Benefits paid through our products go above and beyond typical major medical insurance to help our Customers pay the normal out-of-pocket expenses that add up in the face of accident or illness.

With administrative offices located in Jackson, Mississippi, APL has developed a reputation for being “easy to do business with.” One reason for this is that we consider our independent agents our partners as well as our front-line Customers. As we work together as partners to serve the needs of our policyholders, we retrace the steps of our founders, C.W. and C.B. Cameron, who laid the foundation for a company known for excellent Customer service.

We also opened a brand new territory in the central part of the country and hired a new regional sales director to stimulate development. We began to see growth in the southeast with a new region that opened at the end of 2004.

Additionally, we expanded our market reach by increasing our certificates of authority from 25 states to 40 states plus the District of Columbia. We anticipate that we will reach our goal of 50 certificates of authority, including the District of Columbia, within a short period of time. Many of our current products are being filed in these new sales territories as the certificates of authority are received. We have begun the development of several new supplemental insurance products on an individual basis that will be filed in all states. These new products will help stimulate sales growth of core products.

We are nearing completion of our electronic enrollment software solution and are working toward a first quarter 2006 rollout of the APL online service center with the initial focus of reaching our agency partners. Even with all of our other accomplishments in 2005, the most significant achievement of the year was that we exceeded our goals for growth and profitability with an all-time high result in total scorecard performance.

We are also focused on technology enhancements with the rollout of our enrollment software and online service center. We have plans to redesign our premium collection processing through the use of a new electronic billing system.

We intend to grow new sales through extensive agency recruiting campaigns, expansion into our new territories, developing or revamping two new products per year and improving our Customer retention rate with a strong focus on sales of products that historically produce better persistency. Our vision is to become a $100 million premium company by 2010, making us a significant contributor to the growth and successful operation of American Fidelity.

The Colleagues of APL believe strongly that our “easy to do business with” approach will sustain our growth into 2010 and beyond. Our tradition of treating our independent agencies and agents as partners will add value to their businesses, our policyholders and our company.