6

Everett “Skip” Eynon I I I Everett “Skip” Eynon I I I

Director of Market ingDirector of Market ing

A M H E R S T , N E W H A M P S H I R EA M H E R S T , N E W H A M P S H I R E

6 0 3 - 5 6 6 - 5 0 6 5 F A X : 8 0 3 - 7 3 5 - 0 7 3 66 0 3 - 5 6 6 - 5 0 6 5 F A X : 8 0 3 - 7 3 5 - 0 7 3 6

Roger Lapham Roger Lapham

Director of Market ingDirector of Market ing

L E B A N O N , O H I OL E B A N O N , O H I O

9 3 7 - 5 4 5 - 5 0 9 2 F A X : 8 0 3 - 7 3 5 - 0 7 3 69 3 7 - 5 4 5 - 5 0 9 2 F A X : 8 0 3 - 7 3 5 - 0 7 3 6

Fred Wise Fred Wise

Director of Market ingDirector of Market ing

P E O R I A , I L L I N O I SP E O R I A , I L L I N O I S

3 0 9 - 3 3 8 - 9 3 6 5 F A X : 8 0 0 - 8 3 6 - 5 4 3 33 0 9 - 3 3 8 - 9 3 6 5 F A X : 8 0 0 - 8 3 6 - 5 4 3 3

Larry Wood Larry Wood

Director of Market ingDirector of Market ing

A N C I L L A R Y A N C I L L A R Y

S A L E SS A L E S

C O M P A N I O N L I F E I N S U R A N C E C O M P A N YC O M P A N I O N L I F E I N S U R A N C E C O M P A N YP.O. Box 100102 Columbia , SC 29202-3102P .O . Box 100102 Columbia , SC 29202-3102

Phone : 800-753-0404 Fax : 803-735-0736Phone : 800-753-0404 Fax : 803-735-0736

Emai l : c . l i fe@Compan ionGroup .comEmai l : c . l i fe@Compan ionGroup .com

www.Compan ionL i fe .comwww.Compan ionL i fe .com