CAREER AGENCY

Through our Career Agency, Universal American has seized an opportunity to grow in a traditionally underserved market: the middle-income self-employed in the United States and Canada.

Once again, it is an opportunity driven by changing demographics. The number of self-employed persons in the United States is currently over 17 million, and growing. Our focus on the small cities and rural areas of this market has been a key to our success, as it is the segment with the greatest need for affordable insurance products.

Furthermore, the aging of the baby boomer generation and the tendency for self-employment to increase with age give Universal American the added opportunity to cross-sell our senior market insurance products. As our Career Agency sells only Universal American products, agents are able to assess the ongoing needs of these clients and sell a variety of our products to them.

Our strategic acquisition in 1999 of the Career Agency sales force of Pennsylvania Life and PennCorp Life of Canada has allowed us to build this area of business into a thriving, vital part of the Universal American family.

Growing Stronger from Within

In 2000, our Canadian operation continued its outstanding performance as measured by growth and profitability.

In the United States, we have reorganized our marketing to Career Sales agents, giving regional sales offices major incentives to increase manpower. The result: a 25-30% increase in personnel. This will, no doubt, result in increased sales.

Along with recruiting, there has been a greater effort placed on training. Our job has been made easier by the increased collaboration among the regions. The sharing of knowledge, talent and resources has resulted in a sense of shared success and working toward a common goal. We expect our continued focus on recruitment and training of agents to bring even further success in 2001.

Finally, in accordance with our strategic plan, the Career Agents have begun to prove their ability to sell senior market products to current policyholders as well as to new customers. We have shown initial success with long term care products, and have made major inroads in the selling of senior life insurance.