PRESIDENT'S MESSAGE

2007 was again a successful year for Sentinel Security Life.  Our total net gain was up 1.2% over 2006.  Premium Income was up 6% over last year.  We hope to continue this upward trend in 2008.

In an effort to expand our geographic concentration, in 2007 the company completed application to enter four new states, and we are currently awaiting approval of these applications.  If approved, Sentinel Security Life will be licensed in 20 western states.

The company made an investment in the development of our agency force in 2007.  This investment, although decreasing our operating gain, resulted in a 41% increase in agents submitting business to Sentinel.  Our hope is that these new agents will continue to produce for us in the future.  We hope to serve the country’s maturing population better with a larger sales force.

I would like to acknowledge our CFO, Daniel Acker for his outstanding ability to evaluate and implement new procedures. Thanks also to Vern Neilson for his enthusiastic administration of the Agency Department, and to the home office staff for their dedicated commitment to excellence.  I would like to express my appreciation to our Chairman, Tom Bartlett and Corporate Secretary, Pete Grimm; and the Board of Directors for their vigilance in their oversight responsibilities to the company.  I look forward to 2008 with high expectations.

Earl L. Tate
President