Purpose Propels Us Forward 2018 AT-A-GLANCE

2018 ANNUAL REPORT Purpose propels us forward 2018 AT-A-GLANCE

Succeeding today while preparing for tomorrow

COMPANY FACTS

More than 19M 5,600 $6M customers served Employees and Community representatives contributions

FINANCIAL HIGHLIGHTS $78.5B $5.7B $1.2T $5.5B $4.8B Assets under Domestic statutory Domestic life Total Equity management benefits paid insurance in force revenue

RATINGS AA- AA A+ Aa3 (VERY STRONG) (VERY STRONG) (SUPERIOR) (EXCELLENT) Standard & Poor’s Fitch A.M. Best Moody’s Investors Service

Ratings information Securian Financial’s insurance company affiliates, Minnesota Life Insurance Company and Securian Life Insurance Company, a New York authorized insurer, receive high ratings from independent rating agencies that analyze the financial soundness and claims-paying ability of insurance companies. These ratings reflect our stability, integrity, long-term focus and commitment to maintaining a strong balance sheet. All ratings information is current as of March 2019 and is subject to change. A.M. Best Company rating (second highest of 16 ratings); Fitch rating (third highest of 19 ratings); Moody’s rating (fourth highest of 21 ratings); Standard & Poor’s rating (fourth highest of 21 ratings). For more information about the rating agencies and to see where our ratings rank compared to other ratings, visit securian.com/ratings. At Securian Financial, we believe that if you're not going forward, you're not going anywhere. And we're going places. Building new capabilities. Investing in our future. Leveraging our strengths. And developing new ones.

In 2018, we delivered solid results while sharpening our focus on what's next, making significant strategic investments to help ensure we're even better positioned to deliver on our purpose: helping our customers build secure tomorrows.

And while we've turned our eyes to the future, we're not overlooking the present. Because the decisions we make every day matter to our customers, distribution partners and5,300 the communities we call home. We provide comfort and empathy for our Employeescustomers and representatives when they worldwide need us. And we remain committed to delivering solutions that help them focus on what really matters: banking memories with those who matter most. “The decisions we make today matter to our customers tomorrow, and what’s important to them is important to us.”

CHRISTOPHER M. HILGER Chairman, President and CEO

4 SECURIAN FINANCIAL MESSAGE FROM THE CEO

2018 was a year when Securian Financial generated solid results while making significant advancements to support our future success. I am incredibly grateful for the hard work and dedication of our employees and distribution partners. They made the accomplishments outlined in this report possible while providing responsive and caring service to our customers.

Succeeding today Preparing for tomorrow Driven by purpose and values Securian Financial fulfilled its purpose Securian Financial made significant I am proud of Securian Financial’s in 2018. We proudly helped protect investments in 2018 to advance the results in 2018. Our purpose fuels the the financial futures of more than long-term growth priorities of our passion we need to keep evolving, 19 million customers by providing enterprise strategic plan. The most while our values keep us grounded. $1.2 trillion of life insurance in force visible example was launching an and managing $78.5 billion in assets. exciting new brand identity and our Like the families featured in our Most importantly, we paid nearly first national advertising campaign advertising campaign, we are making $5.7 billion in statutory benefits when that articulates who we are, what we every moment count. Because the our customers needed us most. stand for and where we’re going. decisions we make today matter to our customers tomorrow, and what’s Financial strength is central to our We are also modernizing our important to them is important to us. ability to fulfill our purpose, and approach to technology and have we maintained our strength in 2018 implemented new capabilities to by preserving the fundamental enhance risk management, improve characteristics that have defined productivity and increase innovation. us for generations: high capital We continued bringing together the levels, excellent product and right people, processes and systems investment quality, and thoughtful to manage changing marketplace Christopher M. Hilger risk management. expectations and to create excep- Chairman, President and tional experiences for our customers Chief Executive Officer By staying true to these fundamentals and distribution partners. in 2018, we kept our place among the most highly rated insurance At Securian Financial, preparing for companies in the country. We tomorrow also includes supporting received high marks for financial the communities where we live and strength from the four independent work. We contributed $6 million to the rating agencies — including an community in 2018 and introduced a upgrade from Standard & Poor’s. new Volunteer Paid Time Off policy We also produced smart growth, that will expand our rich tradition increased market share and earned of community service. retention levels that we expect to exceed industry averages. Being there for our customers and distribution partners is a top priority, and we are thankful for their continued trust and loyalty.

2018 ANNUAL REPORT 5 FINANCIAL AND INVESTMENT RESULTS

In 2018, Securian Financial delivered strong results while maintaining our financial strength, staying within our risk appetite and upholding our values.

1 SALES ($ BILLION) REVENUE ($ BILLION)

Annuity Insurance $6.1 $5.5 $4.8 $4.4 $4.2 $3.8 $3.9

$3.0 $2.6 $2.4

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Overall sales results were solid in 2018. Insurance GAAP revenue was strong but decreased to sales increased 5 percent to $1.3 billion, reflecting our $5.5 billion, driven by lower nonrecurring premiums. strong market position and diverse product offerings. Annuity sales were consistent with 2017 at $2.6 billion.

ASSETS UNDER MANAGEMENT EQUITY2 OPERATING EARNINGS3

0% 5% 9%

Assets under management were Total GAAP equity decreased 5 percent Operating earnings increased to consistent with 2017, reflecting solid sales to $4.8 billion. Strong operating earnings $335 million, driven by favorable and excellent retention, offset by market were more than offset by reduced underwriting results and positive performance during the fourth quarter. unrealized gains on investments due to impacts of tax reform. rising interest rates.

1. Sales generally represent annualized premiums, fund deposits and new asset deposits as applicable to specific products. 2. Equity represents total Securian Financial Group, Inc. and subsidiaries equity. 3. Operating earnings equal net income attributable to Securian Financial Group, Inc. and subsidiaries, less net realized investment gains, net of taxes.

6 SECURIAN FINANCIAL In 2018, Securian TOTAL INVESTMENTS FIXED MATURITY SECURITIES (% OF TOTAL INVESTMENTS4) (% OF FIXED MATURITY SECURITIES) Financial's investment portfolio continued to perform very well and the quality of our investments remained high.

74.5% Fixed maturity securities 60.5% NAIC5 1 A- to AAA 15.8% Mortgage loans 36.3% NAIC 2 BBB- to BBB+ 7.6% Other invested assets 2.9% NAIC 3 BB- to BB+ 2.1% Equity securities 0.3% NAIC 4 B- to B+ 0.0% NAIC 5 & 6 D to CCC+

Investments The quality of Securian Financial’s fixed maturity securities and mortgage investments remains high, allowing loans. Our disciplined guidelines limit us to help serve the long-term interests exposure to any single asset class, sector of our customers. and issuer, and we continue to hold ample liquidity in our investment portfolio. Our investment approach is consistent with our risk management goals and The size of our investment portfolio philosophy. We combine a long-term allows us to access and select from all market perspective with a balance between asset classes, which provide a broad risk and reward. We focus on quality, universe of attractive investment diversification and competitive return. opportunities. We invest in asset classes that provide higher return potential in Securian Financial’s investment portfolio the long term while limiting overall credit, is predominantly fixed income assets, market and interest rate risk. which are primarily investment grade

4. Total investments includes cash, cash equivalents and invested assets, and excludes separate accounts 5. National Association of Insurance Commissioners

2018 ANNUAL REPORT 7 8 SECURIAN FINANCIAL INDIVIDUALS AND FAMILIES

Providing solutions that help put family first

From the everyday moments to major milestones, we understand that our customers’ most valuable asset is family — however they define it. That’s why we provide life insurance, annuities and wealth management solutions that help them continue putting family first. Because when family is cared for, our customers can thrive.

SERVICE EXCELLENCE BUSINESS RESULTS CUSTOMERS SERVED $807M $199M Nearly 1M Individual life insurance Individual life insurance domestic statutory benefits paid direct premiums PREPARED FOR TOMORROW

96% $8.4B With a deep understanding of our Individual life insurance Individual annuity assets customers' goals, we have expanded customer retention, based under management offerings of hybrid insurance products, on insurance in force annuities, executive benefits and financial wellness solutions that continue to help $33.4B customers put family first. Securian Financial Network 92% 6 Individual annuity customer assets under administration 6. Life insurance assets reflects the cash value retention, based on assets of the life insurance policies. Annuity assets reflect the current contract value of the annuity contracts. The amount of assets under administration does not include proprietary retirement plan assets.

2018 ANNUAL REPORT 9 EMPLOYERS AND EMPLOYEES

Making the workplace work for employees

Workplace benefits are the foundation of many families’ financial futures — allowing them to focus on the moments that matter today. We provide group insurance, retirement plans and longevity solutions paired with decades of expertise in the creation of specialized workplace benefits programs — helping employees love where they work and prioritize those they love.

SERVICE EXCELLENCE BUSINESS RESULTS CUSTOMERS SERVED 96% $1.0T Nearly 9M Retirement customer retention, Group insurance in force based on assets $2.4B PREPARED FOR TOMORROW 95% Group insurance direct premiums We're positioned to help employers Group insurance customer retention, improve the financial wellness of their based on premiums workforce through innovative student $20.3B debt solutions, voluntary benefits Retirement plan assets under for unique needs and a full suite of management retirement and longevity benefit solutions — all made easier through 3rd largest innovative digital experiences. Direct writer of group life insurance 7. Based on 2017 direct group life insurance in in the United States7 force on a consolidated basis. Source: S&P Global Market Intelligence. This statistic reflects the insurance affiliates of Securian Financial Group, Inc., Minnesota Life Insurance Company and Securian Life Insurance Company. 10 SECURIAN FINANCIAL 2018 ANNUAL REPORT 11

FINANCIAL INSTITUTIONS AND THEIR CUSTOMERS

Helping customers be present in the here and now

Many people rely on their financial institutions to protect what matters to them. And those financial institutions look to us to provide sound solutions in a market that’s constantly on the move. Our insurance, credit and debt protection products help customers spend less time worrying about their finances and more time being present in the here and now.

SERVICE EXCELLENCE BUSINESS RESULTS CUSTOMERS SERVED $263M $684M More than 10M Domestic statutory benefits paid Domestic direct insurance premiums 99% $205M PREPARED FOR TOMORROW Domestic customer retention, based Canadian direct insurance premiums We're expanding our distribution to on financial institution premiums reach more customers in adjacent More than markets through innovative digital experiences and products focused on 4,200 customers' financial well-being. Financial institutions offer our products and solutions

2018 ANNUAL REPORT 13 INSTITUTIONAL INVESTORS

Providing customized strategies

Institutional investors look to Securian Asset Management and AAM Insurance Investment Management to help them achieve their investment objectives. We take a long-term, collaborative and research-driven approach to help achieve steady growth, bringing decades of experience and providing tailored solutions to corporations, nonprofits, insurance companies, public funds and retirement plans nationwide.

SERVICE EXCELLENCE BUSINESS RESULTS PREPARED FOR TOMORROW

We've broadened our pension solution capabilities and continue to leverage our 90% $38.2B expertise in public and private fixed income, Securian Asset Management customer Securian Asset Management commercial real estate, alternatives, and retention, based on unaffiliated assets assets under management specialized insurance investments to solve the investment needs of our customers. 97% $24.7B AAM Insurance Investment Management AAM assets under management customer retention, based on assets

14 SECURIAN FINANCIAL 2018 ANNUAL REPORT 15 ENTERPRISE OVERVIEW

MARKETS PRODUCTS AND SERVICES COMPANIES

Individual life insurance Individual annuities • Minnesota Life Individuals • Universal: fixed, fixed • Variable, fixed, fixed Insurance Company indexed, variable and indexed and immediate • Securian Life and families survivorship Insurance Company • Term Wealth management • Securian Financial Services SERVING • Whole • Investment advisory • Securian Trust Company Individuals, families, • Hybrid life/long-term care • Asset management executives and • Brokerage accounts business owners • Mutual funds • Trust services • Estate planning

Group insurance • Non-registered group • Minnesota Life Employers • Term, universal and variable annuities and Insurance Company and employees variable universal life custodial accounts • Securian Life • Critical illness, accident Insurance Company SERVING and hospital indemnity Longevity solutions Private and public • Accidental death and • Pension risk transfer employers, employees dismemberment • Defined contribution and their families • Business travel accident income solutions

Retirement solutions Institutional solutions Recordkeeping solutions • Guaranteed investment • Defined contribution and contracts defined benefit plans • Fixed group annuity • Fully bundled and contracts TPA-serviced plans

For financial institutions • Credit life, disability and • Minnesota Life Financial • Collateral protection involuntary unemployment Insurance Company institutions and • Consumer loan forms insurance • Securian Life • Direct response, digital, • Credit property insurance Insurance Company their customers point-of-sale and call • Debt protection • Securian Casualty Company center services • Guaranteed asset • Allied Solutions SERVING • Vendor single interest protection • Canadian Premier Life Banks, credit unions, • Mortgage accidental Insurance Company finance companies, For their customers death, disability and • Canadian Premier General mortgage lenders, • Accident and sickness life insurance Insurance Company other affinity groups insurance • Term life insurance • Valeyo and customers of • Accidental death and financial institutions dismemberment insurance

• Alternative investments • Pension solutions and • Securian Asset Institutional • Commercial mortgage loans liability-driven investing Management investors • Commercial real estate • Private placements • AAM Insurance Investment debt and equity • Public and private Management SERVING • Convertible bonds fixed income Corporations, endowments • High yield/bank loans • Public equities and foundations, insurance • Investment grade companies, mutual fund fixed income companies, pension plans, variable insurance providers, 401(k) and related separate account platforms

16 SECURIAN FINANCIAL CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2018 and 2017 in millions 2018 2017 Assets Total investments8 $ 23,781 $ 22,472 Total other assets 4,526 3,836 Separate account assets 23,581 24,924 Total assets $ 51,888 $ 51,232

Liabilities and Equity Liabilities: Policyholder benefits and funds9 $20,667 $ 18,798 Other liabilities 2,782 2,397 Separate account liabilities 23,581 24,924 Total liabilities 47,030 46,119 Equity: Total Securian Financial Group, Inc. and subsidiaries equity 4,834 5,087 Noncontrolling interests 24 26 Total equity 4,858 5,113

Total liabilities and equity $ 51,888 $ 51,232

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Years ended December 31, 2018, 2017 and 2016 in millions 2018 2017 2016 Revenues Premiums and policy and contract fees $ 4,030 $ 4,588 $ 3,373 Net investment income 913 832 763 Net realized investment gains (losses) (18) 10 1 Other income 571 636 640 Total revenues 5,496 6,066 4,777

Benefits and expenses Policyholder benefits 2,957 3,609 2,508 Dividends to policyholders and interest credited 543 481 446 Other operating costs and expenses 1,639 1,535 1,498 Total benefits and expenses 5,139 5,625 4,452

Income from operations before taxes 357 441 325 Income tax expense 31 19 75

Net income 326 422 250 Less: Net income attributable to noncontrolling interests 4 3 2 Net Income attributable to Securian Financial Group, Inc. and subsidiaries $ 322 $ 419 $ 248

8. Total investments includes cash, cash equivalents and invested assets. These condensed consolidated financial statements are derived from the 9. Policyholder benefits and funds includes policyholder and contract company’s audited consolidated financial statements, which are prepared holder benefits, funds, claims and dividends. in accordance with generally accepted accounting principles (GAAP).

2018 ANNUAL REPORT 17 BOARD OF DIRECTORS As of December 31, 2018

Wilson G. Bradshaw Eric B. Goodman Trudy A. Rautio President Emeritus (Retired) Retired Chief Investment Officer Retired President and Florida Gulf Coast University AEGON USA Chief Executive Officer Fort Myers, Florida Cedar Rapids, Iowa Carlson Minnetonka, Minnesota Committees: Committees: Corporate Governance and Public Affairs; Audit; Investment Committees: Human Resources and Compensation; Audit; Investment (Chair); Executive Non-Overlapping Directors Christopher M. Hilger Chairman, President and Robert L. Senkler Mary K. Brainerd Chief Executive Officer Former Chairman and Retired Retired President and Securian Financial Group, Inc. Chief Executive Officer Chief Executive Officer St. Paul, Minnesota Securian Financial Group, Inc. HealthPartners St. Paul, Minnesota Minneapolis, Minnesota Committees: Corporate Governance and Public Affairs; Committees: Committees: Investment; Executive Audit; Investment Audit (Chair); Investment; Executive

John H. Hooley Paul L. Snyder John W. Castro Retired Executive Vice President/President Former Managing Partner Retired Chief Executive Officer SUPERVALU Retail Companies KPMG LLP Merrill Corporation Eden Prairie, Minnesota Minneapolis, Minnesota St. Paul, Minnesota Committees: Committees: Committees: Human Resources and Compensation Audit; Investment; Non-Overlapping Corporate Governance and Public (Chair); Audit; Executive Directors Affairs (Chair); Human Resources and Compensation; Executive Ronald J. Peltier Kevin F. Warren Chairman and Chief Executive Officer Chief Operating Officer Benjamin G. S. Fowke, III HomeServices of America, Inc. Minnesota Vikings Football, LLC Chairman, President and CEO Minneapolis, Minnesota Eagan, Minnesota Xcel Energy, Inc. Minneapolis, Minnesota Committees: Committees: Human Resources and Compensation; Corporate Governance and Public Affairs; Committees: Investment; Non-Overlapping Directors Human Resources and Compensation Human Resources and Compensation; Audit

Sara H. Gavin President, North America Weber Shandwick Minneapolis, Minnesota

Committees: Corporate Governance and Public Affairs; Human Resources and Compensation

18 SECURIAN FINANCIAL SENIOR OFFICERS As of March 30, 2019

Christopher M. Hilger Kristi L. Fox Jacob D. Jones Chairman, President and Vice President Second Vice President and Actuary Chief Executive Officer Human Resources Life Underwriting Bruce P. Shay Craig J. Frisvold Gary M. Kleist Executive Vice President Vice President Second Vice President Individual Life and Annuity Operations Investment Operations Warren J. Zaccaro Executive Vice President Mark J. Geldernick Brent C. Lesmeister Chief Financial Officer and Vice President Second Vice President Chief Compliance Officer Law Group Insurance Sales and Client Relationships Gary R. Christensen Daniel H. Kruse Senior Vice President Vice President and Actuary Andrea L. Mack General Counsel and Secretary Individual Life and Annuity Second Vice President Individual Product Solutions Group George I. Connolly Karen A. Leighton Senior Vice President Vice President Ann P. McGarry Wealth Management Group Corporate Services Second Vice President Enterprise Marketing Robert J. Ehren Anthony J. Martins Senior Vice President Vice President Susan M. Munson-Regala Individual Market Career Distribution Second Vice President and Actuary Group Insurance Siddharth S. Gandhi Paul E. Rudeen Senior Vice President Vice President and Actuary Kristi J. Nelson Chief Strategy and Group Insurance Second Vice President and Actuary Enterprise Technology Officer Credit Protection David A. Seidel William M. Gould President Ted J. Nistler Senior Vice President Canadian Premier Life Insurance Company Second Vice President Financial Institution Market and Canadian Premier General Insurance Corporate Tax Company Suzette L. Huovinen Sean M. O’Connell Senior Vice President Craig M. Stapleton-Corcoran Second Vice President and Chief Actuary and Chief Risk Officer Vice President Portfolio Manager Asset Management David M. Kuplic Christopher B. Owens Senior Vice President Matthew J. Bauler Second Vice President Chief Investment Officer Second Vice President Retail Life and Annuity Sales Trust Services and Investment David J. LePlavy Kent O. Peterson Resource Group Senior Vice President Second Vice President and Actuary Treasurer and Controller Erica A. Bergsland Retirement Solutions Second Vice President Kathleen L. Pinkett Daniel P. Preiner Asset Management Research and Trading Senior Vice President Second Vice President Human Resources and Corporate Services Michael P. Boyle Corporate Compliance Officer and Second Vice President Chief Information Security Officer Rick L. Ayers Law Vice President Mark W. Sievers Retirement Solutions Kimberly K. Carpenter Second Vice President Second Vice President Chief Audit Executive Barbara A. Baumann Wealth Management Vice President Mary L. Streed Service and Operations Heidi R. Christopherson Second Vice President Second Vice President Human Resources Peter G. Berlute Institutional Market Technology Vice President Robert J. Subjects Enterprise Technology Cary Felbab Second Vice President Second Vice President Career Distribution Recruitment Richard A. Binger Retail Market Technology Vice President Michael J. Webster Chief Architect and Kristin M. Ferguson Second Vice President Technology Infrastructure Second Vice President and Actuary Technology Customer Experience Wealth Management and Insights Laurence G. Cochrane Vice President Julio A. Fesser Jennifer L. Wolf Retail Product Distribution Second Vice President Second Vice President Facilities Services Investment Law Susan L. Ebertz Vice President Christopher R. Greene John A. Yaggy Enterprise Benefit Distribution Second Vice President Second Vice President Financial Institution Group Assistant Controller President, Securian Casualty Company

2018 ANNUAL REPORT 19 For information on our financial strength, At Securian visit securian.com/financials. The Securian Financial Network, the marketing Financial, we’re name for the sales and distribution arm of Securian Financial Group, Inc., its subsidiaries and affiliates, is a nationwide network of here for family. financial services firms. Products and services are offered and sold only by appropriately And we’re here licensed entities and financial representatives. Securities and investment advisory services offered through Securian Financial Services, Inc., because of it. member FINRA/SIPC.

Family doesn’t have to branch from your Securian Financial is the marketing name for Securian Financial Group, Inc., and its affiliates. tree, but it always shares your roots. Roots woven by common understanding, Securian Financial Group, Inc. is the holding shared values and mutual respect. Like company parent of a group of companies that provide a broad range of financial services, you, we believe a rewarding life is really including: about being present in the here and now, • Allied Solutions, LLC and that money isn’t the only thing when • Asset Allocation & Management family is your everything. Company, LLC • Canadian Premier Life Insurance Company • Canadian Premier General Insurance Company Since 1880, we’ve been here for those • CRI Canada Ltd. who see family as their most valuable • Minnesota Life Insurance Company asset. Our longevity is a testament to • Securian Asset Management, Inc. • Securian Casualty Company the strength of our company. We’ve • Securian Financial Services, Inc. weathered economic ups and downs • Securian Life Insurance Company • Securian Trust Company, N.A. while staying true to our customers. We’re • Selient Inc. not publicly traded, so we can focus on you and what you care most about.

We believe your financial picture should support the everyday moments as much as the major milestones. That’s why our insurance, investment and retirement solutions give you the confidence to focus on what’s truly valuable: banking memories with those who matter most.

INSURANCE INVESTMENTS RETIREMENT

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