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President's Message
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President's Message

On February 7th, 2012, Armed Forces Insurance celebrated our 125 year anniversary. We are
extremely proud of our long and rich history of delivering superior insurance products and services to
our members. While AFI boasts a proud legacy, we are not the largest or loudest insurance company
in the market today, and we don't need to be as long as our commitment, dedication, focus and service
to you is unequalled.

2012 will be viewed as a watershed year as we position AFI to compete in an increasingly
sophisticated insurance environment. We have a determined focus on delivering the absolute best
insurance products and services to our members. In lieu of writing automobile insurance directly,
which had been consistently unprofitable, we now deliver a complement of other national insurance
companies' products in this extremely competitive and continually developing marketplace. In fact,
using our expertise in the military market gathered over the past 125 years, we will offer a broad
range of insurance options, including AFI's core products. This gives you the power of choice and
access to a wide array of insurance coverages. AFI is unique in this regard. We are also in the process
of adding capabilities to provide insurance to businesses owned by members, a first for AFI. Tactics
to aggressively market AFI in targeted areas throughout the country are in place; as is the process of
restructuring our Board of Directors to provide a more balanced representation of our increasingly
diverse membership.

Our financial results were dramatically improved over last year, but were impacted by the continuing
trend of severe adverse weather events occurring throughout the country ranging from "Super Storm
Sandy" in the Northeast, to frequent tornado/hail events throughout the country, to wildfires in Colorado
and other western states. Many of you were personally impacted by these events. Our employees were
proud to be there for you in your time of need and to truly live by our motto "Our Mission Is You".

Thank you for your loyalty and commitment to Armed Forces Insurance. We truly value your business
and confidence in us. We look forward to serving you for many years.

Finally, we want to personally thank each of our employees who do phenomenal work every day
in serving you. Their hard work and dedication allow us to differentiate ourselves in a crowded
marketplace and is the cornerstone of our success.

Respectfully,

Kurt H. Seelbach
President & CEO
Garry L. Parks
Lieutenant General, U.S. Marine Corps (Ret.)
Chairman, Board of Directors