AAL Enjoyed Outstanding 1999; Success is 'A Taste of Things to Come'.

Business Editors

APPLETON, Wis.--(BUSINESS WIRE)--Feb. 16, 2000

Aid Association for Lutherans (AAL) experienced record-breaking growth in 1999, from sales to membership.

AAL Chairman, President and Chief Executive Officer John Gilbert said today that AAL's success in 1999 was "a taste of things to come, a launching pad for where we aim to go." He spoke to community, business and volunteer leaders at the 20th annual Report to the Community held at AAL's home office.

"The success we enjoyed in 1999 didn't just happen. It was the result of good planning and solid execution, which uniquely positioned this organization in a rapidly changing marketplace. It's the result of fundamental change and hard work.I'm delighted to tell you the results have been outstanding," Gilbert said.

Year-end results included:

-    AAL net investment income grew 2.8 percent to $1.27 billion in
     1999 from $1.23 billion in 1998.
-    Assets rose 5 percent to $21.2 billion in 1999 from $20.2 billion
     in 1998.
-    Individual life insurance in force climbed 3.4 percent to $88
     billion from $85.1 billion.
-    Statutory premium income was $1.6 billion in 1999, an increase of
     6.9 percent from 1998.
-    Net income was $226.4 million, resulting in a return on equity of
     10.6 percent.
-    Total sales for insurance, annuity and mutual fund products
     increased for the fourth consecutive year, up 8.8 percent in
     1999. Mutual funds are offered by AAL's wholly owned subsidiary,
     AAL Capital Management Corp., based in Appleton.

AAL's membership increased by 75,000 people to 1,762,482 by the end of the year, the highest annual growth since 1994. "During the month of December, an average of 323 people joined AAL every day," Gilbert said.

AAL's fraternal numbers were just as strong. AAL provided more than $165 million in fraternal assistance to individuals, organizations and communities nationwide in 1999. AAL members, who volunteered 8 million hours of their time to help others, conducted 39,878 fund-raising and service projects and helped provide $69 million in assistance.

Gilbert called these increases a remarkable display of AAL's values and conscience. "Just imagine what 8 million hours of volunteer help does in this country," he said. "Imagine what $69 million of help can provide to people in need."

"Touching the lives of others like never before, that was the AAL story in 1999 in this community and across the country," Gilbert said. "But here's the best part: You haven't seen anything yet. We're just getting started."

The passage of financial services reform will result in significant change for the industry over the next five years, resulting in mergers, acquisitions and the creation of huge financial services conglomerates, Gilbert said.

AAL is positioned well for this new age, he said. "Insurance, annuities, a national credit union for members, trust services and mutual funds--these are the kinds of services AAL and our affiliates now provide. We have been proactive in offering our market a full portfolio of financial products, uniquely complemented with fraternal benefits relevant to contemporary needs."