As of 12/31/11, the majority of Guardian's total investment portfolio is comprised of public fixed income (53.2%), private placement debt (15.3%), and commercial mortgages (9.6%). Public equity represents 2.6% of our total investment portfolio and is hedged to protect Guardian's capital from equity volatility.* The majority of our public fixed income holdings are comprised of public corporates (60.1%) and tax-exempt municipals (7.3%). Our portfolio is of excellent credit quality; 92% of our total fixed income is investment grade and 16% of the public fixed income holdings are AAA-rated.

*Guardian's enterprise risk management continues to link our equity allocation to the protection of a minimum capitalization ratio.

Asset Class Allocation                                       DECEMBER 31, 2011

Statement Value	$ Millions	% of Invested Assets
Fixed Income (ex Private)	17,553	53.2%
Private Placement Debt	5,045	15.3%
Commercial Mortgages	3,156	9.6%
Policy Loans	2,889	8.7%
Affiliates & Subsidiaries1	1,327	4.0%
Private & Real Estate Equity	1,247	3.8%
Public Equity (Does not reflect hedges)2	853	2.6%
Convertible Securities	517	1.6%
Cash & Short-Term Investments	221	0.6%
Other Invested Assets	206	0.6%
Total Invested Assets	33,023	100%

¹ Affiliates and Subsidiaries includes $437 million in affiliates classified as LLC's on the annual statement that are not private equity.

² Public Equity is hedged to protect a minimum Cap Ratio floor and excludes Bond & Cash Mutual Funds of $160 million

Fixed Income and Convertible Bonds              DECEMBER 31, 2011

Statement Value	$ Millions	% of Bonds
NAIC 1 (Aaa-A/AAA-A)	11,422	49.5%
NAIC 2 (Baa/BBB)	9,809	42.5%
Investment Grade	21,231	92.0%
NAIC 3 (Ba/BB)	982	4.3%
NAIC 4 (B)	711	3.1%
NAIC 5&6 (Caa/CCC & below)	133	0.6%
Below Investment Grade	1,827	8.0%
Total Bonds3	23,057	100%

³ Total Bonds includes public and private debt and convertible bonds, but excludes commercial mortgages and preferred stock