These are times of great uncertainty for all of us as we cope with a global economy under pressures not seen in our life times. Not one of us could have predicted a year ago the tidal wave of destruction that has swept across our nation's economy.


As a country and as a company we have learned many lessons in the past six to eight months: Size alone does not guarantee survival; giants fell over the course of a weekend. Age alone does not guarantee survival; financial troubles nearly toppled companies that trace their heritage back close to two centuries.

What matters most is a company's ability to deliver on its promises - over 10, 20, 30, even 50 or more years. There is no substitute for financial strength and responsible business decisions.

At National Life we feel the events of 2008 have reinforced the power of our story. For 160 years we have talked about our heritage, our prudent investment strategy, the benefits of our mutual structure and our focus on our core business. In the past year we have seen a greater appreciation for the value of a company that sticks to its strengths and takes a long term view.

We have not been immune to the turbulence in the markets and, like other investors, we have and will experience some losses. Our investments, however, are so broadly diversified that our long-term financial condition remains strong.

The three major independent rating agencies give us very positive ratings: We have a rating of A+ (Strong) from Standard & Poor's, a rating of A (Excellent) from A.M. Best and a rating of A2 (Good) from Moody's. (For more information on our ratings, click here).

We enjoyed exceptional sales growth in 2008 (overall NLGroup sales up 53 percent), ended the year with net income of $15.4 million and a statutory surplus of $792 million. That figure is one closely monitored by regulators to measure financial strength. (To see our 2008 Annual Report, click here).

Ever since National Life Insurance Company was chartered in 1848 we have taken seriously our responsibilities to our policyholders. We know what it takes to navigate through troubled times.

And that's what we continue to do every day.

Mehran Assadi
President and Chief Executive Officer
National Life Group

TC48244(0409)