Solid, Secure Portfolio

As of December 31, 2003, Mutual Savings Life’s bond portfolio comprised 92% of our invested assets. We take pride in the fact that 98.9% of our bond portfolio was rated investment grade by NAIC* Securities Valuation criteria. Following the volatility of the bond market after the events of September 11, 2001, and the corporate financial scandals of 2002, there was an effort to concentrate on investment grade securities. Consequently, the quality of our bond portfolio reflects that non-investment grade bonds made up less than 1% of our invested assets.

Mortgage loans comprised an insignificant .03% of our invested assets, and real estate was only 1%, all of which is related to our home office building and district offices. These investments totaled only 1.3% of our invested assets at year end.

Our portfolio, and the resulting strong interest income, afford Mutual Savings a high degree of liquidity and insulation for capital and surplus. These factors have allowed for our impressive current growth.

*National Association of Insurance Commissioners

Growth, Performance and Commitment to Service

Mutual Savings’ internal growth over the past
several years results from a concentration primarily in the life insurance market, supplemented by a limited accident and health portfolio. The year 2003 recorded the fifth straight year of internal growth under Primesco ownership.

The total growth of the company in 2003 was enhanced by increased internal production coupled with the performance of our previous acquisitions which increased the total insurance in force at Mutual Savings to $2.70 billion. Through both internal growth and acquisition growth, Mutual Savings’ asset base has increased 51% under Primesco’s ownership and direction. Through expansion of our life insurance products and markets, coupled with aggressive acquisition strategies, we anticipate that this trend will continue. However, continuation of this aggressive growth strategy for the company is dependent upon our ability to maintain adequate levels of capital and surplus in order to sustain satisfactory surplus-to-policy ratios.

In the past several years, through earnings and capital formulation programs of our holding company, Primesco, we have been successful in increasing our capital and surplus, including Asset Valuation and Interest Maintenance Reserves. As of December 31, 2003, adjusted statutory capital and surplus, which includes Asset Valuation and Interest Maintenance Reserves, was approximately $36.7 million, an increase of 49% over the past 5 years, and a dramatic 134% since 1990.

Keys to Success

Performance is a key to success of any corporation. Since 1998, under the ownership and direction of Primesco, the net income of Mutual Savings, before taxes and realized gains and losses, has increased from $3,786,584 to $10,091,127 in 2003, or an increase of 166%. In addition to the acquisition strategy of Primesco, this success has been made possible by the efforts of our talented and dedicated home office staff, coupled with the productivity of our valued and committed field force.

Finally, we are extremely proud of our continued commitment to Home Service which provides
consistent personal service through our 26
District Offices to service the needs of our valued policyholders.

We believe our proven record of performance,
profitability and service provides a degree of
credibility that we proudly bring to the marketplace.

Nationally Rated

Our performance, financial stability and
operational credibility have also been noted by nationally recognized insurance industry rating authorities. A. M. Best has assigned Mutual Savings a “B-” rating, measuring the Company’s performance in areas such as cost control, underwriting experience, reserve adequacy, soundness of investments and capital sufficiency. A. M. Best utilizes 15 rating categories ranging from A++ to F.

Mutual Savings has received two increases in assigned ratings since the acquisition by Primesco.

Mutual Savings was also rated by the Standard Analytical Comparison as having surpassed the averages of the top 25 life insurance companies in the country in such significant financial factors as Solvency, Liquidity, Net Gain from Operations and Percentage of Surplus to Life Insurance in Force.

For these reasons, when you purchase a Mutual Savings Life policy, you can be certain that your money is safe. For further information, please call our Home Office, toll free, Monday–Thursday,
8 a.m. to 4:30 p.m., and 8 a.m. to 1 p.m. (Central), Friday, at 877-313-5703.

We look forward to hearing from you!