On May 30, 2006, Great American Financial Resources, Inc., announced American Enterprise Mutual Holding Company (World's parent company), through its affiliated companies, would acquire through reinsurance the major medical business for the Ceres Group, Inc., brands: Continental General Insurance Company (CGI), Central Reserve Life Insurance Company (CRL), and Provident American Life & Health Insurance Company.

The move follows Great American Financial Resources, Inc.'s acquisition of Ceres on May 1, 2006. Great American is divesting the major medical portion of the business.

World (an American Enterprise subsidiary) will be responsible for administration oversight and sales support for the Ceres major medical products. Administrative duties will continue to be handled through the existing Ceres Omaha office (and its Cleveland locations for a period of time), providing total continuity to both agents and policyholders. The assumption of these functions by World helps further strengthen its position as a key player in the individual health insurance market.

We expect the short-term impact on you to minimal. However, the additional volume of business will help World leverage more resources and capital to improve administrative processes -- making us more competitive and securing our financial position.

We anticipate questions to arise relating to this business agreement. Please keep in mind that:

• World is dedicated to growing our business and securing your future with us.
• We are committed to retaining existing policyholders and providing superior service levels for both agents and their customers on all brands we administer.
• We will continue to support and write business on CGI (Continental General) and CRL (Central Reserve Life) paper.
• More communications are planned. Look for articles online and other communications scheduled later this summer.

World Insurance Company is committed to growth. This is achieved through our strong business relationships with you -- our wholesale distribution. To that end, we operate efficiently, ethically and effectively by delivering quality, competitively-priced products to consumers through our agents.