When choosing a company to be your insurance and funding partner, you look for indicators of financial strength. Since our founding in 1960, SFLIC has been recognized for its financial soundness as well as for its leadership in serving the funeral profession.

INDICATORS OF FINANCIAL STRENGTH
SFLIC has maintained a conservative investment philosophy over the years, and by the end of 2012, SFLIC's assets had grown to $162,894,657 from assets of $40,000 in 1960.

SFLIC's capital and surplus was $24,780,316, with a ratio of capital and surplus to assets of 15.2%. This ratio is extremely strong compared to regional and national life insurance companies that serve the funeral expense and pre-need markets.

SFLIC's investment policy has always been to invest in high quality assets in the form of U.S. Government and agency bonds, state and municipal bonds, high grade corporate bonds, FDIC bank deposits, good quality common and preferred stocks, and very select mortgage loans.

SFLIC's public and corporate bond portfolios were rated one of the highest in the industry. Under the rating of the National Association of Insurance Commissioners (NAIC), 96.5% of the bond portfolio was rated as high quality bonds.

Of these quality bonds, 64% are rated in the very highest category, as compared to the 2011 industry average of 67% for publicly traded bonds.

SFLIC has not formally applied for a rating through any of the recognized rating services. However, Standard and Poor's issues ratings on most life insurance and health insurance companies. We are pleased to report that our Company has been assigned a rating of "BBBpi" by Standard and Poor's, a fine rating for a small regional company.