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ANNUAL REPORT 2010
GUARDIAN FOR LIFEA life well planned is a life well lived.
The Guardian Life Insurance Company of America7 Hanover SquareNew York, NY 10004-4025www.GuardianLife.com
Pub. 4822
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T 2010
Letter to PolicyholdersLetter to Policyholders
Financial HighlightsFinancial Highlights
Offi cers & Board of DirectorsOffi cers & Board of Directors
Policyholder Profi lesPolicyholder Profi les
2010 Financials2010 Financials
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Financial StrengthFinancial Strength
Investment ResultsInvestment Results
Company ListingsCompany Listings
Important InformationImportant Information
Contact UsContact Us
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TABLE OF CONTENTSTABLE OF CONTENTS
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Dennis J. Manning Chairman and Chief Executive Offi cer
As a mutual company, we manage our company in the best interests of our owners, the policyholders. We have no stockholders, as publicly held insurance companies do. Because we’re unencumbered by obligations to manage to Wall Street’s short-term, quarter-to-quarter demands, we’re able to always focus on our top priority: our policyholders. Their interests come fi rst.
Deanna M. Mulligan President and Chief Operating Offi cer
TO OUR POLICYHOLDERS:At Guardian, we constantly remind ourselves that a promise is only as good as the company and the people standing behind it. We are pleased to report that our promise to you is more secure than ever—the promise to provide families and business owners with products that help protect them against fi nancial risk, and at the same time, to ensure Guardian’s long-term fi nancial strength so we can continue to meet future obligations.
Despite the slow pace of global economic recovery, Guardian had a very good year in 2010—our 150th anniversary year. We declared our largest dividend ever to individual life policyholders. We increased capital and surplus, improving our fi nancial fl exibility. We generated strong, double-digit sales results and achieved a healthy expansion in our career agent network. Moreover, all four major credit rating agencies affi rmed our already strong ratings with positive outlooks.
What this all means for our policyholders is confi dence—a word that has been used less frequently as of late in relation to many fi nancial institutions. It is important to us that our policyholders always think of us positively and with a high degree of confi dence. And without question, they can. Guardian is advantageously poised to capitalize on the fi nancial turnaround from a position of strength.
SEAMLESS TRANSITIONOur Board of Directors last year took decisive steps to ensure Guardian’s continued strong leadership. It appointed Deanna M. Mulligan President and Chief Operating Offi cer, and announced its intent to name her Chief Executive Offi cer and a member of the Board of Directors in July 2011. At that time Dennis J. Manning will remain as Chairman (executive) through his scheduled retirement in January 2012. These steps will ensure a seamless transition in Guardian’s leadership team, which is comprised of an outstanding group of executives and headed by an exceptional leader with deep industry experience and skill.
To paraphrase former U.S. Secretary of State General Colin Powell, it takes great people to accomplish great deeds. By any defi nition, Deanna Mulligan and the rest of Guardian’s leadership team more than meet that test. Deanna Mulligan will have the support of an unusually strong, talented team of Executive Vice Presidents: Scott Dolfi , who in July 2011 will take her place as Chief Operating Offi cer; Meg Skinner, Chief Distribution Offi cer; Robert Broatch, Chief Financial Offi cer, who also leads Risk Management and Operational Excellence; Tom Sorell, Chief Investment Offi cer; Tracy Rich, General Counsel and Corporate Secretary; and John McCarthy, head of Human Resources.
SHARED COMMITMENTThe executives on Guardian’s leadership team share a number of important qualities. They embody the values, trust, and respect that have shaped Guardian’s character through the years and that today make us the company where so many talented people choose to build a career. These leaders also fi rmly embrace the principle of mutuality.
As a mutual company, we manage our company in the best interests of our owners, the policyholders. We have no stockholders, as publicly held insurance companies do. Because we’re unencumbered by obligations to manage to Wall Street’s short-term, quarter-to-quarter demands, we’re able to always focus on our top priority: our policyholders. Their interests come fi rst. We never lose sight of our obligation to make sure that our interests are fully aligned with theirs and that our mutual interests
/ 3
are aligned for the long term. That’s the perspective that has always infl uenced our management decisions. And that’s the perspective that will ensure that our vision for growth remains clearly focused on what matters most. SMALL BUSINESS—AN AGENDA FOR GROWTHThe solid foundation from which we operate today didn’t emerge overnight. It is the result of successive years during which we generated solid operating earnings, ensured that we protected our capital, and took steps to run a more effi cient organization. So in the midst of the fi nancial downturn when many other companies were retrenching, we were able to maintain steady growth and, equally important, invest in our future.
A key investment has been our small business strategy, which we’re pleased to report has been quite successful. With this strategy, we plan to grow by serving the needs of small businesses and their owners by providing holistic solutions that matter to them—such as risk protection, employee benefi ts, asset accumulation, retirement, estate planning, and business transfer.
Small businesses represent approximately 50 percent of U.S. gross domestic product and as much as 80 percent of all new job creation.† But besides its role as the dynamic driving force in our economy, small business is also driving growth at Guardian and it contributed nicely to our 2010 results.
Another example of where we have made important investments is in building distribution. Our Financial Representatives are among the most talented in the business, helping both business owners and families realize their fi nancial dreams and resolve their fi nancial challenges. We’ve continued to invest in attracting the best talent, providing our representatives with the best training and equipping them with the best tools to help their clients.
A TRADITION OF EXCELLENCENo discussion of our company’s performance would be complete without acknowledging our approximately 5,000 dedicated employees, our network of more than 80 agencies and 3,200 Financial Representatives, and our exceptional corps of managers and leaders. Their combined talents and energies are the reason Guardian today enjoys an unquestioned reputation for excellence and one of the strongest fi nancial positions in our industry, along with a solid foundation for continued growth.
Promises matter—at Guardian we never lose sight of this. We’ve been keeping ours for a century and a half amidst countless ups and downs in the economy and in spite of ongoing change in the world in which we do business.
The vision and values that have long defi ned the character of this company will continue to infl uence the decisions we make to help meet the needs of policyholders today and for generations to come.
Thank you for your confi dence; we look forward to continuing to earn your trust.
Sincerely,
Dennis J. ManningChairman and Chief Executive Offi cer
Deanna M. MulliganPresident and Chief Operating Offi cer
† Source: U.S. Department of Commerce, Bureau of the Census and International Trade Administration
GUARDIAN FINANCIAL HIGHLIGHTS
W H O L E L I F E D I V I D E N D S D E C L A R E DW H O L E L I F E D I V I D E N D S D E C L A R E D
B E N E F I T S PA I D T O P O L I C Y H O L D E R SB E N E F I T S PA I D T O P O L I C Y H O L D E R S ( O N A C O N S O L I DAT E D B A S I S )( O N A C O N S O L I DAT E D B A S I S )
C A P I TA L C A P I TA L
S TAT U T O RY G A I N F R O M O P E R AT I O N S S TAT U T O RY G A I N F R O M O P E R AT I O N S B E F O R E TA X E S A N D D I V I D E N D S T O P O L I C Y H O L D E R SB E F O R E TA X E S A N D D I V I D E N D S T O P O L I C Y H O L D E R S
( O N A C O N S O L I DAT E D B A S I S )( O N A C O N S O L I DAT E D B A S I S )
2 0 1 02 0 1 0
$740 MILLION
$4.9 BILLION
$5.3 BILLION
$1,082 MILLION
$258 BILLION
2 0 0 92 0 0 9
$712 MILLION
$5.1 BILLION
$4.9 BILLION
$1,015 MILLION
$245 BILLION L I F E I N S U R A N C E I N F O R C E L I F E I N S U R A N C E I N F O R C E
( O N A C O N S O L I DAT E D B A S I S )( O N A C O N S O L I DAT E D B A S I S )
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DIRECTORS
Robert E. Broatch, CPA Executive Vice President, Chief Financial Offi cer, Risk and Operational Excellence, The Guardian Life Insurance Company of America
Lloyd E. CampbellConsultant, Spencer Stuart
Richard E. CavanaghFormer President and Chief Executive Offi cer,The Conference Board
Kay Knight ClarkePresident, Templeton, Ltd.
James E. Daley Retired Executive Vice President, Electronic Data Systems Corporation
Deborah L. DuncanExecutive Vice President and Chief Financial Offi cer, Fremont Group
Paul B. GuentherRetired President, PaineWebber Group, Inc.
Dennis J. Manning, CLU, ChFCChairman and Chief Executive Offi cer,The Guardian Life Insurance Company of America
John A. SomersFormer Executive Vice President andRetired Head of Fixed Income and Real Estate,Teachers Insurance and Annuity Association
Stephen J. SqueriGroup President, Global Services,American Express Company
Donald C. Waite IIIDirector, Offi ce of Executives in Residence and Adjunct Professor, Columbia Graduate School of Business
INDEPENDENT ACCOUNTANTSPricewaterhouseCoopers LLPNew York, NY
Rear, Left to Right: Robert E. Broatch, CPA Executive Vice President, Chief Financial Offi cer, Risk and Operational Excellence / John P. McCarthy Executive Vice President, Human Resources / D. Scott Dolfi Executive Vice President, Business & Operations / Margaret W. Skinner Executive Vice President and Chief Distribution Offi cer / Thomas G. Sorell, CFA Executive Vice President and Chief Investment Offi cer
Front, Left to Right: Tracy L. Rich Executive Vice President, General Counsel and Corporate Secretary / Deanna M. Mulligan, CLU, ChFC President and Chief Operating Offi cer / Dennis J. Manning, CLU, ChFC, Chairman and Chief Executive Offi cer
EXECUTIVE MANAGEMENT
NEW ORLEANS,
/ 7
LACreed BrierreBorn on Mardi Gras, a graduate of Tulane University, and a lifelong resident of New Orleans, Creed Brierre is a stalwart citizen of the city he calls home…
His business, Mathes Brierre Architects, has stood as an indelible part of the community for more than 100 years, withstanding the eff ects of Hurricane Katrina and contributing to the restoration and protection of the city in the storm’s aftermath. Creed and his wife, Ellen, have been married for more than 35 years. She serves as Manager of Alumni Aff airs at the Tulane University Law School, and they have three grown children, two of whom reside in New Orleans. Playing baseball, fi shing, and hunting are among many interests he tries to fi nd time for.
CAN YOU TELL US A LITTLE ABOUT YOUR BUSINESS?Mathes Brierre Architects is the latest evolution of the oldest architecture fi rm in the state of Louisiana. We were founded in the 1890s and currently have 67 employees. The company has four partners, including myself, and our organization is divided into four architecture and interior design studios, as well as one studio of landscape architects and planners.
A large piece of our recent work has revolved around Hurricane Katrina recovery. We did a number of projects for the recovery school district, including repairing kitchen cafeterias that needed to be redone for the schools to reopen. We also designed the safe houses for the St. Bernard fl ood protection program, as well as the waterproofi ng and hardening of all the pump stations in Orleans Parish.
In addition, we’re designing a performing arts facility for the Musicians’ Village, a concept developed by Harry Connick, Jr. and Branford Marsalis to bring musicians who have lost their homes back to New Orleans. Our fi rm is working on a performance and recording facility in the Upper Ninth Ward, where cottages have been built to house these musicians and their families.
WHAT ARE YOUR CHALLENGES AS A BUSINESS OWNER?The hardest aspect of an architecture fi rm is matching up with the economy. Often when there’s a downturn in the fi nancial climate, it aff ects our industry. Following Hurricane Katrina, we were a little nervous, not knowing how it would impact our employees and clients, but we’ve actually done very well since then.
I’d say our staff is one of the most capable, talented groups of architects, interior designers, and landscape architects and planners in the entire city. Our problems are never internal, we just need to maintain enough business to keep all this talent engaged.
Creed Brierre visiting one of several Orleans Parish pump stations that boast a waterproofi ng design created by his fi rm. “I’m not sure anyone else could have handled this project,” he says, “so we’re understandably proud of the work.”
“A LARGE PIECE OF OUR RECENT WORK HAS REVOLVED AROUND HURRICANE KATRINA RECOVERY.”
/ 9
HOW DOES GUARDIAN HELP YOU WITH YOUR COMPANY?One of my collateral duties as a principal in the fi rm is serving as the human resources director. In this role, I brought Guardian benefi ts to the company starting in 1994. We provide our employees with group life insurance and long-term disability coverage. We also off er optional short-term disability, vision, and dental coverage that employees can buy into through the company.
It’s very helpful to off er a robust benefi ts package in addition to a competitive salary when trying to attract employees and retain the ones we already have. In the aftermath of Katrina, when some of our people left and we needed to grow staff because of the amount of work that was starting to come in, the products we receive through Guardian were a huge help. When you tell someone that they aren’t just going to earn a salary, but they’re also going to get a signifi cant package of insurance options that they don’t have to buy elsewhere, it tends to have an impact. Being able to off er this is a good thing for them and a good thing for us.
DO YOU HAVE ANY OTHER GUARDIAN PRODUCTS AND SERVICES?I personally have a whole life insurance policy through Guardian that is growing and doing very well. In addition, the partners of the fi rm have a buy-sell agreement, which would allow the rest of us to buy out a partner if anything were to happen to them. We also have long-term disability income insurance for the partners, to protect ourselves and our spouses.
WHAT’S YOUR OUTLOOK FOR THE CITY AND FOR YOUR BUSINESS GOING FORWARD?I think New Orleans has gotten very smart about how we run things now, and we’re certainly better at dealing with natural catastrophes. If we had another Katrina, we’d be ready for it. The parts of the city that weren’t fl ooded are absolutely back, and in many cases areas that had to be restored are even better than they once were. New Orleans has weathered the storm, both literally and fi guratively, and businesses like ours have emerged in great shape. I’m pleased to say Guardian has played a role in helping to keep us strong.
“IN THE AFTERMATH OF KATRINA, WHEN SOME OF OUR PEOPLE LEFT AND WE NEEDED TO GROW STAFF BECAUSE OF THE AMOUNT OF WORK THAT WAS STARTING TO COME IN, THE PRODUCTS WE RECEIVE THROUGH GUARDIAN WERE A HUGE HELP.”
Group LifeGroup Long-Term DisabilityGroup Short-Term Disability
HOW WE HELP
Individual Whole LifeIndividual Disability IncomeBuy-Sell Agreement
Group VisionGroup Dental
/ 11
PHOENIX,
/ 13
AZ Kraig & JamieBurgessKraig and Jamie Burgess came to Phoenix six years ago, moving from Ohio where they both were raised and attended college...
An orthopedic surgeon in private practice, Kraig shares an offi ce with two other physicians, while Jamie cares for Navi, their active two‐year‐old daughter. The couple share a passion for fi tness, training and competing in triathlons, getting out to jog, bike, swim, and work out at the gym whenever possible, and spending the rest of their spare time with family and friends.
WHAT ARE YOUR BIGGEST FINANCIAL CONCERNS?One of the things about medicine is you don’t generate any income unless you’re physically practicing. If I were ever unable to perform surgery due to illness or injury, how would I maintain our income level and take care of my family? I need both my mind and my hands to make my living.
Additionally, while I love my job and feel blessed for the opportunity, I don’t necessarily want to practice forever and I don’t want to feel like I have to work. We have a lot of hobbies; I just wish we could fi nd more hours for them. My hope is as our wealth accumulates, I can feel more comfortable backing off work and taking more time to do things as a family.
My goal for now, of course, is to stay healthy and keep on producing revenue, but I also want to be sure I have things in place to protect us and increase our ability to automatically generate wealth in the future.
WHAT PRODUCTS DO YOU HAVE FROM GUARDIAN AND HOW DO THEY ADDRESS YOUR GOALS?I have whole life insurance, which really addresses a range of concerns. That’s something it took me a while to realize.
At fi rst I thought of whole life insurance strictly as a vehicle to protect my wife and family if something were to happen to me, which is obviously most important. When Navi came along, we realized it was time to take the next step and obtain more coverage. Like everyone else, we had a mortgage and other bills, and my concern was protecting my wife and daughter in any eventuality.
But I’ve come to realize whole life insurance provides so much more. It’s also a powerful wealth accumulation tool. My current Guardian agent is the fi rst person who was able to really explain that to me in terms I could understand. I could see the growth value in it, the protection value in it, and the tax advantages it could provide someone at my income level. Knowing I could get an optional waiver so that my premiums will be paid throughout the life of the policy if anything happened to me (became totally disabled) was the clincher. For all these reasons and more, it just makes sense for us.
“I HAVE WHOLE LIFE INSURANCE, WHICH REALLY ADDRESSES A RANGE OF CONCERNS.”
One of the attractions of life in Arizona is the ability to do a lot of activities outside. But even leisure can have its risks. “I’ve spent a lot of time on the road on a bike, and there are plenty of war stories of people who get hurt while training,” says Kraig. “From a protection point of view, it’s nice to know I have a lot of tools in place to help give me peace of mind.”
/ 15
I also have term life insurance and disability income coverage. The term was something I put in place early in my career for protection purposes. The disability policy helps me address my income worries.
DO YOU UTILIZE ANY OTHER PERSONAL SERVICES?Our Guardian Financial Representative set us up with something called The Living Balance Sheet® (LBS). It’s an online system that allows us to see our entire fi nancial portfolio picture in one place, and it automatically updates on a daily basis, which is a real benefi t. Before using this tool, there was no easy way to monitor all of my assets and accounts simultaneously. Being able to log in from anywhere at any time and view this summary is great. LBS even allows me to organize every one of my insurance policies and track the performance of my whole life policy.
Another thing I love about LBS is a feature called The Vault, which allows you to store all your personal information in a limitless, protected online archive. From personal pictures to tax returns to will and trust documents, it’s very reassuring to know that in the event of a fl ood, fi re, or theft, you have copies of these materials safely stored away in a reliable, accessible place.
HOW ABOUT PROFESSIONALLY?Sharing offi ce space is a great way to reduce overhead expenses, but if one of us encounters hard times, we’re all impacted. One of the tools my Guardian Financial
Representative helped me set up was an overhead expense insurance policy that protects each partner. It’s nice to know that if I experienced diffi culties, my partners, my practice, and my staff would all be safe until I got back on my feet.
WHY DO YOU CHOOSE TO WORK WITH A GUARDIAN FINANCIAL REPRESENTATIVE?When hiring someone to look out for my personal interests, I lay out a list of my expectations on paper for us. I fi nd if it’s in front of us in black and white, there are no surprises or disappointments down the road. You can either deliver on these requirements, or if not, we both move on with no hard feelings. My Guardian agent has been able to live up to all of my expectations. He’s truly a resource for our family; I can pick up the phone and bounce ideas off him at any time. I have tremendous respect for his abilities, and his values are strongly in sync with mine. I trust him and consider him a friend, and this means a lot to me.
In addition, I have trust in Guardian as a company. I remember when I was fi rst off ered insurance as a resident in training, many names were thrown at me. Through the years, many of these companies have fallen by the wayside. Seeing the longevity and fi nancial strength of Guardian gives me great comfort.
“SEEING THE LONGEVITY AND FINANCIAL STRENGTH OF GUARDIAN GIVES ME GREAT COMFORT.”
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HOW WE HELP
Individual Whole LifeIndividual Term LifeIndividual Disability Income
The Living Balance Sheet®Overhead Expense Insurance
TALLAHAS
/ 19
SEE, FL
Tony Benton & Bart WellsAs President and Executive Vice President of Sperry & Associates, Tony Benton and Bart Wells have partnered to lead a Tallahassee-based construction company for the last 30 years...
An employee-owned operation, Sperry resembles a family in addition to a business, with all members focused on a singular goal of providing unmatched customer service. In addition to a passion for their company and community, both of the fi rm’s partners share an interest in hunting, fi shing, and scuba diving, with Tony also enjoying motorcycle riding and Bart currently taking on the challenges of golf.
CAN YOU BRIEFLY DESCRIBE YOUR COMPANY?We were founded in 1973 and currently have 40 employees throughout Sperry and our three affi liates: Commercial Repair & Renovations Inc., Metal Building Services Incorporated, and Wentworth Building Corp. Our main business focus is on design build contracting, but we also do bid contracting, construction management work, and subcontracting work. We do a lot of metal building construction and metal roofi ng. We have steel erectors on staff , and we do our own concrete work so we can ensure quality.
Most of our business comes through referrals from past customers. Once we do something for you, we want to be your contractor for life and do everything for you. That’s why we started our affi liate services, so that in addition to construction, we could take care of tasks like cleaning gutters, repairing roofs, painting, and minor renovations. We’re a customer service-oriented company because that’s really the only way to build strong relationships. We have a very good reputation for both, and that’s something we take tremendous pride in. Whenever we’re faced with a diffi cult decision, the question we ask ourselves is “What’s in the best interest of the client?”
DO YOU USE GUARDIAN PRODUCTS PERSONALLY?From an individual standpoint we have whole life insurance and disability income coverage. Additionally, we have a life insurance policy on each other that allows us to buy each other’s company stock should anything happen to either of us. It’s really comforting to know that in the event something should befall one of the partners, the company won’t be in jeopardy and our families will be taken care of.
HOW DO YOU WORK WITH YOUR GUARDIAN AGENT?Our Guardian Financial Representative is very knowledgeable about his business, but what really impressed us was that he sat down and got to know our business as well. We meet on a periodic basis and he reviews what we have and makes recommendations on what we might need moving forward. He’s very easy to get in touch with and very prompt in returning calls. It’s a really strong relationship; we feel like he’s a member of our team.
“OUR GUARDIAN FINANCIAL REPRESENTATIVE IS VERY KNOWLEDGEABLE ABOUT HIS BUSINESS, BUT WHAT REALLY IMPRESSED US WAS THAT HE SAT DOWN AND GOT TO KNOW OUR BUSINESS AS WELL.”
Bart and Tony discussing current projects at one of their regularly scheduled morning status meetings. “Your level of quality and customer service are really what distinguish you in the marketplace,” agree both. “We take that very seriously.”
/ 21
WHAT CHALLENGES DO YOU HAVE AS BUSINESS OWNERS?Keeping work coming through the door is probably top of mind for us. Our core group of customers is not building as much right now due to economic conditions. This is a concern for us because we have a family of employees to support. We need to keep business coming in so that we can keep paychecks going out; we know our workers have families to feed and retirements to prepare for. We’re an employee-owned company, so the well-being of our employees is always our number one concern.
HOW DO YOU USE GUARDIAN FOR YOUR BUSINESS?Guardian group benefi ts help us give our employees security. We provide life insurance to all our associates, and they have the option to purchase even more through our company. We also provide them with Guardian dental and long-term disability insurance.
In fact, not so long ago we had an employee who needed a bone marrow transplant and went out on disability. The process was seamless, the payments came through right on time, and he’s been supported ever since. We’re expecting him back this fall, so we think this provides an ideal example of how disability income insurance should work. It’s really a good feeling to know you have your employees covered like that.
We’re very happy with what we get from Guardian; the people are very knowledgeable and friendly. So much so that a few years ago we moved all our group coverage to Guardian, which was a very easy transition to make and it made our bookkeeper very happy to have all services coming from one place.
HOW HAS THE ECONOMIC CLIMATE IMPACTED YOU?As with a lot of other companies, we’ve had to learn to survive. These have been very challenging times, and we’ve had to fi gure out how to operate under these conditions, to grow and adapt to the way our customers do business nowadays. We have to be fl exible and able to react to what our customers want and then plan accordingly. Ultimately, we believe we’re going to come out on the other side of this environment even stronger than when we started.
WHAT DO YOU WANT YOUR COMPANY TO BE KNOWN FOR?We’re very proud of our commitment to our employees and our contributions to the community. Sperry has an outstanding safety record, with a strong focus on working accident-free which translates into safer employees and a lower workers’ compensation rate, which in turns makes us more competitive in the market. Additionally, we give to United Way, the American Cancer Society, and the Leukemia & Lymphoma Society, and work with the local Chamber of Commerce and Economic Development Council and the Leadership Tallahassee group.
But fi rst and foremost, we’re all about delivering outstanding customer service and strong business relationships. We demand the same from any organization we work with. And we get that from Guardian.
“GUARDIAN GROUP BENEFITS HELP US GIVE OUR EMPLOYEES SECURITY.”
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HOW WE HELPGroup LifeGroup Long-Term DisabilityGroup Dental
Individual Whole LifeIndividual Disability IncomeBuy-Sell Agreement
2010 FINANCIALS
As of December 31 (in millions) 2010 2009*
Admitted assets
Bonds $21,391 $20,025
Unaffi liated common and preferred stocks 1,278 867
Investments in affi liates 857 902
Mortgage loans 3,230 3,339
Real estate 179 189
Policy loans 2,720 2,483
Other investment assets 1,173 989
Receivable for securities 58 6
Cash and short-term investments 357 202
Total invested assets 31,243 29,002
Due and accrued investment income 331 315
Current federal and foreign income tax recoverable and interest thereon 41 18
Premiums deferred and uncollected 845 871
Net deferred tax asset 521 520
Other assets 197 169
Total admitted assets $33,178 $30,895
Liabilities and surplus
Reserves for policy benefi ts 25,131 23,477
Policyholder dividends payable and other contract liabilities 1,856 1,834
Interest maintenance reserve 170 79
Asset valuation reserve 539 371
Amounts due to brokers and other liabilities 1,051 946
Total liabilities 28,747 26,707
Policyholders’ surplus 4,035 3,792
Surplus note 396 396
Total liabilities and surplus $33,178 $30,895
STATUTORY BASIS BALANCE SHEETS
Results Are Guardian Life Only (Not Consolidated)The condensed fi nancial statements of The Guardian Life Insurance Company of America have been derived from audited statutory fi nancial statements, which are available upon request.
*Certain amounts from 2009 have been reclassifi ed to conform to the current-year presentation.
/ 25
For the Year Ended December 31 (in millions) 2010 2009
Revenues
Premiums, annuity considerations, and fund deposits $5,943 $5,925
Net investment income 1,665 1,551
Other income 200 217
Total revenue 7,808 7,693
Benefi ts and expenses
Benefi t payments to policyholders and benefi ciaries 3,509 3,712
Net increase to policy benefi t reserves 1,607 1,332
Commissions and operating expenses 1,634 1,750
Total benefits and expenses 6,750 6,794
Gain from operations before policyholder dividends and taxes 1,058 899
Policyholder dividends incurred (730) (708)
Gain from operations before taxes and realized losses 328 191
Income tax expense (100) (67)
Income from operations before net realized capital losses 228 124
Net realized capital losses (23) (96)
Net income $205 $28
STATUTORY BASIS STATEMENTS OF OPERATIONS
FINANCIAL STRENGTHBy Robert E. Broatch, CPA, Executive Vice President, Chief Financial Offi cer, Risk and Operational Excellence
Bob Broatch, center, in conversation with members of Guardian Financial Management & Control
/ 27
I believe that the concept of there being economic “normal times” anymore is a myth. There really is no such thing, as the last few years can attest. Guardian has faced not one, but two unprecedented economic environments in the last decade alone. However, not only did we survive these adversities, we became even stronger after facing them. I think that obviously speaks well to the fi scal philosophy, strategy, risk management, and people we have in place at our company.
While we experienced a challenging climate, Guardian continued to perform well in 2010. We are in very good fi nancial shape and the actions we have taken have positioned us well for continued success.
We entered 2010 in a strong position, and fi nished in even better position by year’s end. Our capital grew by $423 million in 2010, due principally to solid operating results as well as gains on public and private equity. We also concluded 2010 with risk based capital of 492%, which is indicative of one of the strongest capital positions in the life insurance industry. Consolidated statutory operating income before dividends in 2010 was $1.1 billion, up 6.6% from the prior year. Perhaps most importantly, we declared whole life dividends of $740 million, our largest dividend to policyholders ever.
All four of the major rating agencies affi rmed Guardian’s very high ratings in 2010. They cited our investment performance, capital position, risk management, and operating performance as reasons for their affi rmation. Our company was the only major life insurer to be upgraded by two rating agencies in 2008, and our very high ratings were also affi rmed in 2009, providing evidence of our stability.
All in all, 2010 marked yet another very successful year for our company. We strengthened our capital position, generated solid earnings, and declared our largest dividend ever. Given the fi nancial environment, I think these are extraordinary achievements and not simply business as usual. As a mutual company, our principal objectives are to maintain our fi nancial strength and to deliver a competitive dividend to our policyholders. We again successfully met these goals and I’m confi dent we’ll continue to do so in the future.
20102009200820072006
$5,343
$4,920
$4,256$4,628
$4,307
STATUTORY PRE-TAX OPERATING INCOME BEFORE DIVIDEND (on a consolidated basis)
Results in millions
CAPITAL
Results in millions
20102009200820072006
$1,013
$1,142
$986 $1,015$1,082
S
INVESTMENT RESULTSBy Thomas G. Sorell, CFA, Executive Vice President and Chief Investment Offi cer
Tom Sorell, center, with members of Guardian’s Investments team
/ 29
The investment environment has clearly been challenging for the past few years. The impact of the fi nancial crisis continues to reverberate in the economy and the markets, and we witnessed ongoing volatility in 2010. However, Guardian’s Investments team successfully met these challenges and delivered another year of strong performance and results.
Economic growth in 2010 can be best characterized as relatively weak and sporadic from quarter to quarter. After a strong fi nish in 2009, economic growth decelerated early in 2010. This was not entirely unexpected given the headwinds that remained from the fi nancial crisis.During the fi rst half of 2010, the European Sovereign debt crisis became a major market-moving event. There was signifi cant concern that European banks and others
with exposure to the debt of Portugal, Ireland, Italy, Greece, and Spain could trigger another global fi nancial crisis and recession. As a result, there was a fl ight to safety that drove U.S. Treasury yields lower, the dollar higher, and the euro to a four-year low.
As the year progressed, fears of a “double-dip” recession faded as a result of improved economic data and an aggressive monetary and fi scal policy stimulus that was expected to sustain economic recovery. With fears subsiding, the markets recovered, aided in large part by Federal Reserve Chairman Bernanke’s late August announcement of plans for additional purchases of Treasury bonds by the Fed. The year ended on a stronger note as fourth quarter gross domestic product increased 2.8% on an annualized basis and year-over-year basis in 2010.
In the midst of this environment, Guardian’s investment goals remained clear and unchanged. Our overall objective is to provide competitive policyholder dividends, while protecting the fi rm’s capital and fi nancial strength.
We generate competitive dividends over the long term principally through the relative performance of our long-term asset allocation strategies, augmented by tactical asset allocation adjustments that enhance performance. Our investment risk management is primarily focused on governing and mitigating potential capital losses by actively managing credit risk, executing hedging strategies that protect capital from equity volatility, and constructing well-diversifi ed portfolios that reduce correlated risk.
As a result of our actions and strategies, Guardian’s general account returned almost 11% in 2010, outperforming its benchmark. Despite the low interest rate environment, we were able to successfully commit capital at attractive yields and spreads in private placements and commercial mortgages, while also achieving our objective of strategically increasing international investments, as well as private and real estate equity.
The economic and fi nancial environment remains fragile, and as such we fully expect continued volatility. Throughout any conditions we encounter, our investment objectives will remain the same: protecting the fi rm’s fi nancial strength and ratings, while providing competitive policyholder dividends. I am confi dent that Guardian’s highly experienced team of investment professionals is up to the challenge of adapting to changing economic and fi nancial market conditions to meet our goals.
20102009200820072006
$619
$664
$723 $712$740
Fixed Income Private Placement Debt Commercial Mortgages Policy Loans Affi liates & Subsidiaries Public Equity Private & Real Estate Equity Other
Year-End 2010
GUARDIAN GENERAL INVESTMENT PORTFOLIO PROFILE
WHOLE LIFEDIVIDENDS DECLARED
Results in millions
51.7%
15.4%
10.3%
8.7%4.1%3.0%2.9%3.9%
COMPANY LISTINGS
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GENERAL AGENCIES
ALABAMABirminghamSoutheastern Planning Corporation, LLC(205) 533-9452Robert E. Mathis, CLU John E. Hill, JD, LLMAlfred P. Robertson, CLU, ChFCAndy Meehan
MobileAdams & Associates, Inc.(251) 471-1178Jeff ery P. Adams, CLU, ChFC
ARIZONAPhoenixJohn Driscoll & Company, Inc.(602) 957-7155John M. Driscoll, CLU
CALIFORNIAClaremontPacifi c Advisors(909) 399-1100Neil WillnerWalt Cardinet, CLUKelly Kidwell, CLU, ChFC, CFP, LUTCF
Diamond BarGuardian Life Insurance Company(909) 610-2500Lip Geap (Sony) Tan
Los AngelesGuardian Life Insurance Company(213) 624-2002Charles Bogue, CLU, ChFC
San DiegoGuardian Life Insurance Company(619) 684-6400Michael Geary
San DiegoPacifi c Advisors(800) 345-6555Neil Willner Walt Cardinet, CLU Kelly Kidwell, CLU, ChFC, CFP, LUTCF
San FranciscoGuardian Life Insurance Company(415) 659-1200Amin H. Ladak
San JosePacifi c Advisors(408) 487-9900Neil WillnerWalt Cardinet, CLUKelly Kidwell, CLU, ChFC, CFP, LUTCF
San RamonGuardian Life Insurance Company(925) 983-2900Kevin S. Park
COLORADOGreeleyGuardian Life Insurance Company(970) 534-3052Jeff rey O’Connell, LUTCF
Greenwood VillageV.W. Allabashi & Associates, LLC(303) 770-9020V. W. Allabashi, CLULyle Domenitz, LUTCF
CONNECTICUTFarmingtonMW Financial Group, Ltd.(860) 677-2600Robert N. Worgaftik, CLU, ChFC,CFP, CLTCRichard P. Gribinas, CFP, ChFC
FLORIDAAltamonte SpringsGuardian Life Insurance Company(407) 869-4199B. Lee Harrison, Jr., CLU, LUTCF, CLTCStewart Davis, Jr., CLU
Coral GablesGuardian Life Insurance Company(305) 908-3838Anthony L. Rogers
EsteroGuardian Life Insurance Company(239) 676-3200Patrick F. Thuecks
Fort MyersAlliance Financial Group(239) 561-2900Douglas J. Gribin, CLU, ChFCWilliam J. Traum, CLU, ChFC
JacksonvilleNorth Florida Financial Corporation(904) 296-1944B. Lee Harrison, Jr., CLU, LUTCF, CLTCStewart Davis, Jr., CLU
MiamiNPC Financial, Inc.(305) 371-6333Jeff rey E. Newman, CLU, ChFC, RHU
TallahasseeNorth Florida Financial Corporation(850) 562-9075B. Lee Harrison, Jr., CLU, LUTCF, CLTCStewart Davis, Jr., CLU
TampaGuardian Life Insurance Company(813) 289-8500Richard Nolan, CLU, ChFC, CFP
TampaHarrison-Davis, Inc.(813) 289-3632B. Lee Harrison, Jr., CLU, LUTCF, CLTCStewart Davis, Jr., CLU
GEORGIAAtlantaAshford Advisors, Inc.(770) 390-2600V. Thomas Purcell, Jr., CLU, ChFC
AtlantaPeachtree Planning Corporation(404) 260-1600Robert E. Mathis, CLUJohn E. Hill, JD, LLMAlfred P. Robertson, CLU, ChFC
Johns CreekGuardian Life Insurance Company(678) 225-6800Randal C. Espey
HAWAIIHonoluluMid-Pacifi c Partners, LLC(808) 955-6400Gary K. GragsonDon Hawes
HonoluluWealth Strategy Partners, LLC(808) 695-2100Nash Subotic
ILLINOISGlenviewThe Hunken Agency, Inc.(847) 564-0123H. Chris Hunken IIIScott B. Hunken, LUTCF
Highland ParkGuardian Life Insurance Company(847) 681-9500
INDIANAIndianapolisHorizon Planning Group of Michiana, Inc.(317) 571-2365Kevin L. Bell, JD, CLU, ChFC
IOWACliveFinancial Architects, Inc.(515) 457-1276Kim A. Weaver, CLU, ChFC, CFP
KANSASOverland ParkWoody Financial Group, Inc.(913) 345-1030Richard W. Woody, CLU, ChFC, CFP
KENTUCKYLouisvilleLifetime Financial Growth Company of Kentucky, LLC(502) 327-0711Earl J. Luttner, CLUSanford M. Aderson, JD
LOUISIANABaton RougeHRBA, Inc.(225) 766-9700Donald G. Scully
MetairieThe Producers Group, Inc.(504) 836-2922Richard H. Villavaso, CLU, ChFC
MARYLANDBethesdaGuardian Life Insurance Company (301) 907-9030Lloyd Polmateer
RockvilleFinancial Balance Group, LLC(240) 683-9700Steven Crawford
SparksEckels Associates, LLC(410) 828-5400Dennis Eckels, CLU, ChFC
MASSACHUSETTSDanversLiving Legacy Financial Group, Inc.(978) 907-6000Gary DeStefano, LUTCF, CLTC
FraminghamRobert Fine & Randy S. Fine Insurance, LLC(508) 820-9939Robert FineRandy S. Fine, LUTCF
NeedhamThe Bulfi nch Group Insurance Agency, LLC(781) 449-4402Seth Medalie, CLU, ChFCJoel Cherande
WellesleyWellesley Financial Group & Insurance Agency(781) 237-1720Richard Poitras, CLU, ChFC, CFP
MICHIGANBingham FarmsLucido-Morris & Associates, LLC(248) 647-0780Joseph A. LucidoMichael G. Morris, CLU
MINNESOTABloomingtonGuardian Life Insurance Company(952) 446-3300Thomas Ibsen
MinneapolisFoster Klima & Company, LLC(612) 746-2200Douglas K. Flink, CLU, ChFCJohn McGurran
MISSISSIPPIJacksonAllen Financial Group, PA(601) 956-6656David B. Allen, CLU, ChFC
MISSOURISt. LouisGuardian Life Insurance Company(314) 800-1155David G. Boykin
MONTANAMissoulaNorthern Rockies Financial Group, Inc.(406) 728-6699Andrew P. Link, CLU, ChFC
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NEBRASKAOmahaGuardian Life Insurance Company(402) 504-6444Richard W. Woody, CLU, ChFC, CFP
NEVADALas VegasV.W. Allabashi & Associates, LLC(702) 735-4355V. W. Allabashi, CLULyle Domenitz, LUTCF
NEW HAMPSHIREBedfordBaldwin & Clarke(603) 622-0892Charles H. Baldwin, CLU, ChFC
NEW JERSEYCranfordFerrara Financial Group, LLC(908) 709-0020Steven A. Ferrara, CLUDavid J. Parsels, CLU, ChFC
Fairfi eldInternational Planning Alliance, LLC(973) 244-4420David R. Alter, CLUGerald J. Clericuzio, CLU, ChFC
Fort LeeGuardian Life Insurance Company(201) 482-8282Michael Rhee
ManasquanC&A Financial Group, LLC(732) 528-4800Frank J. Congilose, CLU, ChFC, CFP, MSFS
ParamusCertifi ed Financial Services, LLC (201) 843-7700Thomas A. CiardellaMichael C. Savino, CLU, CFP
PrincetonPetrone Associates, Inc.(609) 452-9292Thomas M. Petrone, CLU
RoselandFinancial Benefi ts Research Group (973) 226-1199Barry Gimelstob
ShrewsburyInternational Planning Alliance, LLC(732) 530-4747David . Alter, CLUGerald J. Clericuzio, CLU, ChFC
NEW YORKBrooklynBrooklyn Financial Group, Ltd.(718) 302-8600Abraham S. EksteinShrage Posen
New York CityNational Financial Network, LLC(212) 764-6262Anthony T. Mazzei, Sr., CLU, ChFC, CLTC, MSM
New York CityStrategies for Wealth(212) 701-7900Ronald S. Rosbruch, CLU, ChFCJerry Harnik, CLUJosh Becker, LUTCF
New York CityWealth Advisory Group(212) 541-8800Howard J. Elias, LUTCF
Rego ParkForest Hills Financial Group(718) 268-9255Nathan M. Perlmutter, CLU, ChFC
Rye BrookStrategies for Wealth(914) 288-8800Ronald S. Rosbruch, CLU, ChFCJerry Harnik, CLUJosh Becker, LUTCF
TarrytownGuardian Life Insurance Company(914) 460-1200Stephen DiGirolamo
WestburyNRL Wealth Creation Strategies, LLC(516) 334-4900Joseph V. Limongelli, LUTCFJohn A. Limongelli
WilliamsvilleAlliance Advisory Group, Inc.(716) 817-7109Robert J. Fashano, CLU, ChFC, MSFS
WoodburyGuardian Life Insurance Company(516) 677-6200Adam S. Kaufman
WoodburyStrategies for Wealth(516) 682-2500Ronald S. Rosbruch, CLU, ChFCJerry Harnik, CLUJosh Becker, LUTCF
NORTH CAROLINACharlotteCP Planning Group, Inc.(704) 552-8507C. Richard Dobson, CLURobert E. Mathis, CLU
GreensboroDobson & Associates, Inc.(336) 230-0922C. Richard Dobson, CLURobert E. Mathis, CLU
R
RaleighConsolidated Planning, Inc.(919) 782-2900C. Richard Dobson, CLURobert E. Mathis, CLU
RaleighGuardian Life Insurance Company(919) 239-7929Daniel J. Shanahan
NORTH DAKOTAFargoFoster Klima & Company, LLC(701) 293-6379Douglas K. Flink, CLU, ChFCJohn McGurran
OHIOBeachwoodLifetime Financial Growth of Northern Ohio, LLC(216) 360-7400Earl J. Luttner, CLUSanford M. Aderson, JD
CantonSirak-Brockett Agency, Ltd.(330) 493-3211Gary Brockett, CLU, CFP
CincinnatiGuardian Life Insurance Company(513) 792-2770William Morgan Watson
CincinnatiLifetime Financial Growth Company of Ohio, LLC(513) 579-1114Earl J. Luttner, CLUSanford M. Aderson, JD
CincinnatiWilson Advisory Group, LLC(513) 891-6600Earl J. Luttner, CLUSanford M. Aderson, JD
ColumbusThe Columbus Financial Group(614) 785-5100Paul J. Vineis, CLU, CFP
DublinGuardian Life Insurance Company(614) 718-5343Paul T. Swift
OKLAHOMAOklahoma CityRedbud Financial Group, LLC(405) 767-1900Derrick Morton, CLU, ChFC
OREGONPortlandGuardian Life Insurance Company (503) 207-4550Jeff rey Pawlowski
PortlandWealth Strategies Northwest, LLC(503) 221-1226Larry Plumb, CLU, CFPThaddeus C. Sweet, RHU
PENNSYLVANIABlue BellIndependence Planning Group(267) 468-0822Daniel J. Linehan, CLU, ChFC
LancasterFirst Financial Group(717) 393-4465Dennis Eckels, CLU, ChFC
PittsburghLifetime Financial Growth, LLC(412) 391-6700Earl J. Luttner, CLUSanford M. Aderson, JD
PlainsFirst Financial Group(570) 829-0717Dennis Eckels, CLU, ChFC
WayneGuardian Life Insurance Company(610) 293-8300Steven D. Earhart, CLU, ChFC, CFP, MSFS
SOUTH CAROLINAGreenvilleGuardian Life Insurance Company(864) 416-5400Robert Todd Achberger
TENNESSEEBrentwoodPeachtree Planning of Tennessee, LLC(615) 376-8300 Robert E. Mathis, CLUJohn E. Hill, JD, LLMAlfred P. Robertson, CLU, ChFCDarrell Dawes, CLU, ChFC
MemphisChartwell Financial Group(901) 692-5100George H. Moore
TEXASAustinGuardian Life Insurance Company(512) 651-2009Scot E. Davis
AustinLiljenwall Dallas-South Texas Agency(512) 343-7947Erik Liljenwall
DallasLiljenwall Dallas-South Texas Agency(214) 346-0985Erik Liljenwall
El PasoCompass Benefi ts, Inc.(915) 533-9901John Driscoll, CLU
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Fort WorthGuardian Life Insurance Company(817) 492-7013Shawn M. Arrington
HoustonGuardian Life Insurance Company(832) 308-7200Jo A. Casady
HoustonWealth Design Group, LLC(713) 963-8740Richard L. Ray, MSFS
UTAHMurrayThe McPartland Group(801) 365-0480Terry McPartland
VIRGINIARichmondGuardian Life Insurance Company(804) 482-6990Devon Cury
Virginia BeachGuardian Life Insurance Company(757) 498-5700William E. (Joe) Counts
WEST VIRGINIAMorgantownLifetime Financial Growth/Luttner Financial Group(304) 292-2050Earl J. Luttner, CLUSanford M. Aderson, JD
WISCONSINPewaukeeGreat Lakes Insurance Consultants, Inc.(262) 746-9270Daniel T. MelkaMark Smith
REGIONAL GROUP OFFICES
ALABAMABirmingham2000 A. SouthBridge Parkway, Suite 301Birmingham, AL 35209Scott Thompson, Regional Director(800) 879-6934
ARIZONAPhoenix Small Group Sales60 E. Rio Salado Parkway, Suite 104Tempe, AZ 85284Mike Taylor, Regional Director(866) 747-4542
CALIFORNIALos AngelesThe Edge, Bldg. 3 801 Parkview Drive North, Suite 100El Segundo, CA 90245Arthur Stern, Regional Manager(800) 225-3399
Sacramento11341 Gold Express Drive, Suite 120Gold River, CA 95670Chris Anderson, Regional Manager(800) 438-5853
San DiegoHazard Center Offi ce TowerSuite 880, 7676 Hazard Center Dr. San Diego, CA 92108Gregg Holdgrafer, Regional Manager(800) 769-6759
San Francisco555 Montgomery St., Suite 1600San Francisco, CA 94111James Hill, Regional Manager(800) 832-9555
Southern California4685 MacArthur Court, Suite 100Newport Beach, CA 92660Joseph Stefano, Director, Marketing & Sales(800) 662-6464
COLORADODenver116 Inverness Dr. East, Suite 285Englewood, CO 80112Steve Miller,Director, Marketing & Sales(888) 444-8585
CONNECTICUTHartford29 South Main St., Suite 301West Hartford, CT 06107James Hentges, Executive Director(800) 933-3304
DISTRICT OF COLUMBIAWashington, D.C.8161 Maple Lawn Blvd., Suite 100Fulton, MD 20759John Feeney,Director, Marketing & Sales(800) 945-6584
FLORIDAFort LauderdaleLakeside @ Lyons, 6820 LyonsTechnology Circle, Suite 150Coconut Creek, FL 33073Barbara Roberts, Regional Manager(800) 282-6908
Tampa1511 N. West Shore Blvd., Suite 600Tampa, FL 33607Todd Stahl, Regional Director(800) 282-6908
GEORGIAAtlanta2400 Lakeview Parkway, Suite 500Alpharetta, GA 30004Andrew Baylor,Director, Marketing & Sales(800) 677-0296
ILLINOISChicago550 W. Jackson Blvd., 8th FloorChicago, IL 60661Terry Walsh, Executive Director(800) 933-3136
INDIANAIndianapolis201 W. 103rd St., Suite 390Indianapolis, IN 46290Eric Stickford, Regional Manager(800) 533-3813
KANSASKansas CityCorporate Woods 1110875 Benson, Suite 200Overland Park, KS 66210Michael Calhoon,Director, Marketing & Sales(800) 845-5015
MASSACHUSETTSBostonOne Liberty Square, 3rd FloorBoston, MA 02109Daniel Shea, Regional Director(800) 541-4374
Bridgewater Small Group Sales One Lakeshore Drive, 2nd Floor Bridgewater, MA 02324David Poirier, Regional Director(877) 652-4151
MICHIGANDetroit555 South Old Woodward, Suite 501Birmingham, MI 48009Thomas Nowland, Regional Director(800) 422-3902
Grand RapidsCampau Square Plaza99 Monroe Ave. N.W., Suite 502Grand Rapids, MI 49503John Dietrich, Regional Manager(800) 842-6965
MISSOURISt. LouisThree City Place Drive, Suite 600St. Louis, MO 63141Michael Calhoon,Director, Marketing & Sales(800) 962-2643
NEBRASKAOmahaEagle Run II 13215 Birch Drive, Suite 201Omaha, NE 68154Carol Italia, Regional Manager(800) 423-3978
NEW JERSEYNew Jersey695 Rt. 46 West, Suite 402Fairfeld, NJ 07004Richard Picardo, Regional Manager(800) 967-9277
NEW YORKAlbany19 West British American Blvd.1st FloorLatham, NY 12110Thomas Healy, Regional Manager(800) 375-8236
Buff aloUniversity Corporate Centre100 Corporate Parkway, Suite 300Amherst, NY 14226Charles Lytle II, Regional Manager(800) 628-0318
Long IslandPark Atrium 865 Merrick Ave., Suite 300Westbury, NY 11590Hayley Doran, Regional Manager(800) 553-0217
New York60 Broad St., Suite 3200New York, NY 10004Jeff Furbish,Director, Marketing & Sales(800) 369-8223
Rochester450 Willowbrook Offi ce ParkFairport, NY 14450Perry Saraceno, Regional Manager(800) 822-9138
Rye118 N. Bedford Rd., Suite 106Mount Kisco, NY 10549Clifton Hipkins, Regional Manager(800) 369-8526
Syracuse5784 Widewaters ParkwayDeWitt, NY 13214Matthew McAnaney, Regional Director (800) 545-0278
NORTH CAROLINACharlotte3025 Springbank Lane, Suite 240Charlotte, NC 28226Andrew Baylor,Director, Marketing & Sales(800) 846-9256
OHIOCincinnatiWestlake Center4555 Lake Forest Drive, Suite 520Cincinnati, OH 45242Steve Berger,Director, Marketing & Sales(800) 543-1163
Cleveland6480 Rockside Woods Blvd. South Suite 220Independence, OH 44131Treg Balding, Regional Director(800) 222-0447
ColumbusPolaris Center8800 Lyra Drive, Suite 690Columbus, OH 43240John Lane, Regional Manager(800) 782-5751
OKLAHOMATulsaRichmond Plaza4200 E. Skelly Dr., Suite 320Tulsa, OK 74135Daniel Hart, Regional Manager(800) 227-9638
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PENNSYLVANIABethlehem Small Group Sales1525 Valley Center Parkway, Suite 200Bethlehem, PA 18017Cary Salkin, Regional Director(800) 356-5808
PhiladelphiaOne Commerce Square, Suite 19202005 Market StreetPhiladelphia, PA 19103Geoff rey Rosina, Regional Director(800) 753-8208
SOUTH CAROLINACharleston880 Johnnie Dobbs Blvd., Suite B Mount Pleasant, SC 29464Zachary Hatch, Regional Manager(843) 856-4266
TENNESSEENashville720 Cool Springs Blvd., Suite 660Franklin, TN 37067Daniel Justice, Regional Director(800) 937-9345
TEXASAustin7000 N. Mopac Expressway, Suite 140Austin, TX 78731John Hand, Regional Manager(800) 436-5866
DallasWellington Center14643 Dallas Parkway, Suite 100Dallas, TX 75254Darcey Newsum,Director, Marketing & Sales(800) 443-0330
Houston10333 Richmond, Suite 930Houston, TX 77042Chris Gallagher, Regional Manager(800) 289-9096
VIRGINIARichmond6800 Paragon Place, Suite 534Richmond,VA 23230Lonnie Paster, Regional Manager(800) 695-0891
WASHINGTONSeattleOne Union Square600 University Street, Suite 1800Seattle, WA 98101Steve Miller,Director, Marketing & Sales(800) 332-0417
WISCONSINMilwaukee100 North Corporate Drive, Suite 150Brookfeld, WI 53045Jane Kohl, Sales Representative(800) 472-2223
DISTRICT GROUP OFFICES
ARIZONAPhoenix2390 Camelback Rd., Suite 215Phoenix, AZ 85016Joseph Stefano,Director, Marketing & Sales(800) 227-8457
ARKANSASLittle RockConway Building, Suite 12010816 Executive Center DriveLittle Rock, AR 72211Brad Davis, Sales Representative(800) 289-9208
CALIFORNIAFresnoExecutive Suites at River Bluff 8050 N. Palm Ave., Suite 300Fresno, CA 93711Brady Spencer, Sales Representative(559) 389-5858
IDAHOBoise6501 W. Outlook DriveBoise, ID 83714Scott Martin, Sales Representative(208) 639-2850
LOUISIANANew Orleans3900 N. Causeway Blvd, Suite 830Metairie, LA 70002Scott Thompson, Regional Director(800) 879-6934
MINNESOTAMinneapolisWells Fargo Plaza7900 Xerxes Ave. South, Suite 1100Bloomington, MN 55431Michael Calhoon,Director, Marketing & Sales(800) 814-1399
MISSISSIPPIJackson129 Executive DriveMadison, MS 39110Scott Thompson, Regional Director(800) 879-6934
NORTH CAROLINAGreensboro800 Green Valley Road, Suite 202Greensboro, NC 27408Stephen LeGrone, Sales Representative(800) 846-9256
OREGONPortland5285 Meadows Road, Suite 170Lake Oswego, OR 97035Steve Miller,Director, Marketing & Sales(800) 442-1495
PENNSYLVANIAPittsburghThree Penn Center WestPenn Center Blvd., Suite 128Pittsburgh, PA 15276Treg Balding, Regional Director(800) 622-7500
TENNESSEEMemphis5350 Poplar Avenue, Suite 312Memphis, TN 38117Frank Gilliam, Sales Representative(800) 937-9345
IMPORTANT INFORMATION
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The Guardian Insurance & Annuity Company, Inc. (GIAC), a Delaware corporation that is a wholly owned subsidiary of The Guardian Life Insurance Company of America, issues annuities and variable life insurance policies. Variable annuities, variable life insurance products, and mutual funds are off ered through the distributor Guardian Investor Services LLC (GIS). GIAC and GIS are located at 7 Hanover Square, New York, NY 10004 (1-800-221-3253).
Annuities are long-term investment vehicles designed for retirement purposes. Withdrawals or surrenders may be subject to surrender charges. Amounts withdrawn may be subject to ordinary income tax and possible mandatory Federal income tax withholding and, if taken prior to age 59½, a 10% IRS penalty may also apply. Withdrawals have the eff ect of reducing the death benefi t, cash surrender value, and any living benefi ts.
Variable products and their underlying variable investment options, and mutual funds, are sold by prospectus only. You should carefully consider the investment company’s investment objectives, risks, charges, and expenses before making an investment decision. The prospectus contains this and other important information. Please read the prospectus carefully before investing or sending money. You may obtain a prospectus by contacting your Park Avenue Securities registered representative or by calling 1-800-221-3253.
The Living Balance Sheet® displays the fi nancial holdings identifi ed by the client based upon information and valuations provided directly by the client or by electronic feeds from the client’s fi nancial institutions. Valuations provided by electronic feeds refl ect the most current information provided by the fi nancial institution as of the date and time noted, but can refl ect valuations from an earlier date and time.
The Living Balance Sheet® and The Living Balance Sheet® logo are registered service marks of The Guardian Life Insurance Company of America (Guardian), New York, NY. The graphics and text used herein are the exclusive property of Guardian and protected under U.S. and International copyright laws.
Copyright 2005-2011, The Guardian Life Insurance Company of America. Securities products and services are off ered through Park Avenue Securities LLC (PAS) and Guardian Investor Services LLC (GIS), 7 Hanover Square, New York, NY 10004. GIS is a wholly owned subsidiary of The Guardian Life Insurance Company of America, New York, NY. PAS is a wholly owned subsidiary of GIAC, New York, NY.
GIS and PAS are members of FINRA, SIPC.
Past performance does not guarantee future results.
Investments off ered through GIAC, GIS, and PAS are not deposits or obligations of, or guaranteed or endorsed by, any bank or depository institution, nor are they insured by the Federal Deposit Insurance Corporation, The Federal Reserve Board, the National Credit Union Association, or any other agency. Mutual funds and variable products involve risk, including possible loss of the principal amount invested. Investment return and principal value may fl uctuate so that the investment, when redeemed, may be worth more or less than the amount originally invested.
Disability income and long-term care insurance are underwritten and issued by Berkshire Life Insurance Company of America, Pittsfi eld, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Products not available in all states. Product provisions and features may vary from state to state.
The ratings earned by The Guardian Life Insurance Company of America do not apply to the investments issued by GIAC or off ered through GIS and PAS.
Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.
Neither Guardian, Park Avenue Securities, nor their representatives render legal or tax advice. Please consult with your attorney, accountant, and/or tax adviser for advice concerning your particular circumstances. Insurance riders may incur additional costs.
Financial information concerning The Guardian Life Insurance Company of America as of 12/31/10 on a statutory basis: Admitted Assets = $33.1 Billion; Liabilities = $28.7 Billion (including $25.1 Billion of Reserves); and Surplus = $4.4 Billion.
Financial information concerning The Guardian Insurance & Annuity Company, Inc. as of 12/31/10 on a statutory basis: Admitted Assets = $10.2 Billion; Liabilities = $10.0 Billion (including $1.8 Billion of Reserves); and Capital and Surplus = $0.2 Billion.
Financial information concerning Berkshire Life Insurance Company of America as of 12/31/10 on a statutory basis: Admitted Assets = $2.8 Billion; Liabilities = $2.3 Billion (including $2.2 Billion of Reserves); and Capital and Surplus = $0.5 Billion.
For questions or help with any of your fi nancial needs:
Please call toll-freeMonday–Friday, 7:00 a.m. to 5:30 p.m. (et):(866) 425-4542
Or visit our website at:www.GuardianLife.com
HOW YOU CAN REACH US
Design by Corporate AgendaPhotography by Bruce Lum
American Financial Systems, Inc.Berkshire Life Insurance Company of America (BLICOA)e-Money Advisor Holdings, LLCFirst Commonwealth, Inc.Guardian Baillie Giff ord LimitedGuardian Investor Services LLC (GIS)The Guardian Insurance & Annuity Company, Inc. (GIAC)Innovative Underwriters, Inc.Managed Dental Care (California)Managed DentalGuard, Inc. (New Jersey)Managed DentalGuard, Inc. (Ohio)Managed DentalGuard, Inc. (Texas)Park Avenue Life Insurance Company Park Avenue Securities LLCRS Investment Management Co. LLC
Guardian is an Equal Opportunity Employer
GUARDIAN SUBSIDIARIES AND AFFILIATES
Letter to PolicyholdersLetter to Policyholders
Financial HighlightsFinancial Highlights
Offi cers & Board of DirectorsOffi cers & Board of Directors
Policyholder Profi lesPolicyholder Profi les
2010 Financials2010 Financials
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Financial StrengthFinancial Strength
Investment ResultsInvestment Results
Company ListingsCompany Listings
Important InformationImportant Information
Contact UsContact Us
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TABLE OF CONTENTSTABLE OF CONTENTS
ANNUAL REPORT 2010
GUARDIAN FOR LIFEA life well planned is a life well lived.
The Guardian Life Insurance Company of America7 Hanover SquareNew York, NY 10004-4025www.GuardianLife.com
Pub. 4822
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