Financial Stability
The financial condition of a life insurance organization is an important element in public confidence. In this regard we believe the fundamental factors listed below are significant. The following is a COMPARATIVE ANALYSIS of these basic factors, comparing GOVERNMENT PERSONNEL MUTUAL LIFE INSURANCE COMPANY with 25 of the largest United States life insurance companies issuing life insurance to the general public.
 
Since these 25 companies have an average of over 100 years of life insurance experience, and own a major portion of the invested assets and life insurance in force of all the companies, a favorable comparison of these factors can be indicative of financial stability.
 
BASIC SIGNIFICANT FACTORS - AS OF DECEMBER 31, 2006, DERIVED FROM ANNUAL STATEMENTS, (The Companies listed below are 25 of the largest by the amount of Assets held for the protection of their policyholders.)
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Solvency
A wide margin of Assets over Liabilities can be a significant safety factor. This indicates financial soundness and a Company's ability to meet all obligations as they become due.
 
Assets for each $100 of Liabilities as of Dec. 31, 2006.
Aetna Life Ins. and Annuity Co., CT $110.37
Allstate Life Insurance Company, IL 104.44
American Family Life Assurance Co., GA 109.09
American General Life Ins. Co., TX 119.06
AXA Equitable Life Assurance Society, NY 105.19
Great-West Life and Annuity Ins. Co., CO 105.22
Guardian Life Ins. Co. of America, NY 115.03
Hartford Life Insurance Co., CT 102.29
Jackson National Life Ins. Co., MI 105.82
John Hancock Mutual Life Ins. Co., MA 105.27
Lincoln National Life Ins. Co., IN 102.93
Massachusetts Mutual Life Ins. Co., MA 106.88
Metlife Insurance Co., CT 106.57
Metropolitan Life Insurance Co., NY 103.39
Nationwide Life Insurance Co., OH 102.84
New York Life Insurance Co., NY 111.04
Northwestern Mutual Life Ins. Co., WI 108.77
Pacific Life Insurance Company, CA 103.88
Principal Life Insurance Company, IA 102.95
Prudential Insurance Co. of America, NJ 102.49
Riversource Life Insurance Company, MN 104.56
State Farm Life Insurance Company, IL 113.63
Transamerica Life Insurance Co., IA 102.84
Transamerica Occidental Life Ins. Co., CA 110.54
AVERAGE OF THE 25 LARGEST LIFE CO'S $105.31
GOVERNMENT PERSONNEL MUTUAL $112.23

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Liquid Assets
Assets in Bonds, Stocks, Cash and Short-Term Investments for each $100 of Liabilities: A high ratio may indicate a more liquid investment position to cover unforseen emergency cash requirements that may arise.
 
AVERAGE OF THE 25 LARGEST LIFE CO'S$48.55
GOVERNMENT PERSONNEL MUTUAL$81.46

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Surplus Funds
Per $100 of Policy Reserves: A high surplus ratio may indicate a company's ability to take emergencies in stride. It shows the proportion of surplus funds to the policy reserve liabilities.
 
AVERAGE OF THE 25 LARGEST LIFE CO'S$12.69
GOVERNMENT PERSONNEL MUTUAL$14.46

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