Summary: Direct Individual Life Premium And Mr. Bower

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Mr. Bower referenced his report on slides 104-108 stating that for the 4th quarter, Direct Individual Life Premium was relatively flat compared to the prior two years. Single premium was down but in line with projections that was set for the year. The renewal premium was up 3% and continues to see good growth. He continued by stating that we did see a decrease on the Farm Bureau Insurance side of individual Life sales because we were focused on the Property & Casualty growth; however, we still had a good year.

Mr. Bower highlighted the 2015 results of issued policies/face amount on slide 106, stating we issued just shy of 12,000 Life insurance policies for the year with 45% of those policies being permanent and 38% term policies. Summarizing
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Mr. Bower commented that they are neither and that’s why it doesn’t add up to 100; ADPs in 2015 were 20%.

In response to the question, if this dividend reduction, if you look at a paid-up policy like the UFB100s, is it a possibility that someone would had been paid up enough that the dividends have been paying the premiums and they might have to start putting money in because we have lowered the dividend? Mr. Miske commented that the UFB100 is an interest sensitive product so it doesn’t apply to this dividend reduction but you could have clients who are on premium paying mode that is reduced by their dividend so it could result in them paying a greater premium going forward.

In response to the question of how many products are there, Mr. Bower commented that he didn’t know but we have a lot of old products some at 4½%, 4%, 3% there are some at 5% or 6%. There are a lot of products with guarantees between the 3%-6% range but at least level, I couldn’t tell you exactly how, I can. Responding to the question of how many products can’t we reduce the rates on, Mr. Bower stated that all of our new money in our annuities, are at the minimum guarantee right now, which is

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