ENTRY I m proud to announce that 2011 was a great year for the Companion Life family of companies. Despite the struggling economy, we experienced another year of growth and prosperity. This continued success is no accident. It springs from a core philosophy. Quite simply, we position our company to succeed by providing our customers with excellent products and superior service. Our goal is to exceed expectations. Our 2011 business model saw us acquire, create and partner to further expand the markets we serve. In February we purchased Total Dental Administrators, Inc. (TDA). Based in Arizona and Utah, TDA offers comprehensive dental care through both traditional and managed care programs. You may remember we created Niagara Life and Health in 2010. Now licensed in New York and Connecticut, Niagara Life actually began selling in July 2011. We are excited about our partnership with Assist America a provider of global emergency medical services for travelers. Companion is the first and only national carrier to include this service with all our dental plans. We revised and enhanced benefits to increase overall value for our partners and clients. We also augmented our small group Life and Short Term Disability product and improved our Long Term Disability product. We even redesigned our website to make it easier to use for producers, providers, group administrators and insureds. Experts agree that ancillary and voluntary products will play a major role as health care reform mandates more benefits. That s why we refined and expanded lines including some that fall outside the realm of health care reform to allow employers to differentiate their plans. And while we ve witnessed continued growth in specialty markets, the successful execution of our product diversification strategy has been phenomenal. For the eleventh straight year, Companion Life has achieved an A+ (Superior) rating from A.M. Best. In 2011, our gross collected premiums totaled $510 million surpassing the record we set in 2010 by $102 million. Already poised for the future and the new health care reform environment, we continue to bring distinction to the Companion Life family not only through superior products and services, but by maintaining strong relationships with all our partners from brokers, agents and underwriters to health plan partners and providers. It s about being positioned to succeed and striving to exceed expectations. LETTER Trescott N. Hinton, Jr. President, Companion Life
ENTRY LIfE INSURANCE Group Term Life Insurance and Accidental Death and Dismemberment (AD&D) A variety of plans that work for groups of all sizes. This program is flexible in design, with competitive rates and guaranteed issue amounts. Voluntary Group Term Life Companion Choice Plus is a freestanding program for groups with as few as five enrollees. It provides broad coverage for families depending on the level of employee participation and group size and also has an AD&D option. DISABILITY INCOME PLANS Short Term Disability (STD) Flexible STD plans for when employees become sick or injured and aren t able to earn income. Plans are available as a freestanding product or as a part of a larger benefits package. Voluntary Short Term Disability Available to most employee groups, this voluntary plan offers high benefit levels with a wide choice of elimination periods and durations. Under this plan, Companion Life pays benefits when an employee is disabled because of injury or illness. Voluntary STD plans include partial disability and age entry freeze in most states. Long Term Disability (LTD) Available to groups of all sizes; can be offered as a freestanding product or part of a benefits package. The True Group LTD plan features competitive rates, a variety of designs, and options such as cost-of-living increases, own occupation to age 65, residual benefits and benefit indexing. All LTD plans also include DisabilityGuidance, an employee assistance program that helps members cope with job pressures, financial or legal difficulties and stress in the home. PRODUCTS Voluntary Long Term Disability Comprehensive voluntary LTD coverage funded through payroll deduction with our Companion Cornerstone Plan. All LTD plans include DisabilityGuidance.
DENTAL PLANS Dental by Design An innovative portfolio of dental insurance products that lets employers with groups of 10 or more create their own plans. Includes three standard base plan options all allow members to use their dentists of choice. Employers can also customize any plan for their employees by modifying many core policy provisions. Retiree dental option allows retiring employees to continue their dental coverage at home. Dental Cents Small Group Dental Plan A comprehensive dental benefits plan for groups of two to nine employees. It offers freedom of choice when it comes to dentist preference and plan choice. Employers choose between three plans for their active, full-time employees working at least 30 hours a week. Voluntary Dental Insurance Groups of three employees or more, or 20 percent of the eligible group participating, whichever amount is greater, are eligible to choose between two affordable plan options. The Advantage Plan pays 100 percent of allowable charges for preventive services such as routine cleanings, 80 percent of allowable charges for basic services such as fillings, and 50 percent of allowable charges for covered major services such as root canals, after a combined $100 lifetime deductible (for all covered services). The Premier Plan offers all Basic Plan coverage plus comprehensive coverage of major services, has a lifetime deductible of $100 and can include takeover benefits from other plans. Companion Global Dental An option for dental care that offers services at accredited international medical facilities. Patients enjoy significant savings, and Companion Global Dental works with agents, employers, individuals and third party administrators to make the process easy. Companion Global Dental comes with all Companion Life Dental plans. VISION PLANS Vision Discount Plan This EyeMed Vision Care plan is provided at no additional cost with all Companion Life dental plans as a value-added benefit, even if dental groups don t purchase a funded vision plan. Vision by Design Created in collaboration with EyeMed, whose network includes more than 18,000 private practice and major optical retail locations in the U.S. Groups can offer Vision by Design products on a voluntary basis or on an employer-paid basis. Options are flexible and fit nearly any size budget.
HEARING Hearing Services Plan This plan is provided at no additional cost to employees enrolled in any Companion Life dental plan. It combines unlimited choice with quality and value, and may be extended to any family member. SPECIALTY MARKET PRODUCTS Specific and Aggregate Medical Stop Loss Flexible coverage for self-insured companies wanting to assume part of the risk for their employees health care claims. Includes extensive choices with specific plan limits. Aggregate stop loss is available to cover the employer s risk once all employee claims accumulate and reach a selected amount. Major Medical Flexible, comprehensive health plan options for small and large employers. Limited Benefit Health Plan Indemnity structured plans for small employers seeking a more affordable health plan, larger employers seeking an affordable way to insure part-time and temporary employees, or professional associations looking to provide additional benefits to members. Student Accident and Sickness Flexible health plan options offered to colleges and universities to provide health insurance benefits for their students. The benefits are offered for both domestic and international students and are available on a mandatory, hard waiver or voluntary basis. Aggregate Only A transitional stop loss product. It helps a small employer transition from fully insured benefits to a self funded plan. Occupational Accident insurance provides workplace injury coverage for an employer that has nonsubscribed or opted-out of the Texas Workers Compensation system. Standard coverage includes accident medical expense, AD&D and accident disability. Short Term Medical Designed to provide individuals with comprehensive medical coverage on a short-term basis. Coverage could be for days or up to several months. It provides affordable insurance options for individuals who are unemployed or recently graduated, or as an alternative to COBRA. Critical Illness Created to complement the mini-med plans and offer employers additional flexibility by providing coverage for catastrophic illness.
ENTRY STATEMENTS Of ADMITTED ASSETS, LIABILITIES AND SURPLUS STATUTORY BASIS (IN THOUSANDS ) December 31, 2011 2010 ASSETS Bonds $ 81,603 $ 79,751 Common stocks 43,759 31,496 Cash 49,071 36,379 Short-term investments 1,632 3,952 Reinsurance receivables and reinsurance funds held 788 811 Net deferred tax recoverable 1,427 1,169 Premiums due, deferred and uncollected 609 506 Investment income due and accrued 1,000 1,001 Other assets 6,907 5,020 Total assets $ 186,796 $ 160,085 LIABILITIES Aggregate reserves for future policy benefits: Life, annuity and supplementary contracts $ 7,932 $ 7,404 Accident and health 16 17 Policy claim reserves: Life 3,291 3,200 Accident and health 19,163 17,423 Premiums received in advance 747 377 Commissions to agents due or accrued 1,947 1,851 Experience rating refunds 1,382 1,212 Taxes (excluding federal income), licenses and fees 10,283 8,218 Asset valuation reserve 4,175 4,041 federal income taxes 2,347 1,696 funds held under coinsurance 15,570 11,792 Other liabilities 9,869 11,035 Total liabilities $ 76,834 $ 68,266 FINANCIALS STOCKHOLDER S EQUITY Common capital stock 2,500 2,500 Contributed capital 20,452 11,100 Unassigned surplus 87,010 78,219 Total stockholder s equity 109,962 91,819 Total liabilities and stockholder s equity $ 186,796 $ 160,085
Statements of Operations Statutory Basis (in Thousands) Year Ended December 31, 2011 2010 Revenues Premiums $ 177,776 $ 161,486 Net investment income 4,371 2,920 Net realized capital (losses) gains (459) 1,554 Other revenues 12,891 9,526 Total revenues $ 194,579 $ 175,486 Benefits and Expenses Death, annuity and accident and health benefits $ 120,092 $ 109,532 Increase in aggregate reserves for future policy benefits 560 563 Commissions 31,591 28,606 Salaries and general insurance expenses 24,172 22,702 Taxes (excluding federal income), licenses and fees 4,380 1,989 Increase (decrease) in loading 2 (26) Total benefits and expenses $ 180,797 $ 163,366 Income before federal income taxes $ 13,782 $ 12,120 Provision for federal income tax $ 5,085 $ 3,672 Net income $ 8,697 $ 8,448
ENTRY REGIONAL OffICES Fred Wise, Director of Marketing Lebanon, Ohio 888-470-4212 Fax: 888-470-4715 Al Curnow, Director of Marketing East Greenwich, Rhode Island 877-803-5799 Fax: 401-886-7475 Charles Gragg, Director of Marketing Nashville, Tennessee 888-472-7150 Fax: 888-472-7118 Brian Siegenthaler, Director of Marketing New Glarus, Wisconsin 888-527-4050 Fax: 803-870-8690 Jim Walter, Director of Marketing Overland Park, Kansas 800-276-1249 Fax: 800-315-1793 Everett Skip Eynon, III, Director of Marketing Columbia, South Carolina 800-753-0404, ext. 45012 803-735-0736 Jack Trook, Director of Marketing Phoenix, Arizona 800-705-5964 Fax: 866-618-7879 J.C. Preas, Jr., VP of Field Sales Brad Wells, Director of Marketing Roanoke, Virginia 800-556-2541 Fax: 800-447-6483 SPECIALTY MARKET PRODUCTS Roy Hutchison, VP of Specialty Markets Phil Gardham, VP of Specialty Markets Austin Scott, Director of Marketing Columbia, South Carolina 800-753-0404 Fax: 803-264-8232 CONTACTS
COMPANION LIFE INSURANCE COMPANY P.O. Box 100102 Columbia, SC 29202-3102 phone: 800-753-0404 fax: 803-735-0736 email: C.Life@CompanionGroup.com website: www.companionlife.com MISSION To be a well-managed, customer-focused organization acting in the best interests of our policyholders and marketing partners, operating on a financially sound, growing and diversified basis. Printed on 100% Post Consumer Fiber.