2012 amb final_02_22_2012

Presidential Life
Insurance Company
A.M. Best Company Meeting
February 27, 2012
“The New Era for Presidential Life has begun.”
Donald L. Barnes, Vice Chairman of the Board, CEO and President

Presidential Life Insurance Company
2
Table of Contents
Section Page(s)
Executive Management Team 3
A.M Best's 2011 Expressed Concerns 4-9
Corporate Overview 10-15
Core Business Strategy 16-18
Execution of Strategic Initiatives 19-22
Annuity Contract Products 23-30
Life Insurance Products 31-33
Accident & Health Insurance Products 34-36
Marketing and Distribution Perspective 37-44
Investment Portfolio Overview 45-61
Actuarial Perspectives 62-69
Financial Projections and Dividend Strategy 70-73
Appendix 74-89

3
Executive Management Team
Donald L Barnes
Vice Chairman of
the Board,
CEO and President
P.B. (Pete) Pheffer
Senior Vice President
Chief Financial
Officer and Treasurer
Mark A. Abrams
Executive Vice
President
Chief Investment
Officer
Mitchell R. Anderson
Senior Vice President
Chief Marketing Officer
Paul A. Marsico
Vice President
of Human Resources
and Administration
Tara A. O’Dom
Vice President
of Operations
Duncan Szeto
Vice President
Chief Actuary

4
Presidential Life
Insurance Company
A.M. Best Company’s Public and
Non-Public Expressed Concerns

AMB Public and
Non-Public Stated Concerns
• “The mono-line nature of Presidential Life's
product line makes diversification of product and
revenues a rating issue; however, it alone does not
imply a rating ceiling for the company.”
• “A concentration in geographic territories is an
added concern as it is viewed as a possible hurdle
for the company as it grows.”
• “Reaching planned milestones in regards to the
execution of the business plan will be key….”
5

AMB Public and
Non-Public Stated Concerns (Continued)
• Objective of this presentation is to address each of
these concerns and any others that may emerge
• Our goal is to achieve an “A” rated company status
this year to enable us to successfully distribute our
products and accelerate our strategic initiatives
• We have conducted extensive comparative analyses
to an 82 company universe of mono-line ordinary
annuity providers to justify the merits of our position
• Comprehensive content of this presentation is
designed explicitly to achieve this critical milestone
6

7
AMB Public and
Non-Public Stated Concerns (Continued)
• Two notch downgrade
in October of 2002 to a
“B+” FSR resulted in a
predictable and sustained
adverse impact
• An AMB FSR of at least
an “A-” is an empirically
supported upgrade as we
shall demonstrate
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Premiums&AnnuityConsiderations(millions)
A & H
Life
SPIIA
SPIA
FPDA
SPDA
B+
B++
Composition of Premiums and Annuity
Considerations by Product by Year

8
2011 RBC and BCAR Capitalization
Metrics & Trend Support an FSR Upgrade
• RBC increased to 556%,
its highest level in over a
decade
• BCAR metric reached an
internally estimated 218%,
its second highest level in
over a decade
• The only inconsistent data
point is the AMB FSR
• Further empirical analysis
on this issue to follow
60%
80%
100%
120%
140%
160%
180%
200%
220%
240%
0%
100%
200%
300%
400%
500%
600%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
RBC
BCAR
Risk Based Capital (RBC)
Best's Capital Adequacy Ratio (BCAR; 2Y)
B+
B++

9
Statutory Financial Perspective Based on
NGFO (1) and Best’s Operating ROE (BOROE) (2)
(1) After dividends to policyholders and federal income
taxes and before realized capital gains or losses
(2) NGFO / Average policyholder surplus
• As of year-end
2011, statutory net gains
from operations (NGFO)
were $98.0 million and
the BOROE was 31.9%
• PLIC’s highest NGFO in
over two decades
• Across the two decade
time horizon presented
the average BOROE was
17.9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
$-
$20
$40
$60
$80
$100
$120
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Best’sOperatingROE
NetGainfromOperations(inmillions)
NGFO Best's Operating ROE (2Y)

10
Presidential Life
Insurance Company
Corporate Overview

11
2011 Selected Financial Highlights
• Statutory Data:
• Net gains from operations $98.0 million, up 263%
• Net Income $51.3 million, up 50%
• Capital and Surplus $345.4 million, up 26.5%
• A.M. Best’s Operating ROE 31.9%, up from 10.0% in 2010
• RBC: 556%; Internally estimated BCAR: 218%
• Net admitted assets $3.6 billion
• GAAP Data:
• Net income $38.9 million, up 80.9%
• Shareholders’ equity $787.9 million, up 15.5%
• Total return on equity x-AOCI 6.7%
• Total assets $4.0 billion
• Equity market capitalization ~ $340 million

12
Pro forma Organizational Chart
Presidential
Life Corporation
Presidential Life
Insurance Company
Presidential Life
Insurance
Company USA (1)
(1) Non-New York operating subsidiary; PLIC USA
• PLIC-USA will provide
catalyst toward national
presence; a first in the
Company’s history
• Formation designed to
accelerate product
innovations and enhance
competitive position

13
2011 Premiums and Annuity
Considerations by Product Type
• Total premiums and
annuity considerations
were $94.5 million
• Deferred and immediate
annuities represented
66.8%, or $63.1 million
of this total
• The balance of
33.2%, or $31.4 million
were derived from life
and A & H products
SPDA
29.2%
FPDA
4.7%
SPIA
10.2%
SPIIA
22.7%
Universal
Life
1.2%
Ordinary Life
21.7%
A & H
10.3%
Considerations by Product
2011 Total: $94.5 Million

14
Year-end 2011 Reserve
Composition by Product
• Deferred and
immediate annuities
represented 93.1% of
gross GAAP reserves
of $3,041.6 million at
year-end 2011
• The balance of 6.9% of
these reserves, or
$209.9 million was
dedicated to the life
and A & H products
SPDA
58.7%
FPDA
7.1%
SPIA
21.9%
SPIIA
5.4%
Universal
Life
5.2%
Ordinary Life
1.7%
A & H
0.0%
Composition of GAAP Reserves
by Product
2011 Total: $3,041.6 Million

15
2011 Premiums and Annuity
Considerations by States and Territories
• New York represented
47.9% of total premiums
and annuity
considerations*
• Other jurisdictions were
31.7%, with the balance of
20.4% in Florida and
Pennsylvania
• Strategic initiatives
explicitly designed to
diversify sales
composition nationally
New York
47.9%
Florida
14.9%
Pennsylvania
5.5%
Other
Jurisdictions
31.7%
Considerations by States and Territories
2011 Total: $92.3 Million*
* Statutory: Schedule T Line 59 sub-total

16
Presidential Life
Insurance Company
Core Business Strategy

17
Core Business Strategy
• Core business strategy is to expand our individual annuity
business and to increase our risk-adjusted returns on
invested capital by prudently managing investment spreads
and investment risk
• Expand regional platform into national platform
• Broaden individual annuity product offerings to include all
four major product types
• Build on our distribution channels
• Enhance investment spread capabilities
• Focus of high quality service to agents and policyholders

18
Corporate Focus
• Transform company to a National annuity and life
insurance provider
• Diversify product portfolio and distribution
channels to accelerate organic growth
• Consistently deliver profitable earnings growth
• Dramatically increase financial transparency; both
externally and internally to ensure accountability
• Achieve highest sustainable stock valuation for
shareholders over time

19
Presidential Life
Insurance Company
Execution of Strategic Initiatives

Milestones
• Individual fixed indexed annuity product in final
stages of development
• Preparation of filing with Interstate Compact
simultaneously underway
• Recruiting mid-size IMOs with a target of 40-50
under contract by fixed indexed product launch
• New branding and logo initiatives coming to
fruition
• Revitalization and creation of new consumer and
agent brochures being finalized
20

Milestones (Continued)
• Purchased and implementing the following
insurance systems software
• Policy Administration
CSC Wealth Management Accelerator
• Correspondence & Print
Oracle Documaker
• Illustration
iPipeline Illustration
• Contact Center Management
 Shoretel Contact Center Management
21

Milestones (Continuing)
• Financial systems to be upgraded and expanded to
support PLIC-USA, enhancements include
• Agency Management
 exL LifePro
• Financial Accounting
 StoneRiver Freedom
• Investment Accounting
 SS&C CAMRA
• Valuation
Polysystems AnnuityMaster
22

23
Presidential Life
Insurance Company
Annuity Contract Products

24
Annuity Contract Products
Annuity Products
Deferred
Annuities
Immediate
Annuities
Single Premium Flexible Premium Single Premium
Immediate
Income
• Execution of our strategic plan will diversify this individual
fixed annuity product offering to include Individual Fixed
Indexed and Market Value annuity products

25
Annuity Portfolio Perspective
Annuity Considerations by Product by Year
Annuity Considerations
FPDA
7.0%
SPDA
43.7%
SPIA
15.3%
SPIIA
34.0%
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Premiums&AnnuityConsiderations(millions)
SPDA FPDA SPIA SPIIA
B+
B++

26
Annuity Portfolio Perspective
Reserves by Product by Year
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
AnnuitiesInForce(millions)
SPDA FPDA SPIA SPIIA
Annuity Reserves
SPIA
23.5%
FPDA
7.6%
SPDA
63.0%
SPIIA
5.8%

27
Deferred Annuity Perspective
Reserves and Annuity Considerations by Year
• As of year-end
2011, deferred annuity
reserves were $2,001.1
million or 70.7% of the
total annuity portfolio
• Deferred product annuity
considerations in the same
year were $32.0 million
representing 50.7% of
total annuity sales
• Qualified and non-
qualified products
represented 45.1% and
54.9%, respectively
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Reserves(inmillions)
$0
$100
$200
$300
$400
$500
$600
$700
$800
AnnuityConsiderations(inmillions)
Reserves Annuity Considerations (2Y)
B+
B++

28
Deferred Annuity Surrenders, Surrender
Rates and Percentage Subject to Surrender Charges
• The absolute amount and
rate of surrenders have
declined in each of the last
four years
• At year-end 2011 the
proportion of deferred
annuities subject to
surrender charges was
43.6%
• The surrender rate was
5.5% or $114.9 million at
year-end 2011; fourth
consecutive year of decline
$0
$100
$200
$300
$400
$500
$600
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
DollarAmountofSurrenders
(inmillions)
0%
10%
20%
30%
40%
50%
60%
70%
80%
SurrenderRate/PercentageSubject
toSurrenderCharges
Surrenders
Surrender Rates (2Y)
Percentage Subject to Surrender Charge (2Y)

Surrender Charge (SC) Perspective
Account Value SC Expirations by Year
1.00%
5.75%
2.00%
0.57%
3.00%
29.25%
4.00%
21.84%
5.00%
26.70%
6.00%
15.19%
7.00%
0.61%
8.00%
0.07%
9.00%
0.01%
Deferred Annuities in Surrender
Period by Surrender Charge Percentage
as of Year-end 2011
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
$-
$50
$100
$150
$200
$250
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
CumulativeAccountValues
SubjecttoSurrenderCharge
AccountValues(inmillions)
Account Values by Future
Surrender Charge Expiration Year
(in millions)
Account Values % Subject to SC (2Y)
29

30
Immediate Annuity Perspective
Reserves and Annuity Considerations by Year
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$0
$200
$400
$600
$800
$1,000
$1,200
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
AnnuityConsiderations(inmillions)
ImmediateAnnuityReserves(inmillions)
Reserves Annuuity Considerations (2Y)
• As of year-end
2011, immediate
annuity reserves were
$830.4 million or
29.3% of the total
annuity portfolio
• Immediate annuity
considerations in the
same year were $31.1
million or 49.3% of
the total annuity
portfolio
B+
B++

31
Presidential Life
Insurance Company
Life Insurance Products

32
Life Insurance Products
• Execution of the strategic plan will also diversify our life
insurance offerings through the introduction of an Indexed
Single Premium Whole Life insurance product
Life Insurance
Individual
Life
Group
Life
Continuing
Graded Benefit
Whole Life
Simplified
Issue Whole Life
Group Term
Insurance
Market
Contingent
Closed Block
Universal
Life
Whole
Life
Term
Insurance
Single Premium
Universal Life

33
Life Insurance Perspective
Reserve Composition and Total Sales by Year
Ordinary Life
24.7%Universal Life
75.3%
Reserves
$-
$5
$10
$15
$20
$25
$30
$35
$40
$-
$50
$100
$150
$200
$250
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
TotalSales(inmillions)
Reserves(inmillions)
UL Reserves OL Reserves Total Life Sales (2Y)
B+
B++

34
Presidential Life
Insurance Company
A & H Insurance Products

35
A & H Insurance Products
Accident &
Health Insurance
Individual Group
New York Statutory
Disability Benefits
Medical
Stop Loss
Hospital
Indemnity
Impaired
Risk Disability
Accident, Emergency Room,
Accidental Death & Dismemberment
Dental

36
A & H Insurance Perspective
Premiums by Product by Year
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
GrossA&HPremiumsWritten(thousands)
Group Accident, ER and AD & D
Group Hospital Indemnity
Individual Impaired Risk Disability
Group Medical Stop Loss
Group Dental
GNYSDB (1)
Group Hospital
Indemnity
8%
Group Accident, ER,
AD & D
1%
Individual Impaired
Risk Disability
4%
Group Dental
31%
Group Medical
Stop Loss
17%
GNYSDB (1)
43%
Total: $9,700.9 Thousand
(1) GNYSDB: Group New York Statutory Disability Benefits
B+
B++
2011 Premium Composition

37
Presidential Life
Insurance Company
Marketing and
Distribution Perspective

38
Current Distribution System
• Presidential currently competes in the guaranteed
traditional Fixed Book Value Deferred &
Immediate Annuity marketplace
• Products distributed by Independent Producer
Channel
• Presidential Life has 1,273 independent General
Agents (GA) nationally
• The composition of GA’s include brokerage general
agencies, personal producing GAs as well as small and
large Insurance Marketing Organizations (IMOs)
• Currently we have over 9,000 independent agents

39
2010 Industry Individual Fixed Annuity Sales
Composition of $62.8 Billion by Distribution Channel*
Large Regional
BD, 4.2%
Direct/Third
Party, 3.4%
Independent
BD, 3.2%
Other, 3.9%
Wirehouses,
1.1%
Captives,
12.2%
Banks & S&Ls,
23.0%
Independent
Producers,
49.1%
Sales Composition by
Distribution Channel
*Source: Beacon Annuity Research
Total 2010 Sales: $62.8 Billion
• In 2010, the Independent
Producer channel owned
49.1% of the individual
fixed annuity industry
sales
• Banks & S & Ls were the
second largest distributor
harboring 23.0% of the
industry market share
• Captives captured 12.2%
of the market with the
balance quite fragmented

40
Industry Individual Fixed Annuity
Market Sales Composition by Product by Year*
Sales Composition by Product
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2003
2004
2005
2006
2007
2008
2009
2010
TTM9/30/2011
Sales Composition by Product by Year
(in billions)
MVA Immediate
Book Value Deferred Fixed Indexed
Book Value
Deferred
34.2%
MVA
9.1%
Fixed Indexed
45.4%
Immediate
11.2%

41
Independent Producer Individual Fixed
Annuity Market Sales Composition by Product by Year*
Sales Composition by Product
MVA
8.8%Immediate
5.1%
Fixed
Indexed
79.2%
Book Value
Deferred
6.9%
$0
$5
$10
$15
$20
$25
$30
$35
$40
2003
2004
2005
2006
2007
2008
2009
2010
TTM9/30/2011
Sales Composition by Product by Year
(in billions)
MVA Immediate
Book Value Deferred Fixed Indexed

Broadening Distribution Channels
• Diversification of distribution channels toward those actively
selling Presidential’s current individual annuity product portfolio
is an important strategic focus toward accelerating organic growth
• Demand for individual book value deferred, immediate and fixed
indexed annuities remains robust as the matrix below illustrates
42
Individual Fixed Annuity Product
Distribution Channel BVD FIA MVA Immediate Total
Banks/S&Ls 48.5% 6.4% 21.6% 13.2% 23.0%
Captives Agents 20.1% 2.7% 6.3% 31.2% 12.2%
Direct/Third Party 7.2% 0.0% 1.8% 6.7% 3.4%
Independent B/Ds 3.6% 0.7% 4.9% 10.4% 3.2%
Independent Producers 9.9% 85.6% 47.7% 22.3% 49.1%
Large/Regional B/Ds 6.8% 0.1% 7.1% 10.7% 4.2%
Other 3.4% 4.2% 6.3% 1.9% 3.9%
Wirehouses 0.6% 0.2% 4.3% 3.5% 1.1%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
Market Size (in billions) $ 21.5 $ 28.5 $ 5.7 $ 7.0 $ 62.8
(Source: 2010 Beacon Annuity Research)

New Product Introduction
Progress to Date
• PLIC-USA is the cornerstone to the broadening of
individual fixed annuity portfolio to include fixed
indexed and market value annuities
• Indexed product in final stages of development and
will be filed with Interstate Compact (41 states)
• Branding initiatives almost complete; advertising
agency engaged to assist in new brand and logo
• New agent distribution contracts currently in review
• Finalizing new consumer and agent brochures
43

New Product Introduction
Progress to Date (Continued)
• IMO distributors targeted; 40-50 IMOs anticipated by
product launch
• To accommodate agent training website initiative,
Quest Education services was engaged
• Launch meeting schedule to be finalized in April
• Development of next product to begin in May
following the Interstate Compact filing of our new
Fixed Indexed Annuity (FIA) product
• Presidential Life’s FIA design will capitalize on the mistakes of
competitors and insights derived from our distributors
44

45
Presidential Life
Insurance Company
Investment Portfolio
Overview

46
2011 Portfolio Activity
• Maintained sector diversification within core
portfolio
• Since year-end 2008, maintained discount to par
pricing discipline on new money investments of
approximately $1.0 billion

47
2011 Portfolio Activity (Continued)
• Limited Partnership (LP) portfolio
• Portfolio generated pre-tax income of $41.1
million with a corresponding yield of 24.13%
• LP portfolio represented 4.37% of total cash &
investments at year-end
• Completed hedge fund redemptions of $27.7
million
• No new LP commitments since April 2007
• Unfunded commitments of $41.7 million at year-
end

48
2011 Portfolio Activity (Continued)
• Reinvestment strategy of proceeds from LP
redemptions and returned capital
• Externally managed, diversified asset portfolio
• Residential MBS, high-yield bonds, leveraged loans
and emerging market corporate debt
• Target BB/B blended credit exposure
• Lower capital requirements
• More liquidity
• Coupon securities
• More transparency

Investment Grade
Corporate
58.9%
Public Utilities
12.7%
States, Municipalities &
Political Subdivisions
9.7%
Limited Partnerships
4.4%
Below Investment Grade
Corporate
4.3% Mortgage Backed Securities
3.2%
Cash and Short-term
Investments
2.8%
Investment Grade Preferred
Stocks
1.3%
U.S.
Governments, Government
Agencies and Authorities
1.2%
Below-Investment Grade
Preferred Stocks
0.8%
Policy Loans
0.5%
Derivatives
0.1%
Equity Securities
0.0%Real Estate
0.0%
49
Composition of Cash & Investments by Category
and Ratio of Investment Grade Quality to Total*
2011 Total: $3,819.5 million
85.58%
85.64%
87.29%
87.33%
88.88%
88.96%
2006
2007
2008
2009
2010
2011
InvestmentGradetoCash&Investments* GAAP metrics; Investment grade Moody’s based.

Historical Composition of Total
Cash & Investments by Investment Category
50
(in millions) Period Ended,
12/31/2011 12/31/2010 12/31/2009 12/31/2008 12/31/2007 12/31/2006
Carrying % of Carrying % of Carrying % of Carrying % of Carrying % of Carrying % of
Investment Category* Value Total Value Total Value Total Value Total Value Total Value Total
Fixed maturities:
U.S. government, government
agencies & authorities $ 45.3 1.2% $ 167.5 4.5% $ 254.9 7.0% $ 356.1 10.6% $ 528.1 13.2% $ 472.8 10.6%
States, municipalities and
political subdivisions 371.6 9.7% 288.7 7.7% 99.9 2.8% - 0.0% - 0.0% - 0.0%
Investment grade corporates 2,250.0 58.9% 2,088.3 56.0% 1,827.5 50.4% 1,590.2 47.5% 1,780.4 44.5% 1,798.0 40.1%
Public utilities 485.8 12.7% 474.3 12.7% 444.3 12.3% 394.3 11.8% 444.6 11.1% 349.4 7.8%
Below investment grade
corporate 163.2 4.3% 111.7 3.0% 163.6 4.5% 104.7 3.1% 148.2 3.7% 227.3 5.1%
Mortgage backed securities 122.5 3.2% 158.5 4.2% 197.2 5.4% 207.4 6.2% 268.8 6.7% 274.5 6.1%
Total fixed maturities $ 3,438.5 90.0% $ 3,289.1 88.1% $ 2,987.4 82.4% $ 2,652.7 79.2% $ 3,170.1 79.2% $ 3,122.1 69.7%
Preferred stock:
Investment grade $ 50.3 1.3% $ 60.0 1.6% $ 76.0 2.1% $ 65.8 2.0% $ 101.4 2.5% $ 128.0 2.9%
Below investment grade 32.0 0.8% 42.9 1.1% 23.6 0.7% 6.6 0.2% 10.7 0.3% 11.7 0.3%
Total preferred stock $ 82.3 2.2% $ 102.9 2.8% $ 99.7 2.8% $ 72.4 2.2% $ 112.0 2.8% $ 139.7 3.1%
Total fixed and preferred $ 3,520.8 92.2% $ 3,392.0 90.9% $ 3,087.0 85.2% $ 2,725.1 81.4% $ 3,282.1 82.0% $ 3,261.8 72.8%
Common stock $ 1.3 0.0% $ 1.3 0.0% $ 1.9 0.1% $ 3.0 0.1% $ 9.7 0.2% $ 45.3 1.0%
Other investments:
Policy loans $ 18.4 0.5% $ 19.6 0.5% $ 19.0 0.5% $ 18.9 0.6% $ 19.2 0.5% $ 18.0 0.4%
Real estate 0.4 0.0% 0.4 0.0% 0.4 0.0% 0.4 0.0% 0.4 0.0% 0.4 0.0%
Limited partnerships 166.9 4.4% 195.5 5.2% 212.7 5.9% 253.8 7.6% 317.0 7.9% 286.1 6.4%
Derivatives 3.4 0.1% 9.4 0.3% 0.4 0.0% 0.5 0.0% 7.0 0.2% 9.8 0.2%
Short-term 61.2 1.6% 108.0 2.9% 293.1 8.1% 342.2 10.2% 363.1 9.1% 839.5 18.7%
Total other investments $ 250.4 6.6% $ 332.9 8.9% $ 525.6 14.5% $ 615.9 18.4% $ 706.7 17.7% $ 1,153.8 25.7%
Total investments $ 3,772.4 98.8% $ 3,726.2 99.8% $ 3,614.6 99.8% $ 3,343.9 99.9% $ 3,998.5 99.9% $ 4,460.8 99.6%
Cash $ 47.1 1.2% $ 5.9 0.2% $ 8.8 0.2% $ 3.8 0.1% $ 3.6 0.1% $ 19.8 0.4%
Total cash & investments $ 3,819.5 100.0% $ 3,732.1 100.0% $ 3,623.3 100.0% $ 3,347.8 100.0% $ 4,002.1 100.0% $ 4,480.7 100.0%
* GAAP metrics; Investment grade Moody’s based.

51
Historical Rating Composition of Fixed
Maturities and Investment Grade Focus
(in millions) Period Ended,
12/31/2011 12/31/2010 12/31/2009 12/31/2008 12/31/2007 12/31/2006
NAIC Rating/ Carrying % of Carrying % of Carrying % of Carrying % of Carrying % of Carrying % of
Moody's Equivalent Value Total Value Total Value Total Value Total Value Total Value Total
Investment grade:
1 / (Aaa, Aa, A) $ 1,670.2 48.6% $ 1,776.4 54.0% $ 1,612.4 54.0% $ 1,587.4 59.8% $ 1,947.7 61.4% $ 1,860.8 59.6%
2 / (Baa) 1,569.1 45.6% 1,366.7 41.6% 1,173.9 39.3% 923.0 34.8% 1,011.6 31.9% 986.5 31.6%
Total investment grade $ 3,239.3 94.2% $ 3,143.1 95.6% $ 2,786.4 93.3% $ 2,510.4 94.6% $ 2,959.3 93.4% $ 2,847.3 91.2%
Below investment grade:
3 / (Ba) $ 120.1 3.5% $ 107.9 3.3% $ 160.8 5.4% $ 99.5 3.8% $ 120.4 3.8% $ 168.9 5.4%
4 / (B) 55.2 1.6% 27.4 0.8% 22.5 0.8% 13.9 0.5% 59.9 1.9% 62.5 2.0%
5 / (Caa, Ca) 24.0 0.7% 8.1 0.2% 9.9 0.3% 19.0 0.7% 28.7 0.9% 33.0 1.1%
6 / (C) - 0.0% 2.7 0.1% 7.8 0.3% 9.9 0.4% 1.7 0.1% 10.5 0.3%
Total non-investment grade $ 199.2 5.8% $ 146.0 4.4% $ 201.0 6.7% $ 142.3 5.4% $ 210.7 6.6% $ 274.9 8.8%
Total fixed maturities $ 3,438.5 100.0% $ 3,289.1 100.0% $ 2,987.4 100.0% $ 2,652.7 100.0% $ 3,170.1 100.0% $ 3,122.1 100.0%
Investment Grade Securities:
Fixed Maturities $ 3,239.3 95.3% $ 3,143.1 94.8% $ 2,786.4 88.1% $ 2,510.4 85.9% $ 2,959.3 86.3% $ 2,847.3 74.3%
Preferreds 50.3 1.5% 60.0 1.8% 76.0 2.4% 65.8 2.3% 101.4 3.0% 128.0 3.3%
S-T Investments 61.2 1.8% 108.0 3.3% 293.1 9.3% 342.2 11.7% 363.1 10.6% 839.5 21.9%
Cash & Cash Equivalents 47.1 1.4% 5.9 0.2% 8.8 0.3% 3.8 0.1% 3.6 0.1% 19.8 0.5%
Total investment grade $ 3,397.9 100.0% $ 3,317.0 100.0% $ 3,164.3 100.0% $ 2,922.3 100.0% $ 3,427.4 100.0% $ 3,834.6 100.0%
Total investment grade to
total cash & investments 88.96% 88.88% 87.33% 87.29% 85.64% 85.58%
Limited Partnerships $ 166.9 $ 195.5 $ 212.7 $ 253.8 $ 317.0 $ 286.1
Limited partnerships to otal
cash & invested assets 4.37% 5.24% 5.87% 7.58% 7.92% 6.38%

Electric REV (Taxable Muni)
Insr-Life Bank
GO (Taxable Muni) Gas-Pipe
Food Proc Insr-P&C
CMBS Electrncs
Enrg-Indp REIT
Enrg-Intg Divfd Mfg
Retail Media-Dfd
Gas-Distr Railroads
Chemicals Pharmctls
Media-Cbl Aerospace
Metl/Mine Health
Info Tech Beverage
TSY Enrg-Srvc
Wireline Consumer
Wireless Auto Mfg
Tran Srvc Fin-Cnsmr
Fin-Divfd Supermkts
Bldg Prod Media-Oth
Enrg-Refg Foreign
ConstMach Insr-Hlth
Othr-FIN Paper
LocalAuth Ret-Drug
Lodging Services
Steel Othr-IND
Veh Parts SEQ
Restrnts LEAS
Publishng Broker
Gaming Envrnmntl
FLT Package
Home Bldg Airlines
Textiles AGY
Other PAC
Water HEL
SUP Leisure
Insr-Mult
• Pie chart gives
emphasis to the
broadly diversified
composition of the
core portfolio across
71 sectors
• The average sector
concentration was
1.4% at year-end
• Largest sector
concentration is
Electric Utilities;
represents 11.9%
Composition of Fixed Maturities &
Preferred Stock (Core Portfolio) by Sector
52
Composition of Core
Portfolio by Sector

53
Composition of
Core Portfolio by NAIC Rating
NAIC 1
48.6%
NAIC 2
45.6%
NAIC 3
3.5%
NAIC 4
1.6%
NAIC 5
0.7%
• As of year-end
2011, 94.2% or
$3,239.3 million of
the core portfolio was
of investment grade
quality

NY
TX
MD
WI
FL
WA
HI
UT
COCT
OH
PA
NV
VA
AZ
GA
NJ
MS
NC
KY
MI
MA
AL
IN
MN
CA
DE
NY TX
MD WI
FL WA
HI UT
CO CT
OH PA
NV VA
AZ GA
NJ MS
NC KY
MI MA
AL IN
MN CA
DE NH
NM SC
DC WY
TN VT
RI LA
OK AK
54
Taxable Municipal Bond Portfolio
Geographically Diversified
• Portfolio highly
diversified across 38
states with an average
concentration of 2.6%
• Largest concentrations
in NY, TX, MD, WI
and FL representing
10.0%, 8.3%, 6.1%, 5.1
% and
4.8%, respectively, or
34.3% of the total asset
class
• Net of these states, the
average concentration
falls to less than 2.0%
2011 Composition of Taxable
Municipal Bond Portfolio by State

55
Composition by Category and Sector
General
Obligation
Bonds
44.0%
Revenue
Bonds
56.0%
Composition
by Bond Category
State
22.4%
Local
21.6%
Transportation
15.3%
Education
15.1%
Utilities
10.4%
Development
5.4%
Tax
4.1%
Service
3.1%
Leasing
1.0%
Health
0.9%
Housing
0.8%
Composition
by Sector

Across Ratings by Sector
$-
$20
$40
$60
$80
$100
$120
$140
$160
InvestmentbySectorbyRating(inmillions)
S & P Rating
Housing
Health
Leasing
Service
Tax
Development
Utilities
Education
Transportation
Local
State
56
• Extremely high
quality; NAIC 1
rating applicable to
94.0% of the $362.3
million portfolio; 152
bonds held
• Diversified
composition across
sectors indicated
• Well balanced
between general
obligation and
revenue bonds

57
Limited Partnership (LP) Portfolio Perspective
LP Statutory Fair Value and Ratio to Adjusted Policyholder Surplus (APHS)
• The LP asset class
exposure down both
nominally and as a
percentage of APHS in
2011; as planned
• The statutory fair value
(SFV) of the LP portfolio
at year-end was $166.9
million and represented
43.4% of APHS
• Unfunded LP
commitments were $41.7
million at year-end 2011
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
$275
$300
$325
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
40%
50%
60%
70%
80%
90%
100%
110%
120%
130%
LP Statutory Fair Value LPSFV/APHS
LPSFVtoAPHS
LPSFV(inmillions)

Infrastructure
17.9%
Oil & Gas
10.4%
Real Estate
5.5%
LBO/Merchant
Banking
34.4%
Restructuring
25.1%
Other
6.7%
58
Limited Partnership Portfolio Perspective
Composition of Current and Unfunded Commitments
Other
3.6%
Restructuring
23.7%
LBO/Merchant
Banking
22.2%
Real Estate
18.1%
Oil & Gas
14.3%
Infrastructure
13.5%
Hedge Related
4.7%
Current LP Portfolio
by Category
Unfunded Commitments
by Category
Total: $41.7 Million

59
Limited Partnership Portfolio Perspective, 12/31/2011
Highly Diversified Across 57 LPs in 9 Investment Categories
$37.1
$30.2
$22.6
$7.8
$5.9
$39.5
$23.8
0%
5%
10%
15%
20%
25%
30%
0 5 10 15 20
Number of Limited Partnerships
PercentageofTotalLPPortfolio
Limited
Partnership (LP)
Investment
Category
L
e
g
e
n
d
Category
Metrics
Statutory
Fair
Value
(millions)
Number
of
LPs
Restructuring $ 39.5 9
LBO/Merchant 37.1 9
Real Estate 30.2 17
Oil & Gas 23.8 6
Infrastructure 22.6 3
Hedge Related 7.8 5
Other* 5.9 8
Total $166.9 57
Bubbles denote
proportional size of
LP statutory fair value
by investment category
* Includes debt/CBO, mezzanine/
senior debt & equity/secondary

60
Impact of MBS Re-rates
Blackrock Modeling NAIC Rate Designation, 12/31/2011
Market MV Percent Market MV Percent
NAIC Rating Book Value Value (MV) of Total Book Value Value of Total
NAIC 1 62.98$ 65.82$ 53.7% 111.85$ 118.53$ 96.8%
NAIC 2 32.70 36.42 29.7% 2.45 2.46 2.0%
Investment Grade 95.68$ 102.23$ 83.5% 114.30$ 120.99$ 98.8%
NAIC 3 11.24 11.14 9.1% 0.69 0.68 0.6%
NAIC 4 2.54 2.58 2.1% 0.77 0.80 0.7%
NAIC 5 6.30 6.52 5.3% 0.00 0.00 0.0%
NAIC 6 - - 0.0% 0.00 0.00 0.0%
Below Investment Grade 20.08$ 20.24$ 16.5% 1.46$ 1.48$ 1.2%
Total CMBS 115.76$ 122.47$ 100.0% 115.76$ 122.47$ 100.0%
After Blackrock ModelingBefore Blackrock Modeling
(Amounts in millions, except percentage data)
• Impact of MBS re-rates remains positive
• As the table below indicates, after implementation of the
Blackrock modeling methodology, 96.8% of MBS
exposures were rated NAIC 1

Sensitivity Analysis of BCAR
Core and Limited Partnership Portfolio Stress Tests
• Internally estimated BCAR at year-end 2011: 218%
61
Stress Test Results
AMB BCAR
Guideline
BCAR FSR
Core Portfolio Downward Rating Migration BCAR Sensitivity (1)
Stress Test Scenario I: 25% downward rating migration 185% A++
Stress Test Scenario II: 50% downward rating migration 161% A+
Limited Partnership Portfolio Write-down BCAR Sensitivity (2)
Stress Test Scenario III: 25% write-down 196% A++
Stress Test Scenario IV: 50% write-down 180% A++
(1) Assumes percentage of core portfolio that experiences an NAIC rating downward shift
(e.g., NAIC 1 falls to NAIC 2 , NAIC 2 falls to NAIC 3 and so forth)
(2) Assumes percentage of limited partnership portfolio written down; does not reflect potential
corresponding tax benefits.

62
Presidential Life
Insurance Company
Actuarial Perspectives

63
Historical & Current Crediting Rates
Period Ended,
12/31/2008 12/31/2009 12/31/2010 12/31/2011
Deferred 4.54% 4.48% 4.40% 4.36%
Immediate 6.01% 6.01% 5.96% 5.94%
Combined 5.00% 4.95% 4.88% 4.83%

64
Statutory Reserve
Changes by Product by Year
(Amounts in millions)
Period Ended,
Product 12/31/2008 12/31/2009 12/31/2010 12/31/2011
Deferred Annuities $ (166) $ 26 $ (29) $ (54)
Immediate Annuities (36) (12) (3) (48)
Single Premium UL and UL 1 1 (1) (6)
Traditional Life and Other 11 (20) 1 1
Total $ (190) $ (5) $ (31) $ (107)

65
Annuity Surrender Charge
and Liquidity Characteristics
(Amounts in millions)
Period Ended,
Product 12/31/2008 12/31/2009 12/31/2010 12/31/2011
Deferred Annuities without
Surrender Charge $ 1,168 $ 1,183 $ 1,191 $ 1,250
Deferred Annuities with
Surrender Charge 893 905 867 760
Immediate Annuities 937 925 922 874
Total $ 2,998 $ 3,013 $ 2,980 $ 2,884

66
Summary of Effective Duration
Period Ended, Assets Liabilities Difference
12/31/2007 4.9 4.8 0.1
6/30/2008 5.2 4.7 0.5
12/31/2008 4.7 4.8 -0.1
6/30/2009 4.9 5.3 -0.4
12/31/2009 4.9 5.3 -0.4
6/30/2010 5.3 5.7 -0.4
12/31/2010 5.6 5.8 -0.2
6/30/2011 5.7 5.7 0.0
12/31/2011 5.9 6.6 -0.7

67
Asset/Liability Matching Analysis
Cash Flow Testing
Summary of Projection Results as of December 31, 2011
Present Value of Ending Market Surplus
(in millions)
Base Scenario
Interest Description of Present Value
Rate Interest Rate of Ending Market
Scenario Scenario Surplus
1 Level 108.4
2 Up 5% Over 10 Years 61.7
3 Up 5% Down 5% 39.2
4 Pop Up 3% 86.9
5 Down 5% Over 10 Years 96.5
6 Down 5% Up 5% 87.1
7 Pop Down 3% 96.3
8 Up 3% Over 10 Years 112.8
9 Pop Up 2% 117.4
10 Pop Up 1% 125.2

68
Deferred Book Value Annuities
Minimum Guaranteed Crediting Rates (MGCR)
$32.7
$4.5
$39.7
$899.3
$1.3
$563.8
$464.9
-10%
0%
10%
20%
30%
40%
50%
60%
0% 1% 2% 3% 4% 5% 6%
PercentageofBookValueDeferredAccount
ValueatYear-end2011
Minimum Guaranteed Crediting Rates
Bubbles Denote
Proportional Size of
2011 Account
Values (millions) at
MGCR
2011 Allocation of MGCR by % of Account Value
Percentage
of MGCR
Account Account
Values Values to
MGCR (in millions) Total
1.1% $ 32.7 1.6%
1.5% 4.5 0.2%
2.0% 39.7 2.0%
3.0% 899.3 44.8%
3.5% 1.3 0.1%
4.0% 563.8 28.1%
5.5% 464.9 23.2%
Total $ 2,006.3 100.0%
L
e
g
e
n
d

69
Reinsurance Programs and Retention
• Total ceded reinsurance policy reserves approximately
$20.7 million
• Less than 1% of direct policy reserves of $3.1 billion
• Term life’s ceded reserves approximately $11.2
million, with the last program 90% of death benefits ceded
out to four reinsurers
• Graded Benefit Life’s ceded reserves approximately $4.7
million
• Currently 50% of death benefits ceded to one reinsurer

70
Presidential Life
Insurance Company
Financial Projections and
Dividend Strategy

71
Presidential Life Corporation and Subsidiaries
2012-2016 Strategic Plan
Consolidated GAAP Statements of Income
(in thousands)
Actual Projected
Line Items 2010 2011 2012 2013 2014 2015 2016
REVENUES:
Insurance Revenues:
Premiums $ 19,316 $ 19,584 $ 20,300 $ 20,100 $ 22,900 $ 26,700 $ 30,400
Annuity considerations 51,198 9,636 12,000 23,000 47,000 70,000 132,000
Universal life and investment type policy
fee income 2,090 3,519 3,700 3,400 3,800 5,000 7,500
Equity in earnings (loss) on L.P.'s (5,450) 2,156 600 700 600 600 600
Net investment income 198,568 194,289 184,900 181,500 192,700 216,500 265,100
Realized investment gains, excluding other
than temporary impairment (“OTTI”) losses 28,302 45,585 13,600 12,500 12,400 11,300 9,000
Total OTTI losses recognized in earnings (1,392) (10,258) (4,700) (4,600) (4,600) (5,000) (5,700)
Other income 4,391 2,932 2,400 2,300 2,200 2,100 2,000
TOTAL REVENUES $ 297,023 267,443 $ 232,800 $ 238,900 $ 277,000 $ 327,200 $ 440,900
BENEFITS AND EXPENSES:
Death and other life insurance benefits $ 19,463 $ 19,947 $ 18,700 $ 18,000 $ 19,600 $ 22,100 $ 24,400
Annuity benefits 81,743 83,498 78,600 76,000 74,200 77,100 85,800
Interest credited to policyholders' account
balances 106,341 101,568 97,600 89,700 90,800 97,800 120,200
Interest expense on notes payable - - - - - - -
Other interest and other charges 1,280 1,603 1,000 1,000 1,000 1,000 1,000
Increase in liability for future policy benefits 20,811 (28,113) (22,100) (12,000) 13,900 36,100 93,800
Commissions to agents, net 7,156 4,340 12,100 36,100 55,100 81,300 121,200
Costs related to consent revocation
solicitation and related matters 1,525 - - - - - -
General expenses and taxes 18,584 22,468 23,700 24,300 25,500 26,600 28,600
Change in deferred policy acquisition costs 5,305 6,260 1,400 (21,300) (40,700) (65,800) (99,300)
TOTAL BENEFITS AND EXPENSES $ 262,208 $ 211,571 $ 211,000 $ 211,800 $ 239,400 $ 276,200 $ 375,700
Income (loss) before income taxes $ 34,815 $ 55,872 $ 21,800 $ 27,100 $ 37,600 $ 51,000 $ 65,200
Provision (benefit) for income taxes:
Current 14,120 19,792 7,500 9,400 13,000 17,600 22,500
Deferred (845) (2,858) 0 0 0 0 0
Total Provision (benefit) for income taxes: $ 13,275 $ 16,934 $ 7,500 $ 9,400 $ 13,000 $ 17,600 $ 22,500
NET INCOME $ 21,540 $ 38,938 $ 14,300 $ 17,700 $ 24,600 $ 33,400 $ 42,700
Earnings per common share, diluted $ 0.73 $ 1.32 $ 0.48 $ 0.60 $ 0.83 $ 1.13 $ 1.44
Weighted average number of shares
outstanding during the period, diluted 29,575 29,575 29,575 29,575 29,575 29,575 29,575

72
Presidential Life Corporation and Subsidiaries
2012-2016 Strategic Plan
Consolidated GAAP Balance Sheets
(in thousands except per share data)
Actual Projected
2010 2011 2012 2013 2014 2015 2016
ASSETS:
Investments:
Fixed Maturities, at amortized cost $ 3,209,803 $ 3,206,884 $ 3,217,300 $ 3,326,300 $ 3,636,300 $ 4,221,300 $ 5,285,300
Unrealized Gain in Fixed Maturites 182,195 313,871 315,700 300,300 277,200 246,500 215,700
Common stocks: 1,279 1,302 1,200 1,200 1,200 1,200 1,200
Derivatives 9,402 3,358 4,100 4,100 4,100 4,100 4,100
Real Estate 415 415 400 400 400 400 400
Policy Loans 19,607 18,442 17,100 16,100 15,300 14,300 13,500
Short-term investments 107,958 61,233 100,000 90,000 80,000 70,000 60,000
Limited partnerships 195,501 166,923 166,800 149,500 129,700 106,700 81,200
Total Investments $ 3,726,160 $ 3,772,428 $ 3,822,600 $ 3,887,900 $ 4,144,200 $ 4,664,500 $ 5,661,400
Cash and Cash equivalents 5,924 47,110 2,700 2,800 4,500 6,100 7,700
Accrued investment income 42,757 47,289 46,100 46,100 47,100 49,100 53,100
Amounts due from security transactions 49,005 23,880 1,300 1,300 1,300 1,300 1,300
Federal income tax recoverable 2,627 -
Deferred policy acqusition costs 57,298 41,746 39,000 62,400 105,400 175,300 279,400
Furniture and equipment, net 376 1,065 2,900 2,500 2,100 1,800 1,500
Amounts due from reinsurers 16,644 19,116 18,300 18,300 18,300 18,300 18,300
Other assets 1,495 1,649 3,300 3,300 3,300 3,300 3,300
TOTAL ASSETS $ 3,902,286 $ 3,954,283 $ 3,936,200 $ 4,024,600 $ 4,326,200 $ 4,919,700 $ 6,026,000
Policy Liabilities:
Policyholders' account balances 2,401,482 2,323,364 2,292,900 2,393,900 2,696,900 3,253,900 4,226,900
Future policy benefits:
Annuity 663,456 634,397 616,900 605,900 615,900 654,900 779,900
Life and Accident and Health 81,081 83,855 81,700 81,700 81,200 81,600 82,200
Other policy liabilities 11,718 20,633 14,600 18,000 12,700 14,100 16,300
Total policy liabilities $ 3,157,737 $ 3,062,249 $ 3,006,100 $ 3,099,500 $ 3,406,700 $ 4,004,500 $ 5,105,300
Deposits on policies to be issued 1,166 490 800 800 1,100 1,600 2,600
General expenses and taxes accrued 1,573 2,521 1,900 1,900 1,900 1,900 1,900
Federal income taxes payable 1,411 10,500 10,500 10,500 10,500 10,500
Deferred federal income taxes, net 45,157 82,355 88,500 83,100 75,000 64,200 53,400
Amounts due for security transactions - 268 - - - - -
Other Liabilities 14,745 17,045 15,600 15,600 15,600 15,600 15,600
TOTAL LIABILITIES $ 3,220,378 $ 3,166,339 $ 3,123,400 $ 3,211,400 $ 3,510,800 $ 4,098,300 $ 5,189,300
Capital Stock 296 296 300 300 300 300 300
Additional paid in capital 7,123 7,408 7,400 7,400 7,400 7,400 7,400
Accumulated other comprehe income (loss) 118,609 192,815 211,300 201,300 186,300 166,300 146,300
Retained earnings 555,880 587,425 593,800 604,200 621,400 647,400 682,700
TOTAL SHAREHOLDERS' EQUITY $ 681,908 $ 787,944 $ 812,800 $ 813,200 $ 815,400 $ 821,400 $ 836,700
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $ 3,902,286 $ 3,954,283 $ 3,936,200 $ 4,024,600 $ 4,326,200 $ 4,919,700 $ 6,026,000

73
Dividend Strategy
• Presidential Life Corporation expects to continue
its policy of paying regular cash dividends
• Payment of future dividends cannot be assured
• Dependent on future earnings, capital requirements
and the financial condition of the Company
• Company intends to up-stream statutory maximum
dividends to holding company

74
Presidential Life
Insurance Company
Appendix

75
Table of Contents
Section Page(s)
Financial Strength Rating Discussion and Analysis 76-87
Outstanding Litigation/Compliance Issues 88-89

76
Presidential Life
Insurance Company
Financial Strength Rating
Discussion and Analysis

Empirically Based FSR Analysis
Empirically based comparative analysis offers
invaluable insights into Presidential Life Insurance
Company’s warranted FSR upgrade relative to a
selected universe of mono-line ordinary annuity
companies rated by A.M. Best Company based on
2010 statutory filings (1)
77
(1) Data updated as of September 30, 2011 includes financial strength
rating, BCAR, ratings outlook and financial size category. Source: AMB Custom
Reports.

A++
A++
A+
A+
A+
A+
A
A
A
A-
A-
A-
A-
A-
B++ B++
B++
B+
B
B
B
BB-
C+
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
-6 -5 -4 -3 -2 -1 0 1 2 3
NumberofCompaniesbyFSRAcrossFSRBCARDeviation
Magnitude of FSR BCAR Deviation
78
Analysis of AMB’s FSR
Deviations to BCAR Guidelines(1)
• Analysis based on 82 mono-
line companies whose
ordinary annuity sales
averaged 81.7% of their total
NPW(2)
• Presidential Life’s FSR(3)
of
B++ is four deviations below
the Life/Health BCAR
guidelines wherein a FSR of
A++ is warranted
• Graphic depicts magnitude of
PLIC FSR BCAR deviation
(1) Life/Health BCAR Guidelines; (2) AMB Custom Products; (3) Financial Strength Rating
Includes
PLIC

Matrix of FSR BCAR
Deviations across AMB FSR
79
Matrix of Ordinary Annuity of Companies' 2010 AMB FSR Deviations
to Published BCAR Guidelines across Actual AMB FSRs
AMB AMB FSR Deviations from Published BCAR Guidelines Grand
FSR -6 -4 -3 -2 -1 0 1 2 3 Total
A++ 7 1 8
A+ 20 2 3 4 29
A 14 2 2 18
A- 3 1 2 1 1 8
B++ 8 2 2 12
B+ 1 1
B 1 1 1 1 4
B- 1 1
C+ 1 1
Grand Total 1 9 5 17 24 13 6 6 1 82

-6-4
-4
-4 -4 -4 -4
-3
-3 -3
-2
-2 -2 -2 -2 -2
-2
-2
-2
-1 -1
-1 -1
-1
-1
-1
0
0
0
0
1
1
1
2
2
2
3
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
IV V VI VII VIII IX X XI XII XIII XIV XV
Analysis of 2010 FSR BCAR
Deviations across AMB FSCs
• In the AMB Financial
Size Category range of
IX-XV, PLIC is the
only company with an
FSR 4 deviations below
the BCAR guidelines
• As the chart indicates,
the other 8 companies
with the same deviation
are all considerably
smaller
80
Financial Size Category (FSC)
NumberofCompaniesAcross
FSCbyFSRBCARDeviation
PLICFSR4DeviationsbelowBCARGuidelines

Matrix of AMB FSCs Across FSR
BCAR Deviations to AMB Guidelines
81
Matrix of the Number of Companies' in the Ordinary Annuity Universe by 2010
Financial Strength Ratings Deviations to Published BCAR
Guidelines across AMB Financial Size Categories
AMB FSR Deviations from Published BCAR Guidelines Grand
APHS Range FSC -6 -5 -4 -3 -2 -1 0 1 2 3 Total
$5 - $10 IV 2 1 1 4
$10 - $25 V 1 3 2 1 7
$25 - $50 VI 1 1 1 3
$50 - $100 VII 1 1 1 1 1 5
$100 - $250 VIII 1 1 1 2 5
$250 - $500 IX 1 2 2 5
$500 - $750 X 2 1 3 6
$750 - $1,000 XI 5 5
$1,000 - $1,250 XII 1 2 3
$1,250 - $1,500 XIII 0
$1,500 - $2,000 XIV 2 2 2 2 8
$2,000 or Greater XV 2 13 9 3 4 31
Grand Total 1 0 9 5 17 24 13 6 6 1 82

Composition of Ordinary Annuity
Universe by AMB FSR & FSC
A+
29
35.4%
A
18
22.0%
B++
12
14.6%
A++
8
9.8%
A-
8
9.8%
B
4
4.9%B+
1
1.2%B-
1
1.2%C+
1
1.2%
Composition of Universe
by AMB FSR
VI
3
3.7% XII
3
3.7% IV
4
4.9%
VII
5
6.1%
VIII
5
6.1%
IX
5
6.1%
XI
5
6.1%
X
6
7.3%
V
7
8.5%
XIV
8
9.8%
XV
31
37.8%
Composition of Universe
by AMB FSC
82
2010 Total: 82 Company Population
PLIC
PLIC

0
0.0%
0
0.0%
0
0.0%
A.M. Best's
Composition by Outlook
Stable
74
90.2%
Negative
7
8.5%
Positive
1
1.2%
Composition by Outlook and FSR for Ordinary
Annuity Company Universe as of 09/30/2011
83
Total: 82 Company Population
8
29
18
8
12
1
4
1 1
0
5
10
15
20
25
30
35
A++ A+ A A- B++ B+ B B- C+
NumberofCompanies
A.M. Best’s Financial
Strength Ratings Distribution

Analysis of the Ordinary Annuity(OA)
Universe of Companies with FSRs of “B++”
Compared to Presidential Life Insurance Company
84
OA/ FSR BCAR Statutory Operating Return on Equity (2) AMB FSR
Company Name FSC NPW BCAR Deviation 2010 2009 2008 2007 Average Outlook
Universal Life Ins Co. (PR) V 89% 221 -4 7.1% 10.0% 51.9% -11.7% 14.3% Stable
Presidential Life Ins Co. IX 78% 182 -4 10.0% 7.8% 13.1% 16.4% 11.8% Stable
Fidelity & Grty Life Ins Co. XI 67% 149 -2 34.5% 7.4% 9.0% -6.1% 11.2% Stable
Fidelity & Grty Life Ins (NY) XI 92% 149 -2 9.0% 6.1% 11.2% 14.0% 10.1% Stable
Security Benefit Life Ins Co. X 79% 160 -3 11.2% 7.7% -4.9% 5.5% 4.9% Stable
Charter National Life Life Ins Co. V 99% 999 -4 3.9% 4.3% 5.2% 6.0% 4.9% Stable
Liberty Life Insurance Co. VIII 79% 201 -4 0.7% -4.0% 6.9% 9.8% 3.3% Stable
Investors Insurance Corp. VI 100% 185 -4 11.2% -35.0% 15.7% 15.4% 1.8% Stable
Great American Life Assr Co. IV 100% 999 -4 1.6% -7.6% 4.5% 5.5% 1.0% Stable
Amer Retirement Life Ins Co. IV 68% 999 -4 0.0% -1.0% 2.1% 1.7% 0.7% Stable
First Security Benefit Life Ins X 100% 160 -3 10.2% 10.0% -16.3% -2.2% 0.4% Stable
EMC National Life Co. VII 59% 209 -4 41.9% -115.5% -50.4% -3.0% -31.7% Stable
Average 11.8% -9.2% 4.0% 4.3% 2.7%
Median 9.5% 5.2% 6.0% 5.5% 4.1%
(1) Sources: FSR and BCAR: A.M. Best's Custom Reports; All other data: SNL Financial (derived from
statutory filings)
(2) Statutory net gains from operations divided by average
policyholder surplus
Note: According to AMB Custom Reports, companies with a
999 BCAR indicates the calculated ratio surpasses 1000.

Analysis of the Ordinary Annuity(OA) Universe of
Companies with FSRs of “A-” or Greater within FSCs
of IX-XIV Compared to Presidential Life Insurance Company
Presidential Life Insurance Company 85
Group OA/ FSR BCAR Statutory Operating Return on Equity
Company Name FSR (g) FSC NPW BCAR Deviation 2010 2009 2008 2007 Average Outlook
USAA Life Insurance Co. A++ XIV 60.2% 247 0 19.8% 14.4% 12.3% 15.1% 15.4% Stable
Great American Life Ins Co. A XI 94.0% 208 -2 16.5% 9.1% 21.1% 11.7% 14.6% Stable
Life Insurance Co. of the SW A g X 77.6% 213 -2 20.4% 20.4% 0.8% 15.8% 14.3% Stable
State Life Insurance Co. A+ g XII 59.6% 241 -1 7.3% 14.9% 19.1% 15.5% 14.2% Stable
Horace Mann Life Insurance Co. A IX 68.4% 180 -2 16.6% 13.2% 11.5% 11.8% 13.3% Stable
Presidential Life Ins Co. B++ IX 78.2% 182 -4 10.0% 7.8% 13.1% 16.4% 11.8% Stable
Amer Equity Invt Life Ins Co. A- XIV 99.7% 201 -3 14.5% 15.4% 11.2% 2.1% 10.8% Stable
Symetra Life Insurance Co. A XIV 63.9% 221 -2 12.3% 10.0% 8.3% 10.9% 10.4% Stable
Ohio National Life Ins Co. A+ XII 80.5% 241 -1 19.8% 18.1% -4.8% 5.5% 9.6% Stable
USAA Life Insurance Co. of NY A++ g XIV 69.4% 247 0 13.4% 9.0% 9.1% 6.6% 9.5% Stable
Auto-Owners Life Insurance Co. A+ IX 72.1% 213 -1 6.0% 5.7% 7.5% 9.2% 7.1% Stable
National Western Life A XI 57.5% 268 -2 8.8% 10.6% 4.1% 4.2% 6.9% Stable
Farm Bureau Life Ins Co. of MI A IX 60.9% 312 -2 6.3% 5.5% 3.6% 7.4% 5.7% Stable
Annuity Investors Life Ins Co. A g XI 88.5% 208 -2 13.4% 10.6% -4.2% 0.5% 5.1% Stable
Fidelity Invts Life Ins Co. A+ X 98.9% 574 -1 9.1% 1.8% 0.1% 7.7% 4.7% Stable
Centurion Life Insurance Co. A XII 87.2% 999 -2 4.2% 4.1% 5.2% 4.6% 4.5% Negative
Frst Symetra Natl Life Ins Co. A g XIV 83.4% 221 -2 12.8% -0.2% -6.8% 11.0% 4.2% Stable
Empire Fidelity Invts Life Ins A+ g X 99.1% 574 -1 4.6% 3.4% 1.5% 6.2% 3.9% Stable
Integrity Life Insurance Co. A+ g X 99.8% 274 -1 9.0% -0.8% -3.2% 2.8% 1.9% Stable
National Integrity Life Ins Co A+ g IX 100.0% 274 -1 13.7% 7.5% -21.1% 7.0% 1.8% Stable
Penn Mutual Life Insurance Co. A+ XIV 61.3% 328 -1 1.0% 5.5% -0.2% 0.5% 1.7% Stable
COUNTRY Investors Life Assr Co A+ XIV 75.9% 348 -1 2.8% 1.2% 2.7% -1.0% 1.4% Stable
Amer Eqty Invt Life Ins Co. NY A- g XIV 100.0% 201 -3 -6.4% -18.7% 4.3% 3.7% -4.3% Stable

Analysis of the Ordinary Annuity(OA)
Universe of Companies within the XV FSC
Compared to Presidential Life Insurance Company
Presidential Life Insurance Company 86
OA/ FSR BCAR Statutory Operating Return on Equity
Company Name FSR Group NPW BCAR Deviation 2010 2009 2008 2007 Average Outlook
Protective Life & Annty Ins Co A+ g 90.6% 228 -1 22.3% 23.1% 14.8% 23.1% 20.8%Stable
Jackson National Life A+ g 85.9% 158 1 34.7% 36.3% -7.4% 14.0% 19.4%Stable
ING USA Annuity Life Insurance A g 80.7% 150 0 51.0% 49.4% -29.5% 1.8% 18.2%Negative
Thrivent Life Insurance Co. A++ g 94.4% 247 0 14.1% 9.6% 14.4% 29.9% 17.0%Stable
RiverSource Life Insurance Co. A+ 81.0% 279 -1 33.8% 60.9% -44.3% 17.2% 16.9%Stable
MetLife Insurance Co. of CT A+ g 58.0% 138 2 10.5% 12.9% 15.0% 25.3% 15.9%Stable
Trnsam Life Ins Co. of NY A+ g 86.7% 202 -1 17.0% 37.0% -22.1% 30.9% 15.7%Stable
Protective Life Insurance Co. A+ 59.0% 228 -1 13.2% 32.2% -5.2% 22.1% 15.6%Stable
RiverSource Life Ins Co. of NY A+ g 77.0% 279 -1 20.9% 40.7% -14.9% 11.3% 14.5%Stable
MetLife Investors Insurance Co A+ g 99.6% 138 2 34.0% 16.2% -8.4% 13.1% 13.7%Stable
Allianz Life Insurance Co. A 95.4% 170 -1 24.7% 10.8% 12.0% 4.9% 13.1%Negative
Presidential Life Ins Co. B++ 78.2% 182 -4 10.0% 7.8% 13.1% 16.4% 11.8%Stable
Teachers Ins & Annty Assn. A++ 62.5% 223 0 11.7% 14.2% 6.6% 9.5% 10.5%Stable
Western National Life Ins Co. A g 99.9% 183 -2 13.5% 10.2% 6.8% 9.5% 10.0%Stable
SunAmerica Life Insurance Co. A g 75.2% 183 -2 2.2% 10.6% 10.7% 16.3% 10.0%Stable
Transamerica Advs Life Ins Co. A+ g 73.7% 202 -1 29.7% 59.5% -82.2% 27.6% 8.7%Stable
Western-Southern Life Assr Co. A+ g 83.7% 274 -1 10.1% 9.9% 1.0% 12.6% 8.4%Stable
Brooke Life Insurance Co. A+ 95.7% 158 1 7.8% 7.5% 9.3% 7.0% 7.9%Stable
New York Life Ins & Annty Corp A++ g 72.4% 218 0 11.8% 8.2% -4.2% 14.1% 7.5%Stable
Guardian Ins & Annty Co. A++ g 67.4% 278 0 17.5% 16.2% -14.8% 7.6% 6.6%Stable
TIAA-CREF Life Insurance Co. A++ g 69.0% 223 0 7.2% 4.0% 3.8% 5.5% 5.1%Stable
North American Co. for L&H Ins A+ g 66.3% 243 -1 10.0% 4.9% 1.1% 0.9% 4.2%Stable
Pacific Life & Annuity Co. A+ g 96.3% 208 -1 12.7% 34.3% -32.5% 1.7% 4.0%Stable
Aviva Life & Annuity Co. A 83.9% 145 0 8.6% 9.6% -5.7% 1.1% 3.4%Negative
Pruco Life Insurance Co. of NJ A+ g 77.8% 173 0 28.0% 1.9% -15.8% -5.3% 2.2%Stable
Pacific Life Insurance Co. A+ 59.5% 208 -1 12.7% 15.6% -36.5% 10.2% 0.5%Stable
Pruco Life Insurance Co. A+ g 89.2% 173 0 28.3% 23.4% -78.0% 6.4% -5.0%Stable
Allianz Life Ins Co. of NY A g 98.7% 170 -1 27.0% 51.6% -118.7% 4.6% -8.9%Negative
Sun Life Ins & Annty Co. of NY A+ g 70.3% 198 -1 19.3% 12.8% -60.4% -12.7% -10.2%Stable
Berkshire Hathaway Life Ins Co A++ 100.0% 168 1 -33.4% -95.4% 8.4% 6.5% -28.5%Stable
First MetLife Investors Ins Co A+ g 91.1% 138 2 -12.6% -5.0% -87.1% -80.4% -46.3%Stable
MetLife Investors USA Ins Co. A+ g 89.2% 138 2 3.3% 1.1% -66.4% -189.3% -62.8%Stable

Empirical Analysis Summary
• PLIC’s 2007-2010 average Best’s ROE is among
the highest and most stable relative to all
segmented populations and collectively
• The FSR BCAR deviation of PLIC is numerically
inconsistent relative to the ordinary annuity
company universe rated by AMB based on the
empirically based analysis to all integral metrics
• BCAR, RBC, statutory earnings consistency, stable
profitability and financial size category
87

88
Presidential Life
Insurance Company
Outstanding Litigation/
Compliance Issues

89
Outstanding Litigation/Compliance Issues
• From time to time, Presidential Life is involved in
litigation relating to claims arising out of its operations in
the normal course of business
• Presidential Life is not a party to any legal
proceedings, the adverse outcome of which, in
management’s opinion, individually or in the
aggregate, would have a material adverse effect on the
Corporation’s financial condition or results of operations

2012 amb final_02_22_2012

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