Retirement

As of December 31, 2007

Providing a single source for retirement products, we increased sales and expanded distribution in the employer plans and individual annuity markets.

Total Retirement sales increased 21 percent in 2007, topping $1 billion for the first time, with both product lines contributing more than $500 million in sales. Assets under management increased nine percent to a record $14.5 billion.

In addition to achieving excellent financial results, we expanded distribution of both product lines through new alliances and new relationships developed by our national account managers and wholesaling teams.

In the employer plans market, where we focus on providing 401(k) plans to small- to medium-sized companies, sales increased 24 percent. We continued to invest in services to help 401(k) participants save for retirement by introducing TargetAge™, a tool that simplifies investment selection by providing an age-based asset allocation solution.

DALBAR, Inc. recognized Securian participant communications in 2007, awarding its Recognition of Excellence to our participant web site, SecurianRetirementCenter.com, for the seventh consecutive year, and recognized the quality of our participant statements for the fifth consecutive year. The Profit Sharing/401(k) Council of America also gave our participant communications its Signature Award. Our surveys indicate that 97 percent of employer plan sponsors were satisfied with our overall service, and for the seventh consecutive year, we received high marks from PLANSPONSOR in its annual retirement plan provider survey. In the individual annuity market, where we provide personalized accumulation and retirement income solutions for individuals, sales increased nine percent in 2007, surpassing $500 million for the first time. Annuity assets under management reached $4.3 billion in 2007, a seven percent increase.

Sales were driven partly by our new bonus annuity, MultiOption™ Extra, and the addition of 15 new investment choices, including five exchange traded fund of funds portfolios. In addition to expanding our product line, we implemented e-delivery of compliance documents for advisors and clients as an option to replace paper.

Our individual annuity phone service received an Excellent rating from DALBAR and our individual annuity statement was awarded the DALBAR Communications Seal. Our surveys indicate that 97 percent of individual annuity customers rate our service excellent or good.

Retention of retirement business, measured in assets, was 94 percent for employer plans and 91 percent for individual annuity.