FROM THE DESK OF THE EXECUTIVE SECRETARY TO ALL MEMBERS:

First Catholic Slovak Union is pleased to announce that in spite of the financial turmoil on Wall Street, our policy holders enjoy the peace of mind that comes from dealing with a company that has been in business for 119 years with surplus in excess of $9mm. And although 2008 was a difficult year of historic proportion, our investment strategy has never been to employ leverage, speculation or risk that has buried some of our larger competitors.

We are also pleased to announce that while literally hundreds of financial institutions line up at the treasury looking to shore up their balance sheet with our hard-earned dollars, FCSU can go about business without government help. We intend to do just that. Our investment portfolio continues to produce income at a rate that allows us to credit our members among the highest interest rates in the annuity business while providing our policy holders the convenience of flexibility and the peace of mind that goes with security.

The unprecedented economic climate resulted in a necessary restructuring on the Society’s investment procedures. The prevailing investment philosophy for the Society as well as with other fraternals and insurers was the purchase of quality securities with attractive interest rates. Little trading was involved as the purpose was to hold investments for the income until maturity. With the volatility of the marketplace experienced in the past several years, this type of investment technique is no longer applicable. Therefore, the Society has investigated and engaged an asset manager to assist the Society in the analysis of securities owned, purchase selection and necessary repositioning of the portfolio. This should strengthen the investment portfolio and performance as we move forward.

But the message of 2008 was not lost or overlooked by us. We have taken the lessons learned to redouble our effort to manage risk and to balance that against our expectation of a fair return. We hope the message of 2008 was not lost on you either. The returns of the financial markets and stock markets in particular have shown that they come with significant risk. Perhaps now is the time to limit risk and consider the security we can offer for your investment in us. We are confident in our ability to meet the promises in all of our certificates now and in the future and we point with pride to our long, sound service to our members and the public sector. We take our responsibility to protect your money seriously. We always will.