Security Mutual’s purpose is to provide sound, equitable and competitive financial protection against the financial hazards resulting from premature death, disability, or retirement.

Financial Strength Ratings*

Our financial strength and ability to meet our obligations are recognized industry-wide by these independent ratings services:

Experience

Security Mutual was founded November 6, 1886. For 121 years, the Company has been protecting families and businesses during periods of prosperity, as well as during wars and times of economic uncertainty. Additionally, Security Mutual has paid dividends for the past 115 consecutive years.

The Company’s strong performance represents the cumulative effect of many steps taken over time. We continue to work to effectively position the Company to prosper and grow today and in the future.

Asset Quality

Security Mutual maintains a conservative investment philosophy. The investments of the Company consist predominantly of high-quality, fixed-maturity, investment-grade securities.

The mortgage portfolio of $145 million represents 7.28% of the Company’s total invested assets as of December 31, 2007.

BlackRock Financial Management, Inc., provides fixed income and portfolio management services. The investment operations are monitored and approved by the Company’s Board of Directors.

Policyholder Value

With the priority emphasis on financial strength and asset quality, we continue to focus on long-term policyholder value in our overall strategic planning and corporate operations.

2007 Bond Portfolio Quality

	Total Bonds as of 12/31/07 (000s) $1,557,795 Bond Quality - % of Bond Portfolio
		Grade 1; Highest	71.8%
		Grade 2; High	27.1%
		Grade 3; Medium	1.1%
		Grade 4,5,6; Low	0.0%
	98.9% Investment Grade