American Family Insurance is Committed to Financial Strength

Madison, Wis. (Sept. 22, 2008) Part of our effort to provide you peace of mind means making sure we employ an investment strategy that helps us build a high-quality investment portfolio. This keeps us in good shape to weather financial storms, and make sure we can meet our financial obligations to all our customers.

“American Family is financially strong and remains in excellent position to meet our obligation to our customers in all lines of business,” says Dan Schultz, chief financial officer. “This is due, in large part to our strategy of investing in quality assets.”

As part of our broadly diversified investment strategy, American Family holds about $10 billion in bonds. In fact, 99.1 percent of our bond portfolio is investment grade, the highest bond quality.

American Family does not have direct holdings in AIG’s bonds or common stocks. We do hold a few securities issued by Lehman Brothers; however they account for one-quarter of one-percent of our total investment portfolio, making the exposure so small it does not impact our financial stability.

We want to make sure nothing about your insurance experience surprises you. Your American Family agent is your trusted advisor to make sure all your insurance needs are taken care of, and we’re here to make sure nothing happens to change that.

The bottom line: Our balance sheet is strong, and we are well-positioned to fulfill our obligations to our customers.