20 Accident and Health Policy Experience Report

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3 20 Accident and Health Policy Experience Report 201

4 The is the authoritative source for insurance industry information. Our expert solutions support the efforts of regulators, insurers and researchers by providing detailed and comprehensive insurance information. The offers a wide range of publications in the following categories: Accounting & Reporting Information about statutory accounting principles and the procedures necessary for fi ling fi nancial annual statements and conducting risk-based capital calculations. Consumer Information Important answers to common questions about auto, home, health and life insurance as well as buyer s guides on annuities, long-term care insurance and Medicare supplement plans. Financial Regulation Useful handbooks, compliance guides and reports on fi nancial analysis, company licensing, state audit requirements and receiverships. Legal Comprehensive collection of model laws, regulations and guidelines; state laws on insurance topics; and other regulatory guidance on antifraud and consumer privacy. Market Regulation Regulatory and industry guidance on market-related issues, including antifraud, product fi ling requirements, producer licensing and market analysis. Activities member directories, in-depth reporting of state regulatory activities and offi cial historical records of national meetings and other activities. Special Studies Studies, reports, handbooks and regulatory research conducted by members on a variety of insurancerelated topics. Statistical Reports Valuable and in-demand insurance industry-wide statistical data for various lines of business, including auto, home, health and life insurance. Supplementary Products Guidance manuals, handbooks, surveys and research on a wide variety of issues. Capital Markets & Investment Analysis Information regarding portfolio values and procedures for complying with reporting requirements. White Papers Relevant studies, guidance and policy positions on a variety of insurance topics. For more information about publications, view our online catalog at: All rights reserved. ISBN: Printed in the United States of America No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any storage or retrieval system, without written permission from the. Executive Offi ce 444 North Capitol Street, NW Suite 700 Washington, DC Central Offi ce 1100 Walnut Street Suite 1500 Kansas City, MO Capital Markets & Investment Analysis Offi ce One New York Plaza, Suite 4210 New York, NY

5 2014 Accident and Health Policy Experience Report TABLE OF CONTENTS INTRODUCTION...1 Report Format...1 Aggregation and Calculation of Data...3 Definitions...3 Qualifications...4 Accident and Health Policy Experience Figure 1: Grand Total of or Certificates Figure 2: Grand Total of Covered Lives AGGREGATED ANNUAL STATEMENT DATA Annual Statement Page (Health Blank) 2014 Report Page Supp 8-9 Individual Business Supp 10 Group, Other, and Grand Total Business...15 Supp 11 Summary Page...16 Annual Statement Data by Statement Type...17 INDIVIDUAL BUSINESS...35 Market Share for the Top 125 Insurers...37 Top 25 Groups by Company...43 Market Share by Statement Type...59 Market Share by Line of Business...73 GROUP BUSINESS Market Share for the Top 125 Insurers Top 25 Groups by Company Market Share by Statement Type Market Share by Line of Business OTHER BUSINESS Market Share for the Top 125 Insurers Top 25 Groups by Company Market Share by Statement Type Market Share by Line of Business GRAND TOTAL (INDIVIDUAL, GROUP, AND OTHER) BUSINESS Market Share for the Top 125 Insurers Top 25 Groups by Company Market Share by Statement Type TECHNICAL NOTES COMPANY INDEX...305

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7 2014 Accident and Health Policy Experience Report INTRODUCTION The Accident and Health Policy Experience Report was originally created in 2010 using 2009 data, with the intention of meeting the growing demand for information on health insurance. The Accident and Health Policy Experience Report includes aggregated data from the Accident and Health Policy Experience Exhibit, market share data based on this exhibit, and more. The health insurance market is expansive, with a variety of different types of health insurers. Employer-provided health insurance that is self-insured may be regulated by the federal government. Not all health insurers are required to file with the state insurance departments. For example, while many health insurance writers in California file with the California Department of Insurance, some companies are required to file with the California Department of Managed Health Care. It is the peculiarities of the health insurance market that warrant caution be taken when analyzing the numbers within this report. Because the receives most filings from companies required to file with the state insurance departments, the data are not a complete depiction of the health market as a whole. Some life insurance companies and fraternal insurance companies provide accident and health coverage, as well as expected life coverages. Property/casualty companies may also provide accident and health coverage in addition to other lines of business. Some companies write primarily accident and health insurance, even if they are licensed as life, fraternal, or property/casualty entities. Therefore, the Accident and Health Policy Experience Exhibit appears in all major financial annual statement blanks (property/casualty, health, life, and fraternal). The exhibit as it currently exists was added to the financial annual statement blanks that were used for reporting 2006 year-end data. The exhibit includes a breakout for individual and group business. This report contains the following sections: Report Format Aggregated Annual Statement Financial Data This section reflects data reported in the Accident and Health Policy Experience Exhibit. The aggregated data is broken out by each financial annual statement type (property/casualty, health, life, and fraternal). The data is not available at the state level at this time. Individual Business This section contains breakouts of Individual Business market share data. The market share is based on premiums earned as reported in the Accident and Health Policy Experience Exhibit. Insurance groups are made up of insurance companies that are related by common ownership. The market share reports show data by group for those insurers that are a member of a group. This allows the report to contain a more complete view of the market share information. The market share data is broken out by statement type and by line of business. 1

8 The Individual Business breakouts are: Market Share for the Top 125 Insurers This includes total market share, across all business types, for the top 125 groups. Top 25 Groups by Company Individual company data is shown for each of the top 25 groups. Market Share Data by Statement Type The data is broken out by business type. It includes breakouts of separate market share data in each statement type, including property/casualty, health, life, and fraternal. Market Share Data by Line of Business This consists of data broken out by line of business. It includes a total market share of the top 125 groups. Breakouts are provided for the aggregate of all lines of business, as well as by line of business (e.g., comprehensive major medical). Group Business This section contains breakouts of Group Business market share data. The Group Business breakouts are: Market Share for the Top 125 Insurers Top 25 Groups by Company Market Share Data by Statement Type Market Share Data by Line of Business Other Business This section contains breakouts of Other Business market share data The Other Business breakouts are: Market Share for the Top 125 Insurers Top 25 Groups by Company Market Share Data by Statement Type Market Share Data by Line of Business Grand Total (Individual, Group, and Other) Business The final section contains breakouts of Grand Total (Individual, Group, and Other) Business market share data. The data in this section is not broken out by the separate Lines of Business included within the Grand Total. The Grand Total breakouts are: Market Share for the Top 125 Insurers Top 25 Groups by Company Market Share Data by Statement Type 2

9 Company Index An index listing the insurer groups and the individual companies included in the insurance groups reported in this publication has been added at the end of the report. Insurers continuously merge, change names, and buy and sell companies; however, the index gives a snapshot view of group structures as filed with the by the date this report was generated. Comments on this report are encouraged so that the report will continue to evolve to meet the needs of its users. These data are maintained in databases and are available for additional application development. These data are also available for purchase by the public in both hardcopy and electronic formats. Aggregation and Calculation of Data This report utilizes the term aggregated to describe data developed by summing the financial annual statements of individual companies. In order to represent more completely the data as reported on the financial annual statements, all data are aggregated directly from the numbers reported to the. Definitions The health insurance industry is broad, and not all terminology carries the same definition. To avoid ambiguity and to help ensure this report is not misunderstood, some definitions have been provided. For more definitions within the Accident and Health Policy Experience Exhibit, please use the Annual and Quarterly Statement Instructions (for property/casualty, health, life, or fraternal). Group Business Health insurance where the policy is issued to employers, associations, trusts, or other groups covering employees, members and/or their dependents, to whom a certificate of coverage may be provided. Individual Business Health insurance where the policy is issued to an individual and covers the individual and/or their dependents. This includes conversions from group policies. Comprehensive/Major Medical Policies that provide fully insured indemnity, health maintenance organization (HMO), preferred provider organization (PPO), or fee for service coverage for hospital, medical, and surgical expenses. This category excludes short-term medical insurance; the Federal Employees Health Benefit Program and noncomprehensive coverage (such as basic hospital only, medical only, hospital confinement indemnity, surgical, outpatient indemnity, specified disease, intensive care, and organ and tissue transplant coverage); and any other coverage described in the other categories of this exhibit. 3

10 Qualifications The accuracy of the reports included in this publication depends on the accuracy of the information contained in each Accident and Health Policy Experience Exhibit filed by insurers. Even though the data elements used to prepare the reports are extracted from exhibits filed with the, the cannot verify or guarantee the accuracy of every data element. While the exercises a great deal of care in capturing data from the financial annual statements and producing various reports, as with any statistical project of a significant magnitude, errors can occur. Consequently, the makes no representations or warranties with respect to the accuracy of the data and statistics in this report. Please send any questions regarding this report to researchrequest@naic.org. Links to this report and other reports can be found on the website at: Publications. 4

11 ACCIDENT AND HEALTH POLICY EXPERIENCE COUNTRYWIDE * INCURRED CLAIMS CHANGE IN CONTRACT LOSS PREMIUMS EARNED AMOUNT RESERVES RATIO Grand Total Individual Business 2010 $ 231,406,329,551 $ 189,209,391,179 $ 9,103,850, % 2011 $ 248,150,598,691 $ 203,692,230,630 $ 6,811,541, % 2012 $ 275,331,003,590 $ 229,077,321,934 $ 7,963,114, % 2013 $ 300,898,264,568 $ 252,350,066,953 $ 7,553,211, % 2014 $ 360,636,224,687 $ 306,109,705,129 $ 7,992,483, % $ 283,284,484, $ 236,087,743, $ 7,884,840, % Grand Total Group Business 2010 $ 308,772,423,410 $ 254,193,201,219 $ 2,259,412, % 2011 $ 318,544,030,034 $ 260,285,262,066 $ 1,644,917, % 2012 $ 319,265,016,462 $ 264,195,307,535 $ 2,091,570, % 2013 $ 320,528,048,857 $ 264,137,467,703 $ 2,051,840, % 2014 $ 316,229,440,369 $ 257,868,663,588 $ 1,903,725, % $ 316,667,791, $ 260,135,980, $ 1,990,293, % Grand Total Other Business 2010 $ 8,948,454,269 $ 6,190,695,093 $ 1,385, % 2011 $ 9,762,385,463 $ 6,763,710,823 $ 12,062, % 2012 $ 9,785,579,698 $ 6,838,329,920 $ 2,236, % 2013 $ 11,698,910,267 $ 8,232,126,487 $ 4,025, % 2014 $ 13,374,504,961 $ 9,549,465,202 $ (1,512,106) 71.4% $ 10,713,966, $ 7,514,865, $ 3,639, % Grand Total (Individual, Group, and Other) 2010 $ 549,127,207,230 $ 449,593,287,491 $ 11,364,648, % 2011 $ 576,457,014,188 $ 470,741,203,519 $ 8,468,521, % 2012 $ 604,381,599,750 $ 500,110,959,389 $ 10,056,920, % 2013 $ 633,125,223,692 $ 524,719,661,143 $ 9,609,077, % 2014 $ 690,240,170,017 $ 573,527,833,919 $ 9,894,696, % $ 610,666,242, $ 503,738,589, $ 9,878,772, % * Results may vary from prior-year reports due to new or revised filings. Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 5

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13 or Certificates Grand Total (Individual, Group, and Other) Business Millions Total Per Year 285,835, ,045, ,371, ,950, ,885,909 Years 7

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15 Covered Lives Grand Total (Individual, Group, and Other) Business Millions Total Per Year 653,279, ,360, ,324, ,364, ,501,558 Years 9

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17 Accident and Health Policy Experience Report Aggregated Annual Statement Data 11

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19 Aggregated Totals for All Statement Types Earned Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ or Certificates Covered Lives as of Dec 31 as of Dec 31 Member Months A. INDIVIDUAL BUSINESS 1. Comprehensive Major Medical 1.1 With contract reserves $16,565,047,208 $15,539,026,502 $(17,455,415) 93.70% 3,168,151 4,903,007 57,670, Without contract reserves $27,826,330,002 $28,186,001,519 $38,355, % 5,298,984 8,144,869 93,284, Subtotal $44,391,377,211 $43,725,028,019 $20,900, % 8,467,135 13,047, ,955, Short-Term Medical 2.1 With contract reserves $2,979,625 $2,418,080 $(40,808) 79.78% 4,912 7,389 79, Without contract reserves $128,125,177 $98,256,060 $ % 107, ,961 1,239, Subtotal $131,104,802 $100,674,140 $(40,808) 76.76% 111, ,350 1,318, Other Medical (Non-Comprehensive) 3.1 With contract reserves $1,065,036,304 $495,951,287 $58,608, % 2,678,853 4,433,887 51,214, Without contract reserves $131,812,043 $81,714,531 $(30,325) 61.97% 85, ,572 1,331, Subtotal $1,196,848,346 $577,665,818 $58,577, % 2,764,270 4,547,459 52,545, Specified/Named Disease 4.1 With contract reserves $3,499,560,109 $1,833,966,462 $532,706, % 7,506,847 13,650, ,670, Without contract reserves $16,592,493 $8,392,497 $(52,850) 50.26% 82, ,348 1,209, Subtotal $3,516,152,602 $1,842,358,957 $532,653, % 7,589,325 13,758, ,879, Limited Benefit 5.1 With contract reserves $661,596,751 $549,263,298 $28,760, % 305, ,930 4,299, Without contract reserves $2,613,204,260 $2,424,849,753 $(82) 92.79% 513, ,274 7,392, Subtotal $3,274,801,011 $2,974,113,051 $28,760, % 819,613 1,068,204 11,692, Student 6.1 With contract reserves $57,765 $15,929 $ % , Without contract reserves $87,700,390 $78,119,827 $ % 338, ,818 3,946, Subtotal $87,758,155 $78,135,756 $ % 338, ,180 3,950, Accident Only or AD&D 7.1 With contract reserves $2,360,905,453 $889,065,946 $84,004, % 9,659,944 14,614, ,516, Without contract reserves $137,064,724 $32,229,732 $(23,723) 23.50% 2,357,415 2,793,362 28,449, Subtotal $2,497,970,176 $921,295,677 $83,980, % 12,017,359 17,407, ,965, Disability Income - Short-Term 8.1 With contract reserves $2,135,097,727 $977,666,289 $46,413, % 3,318,546 3,427,107 39,196, Without contract reserves $135,463,677 $52,982,390 $(35,855) 39.09% 245, ,163 2,973, Subtotal $2,270,561,405 $1,030,648,679 $46,377, % 3,564,028 3,674,270 42,170,555 ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 13

20 aggregated totals for All Statement Types Incurred Change in or Certificates Covered Lives Member Earned Claims Amount Contract Reserves Loss Ratio ¹ as of Dec 31 as of Dec 31 Months A. INDIVIDUAL BUSINESS (Continued) 9. Disability Income - Long-Term 9.1 With contract reserves $4,677,232,242 $4,337,514,988 $(223,282,392) 87.96% 3,107,010 3,057,132 37,367, Without contract reserves $34,839,979 $4,511,992 $(132,242) 12.57% 24,848 32, , Subtotal $4,712,072,219 $4,342,026,979 $(223,414,634) 87.41% 3,131,858 3,089,289 37,642, Long-Term Care 10.1 With contract reserves $13,563,001,327 $9,407,999,354 $7,534,774, % 4,351,493 4,933,470 62,336, Without contract reserves $375,949,485 $187,954,601 $30,238, % 34,324 34, , Subtotal $13,938,950,811 $9,595,953,955 $7,565,013, % 4,385,817 4,967,795 62,782, Medicare Supplement (Medigap) 11.1 With contract reserves $9,514,707,563 $7,348,494,495 $(151,162,666) 75.64% 4,864,634 4,862,941 55,158, Without contract reserves $8,897,286,427 $6,666,439,053 $242, % 4,062,625 4,067,087 46,697, Subtotal $18,411,993,991 $14,014,933,551 $(150,919,789) 75.30% 8,927,259 8,930, ,856, Dental 12.1 With contract reserves $1,067,148,583 $753,581,449 $9,034, % 3,548,690 4,095,775 39,103, Without contract reserves $1,052,210,059 $719,020,512 $(6,557) 68.33% 2,319,909 3,564,753 40,793, Subtotal $2,119,358,642 $1,472,601,961 $9,028, % 5,868,599 7,660,528 79,897, State Children's Health Insurance Program 13.1 With contract reserves $336,193,132 $250,276,489 $1,441, % 180, ,540 2,277, Without contract reserves $2,599,241,479 $2,141,401,722 $372, % 1,145,115 1,178,052 16,603, Subtotal $2,935,434,611 $2,391,678,211 $1,813, % 1,325,655 1,358,592 18,881, Medicare 14.1 With contract reserves $13,933,490,892 $12,221,378,549 $62,168, % 1,286,582 1,299,812 15,902, Without contract reserves $116,597,651,355 $99,707,973,028 $5,831, % 10,103,975 11,130, ,236, Subtotal $130,531,142,247 $111,929,351,577 $67,999, % 11,390,557 12,430, ,138, Medicaid 15.1 With contract reserves $14,822,199,845 $12,980,511,640 $869, % 3,783,372 3,771,937 42,825, Without contract reserves $95,597,269,762 $81,613,863,245 $(2,415,023) 85.37% 24,139,868 24,368, ,912, Subtotal $110,419,469,607 $94,594,374,885 $(1,545,269) 85.67% 27,923,240 28,140, ,738, Medicare Part D - Stand-Alone 16.1 With contract reserves $966,495,419 $892,525,178 $(40,999,949) 88.10% 938, ,283 11,538, Without contract reserves $17,488,881,278 $14,372,612,113 $ % 16,842,617 17,638, ,874, Subtotal $18,455,376,697 $15,265,137,291 $(40,999,949) 82.49% 17,780,900 18,576, ,413, Other Individual Business 17.1 With contract reserves $666,577,612 $388,353,877 $(5,699,823) 57.41% 1,303,550 2,035,039 10,985, Without contract reserves $1,079,274,547 $865,372,750 $(2,104) 80.18% 454, ,801 4,517, Subtotal $1,745,852,158 $1,253,726,627 $(5,701,927) 71.49% 1,758,441 2,749,840 15,503, Total Individual Business 18.1 With contract reserves $85,837,327,552 $68,868,009,804 $7,920,141, % 50,007,594 66,617, ,148, Without contract reserves $274,798,897,135 $237,241,695,325 $72,341, % 68,157,232 75,273, ,184, Grand total individual $360,636,224,687 $306,109,705,129 $7,992,483, % 118,164, ,891,314 1,592,333,738 ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 14

21 Aggregated Totals for All Statement Types Earned Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ or Certificates Covered Lives as of Dec 31 as of Dec 31 B. GROUP BUSINESS Comprehensive Major Medical 1. Single Employer 1.1 Small employer $64,708,047,253 $51,606,939,451 ($1,885,636) 79.75% 7,502,702 13,685, ,611, Other Employer $118,159,431,686 $97,309,095,350 $10,681, % 12,541,237 26,718, ,059, Single employer subtotal $182,867,478,945 $148,916,034,796 $8,795, % 20,043,939 40,404, ,671, Multiple employer assns and trusts $8,614,302,784 $7,226,703,920 $14,353, % 846,019 1,668,178 20,663, Other associations and discretionary trusts $4,495,612,638 $3,692,275,732 $5,242, % 801,572 1,408,366 18,499, Other comprehensive major medical $8,323,731,732 $7,688,538,485 ($2,456,872) 92.34% 1,468,950 2,884,067 35,002, Comprehensive/major medical subtotal $204,301,126,098 $167,523,552,935 $25,934, % 23,160,480 46,365, ,836,991 Other Medical (Non-Comprehensive) 6. Specified/named disease $988,759,618 $410,663,331 $68,116, % 3,149,860 5,282,934 59,321, Limited benefit $4,012,714,451 $2,978,955,850 ($3,286,045) 74.16% 12,468,355 46,336, ,880, Student $1,925,394,700 $1,522,207,761 $284, % 2,530,270 3,803,041 42,138, Accident only or AD&D $3,689,739,970 $1,544,293,694 $1,432, % 98,827, ,781,007 1,907,380, Disability income - short-term $4,626,995,583 $3,187,696,638 $4,320, % 8,830,187 21,640, ,090, Disability income - long-term $11,214,458,926 $9,776,924,644 ($2,645,657) 87.16% 13,774,161 42,975, ,273, Long-term care $2,273,110,476 $1,170,805,118 $1,770,383, % 1,244,708 2,578,041 27,962, Medicare supplement $6,389,526,808 $5,047,933,497 $22,947, % 3,093,070 3,127,717 37,272, Federal Employees Health Benefit Plans $35,092,409,726 $32,019,886,636 $4,014, % 3,189,994 7,376,501 88,420, Tricare $32,043,299 $30,539,404 ($818,942) 92.75% Dental $21,642,371,752 $16,193,162,098 $32,131, % 20,384,339 59,016, ,632, Medicare $12,986,742,949 $11,511,401,970 $1,955, % 1,080,304 1,217,645 14,334, Medicare Part D - Stand-Alone $1,287,440,125 $1,032,396,598 $ % 737, ,984 12,020, Other group care $5,766,605,886 $3,918,243,414 ($21,045,041) 67.58% 9,843,603 40,184, ,658, Grand total group business $316,229,440,369 $257,868,663,588 $1,903,725, % 202,314, ,646,647 4,716,223,852 C. OTHER BUSINESS 1. Credit (Individual and Group) $1,025,662,921 $374,459,150 ($3,574,476) 36.16% 9,699,621 10,224, ,833, Stop Loss/Excess Loss $12,348,842,039 $9,175,006,053 $2,062, % 18,710,236 53,805, ,715, Administrative Services Only XXX XXX XXX XXX 17,904,501 58,702, ,168, Administrative Services Contracts XXX XXX XXX XXX 21,092,690 77,231, ,367, Grand Total Other Business $13,374,504,961 $9,549,465,202 ($1,512,106) 71.39% 67,407, ,963,597 2,386,083,982 D. TOTAL BUSINESS 1. Total Non U.S. Policy Forms $10,569,816,003 $5,844,855,132 $1,134,834, % 32,007,376 46,332, ,807, Grand Total Individual, Group & Other Business $700,809,986,026 $579,372,689,050 $11,029,531, % 419,893, ,834,093 9,102,448,847 Member Months ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 15

22 Aggregated Totals for All Statement Types Earned Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ Part 1 - Individual Policies Summary 01. U.S. forms direct business $359,608,029,182 $304,588,432,424 $7,972,172, % 02. Other forms direct business $10,303,175,453 $5,788,450,117 $1,135,400, % 03. Total direct business $369,911,204,634 $310,376,882,541 $9,107,572, % 04. Reinsurance assumed $13,113,147,476 $10,586,177,845 $3,134,122, % 05. Less reinsurance ceded $24,018,580,510 $22,980,211,782 $5,407,191, % 06. Total $359,005,771,607 $297,982,844,528 $6,834,504, % Part 2 - Group Policies Summary 01. U.S. forms direct business $327,708,076,572 $267,043,088,561 $1,920,724, % 02. Other forms direct business $720,474,532 $438,295,694 $(361,149) 60.78% 03. Total direct business $328,428,551,104 $267,481,384,255 $1,920,363, % 04. Reinsurance assumed $16,241,411,158 $12,712,125,023 $(6,627,019) 78.23% 05. Less reinsurance ceded $26,030,801,424 $21,419,672,033 $423,089, % 06. Total $318,639,117,602 $258,773,904,777 $1,490,646, % Part 3 - Credit Policies (Individual and Group) Summary 01. U.S. forms direct business $1,875,948,675 $1,039,256,447 $(2,138,883) 55.28% 02. Other forms direct business $158,335,070 $17,690,880 $ % 03. Total direct business $2,034,283,746 $1,056,947,327 $(2,138,883) 51.85% 04. Reinsurance assumed $122,919,828 $16,195,563 $(3,447,217) 10.37% 05. Less reinsurance ceded $477,585,921 $79,433,897 $(3,561,714) 15.89% 06. Total $1,679,617,653 $993,708,992 $(2,024,385) 59.04% Part 4 - All Individual, Group and Credit Policies Summary 01. U.S. forms direct business $689,413,808,072 $572,887,269,126 $9,890,760, % 02. Other forms direct business $11,059,149,437 $6,153,408,398 $1,135,039, % 03. Total direct business $700,472,957,509 $579,040,677,524 $11,025,799, % 04. Reinsurance assumed $29,477,478,462 $23,314,498,430 $3,124,048, % 05. Less reinsurance ceded $50,529,449,126 $44,482,041,734 $5,826,718, % 06. Total $679,420,943,604 $557,873,197,679 $8,323,129, % ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 16

23 Annual Statement Data by Statement Type 17

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25 Aggregated Totals for Life, Accident & Health Earned Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ or Certificates Covered Lives as of Dec 31 as of Dec 31 Member Months A. INDIVIDUAL BUSINESS 1. Comprehensive Major Medical 1.1 With contract reserves $2,387,864,591 $2,143,582,625 $50,749, % 372, ,743 7,734, Without contract reserves $1,939,898,341 $2,157,095,420 $(161,885) % 323, ,188 7,147, Subtotal $4,327,762,933 $4,300,678,043 $50,587, % 696,273 1,190,931 14,881, Short-Term Medical 2.1 With contract reserves $927,067 $228,269 $(41,704) 20.12% 2,919 3,559 40, Without contract reserves $76,112,163 $45,286,819 $ % 58,817 71, , Subtotal $77,039,230 $45,515,088 $(41,704) 59.03% 61,736 75, , Other Medical (Non-Comprehensive) 3.1 With contract reserves $975,003,083 $447,124,515 $58,503, % 2,304,275 3,995,326 45,953, Without contract reserves $95,662,545 $48,060,539 $(19,770) 50.22% 71,725 94,342 1,164, Subtotal $1,070,665,627 $495,185,055 $58,483, % 2,376,000 4,089,668 47,118, Specified/Named Disease 4.1 With contract reserves $3,484,535,006 $1,829,188,487 $530,754, % 7,459,597 13,593, ,964, Without contract reserves $14,544,455 $6,299,544 $(72,559) 42.81% 61,974 80, , Subtotal $3,499,079,461 $1,835,488,029 $530,681, % 7,521,571 13,673, ,917, Limited Benefit 5.1 With contract reserves $125,157,265 $50,700,894 $28,582, % 249, ,452 3,725, Without contract reserves $27,012,023 $12,778,336 $(82) 47.31% 137, ,000 2,334, Subtotal $152,169,288 $63,479,230 $28,582, % 387, ,452 6,060, Student 6.1 With contract reserves $57,765 $15,929 $ % , Without contract reserves $19,430,980 $10,929,893 $ % 303, ,692 3,509, Subtotal $19,488,745 $10,945,822 $ % 304, ,054 3,513, Accident Only or AD&D 7.1 With contract reserves $2,339,037,067 $880,576,518 $83,510, % 9,532,521 14,482, ,046, Without contract reserves $108,919,984 $24,482,109 $(67,644) 22.42% 1,659,732 1,938,423 20,951, Subtotal $2,447,957,050 $905,058,626 $83,443, % 11,192,253 16,420, ,997, Disability Income - Short-Term 8.1 With contract reserves $2,123,373,188 $969,775,676 $46,276, % 3,298,349 3,407,943 38,954, Without contract reserves $46,542,485 $16,662,334 $81, % 31,181 32, , Subtotal $2,169,915,674 $986,438,010 $46,358, % 3,329,530 3,440,451 39,299,175 ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 19

26 Aggregated Totals for Life, Accident & Health Incurred Change in or Certificates Covered Lives Member Earned Claims Amount Contract Reserves Loss Ratio ¹ as of Dec 31 as of Dec 31 Months A. INDIVIDUAL BUSINESS (Continued) 9. Disability Income - Long-Term 9.1 With contract reserves $4,615,309,663 $4,298,659,640 $(223,285,596) 88.30% 2,986,519 2,936,157 35,913, Without contract reserves $18,000,766 $3,835,992 $(132,242) 20.58% 14,373 21, , Subtotal $4,633,310,428 $4,302,495,632 $(223,417,838) 88.04% 3,000,892 2,957,839 36,059, Long-Term Care 10.1 With contract reserves $12,698,149,834 $8,184,149,895 $6,776,427, % 3,841,278 4,406,515 55,940, Without contract reserves $44,334,123 $(117,030,874 ) $30,315,074 (195.60)% 20,337 20, , Subtotal $12,742,483,956 $8,067,119,021 $6,806,742, % 3,861,615 4,426,853 56,185, Medicare Supplement (Medigap) 11.1 With contract reserves $6,593,455,546 $4,915,846,074 $33,886, % 3,539,216 3,504,316 36,078, Without contract reserves $3,444,858,223 $2,512,303,169 $202, % 1,659,412 1,661,913 18,080, Subtotal $10,038,313,770 $7,428,149,245 $34,088, % 5,198,628 5,166,229 54,159, Dental 12.1 With contract reserves $294,710,669 $135,611,074 $9,581, % 628, ,222 9,999, Without contract reserves $249,120,291 $227,587,907 $(4,953) 91.35% 556, ,478 8,677, Subtotal $543,830,960 $363,198,981 $9,576, % 1,184,222 1,742,700 18,676, State Children's Health Insurance Program 13.1 With contract reserves $0 $0 $0 N/A Without contract reserves $283,244,906 $217,182,363 $ % 84,857 84,857 1,368, Subtotal $283,244,906 $217,182,363 $ % 84,857 84,857 1,368, Medicare 14.1 With contract reserves $432,001,403 $361,170,308 $161, % 45,916 45, , Without contract reserves $15,590,269,206 $13,012,068,749 $ % 1,536,047 1,536,059 13,765, Subtotal $16,022,270,609 $13,373,239,057 $161, % 1,581,963 1,581,976 14,320, Medicaid 15.1 With contract reserves $0 $0 $0 N/A Without contract reserves $905,479,873 $747,682,988 $ % 52,301 52, , Subtotal $905,479,873 $747,682,988 $ % 52,301 52, , Medicare Part D - Stand-Alone 16.1 With contract reserves $882,271,988 $813,358,719 $(39,647,537) 87.70% 870, ,448 10,722, Without contract reserves $6,763,116,731 $5,463,945,146 $ % 5,890,954 6,684,939 79,988, Subtotal $7,645,388,719 $6,277,303,865 $(39,647,537) 81.59% 6,761,402 7,555,387 90,710, Other Individual Business 17.1 With contract reserves $256,821,022 $164,076,677 $(4,850,596) 62.00% 613, ,903 3,824, Without contract reserves $22,102,628 $13,584,906 $(2,104) 61.45% 61,354 84, , Subtotal $278,923,649 $177,661,583 $(4,852,700) 61.96% 674, ,551 4,737, Total Individual Business 18.1 With contract reserves $37,208,675,153 $25,194,065,294 $7,350,608, % 35,744,518 49,505, ,457, Without contract reserves $29,648,649,720 $24,402,755,338 $30,138, % 12,524,364 14,251, ,925, Grand total individual $66,857,324,872 $49,596,820,630 $7,380,746, % 48,268,882 63,756, ,382,922 ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 20

27 Aggregated Totals for Life, Accident & Health Earned Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ or Certificates Covered Lives as of Dec 31 as of Dec 31 B. GROUP BUSINESS Comprehensive Major Medical 1. Single Employer 1.1 Small employer $10,640,710,430 $8,141,476,587 $949, % 1,285,643 2,377,742 28,495, Other Employer $25,718,340,248 $20,870,785,774 $2,342, % 2,631,022 6,984,344 83,732, Single employer subtotal $36,359,050,678 $29,012,262,359 $3,291, % 3,916,665 9,362, ,227, Multiple employer assns and trusts $434,653,740 $343,939,133 $ % 39,070 77,544 1,206, Other associations and discretionary trusts $3,147,673,045 $2,566,535,612 $6,001, % 556, ,847 12,663, Other comprehensive major medical $280,875,855 $220,164,557 ($2,456,872) 77.51% 117, ,768 3,808, Comprehensive/major medical subtotal $40,222,253,317 $32,142,901,663 $6,837, % 4,629,506 10,700, ,906,731 Other Medical (Non-Comprehensive) 6. Specified/named disease $966,343,877 $396,645,294 $68,429, % 3,072,698 5,113,053 57,324, Limited benefit $1,998,597,268 $1,356,678,458 ($3,596,509) 67.70% 9,838,690 20,842, ,324, Student $1,454,132,591 $1,139,466,130 $284, % 1,510,788 1,565,645 16,726, Accident only or AD&D $3,205,047,604 $1,334,134,136 $1,070, % 57,849, ,348,588 1,151,943, Disability income - short-term $4,534,097,368 $3,135,633,046 $1,445, % 8,783,325 20,583, ,742, Disability income - long-term $11,203,872,406 $9,757,472,287 ($2,351,483) 87.07% 13,726,991 42,927, ,939, Long-term care $2,091,656,101 $1,078,481,069 $1,553,790, % 1,005,045 2,338,372 25,054, Medicare supplement $5,120,207,622 $4,057,912,770 $22,844, % 2,620,029 2,650,560 31,573, Federal Employees Health Benefit Plans $628,400,289 $529,964,128 $580, % 121, ,725 2,955, Tricare $26,610 $12,639 ($6,195) 24.22% Dental $12,130,629,525 $9,025,517,697 $32,244, % 8,541,350 29,848, ,929, Medicare $1,594,465 $855,448 $ % , Medicare Part D - Stand-Alone $317,814,926 $224,925,080 $ % 251, ,653 6,442, Other group care $2,299,264,498 $1,421,774,802 ($18,124,048) 61.05% 4,545,303 10,638, ,196, Grand total group business $86,173,938,471 $65,602,374,652 $1,663,449, % 116,496, ,270,124 2,639,063,641 C. OTHER BUSINESS 1. Credit (Individual and Group) $851,657,049 $355,868,000 ($3,740,546) 41.35% 6,040,111 6,564,937 79,502, Stop Loss/Excess Loss $8,301,218,103 $5,973,448,678 ($766,007) 71.95% 12,348,881 38,759, ,681, Administrative Services Only XXX XXX XXX XXX 9,219,267 39,343, ,387, Administrative Services Contracts XXX XXX XXX XXX 111,442 2,088,053 23,706, Grand Total Other Business $9,152,875,153 $6,329,316,677 ($4,506,553) 69.10% 27,719,701 86,756,370 1,056,278,083 D. TOTAL BUSINESS 1. Total Non U.S. Policy Forms $10,496,778,573 $5,822,518,270 $1,133,641, % 29,341,707 39,951, ,318, Grand Total Individual, Group & Other Business $172,680,917,072 $127,351,030,227 $10,173,330, % 221,827, ,734,504 4,758,043,447 Member Months ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 21

28 Aggregated Totals for Life, Accident & Health Earned Part 1 - Individual Policies Summary Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ 01. U.S. forms direct business $66,809,989,754 $49,775,409,100 $7,375,329, % 02. Other forms direct business $9,982,308,024 $5,534,467,731 $1,134,209, % 03. Total direct business $76,792,297,778 $55,309,876,831 $8,509,538, % 04. Reinsurance assumed $8,313,851,524 $6,965,918,047 $3,053,355, % 05. Less reinsurance ceded $17,176,420,631 $13,489,484,127 $5,317,447, % 06. Total $67,929,728,670 $48,786,310,749 $6,245,446, % Part 2 - Group Policies Summary 01. U.S. forms direct business $94,584,939,171 $71,635,063,501 $1,671,289, % 02. Other forms direct business $455,920,112 $304,809,619 $(361,149) 66.78% 03. Total direct business $95,040,859,283 $71,939,873,120 $1,670,928, % 04. Reinsurance assumed $11,173,906,464 $8,987,260,073 $(2,011,071) 80.41% 05. Less reinsurance ceded $17,531,297,230 $14,482,778,835 $422,290, % 06. Total $88,683,468,515 $66,444,354,358 $1,246,626, % Part 3 - Credit Policies (Individual and Group) Summary 01. U.S. forms direct business $795,174,277 $296,405,299 $(2,135,752) 37.01% 02. Other forms direct business $129,325,171 $12,753,862 $0 9.86% 03. Total direct business $924,499,448 $309,159,161 $(2,135,752) 33.21% 04. Reinsurance assumed $85,687,860 $15,952,769 $(3,447,217) 14.59% 05. Less reinsurance ceded $326,847,195 $61,213,290 $(3,561,714) 17.64% 06. Total $683,340,115 $263,898,639 $(2,021,254) 38.32% Part 4 - All Individual, Group and Credit Policies Summary 01. U.S. forms direct business $162,253,586,332 $121,749,518,444 $9,044,485, % 02. Other forms direct business $10,504,065,663 $5,809,005,971 $1,133,848, % 03. Total direct business $172,757,651,995 $127,558,524,415 $10,178,333, % 04. Reinsurance assumed $19,573,445,846 $15,969,130,887 $3,047,897, % 05. Less reinsurance ceded $35,034,565,053 $28,033,476,253 $5,736,176, % 06. Total $157,296,532,784 $115,494,179,047 $7,490,054, % ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 22

29 Aggregated Totals for Health Earned Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ or Certificates Covered Lives as of Dec 31 as of Dec 31 Member Months A. INDIVIDUAL BUSINESS 1. Comprehensive Major Medical 1.1 With contract reserves $14,170,812,489 $13,387,519,463 $(68,949,487) 93.99% 2,793,984 4,299,641 49,905, Without contract reserves $25,877,730,614 $26,017,548,084 $38,517, % 4,974,323 7,553,544 86,109, Subtotal $40,048,543,103 $39,405,067,547 $(30,431,660) 98.32% 7,768,307 11,853, ,014, Short-Term Medical 2.1 With contract reserves $2,050,793 $2,188,915 $ % 1,972 3,804 38, Without contract reserves $51,509,743 $52,608,484 $ % 37,396 54, , Subtotal $53,560,536 $54,797,399 $ % 39,368 58, , Other Medical (Non-Comprehensive) 3.1 With contract reserves $4,158,631 $848,853 $(186,277) 15.93% 8,209 8, , Without contract reserves $9,852,960 $17,126,119 $ % 9,996 14, , Subtotal $14,011,591 $17,974,972 $(186,277) % 18,205 23, , Specified/Named Disease 4.1 With contract reserves $7,742,134 $2,760,295 $634, % 14,513 24, , Without contract reserves $1,189,398 $1,941,199 $ % 2,234 3,263 40, Subtotal $8,931,532 $4,701,494 $634, % 16,747 27, , Limited Benefit 5.1 With contract reserves $535,177,695 $498,223,773 $33, % 55,201 55, , Without contract reserves $2,586,192,237 $2,412,071,417 $ % 376, ,274 5,057, Subtotal $3,121,369,932 $2,910,295,190 $33, % 431, ,625 5,620, Student 6.1 With contract reserves $0 $0 $0 N/A Without contract reserves $68,269,410 $67,189,934 $ % 34,734 35, , Subtotal $68,269,410 $67,189,934 $ % 34,734 35, , Accident Only or AD&D 7.1 With contract reserves $1,146,703 $379,648 $19, % 12,447 14, , Without contract reserves $6,901,890 $939,471 $ % 23,268 41, , Subtotal $8,048,593 $1,319,119 $19, % 35,715 56, , Disability Income - Short-Term 8.1 With contract reserves $3,562,469 $1,754,876 $74, % 1,259 1,263 21, Without contract reserves $0 $0 $0 N/A Subtotal $3,562,469 $1,754,876 $74, % 1,259 1,263 21,874 ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 23

30 Aggregated Totals for Health Incurred Change in or Certificates Covered Lives Member Earned Claims Amount Contract Reserves Loss Ratio ¹ as of Dec 31 as of Dec 31 Months A. INDIVIDUAL BUSINESS (Continued) 9. Disability Income - Long-Term 9.1 With contract reserves $9,408,295 $9,766,477 $2,201, % 36,743 36, , Without contract reserves $0 $0 $0 N/A Subtotal $9,408,295 $9,766,477 $2,201, % 36,743 36, , Long-Term Care 10.1 With contract reserves $38,060,605 $44,220,972 $13,239, % 24,204 24, , Without contract reserves $331,462,979 $304,556,830 $(76,237) 91.86% 13,844 13, , Subtotal $369,523,584 $348,777,802 $13,162, % 38,048 38, , Medicare Supplement (Medigap) 11.1 With contract reserves $2,332,491,487 $2,022,062,471 $(202,453,961) 78.01% 1,088,050 1,118,572 13,324, Without contract reserves $5,412,035,909 $4,127,948,801 $42, % 2,391,190 2,393,151 28,465, Subtotal $7,744,527,396 $6,150,011,272 $(202,411,882) 76.80% 3,479,240 3,511,723 41,789, Dental 12.1 With contract reserves $772,437,914 $617,970,375 $(546,749) 79.93% 2,920,616 3,131,553 29,104, Without contract reserves $801,261,853 $491,432,605 $(1,604) 61.33% 1,761,675 2,784,189 32,114, Subtotal $1,573,699,767 $1,109,402,980 $(548,353) 70.46% 4,682,291 5,915,742 61,218, State Children's Health Insurance Program 13.1 With contract reserves $336,193,132 $250,276,489 $1,441, % 180, ,540 2,277, Without contract reserves $2,315,996,573 $1,924,219,359 $372, % 1,060,258 1,093,195 15,235, Subtotal $2,652,189,705 $2,174,495,848 $1,813, % 1,240,798 1,273,735 17,513, Medicare 14.1 With contract reserves $13,501,479,630 $11,860,188,880 $62,006, % 1,240,638 1,253,867 15,347, Without contract reserves $101,007,382,149 $86,695,904,279 $5,831, % 8,567,928 9,594, ,471, Subtotal $114,508,861,779 $98,556,093,159 $67,837, % 9,808,566 10,848, ,818, Medicaid 15.1 With contract reserves $14,822,199,845 $12,980,511,640 $869, % 3,783,372 3,771,937 42,825, Without contract reserves $94,691,789,889 $80,866,180,257 $(2,415,023) 85.40% 24,087,567 24,316, ,312, Subtotal $109,513,989,734 $93,846,691,897 $(1,545,269) 85.69% 27,870,939 28,088, ,138, Medicare Part D - Stand-Alone 16.1 With contract reserves $84,223,431 $79,166,459 $(1,352,412) 92.39% 67,835 67, , Without contract reserves $10,725,764,547 $8,908,666,967 $ % 10,951,663 10,953, ,886, Subtotal $10,809,987,978 $8,987,833,426 $(1,352,412) 83.13% 11,019,498 11,021, ,702, Other Individual Business 17.1 With contract reserves $367,188,696 $294,698,625 $(561,985) 80.11% 648, ,094 4,446, Without contract reserves $967,221,092 $815,992,912 $ % 174, ,644 2,363, Subtotal $1,334,409,788 $1,110,691,537 $(561,985) 83.19% 822, ,738 6,810, Total Individual Business 18.1 With contract reserves $46,988,333,949 $42,052,538,210 $(193,530,418) 89.08% 12,877,650 14,650, ,992, Without contract reserves $244,854,561,244 $212,704,326,720 $42,270, % 54,467,085 59,506, ,892, Grand total individual $291,842,895,193 $254,756,864,930 $(151,260,191) 87.24% 67,344,735 74,157, ,885,167 ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 24

31 Aggregated Totals for Health Earned Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ or Certificates Covered Lives as of Dec 31 as of Dec 31 B. GROUP BUSINESS Comprehensive Major Medical 1. Single Employer 1.1 Small employer $53,630,568,150 $43,110,448,353 ($1,869,620) 80.38% 6,172,919 11,226, ,197, Other Employer $92,121,460,461 $76,140,513,473 $8,369, % 9,886,842 19,668, ,550, Single employer subtotal $145,752,028,617 $119,250,961,823 $6,499, % 16,059,761 30,894, ,747, Multiple employer assns and trusts $8,159,378,587 $6,862,101,878 $14,352, % 806,949 1,590,634 19,428, Other associations and discretionary trusts $1,343,871,969 $1,122,900,616 $306, % 243, ,228 5,817, Other comprehensive major medical $8,008,094,395 $7,433,992,635 $ % 1,351,736 2,553,398 31,099, Comprehensive/major medical subtotal $163,263,373,568 $134,669,956,952 $21,158, % 18,462,320 35,508, ,093,096 Other Medical (Non-Comprehensive) 6. Specified/named disease $17,040,465 $10,708,660 ($312,541) 61.01% 48,660 97,091 1,128, Limited benefit $1,856,140,662 $1,535,217,756 ($3,000) 82.71% 2,466,078 25,186, ,944, Student $355,148,920 $301,607,772 $ % 189, ,415 11,944, Accident only or AD&D $12,556,808 $5,878,966 $ % 480, ,124 5,915, Disability income - short-term $962,169 $236,604 $ % 2,787 5,910 72, Disability income - long-term $1,116,580 $1,502,776 ($294,174) % Long-term care $12,936,000 $17,251,510 $8,816, % 9,291 9, , Medicare supplement $1,269,122,387 $989,874,358 $120, % 473, ,057 5,697, Federal Employees Health Benefit Plans $34,464,009,437 $31,489,922,508 $3,434, % 3,068,424 7,116,776 85,465, Tricare $32,016,689 $30,526,765 ($812,747) 92.81% Dental $9,421,510,077 $7,124,991,093 ($113,053) 75.62% 11,765,786 29,055, ,900, Medicare $12,985,148,484 $11,510,546,522 $1,955, % 1,080,077 1,217,418 14,331, Medicare Part D - Stand-Alone $969,625,199 $807,471,518 $ % 485, ,331 5,577, Other group care $1,882,562,845 $1,791,666,258 $536, % 2,522,057 5,729,950 74,037, Grand total group business $226,543,270,289 $190,287,360,014 $34,485, % 41,054, ,371,912 1,266,222,669 C. OTHER BUSINESS 1. Credit (Individual and Group) $8,843 $2,932 $ % , Stop Loss/Excess Loss $3,292,444,272 $2,639,223,635 $7, % 5,567,605 10,122, ,323, Administrative Services Only XXX XXX XXX XXX 8,685,234 19,359, ,780, Administrative Services Contracts XXX XXX XXX XXX 20,981,248 75,142, ,660, Grand Total Other Business $3,292,453,115 $2,639,226,567 $7, % 35,234, ,624,929 1,228,168,547 D. TOTAL BUSINESS 1. Total Non U.S. Policy Forms $141,982 $8,889 $0 6.26% 134, ,420 1,246, Grand Total Individual, Group & Other Business $521,678,760,582 $447,683,460,402 ($116,766,578) 85.79% 143,767, ,286,421 3,331,522,786 Member Months ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 25

32 Aggregated Totals for Health Earned Part 1 - Individual Policies Summary Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ 01. U.S. forms direct business $290,824,718,538 $253,029,815,489 $(165,536,308) 86.95% 02. Other forms direct business $228,169,471 $221,637,984 $ % 03. Total direct business $291,052,888,009 $253,251,453,473 $(165,536,308) 86.96% 04. Reinsurance assumed $2,884,395,905 $2,360,081,192 $48,104, % 05. Less reinsurance ceded $5,639,629,999 $8,769,818,311 $61,905, % 06. Total $288,297,653,922 $246,841,716,352 $(179,336,832) 85.56% Part 2 - Group Policies Summary 01. U.S. forms direct business $229,029,585,122 $192,956,803,248 $36,023, % 02. Other forms direct business $16,671,295 $12,348,982 $ % 03. Total direct business $229,046,256,417 $192,969,152,230 $36,023, % 04. Reinsurance assumed $2,569,830,414 $2,198,876,809 $8,423, % 05. Less reinsurance ceded $5,659,054,116 $5,368,853,790 $9,410, % 06. Total $225,957,032,715 $189,799,175,250 $35,036, % Part 3 - Credit Policies (Individual and Group) Summary 01. U.S. forms direct business $908,491,671 $725,625,412 $ % 02. Other forms direct business $0 $0 $0 N/A 03. Total direct business $908,491,671 $725,625,412 $ % 04. Reinsurance assumed $35,373,207 $0 $0 0.00% 05. Less reinsurance ceded $7,509,351 $6,010,266 $ % 06. Total $936,355,527 $719,615,146 $ % Part 4 - All Individual, Group and Credit Policies Summary 01. U.S. forms direct business $520,861,717,868 $446,838,092,248 $(129,512,342) 85.76% 02. Other forms direct business $244,840,766 $233,986,966 $ % 03. Total direct business $521,106,558,634 $447,072,079,214 $(129,512,342) 85.77% 04. Reinsurance assumed $5,489,599,526 $4,558,958,001 $56,527, % 05. Less reinsurance ceded $11,308,674,740 $14,147,406,387 $71,315, % 06. Total $515,287,483,420 $437,483,630,825 $(144,299,987) 84.87% ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 26

33 Aggregated Totals for Property/Casualty Earned Incurred Claims Amount Change in Contract Reserves Loss Ratio ¹ or Certificates Covered Lives as of Dec 31 as of Dec 31 Member Months A. INDIVIDUAL BUSINESS 1. Comprehensive Major Medical 1.1 With contract reserves $2,450,091 $3,505,175 $(21,948) % 746 1,496 17, Without contract reserves $8,622,216 $10,779,778 $(360) % 823 1,129 27, Subtotal $11,072,307 $14,284,953 $(22,308) % 1,569 2,625 45, Short-Term Medical 2.1 With contract reserves $1,765 $896 $ % Without contract reserves $503,271 $360,757 $ % 10,858 10,900 9, Subtotal $505,036 $361,653 $ % 10,879 10,926 9, Other Medical (Non-Comprehensive) 3.1 With contract reserves $82,301,938 $45,558,293 $617, % 355, ,973 4,979, Without contract reserves $26,285,320 $16,528,282 $(1,425) 62.87% 3,445 4,153 58, Subtotal $108,587,258 $62,086,574 $616, % 359, ,126 5,037, Specified/Named Disease 4.1 With contract reserves $606,134 $54,380 $106, % , Without contract reserves $41,358 $(26,309 ) $0 (63.61)% , Subtotal $647,492 $28,071 $106, % 984 1,326 14, Limited Benefit 5.1 With contract reserves $2,354 $149 $(1,026) (37.26)% Without contract reserves $0 $0 $0 N/A Subtotal $2,354 $149 $(1,026) (37.26)% Student 6.1 With contract reserves $0 $0 $0 N/A Without contract reserves $0 $0 $0 N/A Subtotal $0 $0 $0 N/A Accident Only or AD&D 7.1 With contract reserves $386,523 $(33,915 ) $(8,037) (10.85)% 10,305 11, , Without contract reserves $18,898,985 $5,941,301 $ % 621, ,137 6,252, Subtotal $19,285,508 $5,907,386 $(8,037) 30.59% 632, ,400 6,389, Disability Income - Short-Term 8.1 With contract reserves $5,734,887 $3,087,858 $1,239, % 7,917 7,917 94, Without contract reserves $87,547,927 $35,503,931 $(26,290) 40.52% 211, ,389 2,590, Subtotal $93,282,814 $38,591,789 $1,213, % 218, ,306 2,684,958 ¹ Loss Ratio = (Incurred Claims Amount + Change in Contract Reserves) / Earned 27