Dear Members,

Due to the recent financial headlines, we feel that you should be updated on what impact this may have on Western Fraternal Life Association (wfla). As of this writing the U.S. Government has stepped in to bail out Bear Stearns, FNMA, FHLMC, AIG and is currently working on the largest bailout of the financial system since the Great Depression. The rescue plan will in effect buy all of the bad loans that are on the balance sheets of the country’s largest financial institutions.

Because the Association’s assets are primarily invested in the fixed income market, wfla is not immune to the turmoil of the capital markets. Wfla’s fixed income portfolio is highly diversified, has an average quality rating of AA+ and owns no common stocks. Management, along with the help of an outside investment manager, is closely monitoring securities in the financial industry that are held in the portfolio.

We are confident that with the above mentioned portfolio diversification and high credit quality, the impact on the long-term financial strength of wfla will not be significant. The Association continues to be strong financially with ample surplus and asset reserves. As we face today’s volatile market, wfla remains focused on providing quality products for our members’ financial needs and fraternal programs.

Fraternally,

Howard J. Wolfe