1. Business Unit Strategy
Voluntary Benefit Solutions

2. VBS Current Strategy

3. Arenas Arenas Staging & Pacing Economic Logic Vehicles Differentiators
Primary Arena
Customers
Employers in target industries
Middle market; 100 – 5,000 employees
Employees – pay 100% via payroll deduction
Products (Guaranteed Renewable)
Universal life with long term care rider
Critical Illness
Short-term disability
Accident
Hospital Indemnity plan
Where
United States

4. Arenas Arenas Staging & Pacing Economic Logic Vehicles Differentiators
Secondary Arena (PFP)
Customers
Credit unions
Members – pay 100% cost via credit union billing
Products (Guaranteed Renewable)
Short-term disability
Critical Illness
Accident
Where
United States

5. Arenas Where we are active…
Customers
Target industries (3 biggest)
Schools, Healthcare, Municipalities
Employers with low employee turnover/stable employment
Credit Unions employee benefit relationship with PFP (Secondary)
Products
Mostly are “permanent” - guaranteed renewable/portable
Limited traditional group benefits
Lose when leave employer (non-portable)

6. Arenas Where we aren’t…
Customers
Employers with high employee turnover
Retail
Restaurants
Associations/Direct to individuals
Average salary below $30,000
Products
Employer-paid or contributory benefits
Supplemental Group Term Life, Auto, Home, Legal, Pet Insurance

7. Vehicles Arenas Staging & Pacing Economic Logic Vehicles
Differentiators
Distribution
Brokers
Benefit communication/enrollment firms
Leverage existing customers for incremental growth
New products/services
Core: build or buy
Non-core: borrow
Vendor-provided enrollment systems

8. Vehicles Distribution Leverage existing customers for growth
Brokers: Voluntary Specialists, National, Large Regional and Large Local
Employee Benefits brokers sell to employers
Benefit Communication/Enrollment Firms sell to employees
Sometimes, Benefit Communication/Enrollment Firms do both
Leverage existing customers for growth
Re-enroll existing products with existing customers
Sell new products to existing customers
New products
Core
Build (if capability exists)
Buy (if capability doesn’t exist)
Non-Core
Borrow or partner with other Trustmark business unit(s)

9. Differentiators Arenas Staging & Pacing Economic Logic Vehicles
Best-in-class service
Dependability/Reliability
Responsiveness
Payroll deduction expertise & administration
Consolidated billing services (CBS)
Innovative products/solutions
Universal LifeEvents
Life, Health and Wealth
Long term relationships/partnerships

10. Differentiators Best-in-class service
Payroll deduction expertise and administration
VBS’ ability is known to be above and beyond the competitors
Able to do it right (different pay periods, changes, etc.)
Consolidated Billing Services
Provide our payroll deduction billing to target employers for use with competitor products

11. Economic Logic Arenas Staging & Pacing Economic Logic Vehicles
Identifying the “right” customer segment
Employee access & participation
Customer (employer & employee) retention
Distribution partner intimacy/long term relationships
Permanent products and best-in-class service
Additional customers (employers) via consolidated billing
Arenas
Staging & Pacing
Economic Logic
Vehicles
Differentiators

12. Economic Logic Identifying “right” employer segment
Gain access to employees equates to higher participation
Produces lower acquisition costs and higher margins
Maintain high customer and insured persistency
Produces higher margins
Permanent products and best-in-class service
Premium price for guarantee renewability and portable features
Ability to charge more for known service levels
Consolidated Billing capability
Leverage expertise to gain more target employers
Require our product(s) to be sold

13. Staging and Pacing Arenas Staging & Pacing Economic Logic Vehicles
Differentiators
2013
Updated accident product
Develop new CI product
Complete and implement key business process improvements
Hire VP Product and Innovation
Implement VOC/market analysis
2014
Implement PAS Phase I (TLICNY & Term Life)
File new CI product
Expand RSD network
Develop updated HIP & STD products
Implement VOC, market dynamics and Net Promoter System

14. Staging and Pacing Arenas Staging & Pacing Economic Logic Vehicles
Differentiators
2015
Implement PAS Phase II (UL) and Phase III (health products)
File revised STD and HIP products
New CI, HIP & STD products on PAS
Explore potential updates to UL products

15. Staging and Pacing Implementation of PAS
Key component to VBS’ ability to grow
Deployment and timing of new products and availability of key resources linked to implementation of PAS project