October 2008

Business Partner Investment Update

NGL’s investment portfolios continue to perform well during these challenging times.

While the current investment climate continues to be difficult and some financial service firms are facing unprecedented challenges, the NGL Insurance Group (NGL) continues to be well positioned. As reported in our last update, our investment portfolios are structured with a long term perspective, broadly diversified and actively managed to avoid the negative impacts associated with the challenging markets we are currently experiencing.

Our success reflects our conservative business philosophy, a culture built on integrity and a focus on financial security for our policyholders and business partners. Because we are financially strong, we can continue to concentrate on our relationship with you and work to enhance our ability to better serve all of our stakeholders.

NGL’s financial strength and flexibility permit us to weather these challenging times and have put us on track to report positive Statutory and GAAP profits for 2008. While NGL is not immune to the current financial turmoil, our portfolio has few problem investments and those are quite minor relative to the size of our portfolio and to our surplus position. In addition, the diversified composition of our policyholder liabilities and our strong business growth enables us to invest our positive cash flows in high quality investments at very attractive yields.

Like everyone, we are concerned about the turmoil in the global financial markets. These are indeed stressful times for many investors. However, at NGL nothing we have experienced diminishes our confidence that our investment portfolios will continue to weather this challenging market environment, that we will preserve our financial strength and that we will fully meet our obligations to our policyholders.

Please feel free to call your NGL representative or our home office to discuss specific questions you may have.