Minnesota Mutual Companies, Inc.
2008 Summary Annual Report to Members

Message from Management

In 2008, we stood strong in the midst of a global economic downturn more severe than we have experienced in many years. In this environment many companies struggled, but those that were well prepared with adequate capital, a high-quality, well-diversified investment portfolio, sufficient liquidity and appropriately designed products gained competitive advantage. We were prepared and our 2008 results demonstrate that we did, indeed, gain competitive advantage.

In 2008:

• Sales of our insurance products were excellent, increasing 26 percent, and all of our insurance businesses set sales records. Total sales* of $6.2 billion declined two percent due to the impact of the investment markets on asset management sales.
• Top-line growth, measured as GAAP premium and fee revenue, increased more than 20 percent, driven by strong insurance sales and client retention.
• Insurance in force increased 15 percent to $731 billion.
• Assets under management, reflecting the turbulent investment markets and our exposure to variable products, declined 19 percent to $24.6 billion.
• Earnings overall were less than expected due to the adverse investment markets, but all of our strategic business units reported profitable operating earnings.** Total GAAP operating earnings of $102 million were 40 percent below the record high of 2007.
• We maintained our status among the most highly rated insurance companies for financial strength and claims-paying ability.

*Sales equal annualized premiums, fund deposits, new assets, deposits and commission as applicable to specific business units.

**Operating earnings equal net income less realized investment gains and losses, net of taxes.