Stop loss efforts assure protection against catastrophic loss from large claims with efforts focused on those with a workforce of 50 or more. We target the same sized group for mini-medical offerings, concentrating on those with high turnover amid lower income employees who struggle with the cost of major medical coverage.

Our partner in the mini-medical business is Foundation One Insurance Services. We also team up with several partners in our medical stop loss efforts: AMF Risk Management Solutions; Elite Brokerage Services, Inc.; Excess Reinsurance Underwriters Agency, Inc.; International Assurance of Tennessee, Inc.; Orien Risk Analysts, Inc.; SLG Benefits & Insurance, LLC; and TRU Services, LLC.

Strategic Alliances teams up with Combined Insurance Group on occupational accident coverage and Maksin Management Corporation on accident and health programs for youth. Further efforts include a dental program with marketing by SecureCare Dental.

Strategic Alliances also reinsures a block of government contract mini-medical business underwritten by CIGNA, providing employer-paid coverage to those working under government contracts. The venture is supported by marketing efforts of the Boon Insurance Group.

One setback in 2008 was poor unit value results. This was due to the loss of some larger mini-medical groups early in the year and led to a limited 2.5 percent unit value growth. However, diligence in expense control paid off with a 35.1 percent expense ratio, a leading result within the Company

Our number one goal is to add additional partnerships with an eye toward the dental, reinsurance and disability markets. We will continue our stellar efforts in securing optimal expense ratio levels while maintaining premium in 2009.