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2017 ANNUAL REPORT

ANNUAL REPORT2017

Beyond the expectedPEKIN LIFE INSURANCE COMPANY

PEKIN LIFE INSURANCE COMPANY

®


TABLE OF CONTENTS

LETTER TO SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

SIGNIFICANT FIGURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FINANCIAL GRAPHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

INDEPENDENT AUDITOR’S REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6

FINANCIAL STATEMENTS

STATUTORY BALANCE SHEETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

STATUTORY STATEMENTS OF OPERATIONS AND CHANGES IN UNASSIGNED SURPLUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

STATUTORY STATEMENTS OF CASH FLOWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

NOTES TO FINANCIAL STATEMENTS – STATUTORY BASIS

NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-13

NOTE 2 – PENSION PLAN, POST-RETIREMENT BENEFITS, 401 (K) SAVINGS PLAN, AND DEFERRED COMPENSATION . . . . . . . . . . . . . . . . . . . . . 13-21

NOTE 3 – AFFILIATED ENTITY TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

NOTE 4 – INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-25

NOTE 5 – FAIR VALUE MEASUREMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25-26

NOTE 6 - ANNUITY ACTUARIAL RESERVES AND DEPOSIT LIABILITIES BY WITHDRAWAL CHARACTERISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . 27

NOTE 7 – LIFE AND HEALTH RESERVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27-29

NOTE 8 – FEDERAL INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-33

NOTE 9 – CAPITAL AND SURPLUS AND DIVIDENDS . . . . . . . . . . . . . . . . . . . . . . . . . 33

INNER CIRCLE CLUB MEMBERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34-38

BOARD OF DIRECTORS, OFFICERS, AND ADVISORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

VISSION, MISSION, AND VALUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-41

2017 ANNUAL REPORT

The operating results for 2017 and the financial statements for the year are included in this Annual Shareholder Report and reflect significant improvement over 2016.

Net income for the year 2017 was $7.4 million, or $0.43 per share compared to a net loss of $1.0 million, or $0.06 per share, last year. Realized capital gains were $1.2 million, or $0.07 per share, compared to a realized capital loss of $2.5 million, or $0.15 per share, last year. The net gain from operations, excluding realized capital gains or losses, was $6.2 million, or $0.36 per share in 2017 compared to $1.5 million, or $0.09 per share in 2016.

Premium growth was seen in Medicare supplement by $2.9 million to $32.7 million, or 9.8 percent. In addition, Ordinary life premium increased by 2.0 percent to $72.8 million and includes

a Universal life premium increase of $1.4 million, or 5.6 percent, to $25.4 million. These increases result from our strategic effort to grow the Medicare supplement and life segments of our insurance writings. Overall premium decreased by $23.2 million, or 10.4 percent primarily due to the continued runoff of group fully insured business. Group health premium decreased $21.0 million, or 54.7 percent in 2017. As intended, the exit from the group fully insured market resulted in decreased benefits of $17.5 million, or 57.1 percent.

Expenses decreased $4.6 million in 2017 compared to 2016. Reduced expenses were recognized relating to the exit of our group health line of business. Additionally, management continues to monitor and control ongoing costs.

Although the low interest rate environment has impacted our investment earnings which support our life and annuity products, our investment income excluding capital gains increased to $58.6 million in 2017, or 4.2 percent from last year. This increase reflects premium dollars that have been invested in the growing bond portfolio at rates that are moderately flat from previous years. Additionally, our bond portfolio is comprised of high quality holdings, of which 99.5 percent are investment grade.

As of December 31, 2017, assets were $1.5 billion. Book value increased during the year by $3.1 million, or 2.5 percent from year end 2016 and stands at $127.6 million at December 31, 2017, reflecting our strong financial position. Book value per share was $7.48 at December 31, 2017, compared to $7.30 at December 31, 2016.

Our commitment to investing in our people and advancing technology will enable us to serve our agents and policyholders for many years to come as their life insurance company of choice. In these rapidly changing times, the Company remains dedicated to our mission of providing “financial protection and peace of mind for our customers. We deliver innovation and excellence in our products and services. In all we do, we are dedicated to going Beyond the expected.® “

We are sincerely thankful for the continued support of our shareholders, agents, and employees.

SCOTT A. MARTINChairman of the Board, President, and Chief Executive Officer

TO OUR SHAREHOLDERS

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SIGNIFICANT FIGURES

2

2017 2016 CHANGE

Life Insurance In Force

Ordinary Life $16,194,074,000 $15,651,158,000 +3.5%

Credit 919,533,000 943,438,000 -2.5%

Group 590,245,000 570,384,000 +3.5%

Total Life Insurance In Force 17,703,852,000 17,164,980,000 +3.1%

Assets 1,474,989,916 1,459,574,027 +1.1%

Policy Reserves 1,187,060,969 1,134,929,776 +4.6%

Premium Income 199,335,079 222,532,308 -10.4%

Payments to Policyholders

And Beneficiaries 142,969,700 154,673,365 -7.6%

Investment Income 58,551,112 56,186,018 +4.2%

Net Rate of Return on Investments 4.17% 4.12% +1.2%

Net Income Before Realized

Capital Gains 6,173,566 1,495,100 +312.9%

Net Income (Loss) 7,405,088 (973,218) +860.9%

Net Income Before Realized

Capital Gains Per Share 0.36 0.09 +300.0%

Realized Capital Gains (Loss) Per Share 0.07 (0.15) +146.7%

Net Income (Loss) Per Share 0.43 (0.06) +816.7%

Book Value Per Share 7.48 7.30 +2.5%

Premium Income By Product Line

2017 2016

Amount % of Total Amount % of Total

Ordinary Life $72,764,901 37% $71,362,517 32%

Annuity 10,257,042 5% 14,434,867 7%

Pre-Need Life and Annuity 44,366,354 22% 44,376,676 20%

Group Life and Health 19,253,154 10% 40,458,056 18%

Group Annuity 3,854,991 2% 3,331,370 1%

Medicare Supplement 32,667,011 16% 29,762,092 13%

Credit Life and Health 16,171,626 8% 18,806,730 9%

Total $199,335,079 100% $222,532,308 100%

2017 ANNUAL REPORT

FINANCIAL HIGHLIGHTS

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2017 ANNUAL REPORT

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

16.63 10.05 9.78 10.58 10.88 11.83 12.36 12.42 12.38 12.70

12.39 14.38 14.40 13.15 12.95 13.30 12.08 12.64 13.04 11.68

2.72 2.87 3.04 3.19 3.14 3.11 3.20 3.20 3.29 3.43

.39 (.02) .20 .07 .02 (.05) .27 (.10) .09 .36

(.32) (.14) .04 .11 .42 .19 .07 .03 (.15) .07

.07 (.16) .24 .18 .44 .14 .34 (.07) (.06) .43

.2375 .2475 .2125 .1600 .1200 .0900 .0500 .0400 .0100 .0000

6.86 6.55 6.62 6.91 6.98 7.19 7.05 7.04 7.30 7.48

17,068 17,068 17,068 17,068 17,068 17,068 17,068 17,068 17,068 17,068

242 153 148 153 156 164 175 176 170 170

238 - 41 59 24 84 36 - - 30

Market Price Per Share

Premium Income Per Share

Investment Income Per Share

(A)(C) Earnings Per Share

(D) Realized Capital Gains (Losses)Per Share

(A)(B) Earnings Per Share

Dividends Per Share

(A) Tangible Book Value Per Share

Common Shares Outstanding (000)

% Price to Book Value

Year End P/E Ratio

1.43 2.46 2.17 1.51 1.10 .76 .40 .32 .08 - Year End Dividend Yield (%)

117,159 111,824 112,942 117,911 119,197 122,693 120,333 120,157 124,564 127,625 Net Worth ($000)

- - 0.5 0.3 4.7 0.7 4.2 - - 5.8 % Profits Retained to Common Equity

330.4 - 86.9 88.5 27.0 63.5 14.5 - - - % Cash Dividends to Net Profit

(A) The statutory basis of accounting applies (used for reporting to the respective InsuranceDepartments).

(B) Includes realized capital gains (losses).

(C) Excludes realized capital gains (losses).

(D) The statutory basis of accounting requires that unrealized capital losses on investments thatare determined to be other than temporary declines in value must be reclassified to berealized capital losses. In 2016, 2009, and 2008, realized capital losses of $(0.17), $(0.41),and $(0.34) per share, respectively, are considered to be other than temporary declines invalue and are charged to earnings.

PREMIUM INCOME (In Millions)

LIFE INSURANCE IN FORCE (In Millions)

CASH AND INVESTED ASSETS (In Millions)

INVESTMENT INCOME (In Millions)

$211

$245 $246

$224 $221$227

$206

$216$223

$199

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$11,111 $11,862$12,505 $13,083

$13,765$14,543

$15,232$16,222

$17,165$17,704

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$828 $896

$1,063 $1,084$1,168

$1,258 $1,281 $1,348$1,411 $1,430

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$46$49

$52$55 $54 $53

$55 $55$56

$59

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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PREMIUM INCOME (In Millions)

LIFE INSURANCE IN FORCE (In Millions)

CASH AND INVESTED ASSETS (In Millions)

INVESTMENT INCOME (In Millions)

2017 ANNUAL REPORT

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2017 ANNUAL REPORT

STATUTORY BALANCE SHEET

7

2017 2016

1,320,273,147$ 1,290,044,244$ 19,072,006 15,484,569 54,232,528 32,238,947

223,718 288,847 10,415,348 17,236,634 15,885,977 16,210,696 8,718,488 39,599,356

724,506 8,732 1,429,545,718 1,411,112,025

81,526 1,091,920 23,923,368 22,797,640 12,115,581 11,891,464

844,997 462,512 1,336,316 234,751 5,645,055 9,971,289 1,397,355 1,912,426

100,000 100,000 1,474,989,916$ 1,459,574,027$

STATUTORY BALANCE SHEET December 31, 2017 and 2016

Admitted Assets:BondsCommon StocksMortgage LoansReal Estate Occupied by the Company, Net of Depreciation Cash, Cash Equivalents, and Short-Term Investments Contract LoansSecurities Lending Reinvested Collateral Assets Receivables for Securities

Total Cash and Invested AssetsLife and Health Premiums Due and UnpaidLife Premiums DeferredInvestment Income AccruedAmounts Recoverable from ReinsurersCurrent Federal Income Tax RecoverableNet Deferred Tax AssetPost-Retirement AssetOther Assets

Total Admitted Assets Liabilities:Aggregate Reserve for Contracts:

Life 765,775,739$ 709,276,636$Annuity 396,496,895 399,447,877Health 24,788,335 26,205,263

Total Aggregate Reserve for Contracts 1,187,060,969 1,134,929,776Contract Claims:

Life 10,739,833 11,862,990Health 6,382,650 9,404,504

Total Contract Claims 17,122,483 21,267,494Other Policy Liabilities:

Premium Received in Advance 1,699,052 1,656,587Policyholders' Dividends 14,273 14,705Deposit Administration Contracts 58,425,292 57,267,583Other Deposit-Type Contracts 16,673,564 17,562,724

76,812,181 76,501,59926,338,374 29,415,5315,349,802 5,631,1491,192,726 1,279,4249,047,778 7,702,982

458,013 1,300,8413,484,915 3,230,2218,718,488 39,599,3563,103,118 4,300,3905,712,705 5,554,8612,963,308 4,296,165

1,347,364,859 1,335,009,789

22,000,000 22,000,000 900,000 900,000

108,994,661 105,933,842

Total Other Policy LiabilitiesInterest Maintenance ReserveExpenses and Taxes AccruedAmounts Withheld or RetainedAsset Valuation ReserveDue to ParentDrafts OutstandingPayable for Securities LendingPension Benefit ObligationsPost-Retirement Benefit ObligationsOther Liabilities

Total LiabilitiesCapital and Surplus:Capital Stock, Par Value $1.25; 22,000,000 Shares Authorized;

Shares Issued - 17,600,000; andShares Outstanding - 17,068,023

Paid-In SurplusUnassigned SurplusTreasury Stock, Shares at Cost, 531,977 in 2017 and 2016 (4,269,604) (4,269,604)

Total Capital and Surplus 127,625,057 124,564,238Total Liabilities, Capital and Surplus 1,474,989,916$ 1,459,574,027$

The accompanying notes are an integral part of the financial statements.


STATUTORY STATEMENTS OF OPERATIONS AND CHANGES IN UNASSIGNED SURPLUS

8

UNASSIGNED SURPLUS Years Ended December 31, 2017 and 2016

2017 2016Income: Life Premiums 125,008,318$ 125,779,777$ Annuity Considerations 16,752,037 19,924,260 Health Premiums 57,574,724 76,828,271 Net Investment Income 58,551,112 56,186,018

257,886,191 278,718,326Total Income Deductions: Benefits to Policyholders and Beneficiaries: Life 67,938,217 67,308,690 Annuity 35,285,260 33,428,907 Health 39,746,223 53,935,768

Total Benefits to Policyholders and Beneficiaries 142,969,700 154,673,365 Additions to Policy Reserves: Life 56,499,103 58,178,298 Annuity (2,950,987) 1,503,458 Health (1,416,928) 894,392

Total Additions to Policy Reserves 52,131,188 60,576,148 Expenses: Commissions and Service Fees 23,164,359 25,352,146 General Insurance Expenses 27,482,067 31,077,804 Taxes, Licenses and Fees 4,309,791 5,277,137

Total Expenses 54,956,217 61,707,087250,057,105 276,956,600

7,829,086 1,761,7261,655,520 266,6266,173,566 1,495,1001,231,522 (2,468,318)7,405,088$ (973,218)$

0.36$ 0.09$ 0.07 (0.15)0.43$ (0.06)$

17,068,023 17,068,023

105,933,842$ 101,328,611$

Total DeductionsIncome Before Federal Income Tax Expense and Net

Realized Capital GainsFederal Income Tax ExpenseIncome Before Net Realized Capital Gains (Losses), Net of TaxNet Realized Capital Gains (Loss)Net Income (Loss)Net Income Before Net Realized Capital Gains Per ShareNet Realized Capital Gains (Loss), Net of Income Taxes Per Share Net Gain (Loss) Per ShareShares Outstanding

Changes in Unassigned Surplus:Unassigned Surplus - Beginning of YearChanges in Unassigned Surplus: Net Income (Loss) 7,405,088 (973,218) Net Unrealized Capital Gains 2,836,819 372,814 Asset Valuation Reserve (1,344,796) 597,433 Net Deferred Tax Asset (6,513,997) 6,275,418 Non-Admitted Assets 1,111,962 (5,540,947) Provision for Reinsurance 20,472 (20,473) Pension Benefit Obligations 60,342 1,954,355 Post-Retirement Benefit Obligations (515,071) 1,912,426 ACA Fee Assessment - 198,103 Shareholder Dividends - Cash ($0.00 and $0.01 per share) - (170,680)

Net Increase 3,060,819 4,605,231Unassigned Surplus - End of Year 108,994,661$ 105,933,842$


2017 ANNUAL REPORT

STATUTORY STATEMENTS OF CASH FLOW

9

STATUTORY STATEMENTS OF CASH FLOWS Years Ended e e er and

2017 2016

199,820,930$ 222,605,040$ 56,353,496 54,145,147

732,551 755,782 256,906,977 277,505,969147,483,253 155,150,06157,800,800 62,988,187

14,370 15,1062,504,823 2,553,966

207,803,246 220,707,32049,103,731 56,798,649

176,205,196 270,745,4275,698,986 7,579,7811,563,486 697,509

30,880,868 8,083,782214,348,536 287,106,499

207,209,435 315,069,2155,764,144 7,736,380

Mortgage Loans 23,557,052 16,449,070Real Estate 32,337 -

715,774 -237,278,742 339,254,665

(324,719) 814,581(22,605,487) (52,962,747)

- (170,680)268,549 6,880,628

(33,588,079) (6,998,456)(33,319,530) (288,508)

(6,821,286) 3,547,39417,236,634 13,689,24010,415,348$ 17,236,634$

Cash from Operations:Premiums Collected, Net of ReinsuranceNet Investment IncomeMiscellaneous Income

Total Cash ReceivedBenefits and Loss Related PaymentsCommissions, Expenses Paid, and Other DeductionsDividends Paid to PolicyholdersFederal Income Taxes Paid

Total Cash DisbursedNet Cash from Operations

Cash from Investments:Proceeds from Investments Sold, Matured, or Repaid:

BondsStocks

Stocks

MiscellaneousTotal Investments Acquired

Net Cash from Financing and Miscellaneous Sources

Mortgage Loans Miscellaneous

Total Investment ProceedsCost of Investments Acquired:

Bonds

Net Change in Cash and Short-Term InvestmentsCash and Short-Term Investments at Beginning of YearCash and Short-Term Investments at End of Year

Net Increase (Decrease) in Contract Loans Net Cash from Investments

Cash from Financing and Miscellaneous Sources:Dividends to ShareholdersNet Deposits on Deposit-Type ContractsOther Cash Applied



NOTES TO FINANCIAL STATEMENTS - STATUTORY BASIS

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INNER CIRCLE CLUB MEMBERSTOP PRODUCERS FOR 2017:

Steven AndersonA.W. Anderson Agency, Inc.Loves Park, Illinois

Nathan AshbyWilliams & Associates InsuranceHarrisburg, Illinois

Tim BiglowBiglow & CompanyFox Lake, Illinois

Bryce BilyeuTroxellSpringfield, Illinois

David Binsfeld General Southwest Insurance Agency, Inc.Phoenix, Arizona

Dale BlankenshipForsyth Insurance Group, Inc.Springfield, Illinois

Scot BlessingerJames A. Blessinger Agency, LLCJasper, Indiana

Jessica BootonDoran Insurance & Services, Inc.Stronghurst, Illinois

Darryl BouxseinComprehensive Insurance Services, Inc.Eureka, Illinois

Kevin BovairdBovaird Insurance Agency, LLCPeoria, Arizona

Anthony BurkhartBurkhart Insurance Agency, Inc.Vincennes, Indiana

Greg CannedyPrairie State Insurance Agency, Inc.Springfield, Illinois

Jeffrey ClementsDowning Przykopanski Clements & May Insurance Agency, Inc.Clifton, Illinois

Al Czerniewski Czerniewski Insurance AgencyCrivitz, Wisconsin

Trisha DagenhardFinnicum Hometown Agency, LLCMagnolia, Ohio

Andrew DrewesKinmundy Insurance ServiceKinmundy, Illinois

Jeffrey EastvoldAbsolute Insurance Agency, LLCClive, Iowa

Dan EatonEaton & Schultz Insurance Group, Inc.Wilmington, Illinois

Nicholas EberleGary C. Grant Insurance Agency, Inc.Defiance, Ohio

Julia EckhoffFirst Gabrielson AgencyBelmond, Iowa

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2017 ANNUAL REPORT

TOP PRODUCERS FOR 2017:INNER CIRCLE CLUB MEMBERS (CONTINUED)

Dale EdgecombeDecatur Mutual Insurance AgencyDecatur, Illinois

Michael EdwardsHugh F. Miller Insurance Agency, Inc.Rock Falls, Illinois

Joseph FeldbrueggeFeldbruegge Insurance Agency, LLCAbbotsford, Wisconsin

Jay FreemanNorris Insurance Agency, Inc.Amboy, Indiana

Ryan FuhrmanFuhrman Insurance Agency Unlimited, Inc.Franksville, Wisconsin

Bill GowerGower Insurance Agency, Inc. Metropolis, Illinois

Adam GrimesHarris Agency, Inc.Rossville, Illinois

Nicole GrisanzioBroadmoor Agency, Inc.Rockford, Illinois

Rick HamiltonWeber Insurance and Realty Brokers, Inc.Robinson, Illinois

Daniel HarnishMarvin F. Uecker AgencyLena, Illinois

Bart HartauerHartauer Insurance Agency, Inc.La Salle, Illinois

Michael HeitmannHeitmann Insurance Services, Inc. Victor, Iowa

Rodney HenryTaylor, Dodd & Wood Insurance Agency, Inc.Anna, Illinois

Stephen HensonPrairieland Insurance GroupChampaign, Illinois

Mike HermesNortheast Insurance, Inc.Green Bay, Wisconsin

Douglas HochHoch Insurance Agency, Inc.Fort Wayne, Indiana

Neal HodgesHartauer Insurance Agency, Inc.La Salle, Illinois

Jeffrey HoffmanCrum-Halsted Agency, Inc.Sycamore, Illinois

Chad HoveyHenderson-Weir Agency, Inc. Mackinaw, Illinois

Linda HuberC F & H Insurance Agency, Inc. Monticello, Illinois

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INNER CIRCLE CLUB MEMBERS (CONTINUED)TOP PRODUCERS FOR 2017:

Timothy HughesGrojean Realty & Insurance Agency, Inc.Jacksonville, Illinois

Timothy HumpalA.W. Anderson Agency, Inc.Loves Park, Illinois

Daniel ImmingImming Insurance Agency Carlyle, Illinois

Beau IngleduePurdum Gray Ingledue Beck, Inc. Macomb, Illinois

Brenda JamesWalker Insurance Agency Mitchell, Indiana

Cheryl JenningsJennings Insurance Agency, Inc.Rochester, Indiana

Craig JohnsonSomonauk Insurance Agency, Inc.Somonauk, Illinois

Robert KellerFrimark/Keller & Associates, LLCSchaumburg, Illinois

Dennis J. KochKoch Insurance Agency, Inc. Nashville, Illinois

Kevin KrugLakeshore Financial Group, LLCFond du Lac, Wisconsin

Matthew LangloisLanglois Insurance Agency, Inc.New Lenox, Illinois

Chester LawrenceLawrence & Bean Insurance Agency, Inc.Vienna, Illinois

William LeadendeckerLeadendecker Insurance AgencyOkawville, Illinois

Jay LeFevreFirst Gabrielson AgencyClear Lake, Iowa

Steven LendoskyBrechler-Lendosky Group, LLCFennimore, Wisconsin

Bill LivengoodGriffin-Rahn Insurance Agency, Inc.Pekin, Illinois

Brian LomanLoman-Ray Insurance Group, Inc.Broadlands, Illinois

Steven LyonsSpicer Insurance Service, Inc. Sidell, Illinois

Christopher MarksRoberts Insurance AgencyMarion, Illinois

Casey MartinDempster Insurance Agency, LLCPeoria, Illinois

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2017 ANNUAL REPORT

Nick MillerBWO/N.E.W. Insurance & Financial ServicesBrillion, Wisconsin

James MooreC.H. Smith Insurance Agency, Inc.Danville, Illinois

Eldon NeighborNeighbor Insurance Services, Inc.Alburnett, Iowa

Mark NeighborNeighbor Insurance Services, Inc.Central City, Iowa

Brad NicholsTri-State Insurance Group, LLCEvansville, Indiana

John NobleJohn R. Noble & Associates, LLC Reynoldsburg, Ohio

Jeffrey OettingBob Oetting and Associates, LLCCharleston, Illinois

Jim PauleyPufalt Pauley Insurance Agency, Inc.Belleville, Illinois

Jay PetersonPeterson Insurance Services, Inc.Clinton, Illinois

Corey RamseyRamsey Financial Services, Inc.Bowen, Illinois

Ryan RamseyRamsey Financial Services, Inc.Bowen, Illinois

Patrick RenzRenz Insurance Agency, Inc.Medina, Ohio

Richard RunyonRunyon Insurance Agency, Inc.Olney, Illinois

Chad SchmittSmith & Hatch Insurance Agency, Inc.Eden, Wisconsin

James SchulzePrairieland Insurance GroupChampaign, Illinois

Thomas SchwabSchwab Insurance & Real EstateNora Springs, Iowa

John Schweighart The Hillard Agency, Inc.Tuscola, Illinois

Bill ShockJames Unland & Co., Inc.Pekin, Illinois

George SollerSoller Insurance Agency, Inc.Columbus, Ohio

Donald Southard, Jr.Southard Insurance Agency, Inc. Eau Claire, Wisconsin

TOP PRODUCERS FOR 2017:INNER CIRCLE CLUB MEMBERS (CONTINUED)

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Daniel SpringerSpringer-Springer InsuranceOrleans, Indiana

Robin StampsCommunity-Shirley Insurance Agency, LLCDayton, Ohio

Greg SteffenCompass Insurance PartnersLe Roy, Illinois

James StoutStout Insurance Agency, LLCFreeport, Illinois

Jeff SturmTerry Schuldt Insurance ServicesOnarga, Illinois

Jerome ThompsonMVP Insurance AgencyOrland Park, Illinois

Christopher TingleyTingley Insurance Agency, Inc. Effingham, Illinois

Gregory ToensingInsurance Planning & Management Consultants, Inc.Okawville, Illinois

Brian Van De HeyBrian Van De Hey Insurance & Financial Planning, Inc.De Pere, Wisconsin

Guy Van Dyn HovenVan Dyn Hoven Insurance Agency, Inc.Little Chute, Wisconsin

Jay WesslerWessler Bros. Agency, Inc.Arenzville, Illinois

Peter WesslerWessler Bros. Agency, Inc.Arenzville, Illinois

J. Mark WilliamsBanterra Insurance Services, Inc.Eldorado, Illinois

Bruce WonsmosFirst Gabrielson AgencyThornton, Iowa

Tina YatesGreene County Insurance, LLCXenia, Ohio

INNER CIRCLE CLUB MEMBERS (CONTINUED)TOP PRODUCERS FOR 2017:

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2017 ANNUAL REPORT

L-R: Thomas C. Hornstein, Scott A. Martin, Chairman, Byron A. Dodd, Brian K. Lee, A. Richard Kriegsman, Christine A. Schwartz, Steven R. Anderson, Vice Chairman, Daniel V. Connell, Craig W. Concklin

ADVISORSAuditors – Strohm Ballweg, LLP

Consulting Actuaries – Griffith, Ballard and Company

Legal Counsel – Kuhfuss & Proehl, P.C.

Medical Director – James R. Smalley, M.D., Ph.D.

Scott A. Martin, Chairman of the Board, President & Chief Executive Officer

Brian K. Lee,Senior Vice President & Chief Operating Officer

Todd A. Clark, Senior Vice President

Subhasis Mukherjee, Vice President -Chief Information Officer

Daniel V. Connell, Senior Vice President, Chief Financial Officer & Secretary

Kimberly S. Remmert,Vice President -Human Resources

Gregory L. Feller, Vice President - Sales

Diane K. Steiner, Vice President - Life Underwriting & Assistant Secretary

Joel M. Jackson, Vice President - Marketing

Michael A. Zabinski, Vice President - Controller

Tyler D. Petersen, Vice President - General Counsel & Assistant Secretary*Effective February 13, 2018

OFFICERS

BOARD OF DIRECTORS

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40

Our vision is to set the standard of excellence among insurance providers by being innovative, being financially strong, and exceeding customer expectations. We will attract and retain the very best employees and agents to help us achieve this goal.

OUR VISION

Pekin Insurance provides financial protection and peace of mind for our customers. We deliver innovation and excellence in our products and services. In all we do, we are dedicated to going Beyond the expected.®

OUR MISSION

For our employees, agents, and policyholders, we strive to be...Quick. To communicate. To respond. To solve.Innovative. In our products. Our technology. Our thinking.Nimble. We challenge. We adapt. We bend, never break.Sensible. We listen. We weigh all sides. We are prudent.Reliable. We are dependable. Steady. The calm inside the storm.Tech-Savvy. We are efficient. Effective. Easy to do business with.Respected. By our agents. Our policyholders. Our team. The industry.

OUR VALUES

2017 ANNUAL REPORT

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OUR CORE VALUES

QUICK:To communicate. To respond. To solve.We don’t waste the time of our customers, employees, or agents. As a company, we are upgrading to faster and more easily used systems and tools to better serve our customers and to allow the best work from our employees. And we recognize each other when we demonstrate “quick” in our daily work.

INNOVATIVE:In our products. Our technology. Our thinking.The old way of thinking and doing isn’t always the best way. Instead, we are always bringing out innovative new products and adopting new technology. We always value fresh, creative thinking.

NIMBLE:We challenge. We adapt. We bend, never break.We don’t get stuck in ruts. We are nimble. We change and adapt and adjust. We are versatile and flexible. We do what’s needed to get the job done.

SENSIBLE:We listen. We weigh all sides. We are prudent.We are able to think critically and evaluate all the available facts. We make sensible decisions based on all the facts.

RELIABLE:We are dependable. Steady. The calm inside the storm.Who can count on us to be reliable? Our customers. Our employees. Our agents. Everyone.

TECH-SAVVY:We are efficient. Effective. Easy to do business with.We can’t be efficient and effective without being tech-savvy. It’s an absolute requirement in today’s world as we continually strive to make it easy for our agents and policyholders to do business with us.

RESPECTED:By our agents. Our policyholders. Our team. The industry.When we live our mission, vision, and values, we earn respect.


2505 Court Street

Pekin, Illinois 61558

309-346-1161

www.pekininsurance.com

Pekin Life Insurance CompanyMARKET AREA

Beyond the expected ®

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