Table of Contents

2009 Overview President’s Letter...... 1 Corporate Oversight Discussion...... 2 Corporate Oversight Chart...... 3 2009 in Review...... 4-6 Directors and Officers...... 7 Companywide Information...... 8 A Family of Companies...... 9 Financial Results...... 10-21 Community Involvement...... 22-24 Shelter Privacy Protection Policy...... 25

On Th e Co v e r

In an effort to provide prompt service to policyholders affected by extreme weather, the Company procured Dodge Sprinter vans, customized to enable Claims personnel to quickly address the needs of insureds who have experienced loss as a result of a catastrophic event. Vehicles are based in Tulsa, Oklahoma and Little Rock, Arkansas, which places them in close proximity to areas frequently in the path of severe storms. Another vehicle is garaged at the Home Office in Columbia, Missouri.

s 2009 An n u a l Re p o r t President’s Letter Page 1

To Our Policyholders:

It is a privilege to share the Shelter Insurance Companies’ financial results for 2009, which exemplify the financial strength and stability of these organizations. The year began as a very difficult one, with frequent storms and a volatile financial environment; nevertheless, the impact of our conservative fiscal management, appropriate reserving practices and a positive fourth quarter resulted in overall surplus growth. By December 31, Shelter Mutual’s surplus increased .9% to $1.251 billion.

The gross written premium for Shelter Mutual and Shelter General increased 5.3% to $1.1 billion in 2009. Ending policy counts increased 3.4%, with auto increasing 4%. Our retention of existing policyholders continued to improve and ended at 87%. Offsetting these positive attributes, frequent storms over most of Shelter’s operating territory accounted for a $122 million underwriting loss. The investment operations helped offset this loss by providing $51 million before intercompany transactional activity.

The following subsidiaries added net worth to your policyholders’ surplus and paid $32 million in dividends or distributions to Shelter Mutual.

Shelter Reinsurance Company had a record profitable year and continues to provide strong performance and growth. Net written premium was up 11% to a historic high of $81 million. Shelter Re has provided returns on average surplus of 10% or greater to Mutual for each of the past five years.

Shelter General Insurance Company provided an 11.6% return on average surplus to Shelter Mutual mainly due to improved underwriting performance.

Shelter Life has increased customer insurance by $1 billion in each of the past five years. The total return on average surplus to Shelter Mutual was 23.6% for the year.

Haulers Insurance produced a profitable year, with net worth increasing $3 million. Shelter Financial Corporation, including Shelter Bank, had an excellent year and reported net income of $693,000. Daniel Boone Agency, LLC experienced a profitable year assisting customers with unique risks. Shelter Enterprises, LLC successfully added new tenants to the Shelter Office Plaza. Lastly, Shelter Benefits Management Inc. continued to effectively manage Shelter’s human resource activities.

Strategically, our future focus for the organization will remain directed into seven primary areas: exemplary surplus strength, targeted growth that exceeds the industry, outstanding customer service, innovative leadership development, diversification to reduce risk, technological advancement and prudent enterprise risk management.

Representing the leadership of the Shelter Insurance Companies, we are pleased to provide this overview of the success of our financial operations and strategic elements. We are proud of our employees, agents and policyholders. As a team we have made Shelter a leader in many respects, but most importantly in providing excellent customer service.

J. Donald Duello J. David Moore Chairman of the Board President & CEO

Sh e l t e r f r o m t h e St o r m Corporate Oversight Discussion Page 2

Our Commitment to Management Excellence

Shelter Insurance Companies realize they have a responsibility, not only to policyholders who place their trust in Shelter’s products and services, but also to their employees and agents. In an effort to maintain their long-standing commitment to stability and excellence, Shelter adopted a new mission statement in 2008 that guides the Companies as they move deeper into the 21st century. That mission, articulated by Shelter President and CEO, Dave Moore, is below:

Shelter Insurance® will be a dynamic group of companies focused on providing financially secure insurance protection and services to individuals and businesses, a quality working environment, emphasis on easy-to-use services, a commitment to continuous improvement and a passion for pleasing our customers.

Shelter Insurance Companies are governed by a nine-member Board of Directors that is empowered to provide policy decisions and general oversight of the Companies’ operations. Key responsibilities include reviewing corporate strategy and business plans and appointing officers. Three directors are elected annually by policyholders at the annual policyholders’ meeting. Each director is elected for a three-year term. In addition, the Board appoints three subcommittees to directly assist the Board in fulfilling its responsibilities: the Investment Committee, the Executive Compensation Committee and the Audit Committee.

While all three subcommittees are important, the Audit Committee in particular is charged with performing three functions: serving as an objective party to monitor Shelter’s financial reporting process and internal control system; appointing, reviewing, and assessing the independent audit firm; and providing an avenue of open communication among the independent auditors, senior management, internal auditors and the Board.

Other senior management committees are established according to critical management issues. These committees are overseen by executive management. The goal of the Board and other committees is to ensure a management structure that provides effective oversight and is responsive to key issues on behalf of the employees, agents and customers of the Shelter Insurance Companies.

s 2009 An n u a l Re p o r t Corporate Oversight Chart Page 3

Sh e l t e r f r o m t h e St o r m 2009 in Review Page 4

Shelter Recognized for Financial Stability and Excellence Given the turbulence in the economy over the last few years, consumers have become more aware of the need to conduct business with companies that maintain financial stability and strive to ensure a satisfying customer experience. Shelter policyholders can be confident, knowing that their insurance company excelled in these areas during the past year. A 2009 independent survey conducted by J.D. Powers recognized Shelter as third in the United States in automobile insurance customer satisfaction. Incidentally, Shelter was rated fifth in the U.S. in homeowners insurance customer satisfaction the previous year. A.M. Best ratings, listed later in this report, also attest to Shelter’s continued financial strength.

The Ward Group, a firm specializing in analyzing and rating domestic insurance companies, releases a list each year of the 50 best performing companies. In order to be selected for this designation, a company must pass a rigorous inspection of its ability to meet financial goals as well as to provide exemplary service to its policyholders. Each company’s performance is measured over a five-year period and includes metrics such as expense management, return on equity and customer service. In determining the company ratings, life companies and property and casualty companies are evaluated separately.

In 2009, the Shelter Insurance Group of property and casualty companies retained the Ward’s 50 distinction initially earned in 2008. Meanwhile, Shelter Life Insurance Company celebrated its third year of being cited as a Ward’s 50 company. Recognition by an independent rating and benchmarking firm validates the strength and stability of the Shelter family of companies and provides assurance to policyholders that when hard times come, Shelter Insurance® will be there to help.

A Million Reasons to be Proud In February, 2009, Shelter Mutual passed an important milestone: one million auto policies in force! Since opening its doors in 1946 and selling its first auto policy, Shelter has become one of the most successful and financially sound regional insurance groups in the country.

The auto insurance line continues to be one of the most important lines of business Shelter offers. This product remains profitable and is less susceptible to the challenges of severe weather.

“This is an important milestone,” said Ty Bailey, Vice President of Marketing. “Agent productivity continues to improve due to a focus on selling auto insurance. Through the hard work of our agents and employees, we’re passing this important milestone. It’s another great reason to be proud of our Companies.”

s 2009 An n u a l Re p o r t 2009 in Review (continued) Page 5

Shelter Insurance®: We are People of Integrity Today, brands have become an important part of our culture and the economy. Shelter’s brand is our customers’ perception of who we are, based on their experiences with our Company. This perception is impacted at every point of contact – from how we answer the phone to how we handle their claim.

In 2009, the Shelter Insurance® team began a branding initiative to identify the essence of the Shelter brand and how it resonates with current customers and prospective buyers. The purpose of this research project was to focus on Shelter’s brand essence – the point where logic and emotion merge to help define a brand.

The research involved focus groups with employees, agents, current customers and customers of other insurance companies. The Waylon Group, Shelter’s research partner, identified the essence of the Shelter brand – we are people of integrity – as well as the attributes and attitudes that led to this belief. In 2010, the Company will continue its emphasis on communicating these findings to agents and employees and incorporating the messages into its marketing and advertising efforts.

Storm Activity Down in 2009 While not quite as busy as 2008, Shelter experienced another year of sizable storm losses. The year brought just under 65,000 storm claims compared to a little over 78,000 the year before. An ice-event struck parts of Southeastern Missouri, Illinois and most of Kentucky in January. In April, a large wind event called a “land hurricane” struck Eastern Missouri, Southern Illinois, Indiana and parts of Northern Kentucky. Later in the year hail storms swept through Arkansas, Kansas and Colorado. In fact just about every state in Shelter’s operating territory experienced large scale storms. Welcome relief from the storm activity came in the fall with a quiet hurricane season. A relatively mild weather pattern also took hold the last few months of the year. Shelter Mutual and Shelter General incurred just over $252 million on storm related claims in 2009 compared to over $323 million in 2008.

Sh e l t e r f r o m t h e St o r m 2009 in Review (continued) Page 6

Customer Service Earns High Praise The use of on-line surveys to query customers became a regular part of the Companies’ routine in 2009. Customers were asked to rate Shelter’s claims representatives on the following categories:

• Prompt initial contact • Communication • Courtesy • Professionalism • Clear explanation of coverage • Clear explanation of the claims process • Overall satisfaction

Shelter’s Claims Department scored very high in each of these areas. When customers were asked if they would recommend Shelter Insurance® to a friend, over 88% answered in the affirmative.

Additionally, the Company continued the use of agent surveys to monitor service provided by members of catastrophe teams. Following the conclusion of a catastrophe event, affected agents were asked to rate the performance of the catastrophe teams to ensure that quality service has been provided. Results from these surveys enabled Shelter to continually improve its processes and procedures, thus maintaining the service its policyholders expect.

Haulers Insurance Company, Inc. Expands Into Georgia In its first full year as a member of the Shelter Insurance Group, one of the highlights of the year and a key to continuing growth in 2010 was Haulers Insurance Company, Inc.’s (HICI) entry into the State of Georgia. The process actually began in 2008 when HICI management reviewed the states in which it was licensed to determine which of them should be the next territory Haulers should enter. Factors considered included industry profitability, tort laws, regulatory climate, tax laws, economic conditions, catastrophe exposure, population and population dispersion. Once Georgia was chosen, IT systems were built, market rates for Haulers’ lines of business were researched, and a marketing representative was hired. This marketing representative, who had experience in the Georgia market, helped the Underwriting and Marketing Departments select agencies that might possibly fit the traditional profile of a successful Haulers agency. The first agencies hired were existing Tennessee agencies who also wrote business in Georgia. These agencies, as well as the Shelter Actuarial Department, helped review the rates that had been developed to further verify their competitiveness before they were filed with the Georgia Department of Insurance. Commercial policies were sold beginning in July, 2009, followed by personal lines policies in late September. By year end, some 29 agencies had written $200,000 in business for HICI.

s 2009 An n u a l Re p o r t Directors and Officers Page 7

Board of Directors J. Donald Duello, Chair and Director Ann K. Covington, Vice-Chair and Director Gerald T. Brouder, Director Randall C. Ferguson, Jr., Director Raymond E. Jones, Director Philip K. Marblestone, Director Don A. McCubbin, Director Barry L. McKuin, Director J. David Moore, Director

Officers J. David Moore, President and Chief Executive Officer Jerry L. French, Executive Vice President, Treasurer and Assistant Secretary William C. Keithley, Executive Vice President Don A. McCubbin, Executive Vice President Rick L. Means, Executive Vice President

C. Tyler Bailey Madison M. (Matt) Moore Vice President of Marketing Vice President of Claims S. Daniel Clapp Joe L. Moseley Vice President of Actuarial Vice President of Public Affairs Terry L. Dykes Randa Rawlins Vice President of General Services Secretary and General Counsel Gary L. Ford J. Cliff Walker Vice President of Planning and Research President and Chief Operating Officer Ha u l e r s In s u r a n c e Co m p a n y , In c . Yvette M. Gonzales Vice President of Information Services James R. (Ron) Wheeling President and Chief Executive Officer Teresa K. Magruder Sh e l t e r Fi n a n ci a l Ba n k Vice President and General Manager Sh e l t e r Lif e In s u r a n c e Co m p a n y Christina M. Workman Mary Lou Mills Vice President of Accounting and Vice President Assistant Treasurer Sh e l t e r Be n e fit s Ma n a g e m e n t In c .

Sh e l t e r f r o m t h e St o r m Companywide Information Page 8

Shelter Insurance Companies’ Financial Highlights

2009 2008 2007 2006 2005 Assets (in thousands) $3,457,048 $3,298,968 $3,326,688 $3,131,748 $2,992,624 Equity (in thousands) $1,250,901 $1,239,720 $1,351,909 $1,144,321 $1,017,597 P&C Net EP (in thousands) $1,142,909 $1,076,719 $1,036,254 $1,007,034 $1,011,520 P&C Policy Count 1,892,535 1,829,117 1,751,300 1,716,555 1,696,084 Life EP (in thousands) $126,025 $125,427 $115,847 $110,002 $102,320 Life insurance in force $19.3 billion $18.3 billion $17.2 billion $16.0 billion $14.8 billion Employees and Agents 3,583 3,559 3,096 3,094 3,061

The Shelter Insurance® group is made up of the following operating companies:

Shelter Mutual Insurance Company Shelter General Insurance Company Shelter Life Insurance Company Shelter Reinsurance Company Haulers Insurance Company, Inc. Shelter Financial Corporation Shelter Financial Bank Shelter Financial Services, Inc. Shelter Benefits Management Inc. Shelter Enterprises, LLC Daniel Boone Agency, LLC

s 2009 An n u a l Re p o r t Family of Companies Page 9

Shelter Insurance® first opened its doors in 1946, providing affordable auto insurance to Missourians. With a policy of integrity and customer service for the benefit of our customers, employees, agents and communities, Shelter has grown to be an industry leader in insurance, financial products, and services. In fact, we are now one of the nation’s most successful and financially sound regional insurance groups, with an international reinsurance operation.

Our financial strength ratings as determined by A. M. Best:

Shelter Mutual Insurance Company A (Excellent) Shelter General Insurance Company A (Excellent) Haulers Insurance Company, Inc. A (Excellent) Shelter Life Insurance Company A (Excellent) Shelter Reinsurance Company A- (Excellent)

Office Locations: Jonesboro, AR Lexington, KY Lincoln, NE Little Rock, AR Baton Rouge, LA Las Vegas, NV Springdale, AR Jackson, MS Oklahoma City, OK Denver, CO Columbia, MO Tulsa, OK Springfield, IL Kansas City, MO Columbia, TN Indianapolis, IN Springfield, MO Nashville, TN Topeka, KS St. Louis, MO

Operating territory for Shelter Mutual, Shelter General and Shelter Life:

Sh e l t e r f r o m t h e St o r m Financial Results Page 10

Property & Casualty Operations For the second year in a row, Shelter Mutual (Mutual) and its subsidiary, Shelter General (General), reported underwriting losses due to consistent Midwestern storm activity. These frequent storms impacted underwriting returns and resulted in a combined $122 million underwriting losses. Fortunately, the economic climate in 2009 improved significantly from the prior year providing stability and realized gains to offset the incurred losses. Even with these losses, Mutual and General continued to add to voluntary pre-event catastrophe reserves. The weather reserve increased $14 million and the earthquake reserve increased nearly $7 million. At year end, a total of $86.1 million of pre-event reserves were available to offset future losses. Investment returns for Mutual and General provided $129 million of investment related return including intercompany dividends received of $31.5 million and realized gains on intercompany sales of investments of $9.8 million. During 2009 the entire unaffiliated common stock portfolio of General was moved to Mutual. A portion of the stock was conveyed in the form of a dividend in the amount of $9.5 million; the remainder was transferred in exchange for long-term bonds. These changes provided General with $9.8 million of realized investment gains. Mutual’s surplus increased .9% for the year and ended at $1.25 billion, even after a significant contribution to the Shelter Employee’s Retirement Plan. Absent this contribution, surplus would have increased over 7% for the year. The Companies continued to demonstrate exceptional performance. The 2009 policy growth rate continued to exceed industry expectations as the number of policies increased by more than 3.4%, with auto policies increasing 4%. Overall, the net premium earned was up 4.2% for the year, reflecting a historic 87% retention rate. Mutual and General were rated A (Excellent) by A. M. Best Company for 2009. Another indicator of financial strength was the percent of net premiums written to policyholders’ surplus, which wasless than 100% in 2009. Furthermore, the Companies had no long-term debt obligations, an uncommon distinction among our financial peers. These positive factors provide policyholders the assurance that Shelter Insurance® is a well-capitalized and stable organization, able to fulfill its future commitments.

s 2009 An n u a l Re p o r t Financial Results (continued) Page 11

Shelter Mutual and Shelter General Property and Casualty Products

Shelter’s exclusive agents offer the following property and casualty products:

Auto Private Passenger Auto Commercial Auto Motorcycle Recreational Vehicle

Property Homeowners Mobile Homeowners Farmowners Dwelling Fire Farm Fire Apartment Owners Personal Inland Marine Boatowners

Liability Personal Umbrella General Liability Comprehensive Farm Liability

Business Business Owners Commercial Fire Commercial Inland Marine Cargo

s 2009 An n u a l Re p o r t Financial Results (continued) Page 12

Sh e l t e r f r o m t h e St o r m Financial Results (continued) Page 13

Sh e l t e r f r o m t h e St o r m Financial Results (continued) Page 14

Haulers Insurance Company, Inc. In its first full year as a member of the Shelter family of companies, Haulers Insurance Company, Inc. produced profitable results. Despite a challenging economic environment, the Company earned pre-tax net income of nearly $2.6 million on net earned premium of $26 million. Gross written premium rose 2.7% in 2009, while policies in force grew 5.1% over 2008 to more than 31,000. Haulers predominately writes personal and commercial auto insurance.

Haulers’ 2009 storm losses and reserve strengthening resulted in an underwriting loss of $564 thousand compared to a gain of $213 thousand in 2008. Rate increases have been implemented to improve future results. The Company saw its net investment gain rise 4.6% in 2009 despite an overall yield of 3.9% Total invested assets grew 12.2% to over $48.5 million as operating cash flow more than doubled. Other income increased by 11.3%, primarily driven by increased fees.

Strategically, Haulers expanded its operating territory to include the state of Georgia during 2009. The Company is targeting a 2010 launch of a new General Liability product and preparing to enter a sixth state in early 2011.

s 2009 An n u a l Re p o r t Financial Results (continued) Page 15

Sh e l t e r f r o m t h e St o r m Financial Results (continued) Page 16

Shelter Life Insurance Company Shelter Life recorded profitable results in 2009 with net income before taxes of $50.9 million, compared to $2.9 million in 2008. During 2009 the entire unaffiliated common stock portfolio of Shelter Life was moved to Shelter Mutual. A portion of the stock was conveyed in the form of a dividend in the amount of $20 million; the remainder was transferred in exchange for long-term bonds. These changes provided $21.2 million of realized investment gains, which resulted in an increase of net income in 2009. Net worth for the year advanced $7.2 million to $176.7 million at year end even after the dividend payment to Shelter Mutual.

Operational efficiencies and growth in policy count were major contributors to the Company’s success. In the past five years, policy count increased by nearly 35,000 policies. Excellent persistency and stable growth added $1 billion to life insurance in force during 2009 for a total of $19.3 billion. Total assets at year end were $940.4 million, compared to $920.2 million in 2008.

Shelter Life Insurance Company was again named one of Ward’s 50 top performing life insurance companies. Annually, the Ward Group analyzes the financial performance of over 900 life insurance companies domiciled in the United States and identifies the superior performers. These 50 companies are designated as the “Ward’s 50.” The Ward’s 50 life-health insurance companies produced a 13.5% return on average equity from 2004 to 2008 compared to 6.4% for the industry overall. Shelter Life also received a strength rating of A (Excellent) by A.M. Best and A- (Excellent Financial Strength) by The Street.com Ratings.

In 2009, Shelter Life introduced a new product -- Secure Whole Life. This product answers customer demands for security and value during financially uncertain times. In addition, Shelter Life rolled out a web-based sales illustration system to better assist its agents in serving client needs.

s 2009 An n u a l Re p o r t Financial Results (continued) Page 17

Products Offered Life Annuities Platinum Shield® III Universal Life Platinum Shield® Single Premium Deferred Annuity Whole Life Platinum Shield® Flexible Premium Deferred Annuity 20 Pay Whole Life Interest Sensitive Single Premium Deferred Annuity Platinum Protector Level Term (10, 20, 30 Years) Interest Sensitive Flexible Premium Deferred Annuity Yearly Renewable Term Single Premium Immediate Annuity EZ Term Junior Special Secure Whole Life

Sh e l t e r f r o m t h e St o r m Financial Results (continued) Page 18

Shelter Reinsurance Company Shelter Reinsurance Company showed continued growth and record profit for 2009. Net premium writings increased 11% to $81 million from $73 million in 2008. Over the last four years, Shelter Reinsurance Company experienced year-over- year premium growth averaging over 16%. An absence of major catastrophes enabled the Company to post a record underwriting gain of $30 million and net income before taxes of $40 million. Net worth overall increased 20%, or $27.8 million to a total of $166.4 million.

The Company developed a multi-year plan to grow over the next several years. The initial phase included identification of areas around the world where market exposure fit the Company’s risk tolerance. The Company plans to expand to these new market opportunities over the course of time. The plan also includes increasing current relationships where concentrations of property risk are not an issue. Additional staff was added to support this marketing strategy.

Shelter Reinsurance is an established world-wide reinsurer with nearly 70% of its premium coming from international markets. Customers varied in size and exposure with Europe and the United Kingdom producing the majority of premium. The domestic market generated 30% of the Company’s 2009 premium. This market focused on business with small mutual companies writing less than $10 million in direct written premiums. These writings are in areas outside of Shelter Mutual’s operating territory.

Obviously, profitable growth in the international marketplace will continue to play a major role in the continued success of the Company as well as building on the mutual-to-mutual concept. Additionally, the diversity of geographic risk that Shelter Reinsurance provides spreads the property risk of Shelter Mutual in the Midwestern United States. Other factors that will contribute to the Company’s future success are its reputation for prompt payments and its financial strength.

s 2009 An n u a l Re p o r t Financial Results (continued) Page 19

Shelter Re s www.shelterre.com

Sh e l t e r f r o m t h e St o r m Financial Results (continued) Page 20

Shelter Financial Bank Shelter Bank’s conservative philosophy of focusing on safety, profitability, and growth continued to serve it well during 2009. In spite of the trying times experienced in the banking industry, the Bank consistently outperformed its peers in virtually all measurable categories.

Capitalization was strong at 8.05% of assets. Asset quality remained excellent with past due and non-performing loan levels a fraction of most peers. Reserves for possible loan losses were bolstered considerably to a record high level of $1,778,000, due to general economic conditions. This reserve level exceeded that held by most of the banking industry, particularly relative to levels of troubled assets, and provided considerable protection to earnings and capitalization. As a result, Shelter Bank remained a safe place for customers to bank.

Net income totaled $692,000, thanks to strong loan growth, improving interest margins and strict control of overhead. These results were particularly gratifying since it was achieved despite large increases in FDIC insurance premiums and strong provisions to reserves.

Shelter Bank ended 2009 with total assets of $197 million, an increase of $42 million, or 27%. A significant portion of this growth, $32 million, was the result of the bank taking advantage of inexpensive Federal Reserve funding programs that may be discontinued in early 2010.

Given all the challenges that the industry faced in 2009, Shelter Bank was pleased with its excellent results.

s 2009 An n u a l Re p o r t Financial Results (continued) Page 21

Shelter Financial Bank Services

Real Estate Loan Products: Consumer Loan Products: Autos First Mortgage Loan Products (Fixed & Adjustable Rates): RVs Owner Occupied Real Estate Mortgages Boats 1-4 Family Rental Property Mortgages Motorcycles Commercial Real Estate Loans Personal Watercraft

Home Equity Loan Products: Deposit Products: Home Equity Fixed-Rate Loans Certificates of Deposit Home Equity Lines of Credit Money Market Accounts

Sh e l t e r f r o m t h e St o r m Community Involvement Page 22

Multiple Winners of the 28th Fred V. Heinkel Award for Excellence The executive director of the Mid-Missouri High Steppers Drill Team and two Columbia, Missouri teens who spearheaded the drive to win a contest that netted the Central Missouri Humane Society a $1 million prize, shared the 28th Shelter Insurance® Foundation’s Fred V. Heinkel Award for Excellence.

High Steppers Director Rolando Barry, and Humane Society volunteers Amanda Huhman and Libby Burks received the award, along with $2,000 in a brief ceremony in the Training Center at the Home Office.

Barry founded the popular High Steppers, a Columbia-area drill team, in 1979 while attending the University of Missouri. Barry, who had been on a drill team in St. Louis, noticed a group of students dancing in the Hickman High School parking lot and decided to teach them basic steps he had learned as a kid. The drill team, now in its 30th year, has included more than 3,000 students and features kids who start as early as third grade.

Libby Burks and Amanda Huhman, both seventh-grade students at Columbia Catholic School, and Humane Society volunteers since age 9, were the driving force to promote the Central Missouri Humane Society (CMHS) in a nationwide contest for an animal shelter makeover. As a result of their efforts, the CMHS shelter is eligible for as much as $1 million in goods and services coordinated by ZooToo.com, a pet-lovers’ social-networking site.

Using money and donations from the contest win, the CMHS shelter plans to improve measures to keep animals healthy, including a new ventilation system, an isolation room for sick animals to stop the spread of disease and a separate area away from dogs for stressed-out cats. The shelter also plans to add room for more animals and make infrastructure upgrades.

The Heinkel Award recognizes individuals or organizations that have demonstrated excellence in any area of science, medical research, health services, education, history, agriculture or any other field designated by the Shelter Insurance Foundation board of directors. Mr. Heinkel served as chairman of MFA Mutual Insurance from the Companies founding in 1946 until his retirement in 1981.

s 2009 An n u a l Re p o r t Community Involvement (continued) Page 23

Partners in Education Association Celebrates Silver Anniversary In 1984, Gus Lehr, retired Chairman of Shelter’s Board of Directors and the late Dr. Muriel Battle, former principal of West Jr. High School (WJHS) formed one of Columbia’s first school-business partnerships. The silver anniversary of that partnership was celebrated in 2009. Representatives from Shelter, WJHS and the Columbia Public School system are shown below at a presentation honoring the 25-year association.

One of the long-standing programs Shelter sponsors at WJHS is the Holiday greeting card program. All WJHS students are eligible to contribute original works of art to the card program competition. The contest provides a real-world teaching tool for the WJHS faculty by enabling students to put into practice specific techniques learned in the classroom. Although it can be difficult to motivate students to create Christmas pictures in May, the exercise furnishes insight on how professional designers work in advance of a season while dealing with clients, guidelines and deadlines.

Once the three winning entries are selected, Shelter prints and packages the cards, which are purchased by Shelter Insurance agents, employees and retirees and by WJHS staff and families of students. Now in its 20th season, the Christmas card program has produced more than 187,000 Christmas cards illustrated with original art created by 60 WJHS students.

Shelter also awards two scholarships per year to WJHS students as well as recognizing one member of the faculty as the Outstanding Contributor for the year. Additionally, the Lehr/Battle Outstanding Achievement Award is presented annually to one female and one male student. This non-monetary award recognizes students for outstanding performance during the school year.

Finally, Shelter recycles all of its used toner cartridges through WJHS. This program enables the school to purchase equipment for the school’s computer lab.

United Way Donations Exceed 2008 Record The Company and its employees made 2009 a record year for United Way giving. Despite the continuing effects of an economy struggling to regain its footing, giving by employees and retirees surpassed last year’s record by over 8%. Shelter also contributed a Live United Team of workers to the National Day of Caring campaign. This team spent the day at a local shelter for victims of domestic violence and sexual abuse, cleaning up six apartments. In addition to cleaning the interior of these buildings, the team also cleaned the gutters and raked the yards as well.

Sh e l t e r f r o m t h e St o r m Community Involvement (continued) Page 24

Charitable Giving a Way of Life for Shelter Employees and Agents In addition to generously supporting the United Way campaign, Shelter employees and agents participated in a number of other charitable activities and fund-raising efforts benefiting both local and national causes. One department sponsored a number of events to benefit a local organization for abused and neglected children. Another team of employees, participating in the Relay for Life, collected $4,500 to fight cancer.

Several departments throughout the Company as well as Branch offices participated in fund-raising activities to benefit the husband of an employee who was seriously injured while saving a toddler from being struck by a vehicle. Proceeds from bake sales, silent auctions and raffles as well as cash contributions totaled over $3,000 as Shelter employees opened their hearts and their wallets to help this family cope with the large medical bills that resulted from this act of heroism. The Shelter Insurance Foundation contributed $3,000 to the cause as well, providing even more relief to this family. Incidentally, the couple welcomed its third child just 11 days after the accident. The father was able to attend the birth and continues to recover from a punctured lung, fractured spine, injured shoulder and severe damage to the muscles and ligaments of his left knee.

Field employees contributed their fair share to charitable activities as well. The Springfield, Missouri claims office was cited for its participation in a Red Cross Blood Drive; breast cancer and Alzheimer’s research benefited from the fund raising efforts of the Topeka claims office. Agents and claims personnel in central and southern Arkansas again conducted a food drive to assist the Arkansas Food Bank Network in Little Rock in meeting needs in that community. The food drive is an annual event and is quite competitive. Teams are selected, not only to collect food and money, but also to create Christmas “sculptures” using the non-perishable goods as building materials. The winning sculpture is pictured. In addition to collecting 4,697 pounds of food, the teams also collected $800 in cash donations – enough to provide 7,725 meals to Arkansas families.

Employees from the Branch office in Springdale, Arkansas conducted fund-raising activities throughout the year and were able to provide a $1,500 scholarship to a young boy suffering from cerebral palsy. The staff from this office also volunteered at Conductive Education of Northwest Arkansas (CENA) events such as a golf tournament, art auction and the organization’s gala event of the year. CENA is a division of United Cerebral Palsy of Arkansas.

The numerous acts of generosity and benevolence by its employees are a source of pride for Shelter Insurance® as it strives, not only to be a financially strong and ethical company, but also a compassionate and caring part of the communities where it conducts business.

s 2009 An n u a l Re p o r t Shelter Privacy Protection Policy Page 25

Privacy Protection Policy Notice

Protecting your privacy is important to Shelter Insurance Companies. We want you to understand what information we collect and how we use it. Here at the Shelter Insurance Companies, we value your patronage and want to maintain your confidence in our insurance relationship. With this in mind, we have formulated the following principles and guidelines regarding the collection, use and security of personal information you provide to us. Information Collection During our relationship, we may collect and use nonpublic personal information about you from public records; market research; consumer reporting agencies; medical service providers; transactions with us, our affiliates or others; information provided from you on applications, claim forms or other forms; and information obtained from our agents. Maintenance of Accurate Information We strive to keep this information accurate and up-to-date. If you discover this information is incomplete, inaccurate or not current, please notify us immediately at the address or telephone number listed below. Limiting Employee Access to Your Information Our employees’ limited access to customer information is based on job function. We educate our employees so they understand the importance of customer confidentiality and privacy. Employees who disregard their privacy responsibilities are subject to discipline. Sharing Your Information Among Our Family of Companies To better serve your needs, your nonpublic personal information may be shared among our family of companies. All of these companies work together to provide the services you may want. By sharing information about your accounts and relationships among our family of companies, we can serve you more efficiently and make it easier for you to do business with us. We do not share medical or health information among our family of companies except to process transactions or to provide services you have requested or initiated. Restrictions on the Disclosure of Your Information We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. We may disclose information to third parties when we believe it is necessary to conduct our business or where disclosure is permitted by law. Information may be disclosed to others who assist us in providing business services such as helping us evaluate requests for insurance or benefits, performing general insurance activities for us, or assisting us in processing transactions which you have requested or initiated. Information may also be disclosed for audit purposes, to help us prevent fraud, to law enforcement and regulatory agencies, to consumer reporting agencies or as otherwise permitted by law. Maintaining Customer Privacy in Business Relationships with Third Parties Whenever we provide customer information to a third party, we insist that the third party adhere to similar privacy principles for keeping such information confidential. Web Site Privacy When you browse shelterinsurance.com, you do so anonymously. Shelter does not collect personally identifying information about you. If you provide information on our on-line claims submission process, that information will only be forwarded to our Customer Service Representatives for processing. We do not capture information in a web-based database. Questions If you have questions or would like to contact us regarding your information, you may do so by: Writing to us at: Shelter Insurance Companies Attn: Privacy 1817 West Broadway Columbia, MO 65218-0001 Or telephoning us at: 1-800-743-5837 Shelter Insurance Companies Family of Companies The following is a list, as of May 1, 2006, of the Shelter Insurance Companies subsidiaries to which this policy applies: • Shelter Mutual Insurance Company • Shelter Life Insurance Company • Shelter General Insurance Company • Daniel Boone Agency, LLC • Shelter Reinsurance Company • Shelter Enterprises, LLC • Shelter Financial Services, Inc. • Shelter Financial Corporation • Shelter Benefits Management Inc. • Shelter Financial Bank

We promise to strive to shelter the information you provide to us and to keep you informed about how we protect your privacy. We reserve the right to change these privacy principles at any time.

Sh e l t e r f r o m t h e St o r m