1. Powerful Benefit Solutions... for Decision Makers... to expand your employee benefit offerings and help save costs.... to conduct your benefits enrollments.... to simplify your benefits administration.... to expand your employee benefit offerings and help save costs.... to conduct your benefits enrollments.... to simplify your benefits administration.

2. The Colonial Advantage 1 1 A Benefits Communication Company A Benefits Communication Company 2 2 An Enrollment Company An Enrollment Company 3 3 A Strong Supplemental Insurance Company A Strong Supplemental Insurance Company

3. The Advantage of Benefits Communication

4. Benefits Communication * Worksite Product Trends, Eastbridge Consulting Croup, Inc., 2005 ** 2006 MetLife Employee Benefits Trend Study * Worksite Product Trends, Eastbridge Consulting Croup, Inc., 2005 ** 2006 MetLife Employee Benefits Trend Study  97% of employers and employees have a growing interest in products that help cover deductibles and out-of-pocket expenses.*  More than one-third of employees are interested in a wider array of voluntary benefits.**  97% of employers and employees have a growing interest in products that help cover deductibles and out-of-pocket expenses.*  More than one-third of employees are interested in a wider array of voluntary benefits.**

5. Customized Materials  Print materials  Payroll stuffers  Posters  Tent cards  Fliers  Brochures  Newsletter articles  E-mail announcements  PowerPoint presentations  Spanish materials  Print materials  Payroll stuffers  Posters  Tent cards  Fliers  Brochures  Newsletter articles  E-mail announcements  PowerPoint presentations  Spanish materials

6. Benefits Communication One-on-One Meetings Salary Illustrations & Benefit Statement s Salary Illustrations & Benefit Statement s Group Meetings

7.  Major medical  Dental  Vision  401(k) and pension plans  Disability  PTO/sick leave  Major medical  Dental  Vision  401(k) and pension plans  Disability  PTO/sick leave

8. One-On-One Meetings  Customized presentation of benefits and employee contributions.  Salary illustrations, benefits statements & election forms.  Update employee data.  Customized presentation of benefits and employee contributions.  Salary illustrations, benefits statements & election forms.  Update employee data.

9. Salary Illustrations Employee’s cost and your cost

10. Customized Benefits Statements Employer’s Contribution Employer’s Contribution

11. The Advantage of Efficient Enrollments

12. Colonial’s Suite of Enrollment Services  Group meetings.  Multi-location and multi-state enrollment capabilities.  One-on-one sessions with personalized benefits statements and salary illustrations.  Options for remote employees or staggered shifts.  Group meetings.  Multi-location and multi-state enrollment capabilities.  One-on-one sessions with personalized benefits statements and salary illustrations.  Options for remote employees or staggered shifts.

13. Sales Automation  Primary enrollment method today.  Works ideally with our primary enrollment model: enroller-assisted one-on-one.  Primary enrollment method today.  Works ideally with our primary enrollment model: enroller-assisted one-on-one.

14. Web-Based Enrollment  Enroller assisted or self-enrollment.  Supports remote work environments, staggered shifts & multiple locations.  Accessible 24/7 during enrollment period.  Tech support available by e-mail or phone.  Online benefits library.  Reporting tool.  Enroller assisted or self-enrollment.  Supports remote work environments, staggered shifts & multiple locations.  Accessible 24/7 during enrollment period.  Tech support available by e-mail or phone.  Online benefits library.  Reporting tool.

15. Harmony SM Conducting Enrollments on a Whole New Scale   Sharp enrollment solutions.   Fine-tuned communications.   Sound security. Conducting Enrollments on a Whole New Scale   Sharp enrollment solutions.   Fine-tuned communications.   Sound security.

16. Simple App System  Pre-printed, paper-based manual applications for group meetings.  Generic or pre-filled with employee census data.  Up to 5 products supported on one application.  Excel spreadsheet to input employer data, product selections and census data.  Pre-printed, paper-based manual applications for group meetings.  Generic or pre-filled with employee census data.  Up to 5 products supported on one application.  Excel spreadsheet to input employer data, product selections and census data.

17. Complete the Process

18. The Advantage of Supplemental Insurance

19. Colonial Voluntary Products Colonial Voluntary Products Products That Help Fill the Gaps Employer Benefits Package Employer Benefits Package Medical Life Retirement Medical Life Retirement

20. The Advantage of Supplemental Insurance Disability Individual Short Term Disability Group Short Term Disability Individual Short Term Disability Group Short Term Disability Life Insurance Individual Term Life Group Term Life Universal Life Whole Life Individual Term Life Group Term Life Universal Life Whole Life Supplemental Health Accident Hospital Confinement Indemnity Group Hospital Confinement Indemnity Cancer Group Cancer Critical Illness Group Critical Illness Accident Hospital Confinement Indemnity Group Hospital Confinement Indemnity Cancer Group Cancer Critical Illness Group Critical Illness

21. The Advantage of Superior Service

22.  Premium Only Plan  Save on taxes.  Increase employees’ spendable income.  Premium Only Plan  Save on taxes.  Increase employees’ spendable income. The Advantage of Superior Service *Based on 26 pay periods

23.  Flexible Spending Accounts  Save on taxes.  Increase employees’ spendable income.  Flexible Spending Accounts  Save on taxes.  Increase employees’ spendable income. The Advantage of Superior Service *Based on 2006 South Carolina Tax Tables

24.  Save valuable administrative time with services you can count on. The Advantage of Superior Service

25.  Approximately 70% of Colonial’s new premium historically comes from existing business each year. 30% 70% Long-Term Relationships

26. The Advantage of Superior Service  Eight in 10 Plan Administrators would recommend Colonial to others.* * 2006 LIMRA Survey  Eight in 10 Plan Administrators would recommend Colonial to others.* * 2006 LIMRA Survey

27.  E-Services provide value-added tools.  Ez Billing “paperless” billing system  E-Pay  E-Bill  Ez-Administration  E-Services provide value-added tools.  Ez Billing “paperless” billing system  E-Pay  E-Bill  Ez-Administration The Advantage of Superior Service

28.  More than 90% of policyholders say their calls are answered in a timely manner.* * 2006 LIMRA Survey  More than 90% of policyholders say their calls are answered in a timely manner.* * 2006 LIMRA Survey The Advantage of Superior Service

29. 9 in 10 Colonial claimants are satisfied with claims service overall & would recommend Colonial to others.* * 2006 LIMRA Survey 9 in 10 Colonial claimants are satisfied with claims service overall & would recommend Colonial to others.* * 2006 LIMRA Survey 93% of non-disability claims, 90% of disability claims and 91% of all claims are paid in 10 business days or less. 93% 90% 91% The Advantage of Superior Service

30. Enjoy all the benefits and services of three companies in one, at no direct cost to you. Put the power of The Colonial Advantage to work today! Enjoy all the benefits and services of three companies in one, at no direct cost to you. Put the power of The Colonial Advantage to work today! Powerful Benefits Solutions… One Source

31. ©2007 Colonial Life & Accident Insurance Company. Colonial Supplemental Insurance is the marketing brand of Colonial Life & Accident Insurance Company. Colonial Supplemental Insurance, ‘‘for what happens next’’ and the logo, separately and in combination, are registered service marks of Colonial Life & Accident Insurance Company. All rights reserved. ©2007 Colonial Life & Accident Insurance Company. Colonial Supplemental Insurance is the marketing brand of Colonial Life & Accident Insurance Company. Colonial Supplemental Insurance, ‘‘for what happens next’’ and the logo, separately and in combination, are registered service marks of Colonial Life & Accident Insurance Company. All rights reserved.

32. Slide Library

33. Number of Voluntary Benefits Offered Percent of Firms Offering at Least One Voluntary Benefit LIMRA 2005

34. Voluntary Benefits Offerings, 1999-2002 Small Employers (20–99 employees) LIMRA 2005

35. Voluntary Benefits Offerings, 1999-2002 Midsize Employers (100–999 employees) LIMRA 2005

36. Voluntary Benefits Offerings,1999-2002 Large Employers (1,000–4,999 employees) LIMRA 2005

37. Average Participation Rate (percent of eligible employees) (offers the voluntary benefit) Factors Influencing Participation Rates  Communication and enrollment methods used  Employer’s current benefit offerings  Number of voluntary benefits currently in place  Employer’s demographic profile  Cost of coverage Factors Influencing Participation Rates  Communication and enrollment methods used  Employer’s current benefit offerings  Number of voluntary benefits currently in place  Employer’s demographic profile  Cost of coverage All Firms Voluntary Life34% STD33% Supplemental Life30% Voluntary LTD30% AD&D26% Accident21% Cancer18% LIMRA 2005

38. Ways to Improve Participation Percent of Employers Better communication of benefits 37% Meet one-on-one with employees 10% Better meetings 9% Offer a comprehensive benefits plan 4% LIMRA 2005

39. Communication Methods LIMRA 2005

40. Employee Perspective on Voluntary Benefits Percent Agree If I were to consider a new job, whether they offered voluntary benefits would be a factor in my decision. 62% I am less likely to leave my employer because they offer voluntary benefits. 39% The availability of voluntary benefits was a factor in my decision to join my current employer 35% LIMRA 2005

41. Reasons for Adding a New Voluntary Benefit All Firms 10 – 19 20 – 99 100 – 499 500 – 999 1,000 – 4,999 5,000 + Employees asked for benefit 27%27%26%27%22%30%27% Attract/retain good employees 19%20%18%12%12%6%9% Improve employee moral / job satisfaction 14%15%14%9%15%4%9% Give employees more benefit choices 7%6%9%9%9%10%7% Recommended by insurance company / agent / broker 5%3%6%2%5%5%2% To offer wide array of products 5%5%5%9%9%6%11% Other20%18%25%27%27%30%20% LIMRA 2005

42. Employer Satisfaction with Voluntary Benefits LIMRA 2005

43. Primary Reason Employer Chose Not to Offer Voluntary Benefits Percent Agree Employee participation would be too low 41% Administration would be too complex 13% Satisfied with current plan design 10% LIMRA 2005

44. In Force Policies by Industry AgricultureAgriculture Colonial In Force Policies as of November 2005.

45. ConstructionConstruction In Force Policies by Industry

46. Colonial In Force Policies as of November 2005. EducationEducation In Force Policies by Industry

47. Colonial In Force Policies as of November 2005. Finance, Insurance, Real Estate In Force Policies by Industry

48. GovernmentGovernment Colonial In Force Policies as of November 2005. In Force Policies by Industry

49. Colonial In Force Policies as of November 2005. HealthcareHealthcare In Force Policies by Industry

50. Colonial In Force Policies as of November 2005. ManufacturingManufacturing

51. In Force Policies by Industry Colonial In Force Policies as of November 2005. MiningMining

52. In Force Policies by Industry Colonial In Force Policies as of November 2005. Non-classified Establishments

53. In Force Policies by Industry Colonial In Force Policies as of November 2005. Retail Trade

54. In Force Policies by Industry Colonial In Force Policies as of November 2005. Service Industry

55. In Force Policies by Industry Colonial In Force Policies as of November 2005. Trans., Comm., Elec., Gas and Sanitary Service

56. In Force Policies by Industry Colonial In Force Policies as of November 2005. Wholesale Trade