2016 Annual Report

MAKING OUR
BUSINESS
MORE HUMAN
Annual Report 2016

OUR CORE
VALUES
1. Ethical Behavior
2. Extraordinary Associates
3. Innovation
4. Relationships
5. Financial Strength

TABLE OF CONTENTS
2
4
6
10
12
16
18
20
MORE THAN JUST BUSINESS
LETTER FROM TOM
THE GOOD STUFF
NO SWEAT. WE’VE
GOT A STRONG BASE
MORE THAN A VOICE
BOARD MEMBERS &
CORPORATE OFFICERS
ANOTHER TAKE ON NUMBERS
IT’S EASY BEING GREEN

MORE THAN
JUST BUSINESS
Doors open themselves, cars
park without assistance, ATMs
spit out cash with the swipe
of a card — technological
advances are transforming
the human experience.

In a world where change happens
fast, it’s important to adjust, adapt
and take new challenges head on.
Assurity is here to help our policyholders, brokers, agents,
friends — fellow humans — through difficult times. Asking
for help can be hard enough, and when you’re on hold
with a robot for 45 minutes, it’s not hard to feel helpless.
We’re sure the phrase, “Speak to a rep-re-sent-a-tive”
has been shouted into countless phones over the years,
followed by, “I just want to talk to a real person.”
For us, making business more human doesn’t mean
avoiding technology — it means utilizing it to do business
the way real life human beings
want to
do business. It
also means that we’re always there to listen, we feel and
we care, because even though we are a
company, we
are a company comprised of people. And together we’ve
promised to continue listening, to continue caring and to
continue making business more human.
Annual Report 2016 3

4 Assurity

Annual Report 2016 5

2016
HIGHLIGHTS
You know that feeling when
you find a dollar, or five that
you forgot about in your pocket?
That’s how we feel when we look back at 2016. Sometimes
we get caught up in working toward the future and forget to
stop
and
smell the
roses. . So let’s glance at some memorable
moments ments from2016:

1
We had a baby! Assurity Life of
New York was born, established
and admitted to do business in
our 50th state.
2
The
need for speed drove us
to introduce an automated
underwriting solution allowing
for instant decision for two
simplified issue products.
3
Our
Worksite Sales playbook
had a growth spurt, achieving
an annual premium of 125%
to goal.
Annual Report 2016 7

4
We’ve kept a high-quality, solid
earning investment portfolio
in spite of a prolonged low
interest rate period, generating
higher risk-adjusted returns
than our industry peers.
5
Busy
tones don’t exist here,
but busy call centers sure
do. Our associates answered
295,989 calls in 2016 — 91% of
those were in 30 seconds or less,
whittling our average answer
time down to 17 seconds.
6
No babysitting needed here
— Assurity was named “one of
35 organizations leading the
world in creating cultures of
engagement” by Gallup.
8 Assurity

7
Our
middle child, Assurity
Ventures Inc., screened and
profiled over 500 start-ups
in the Insuretech and
FinTech
space. Exciting potential with
some new partners!
8
Putting
a roof over our family’s
head is big, but developing more
roofs for more families is bigger.
Assurity Real Estate Development formed a
unique, pioneering partnership with Neighbor
Works, a national non-profit, to build housing in
blighted and disadvantaged neighborhoods for
low to middle-income families. ies.
Annual Report
2016 9

NO SWEAT.
WE’VE GOT A
STRONG BASE
What’s a gym without t weights?
What’s a financial institution
without strength and resilience?
Two big, empty buildings,
probably. At Assurity, we’ve
put in the reps to flex our
financial muscles and keep our
company strong, consistent
t and
always working for more.

$266.3
Million
Direct Premiums
& Deposits
$29.6
Million
Net Gain
from Operations*
$14.9
Million
Policyholder
Dividends Paid
$2.6
Billion
Total Assets
13.8
Percent
Surplus & AVR**
as Percent of Assets
$17.5
Billion
Life Insurance in Force
$191.9
Million
Benefits Paid
to Policyholders
$358.6
Million
Total Surplus
& AVR
*Before taxes and dividends to policyholders.
**Asset Valuation Reserve (AVR)
For more complete financial information, visit assurity.com.
Annual Report 2016 11

MORE THAN
A VOICE
We could talk financials all day,
but what good is making business
more human without a little
real-life, human input? When
it comes to high-touch service,
ours puts the person in personal;
our associates ates know
that small
actions make big impacts on the
lives of clients and policyholders.

Dedicated client service team member, Alec, puts himself
in the shoes of every caller he serves. From simple
worries to those more difficult, Alec recognizes — and
anticipates — his callers’ needs. “I strive to be sincere,
helpful and assist them in any way that can make their
situation easier down the road,” says Alec. And when
he goes above and beyond, people notice. Alec has
made our call center more human by taking the time to
empathize and form connections. He understands that
on the other end of that call is more than a voice, it’s
another human going through a difficult time.
“I strive to be sincere, helpful and assist
them in any way that can make their
situation easier down the road.”
— Alec
Annual Report 2016 13

Jenni is another one of our amazing humans
always ready to extend a hand. When it comes to
understanding how good service impacts business,
she gets it. One call always stands out to Jenni about
a young business owner who was in a serious car
accident on her way home from work, causing severe
spinal injuries and a year of hospitalization. When the
woman called with an urgent paperwork request, she
made sure to thank Jenni for how Assurity had helped
her through nearly unimaginable personal difficulties.
Jenni finds reward in knowing that through the help
provided by her department, people are learning that
we are more than just another insurance company.
“I felt extremely lucky I was able to
talk to her and proud I was able
to help. We were there to help
someone who really needed us.”
— Jenni
14 Assurity

Great service isn’t just
nurtured, it’s our nature.
And we have a whole family of inspired associates who
surprise, delight and bring peace of mind to our clients
every day. See what
our
clients are saying about us:
Annual Report 2016 15

BOARD
MEMBERS &
CORPORATE
OFFICERS
The seats at our table are filled
with humans that care about
our company and every person,
party and process involved.

Board of Directors
Lyn Wallin Ziegenbein
Director Emerita — Peter
Kiewit Foundation
Steven D. Erwin
President — Nebraska/Western
Iowa U.S. Bank National Association
Paul M. Schudel
Partner — Woods & Aitken LLP
Ryan D. Downs
CEO — Proxibid
Marc E. LeBaron
Chairman, CEO — Lincoln Industries
David Graff
CEO — Hudl
Caren L. Hamilton
Auto Dealership Executive
William R. Cintani
President, CEO — Mapes Industries
Angela L. Muhleisen
President, CEO — Union Bank &
Trust Company
Kathleen A. Farrell, PhD
Interim Dean — College
of Business Administration
University of Nebraska
Thomas E. Henning
Chairman, President, CEO —
Assurity Life Insurance Company
*Photo: Names listed in order from top to bottom, left to right
Chief Executive Officer
Thomas E. Henning
Chairman, President, CEO
Senior Vice Presidents
Susan L. Keisler-Munro
Senior Vice President,
Chief of Operations
Todd W. Reimers
Senior Vice President, Chief
Marketing and Sales Officer
Vice Presidents
Chad M. Bodner, Marvin P. Ehly,
David D. Lockwood, Eric L. Otterstein,
Mark A. Stueven, Carol S. Watson
Senior Directors
Kevin G. Faltin, Kevin W. Hammond,
Steven H. Hill, Keith K. Spilker,
Victor D. Weber, Brett D. West,
Scott A. Zagurski
Directors
Susan M. Becker, Tara D. Benson, Eunice J. Cramer, Patricia J. Criger,
Jason L. Damme, Amanda A. Dutton, Heith L. Fulmer, Abhilesh Gandhi,
Michael J. Harshman, Timothy S. Janousek, Samuel E. Kruse, Mitch K. Lee,
Mary L. Lenners, Susan M. Otterstein, Bruce K. Scheiber, John A. Sharp
Annual Report 2016 17

ANOTHER
TAKE ON
NUMBERS
Our human balance
sheet, if you will.
They say that life hangs in the balance of things, but what
balance are they talking about? At Assurity, our work-life balance
is treasured, our financial balance is protected and our human
balance comes from the passion our people bring every day.

$30,000
73
dollars donated to stop the cycle of poverty,
providing three early education classrooms to
our community through the Lancaster County
Community Action Program partnership
of our people volunteered to help with
upkeep of trails as part of the 2016 Adopt-A-
Trail in Lincoln’s Antelope Valley
$173,000
dollars pledged in United Way/CHC
contributions during calendar year 2016
(associate and corporate combined)
33
teams completed 1,320 step-ups, 1,320
squats, 825 push-ups, 990 wall balls and
rowing 6,600m for the CEO Challenge
35
pounds of socks collected for the ‘Put a Sock
In It’ drive held during America Recycles Week
675,000
steps recorded by associates taking part in
the wellness steps challenge
232
pounds lost by associates in two
100-Day 0-Da
Fitness Challenges
leng
es
246
inches lost by associates in two
100-Day Fitness Challenges
1,040
meals delivered by Assurity
Meals-on-Wheels volunteers
Annual Report 2016 19

IT’S NOT EASY
BEING GREEN
When it seems that every
company is doing business like
everyone else, it can start to feel
like their way is the only way.
At Assurity, we are showing the world that the bottom line
isn’t the only thing driving us forward. Sure, we go after
dollar signs, but we also focus on other positive balances
that we can create around us to be a force for good.

The environment is being mistreated?
Consider us personally offended.
Communities are feeling neglected?
We’ve got a bone to pick.
People don’t know who to turn to?
Our line is open.
Using business as a force for good is the core concept
behind B Corporation Certification and it’s a concept
we proudly stand behind. To us, B Corp. Certification
is more than another framed piece of paper, it means
that even though we’re a business, we take things
personally — things like the people we work with, the
world we live in and the future we’re working toward.
• In 2016 we began converting to a new method
of dispensing paper towels because part of
being a responsible corporate citizen is seeking
out new ways to improve and to do more with
less. We’ve already prevented an estimated
3,574 pounds of trash from sitting in a landfill.
• Earth Day 2016 provided the perfect opportunity
for our home office employees to kick in 42 pairs of
tennis shoes to be recycled into rubber playground
equipment for the Nike ‘Reuse-a-Shoe’ initiative.
• Keeping in mind Assurity Center’s LEED Gold
certification, we teamed up with Lincoln Electric
System’s Sustainable Energy Program and
switched the parking garage lighting to LED
bulbs, saving $30,578.39 in electric bills.
Annual Report 2016 21

Helping people through difficult times.
assurity.com
H305-0417