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April 12, 2006
GUARDIAN REPORTS STRONG FINANCIAL PERFORMANCE IN 2005
Company achieves record-setting year in earnings, capital and surplus, and policyholder dividends
New York, April 12, 2006 — The Guardian Life Insurance Company of America today announced strong financial results for 2005. Consolidated results for Guardian and its subsidiaries include 8.3 percent growth in operating income before taxes to $392 million, the third year in a row of record-setting earnings. Guardian's capital grew 7.4 percent to $3.9 billion, the highest in the company's history.
"As a well-run mutual company, maintaining and building financial strength is an important way we serve our policyholders, provide them with outstanding products and value, and grow our company. Our effective pricing, underwriting, and disciplined expense management, combined with strong sales and premium growth, provide our organization with a strong foundation to continue to invest in our businesses for profitable growth, and further strengthen our financial position," said Dennis J. Manning, president and chief executive officer of Guardian. "Our performance in 2005 translates into immediate and long-term benefits for the people who trust us with their financial security."
Guardian increased its estimated payout to participating policyholders to a record setting $578 million, projecting the largest dividend in the company's 146-year history. "Guardian's higher dividend reflects a strategic decision to increase contributions from all lines of business, a key benefit of operating as a well-diversified mutual company," added Manning.
Additional financial highlights from consolidated 2005 results include:
 | Total revenue, primarily premiums and investment income, grew to $9.4 billion. |
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| Net income for 2005 including capital gains and taxes was $444 million, up 43.7 percent over the previous year. |
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| Policyholder Surplus grew to $3.2 billion, the highest in company history. Over the last five years, the company's Surplus has grown at a 12.2 percent compound annual growth rate. |
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| The company provided $5.6 billion in benefits to policyholders, planholders, and beneficiaries across all lines of business in 2005. |
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| Premiums rose to $7.5 billion in 2005 reflecting an exceptional rate of policies renewed each year and strong growth in both new and in-force premiums. |
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"Guardian's long-standing record of policyholders maintaining their policies in-force is extremely gratifying as it is the ultimate measure of our policyholders confidence in our organization," said Dennis Manning.
The company implemented several innovations and enhancements in 2005 that will positively impact the company's operations going forward:
| Introduction of "The Living Balance Sheet," a proprietary and state-of-the-art online system to help Guardian's financial representatives and their customers organize and manage all of their finances in one place. |
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| Enhancement of customer service across all businesses to increase customer convenience and operating efficiencies. Several of these improvements led to awards from DALBAR, a firm that recognizes excellence in customer service. |
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| Introduction of a wide array of new products and product enhancements to broaden the range of client needs served. |
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"Looking ahead, we have tremendous opportunities because our most important markets - affluent customers and small business owners - are growing and prospering," said Manning. "Guardian will continue to grow by meeting their evolving needs."
About Guardian
Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is the fourth largest mutual life insurance company in the United States. As of December 31, 2005, Guardian and its subsidiaries had $40.7 billion in assets (on a GAAP basis). With more than 5,000 employees and 3,000 financial representatives, as well as over 85 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses and their employees with life, disability, health, long-term care and dental insurance products, and offer 401(k), financial products and trust services. More information about Guardian can be obtained at: www.guardianlife.com.
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