Forestersyou

Page 12 Financial highlightsThe financial strength that helps Foresters Financial give back

Page 6 Community spirit on the mapHighlights from our member events

Page 10 Everyone benefitsHow to make the most of your membership

“ We wanted financial security. With Foresters Financial we got so much more.”

Making a differenceThanks to our financial strength, Foresters Financial™ enhances family well-being by providing quality life insurance, retirement savings and investment products and services, unique member benefits, and inspiring community activities in Canada, the United States and the United Kingdom. It’s the Foresters difference and in these pages you’ll see that difference in action through the stories of your fellow members. Here are some highlights from the impact we made together last year:

Financial strength Supporting members and communities

1,182,852members strong

3 millioncertificates and contracts in force

A.M. Best Financial Strength rating of

“A” (Excellent)for the 15th consecutive year†

$33.7 billionfunds under management/administration, an increase of 18% over 2014

17%increase in life insurance and annuity premiums from 2014

23%increase in Asset Management Fee revenue from 2014

$706 millionin insurance claims and benefits paid

$5 millionin Community Grants creating 1,900 fun family and volunteer activities attended by 160,000 members and guests

614members supported through Foresters Emergency Assistance

$2 millionin Competitive Scholarships awarded

15new playgrounds built with Foresters volunteers and KaBOOM!, providing 690,000 children and families a safe place to play and connect

337,000disadvantaged U.K. children helped in Foresters/Cash for Kids partnership

13,000hours of leadership training for member leaders

925emergency preparedness kits assembled for the American and British Red Cross Societies

77Foresters Branch Councillors new to member leadership

2 2015 Foresters Report

“ Foresters has given me an avenue to be able to give more to my community and to my family and friends. It's more than just insurance, by far.”– Cherie, member activity organizer

(Westbank, Canada)

Leading for the long-termWhat’s in a name? For us, it’s the future and it’s exciting. The move to bring the Foresters family of companies under one brand name, Foresters Financial, affirms that we are a diversified financial services provider, both to our members and to our clients that we serve in a high quality manner.

You’ll also see us telling our story in a new way so that everyone understands who we are, what sets us apart and how they can join us. Regardless of these changes, rest assured that our commitment to the community and providing you and your family with the tools to help you with your financial security is growing in a significant way.

In 2015 we were pleased to see that almost 20,000 new members recognized the value of Foresters, which we demon-strated through $21.3 million invested in member benefits and $10.6 million in community programs. Our surplus grew by $385 million and our funds under management rose to $33.7 billion, a reflection of our focus on operational excellence and the great work done in our three divisions. I was pleased with the steady growth and the continued diversification of our product mix in the U.S. marketplace. The U.K. business experienced significant headwinds in the investment markets and significant change in the regulatory environment. In spite of these challenges, the U.K. performed well and introduced innovation that allows members to conveniently top up their savings plans and other investments online. The Canadian market has also done very well and we continue to invest as shown by our recent purchase of Aegon Capital Management Inc. None of our successes could have happened without the dedication of our hardworking employees, and we remain focused on fostering their talent.

Executive Leadership TeamAnthony M. (Tony) Garcia President and Chief Executive Officer

Euan Allison Chief Executive Officer, United Kingdom

Kasia Czarski Senior Vice President and Chief Membership and Marketing Officer

Bill Lipkus President and CEO, Foresters Financial Holding Company, Inc.

Cheryl Neal Executive Vice President and President, North America Life Insurance

Suanne Nielsen Chief Talent Officer and Corporate Secretary

Paul Reaburn Executive Vice President and Chief Financial Officer

Andrew Adie Chief Risk Officer

Clark Wagner Chief Investment Officer

René Zanin Chief Legal Officer

Board of DirectorsRichard M. (Dick) Freeborough, Canada Chairman of the Board

Brian A. Isabelle, Canada International Fraternal President

Sonia A. Baxendale, Canada

James M. (Jim) Bowden, United States

Anthony M. (Tony) Garcia, Canada President and Chief Executive Officer

Robert E. (Bob) Lamoureux, Canada

Frank N.C. Lochan, Canada

Martha E. Marcon, United States

Laraine J. Morris, United States

David E. (Dave) Morrison, Canada

David R. (Dave) Saunders, United Kingdom

John B. Scott, United States

Michael P. Stramaglia, Canada

Christopher J. (Chris) Stranahan, United States, International Fraternal Vice President

Wendy A. Watson, United States

As pleased as we are with these results from the past year, we have also repositioned this organization to be ready to navigate the rapid change expected in the financial services industry over the next decade. With input from our employees and partners, our 2025 long-term plan sets the strategy that will see significant revenue growth over the next 10 years by Winning on Purpose. Our purpose driven organization that focuses on giving back to the community and providing long-term financial security to our members is what makes us a special provider of financial services.

Of course, what inspires us most in this work is you, our members. Some 160,000 of you and your families participated in community and member activities, and you were approved for $5 million in community grants. I continue to be inspired by you and take back the best of what you do for family and the community so that I can integrate that into our organizational culture and the way that we deliver on our purpose. I want to thank you for that and for working with us to make the next chapter in the Foresters Financial story the best yet.

Sincerely,

Anthony Garcia President and Chief Executive Officer

4 2015 Foresters Report

Report fromthe ChairmanOn May 1, 2014, we entered into a new era for Foresters. That is the day when Tony Garcia took office as President and Chief Executive Officer. Since then, with the full support of the Board, Tony has led the organization through a complex and comprehen-sive re-examination of our strategy and structure. As a result, the Board and I believe we are on a sound path to growth and continued success.

Oversight of strategy is one of the key responsibilities of the Board. With a solid strategy we are well positioned to deliver against our mandate and to carry out our other board responsibilities, including ensuring the soundness and security of member deposits and insurance policies, oversight of risk management, talent management, succession planning and financial stewardship.

An important component of the strat-egy process is the rebranding exercise recently completed. We believe our new face as Foresters Financial will be very helpful in driving us to our growth objectives.

All this work has been done under Tony’s leadership by a talented and committed Executive Leadership Team and their staff in all three countries. We are confident that Foresters Financial is in an excellent position to build on our successes, contributing to the well-being of members, their families and the communities where they live and work.

I thank the women and men who serve with me on the Board for their dedication, insight and contributions. I know that they join me in extending the same gratitude to our hardworking member leaders, member volunteers, employees and business partners for sharing your passion and efforts in support of our purpose.

Dick Freeborough Chairman of the Board

Q&A with the CEO

We are still committed to our legal name, The Independent Order of Foresters, as it celebrates our history but changing our brand name to Foresters Financial clearly communicates to current and potential members what business we are in. As prospective clients better understand what we do and who we are, we can look forward to welcoming even more members into the Foresters family, building our collective strength and ability to enhance well-being for families and communities.

1 2This 10-year plan will secure the long-term health of the organization by helping us to deliver even more strongly on our purpose – a key asset that sets us apart. You’ll see us working even harder to more effectively meet and exceed your expectations, deliver a broad array of Foresters products and services to you and further develop our members and employees as spirited advocates for our organization. We can never completely predict the future, but we can decide where we want to be in 10 years and identify the best ways we know to get there.

It was an absolute pleasure to be part of our largest North American playground build last fall in Staten Island, New York. I was digging holes and shovelling mulch with more than 250 Foresters Financial employees from across the country who joined local volunteers and Foresters members to leave a lasting legacy for the children and families of Staten Island. There’s nothing like seeing our community spirit in action.

I continue to be amazed and humbled by their passion and commitment, not only to Foresters purpose, but to each other and their communities. The personal sacrifices that our volunteer member leaders make are inspiring and I appreciate that those leaders and members alike continue to challenge us to be better as an organization. With members like ours, I know our fraternal spirit and commitment to community engagement will be around for the long-term.

What does the name change to Foresters Financial mean for members?

3Priorities shouldn’t shift because the date on the calendar changed. Our priorities are unchanged and are focused on the steps to get us to 2025: operational excellence, talent development, and strategic planning and implementation.

What are your key priorities for Foresters Financial in 2016?

At first, our members may engage with Foresters because they have an insurance, savings or investment product with us. But then they might attend an event, meet other members and start to develop friendships. Before long, they are rolling up their sleeves not only for Foresters, but for their communities and each other. Being part of something bigger is powerful and I think that’s the difference we offer.

4 What continues to make Foresters Financial meaningful for members?

What is the 2025 strategy? How can you plan so far in advance?

5 What was the best moment for you last year? 6 What has most impressed

you about our members?

The ForestersFinancial communityin actionAcross three countries, Foresters members never stop showing the same passion for giving back, spending quality time together and having fun. Whether it’s a volunteer opportunity in the community or a fun family event, Foresters Community Grants provide funding to support it. But none of these events could happen without the enthusiastic participation and planning by members like you. Thank you! Here are some highlights from how we made an impact in Canada, the United States and the United Kingdom:

Foresters members and guests put on their

fan gear for a football game between the BC Lions and Saskatchewan Roughriders.

340

Vancouver, Canada1

families with sick children were served a home-cooked dinner

and smiles by Foresters members at Ronald McDonald House®.

81

Toronto, Canada2 7

Moncton, Canada3

comforting quilts for patients undergoing

cancer treatments were sewn by Foresters volunteers in partnership with Victoria’s Quilts Canada.

100

32

1

4

5

6

6 2015 Foresters Report

To learn about events in your local area visit MyForesters.com

Foresters gardeners created a tranquil space for people

receiving support from Sunflowers Cancer Care Centre.

22

Liverpool, United Kingdom8

Christmas gift packages for at-risk children were put

together by caring Foresters hands in partnership with Cash for Kids.

180

Leeds, United Kingdom9

Communityspirit bythe numbers

$5 millionwas granted to help organize volunteer activities and fun family events

1,900events were held for members and their families

Nearly 37,000Foresters volunteers supported local charities through 830 community activities

160,000members and their families attended events

Foresters attendees slid, bumped, spun and

rollercoastered their way to family fun at Oaks Amusement Park.

307 emergency preparedness kits were put together

for the American Red Cross by dedicated Foresters volunteers.

100 playground was built in partnership

with KaBOOM! by 250 hardworking Foresters volunteers.

120th

Portland, United States4 Dallas,

United States5 Staten Island, United States6

89

7

Newcastle-Upon-Tyne, United Kingdom7

Foresters members, their families and friends got into

the festive spirit at a December skating evening at Centre for Life.

70

2015 Foresters Report 7

Financial security adds up to more for the Hudsons

Putting members in the lead Deby Trevino knows a thing or two about leadership. The Texan mom of three and “proud grandma,” of two has a nearly 20-year history of serving in a long list of Foresters member leadership positions. Name the role and Deby has probably done it, with no sign of letting up.

“I know a lot, but every day you learn something different with Foresters,” says Deby, a youth career counsellor who is currently serving as Vice President for South Texas Branch Council in Corpus Christi. “I have learned to be a better leader, a better people person.”

Encouraged by a friend, Deby got involved in an elected official role after becoming a Foresters member in the early 1990s. She was a mother with young children and had quickly recognized the value of Foresters products and benefits. “I’m a big believer in life insurance because my father died when I was 15 and he did not leave us life insurance,” she says.

Except for one five-year break, she has been involved ever since, and has passed on her governance values to her son Mike, 27, and daughter Monique, 25, who have both become member leaders too.

“Our job is to oversee that Foresters resources are used to make a positive difference in our local member communities,” says Deby, who has organized many member events too. “The members are very grateful. That makes me feel good.”

Foresters takes all elected member leaders to exciting and valuable conferences – the next international gathering will be in Las Vegas, Nevada this June. These conferences are a great way to meet other members, learn leadership tips from world-class speakers and gain valuable skills that can be used in one’s career or personal life.

“I love it. You meet good people. I call them, ‘my Foresters family.’”

8 2015 Foresters Report

“Having that financial security makes life a bit easier, with less worrying about money,” says Jo, a Foresters member in Sheffield, United Kingdom.

Besides the financial security, the Hudsons were pleasantly surprised to later discov-er that unique member benefits and a whole new community were part of the Foresters package too. Together, they have enjoyed the premiere of the final Harry Potter movie, thrilling theme park adventures and the chance to give back through volunteer events, such as wrap-ping Christmas gifts and making cards for babies and youth in need.

“It’s just such a lovely atmosphere. I’m now getting to know all the Foresters members who live in the area,” says Jo, a part-time office manager. “The kids and adults were having competitions about who could do the best Christmas card. The friends I’ve told are now going to become members too.”

A professional fundraiser before she had her boys, Jo was so enthused by the chance to give back, she looked into putting her skills to work running her own local volunteer activities.

“I thought, ‘Fantastic! I want to get involved with this,’” she says.

She organized her first volunteer event last August putting together back-to-school supply packs for disadvantaged children, with plans to do more in the future. The event was funded by Foresters Community Grants, in partnership with the charity Cash for Kids.

While Jo and Andy are “very happy” with their investments, what most impresses them is Foresters emphasis on returning a sense of community amid the busy pace of modern life.

“These events have taught the boys how important it is to give something back to your community and help those who are perhaps struggling in some way. They really love it,” says Jo. “Foresters gives you the opportunity to do more things in your community – there’s so much that you can do.”

Our financial products represent our most important benefit of membership as they help everyday families like yours achieve financial well-being. Whether our members are just starting out or ready to retire, we have financial solutions for every stage of life.

– Protecting your family with life insurance

– Planning for life’s events

– Mortgage protection

– Saving for education

– Retirement planning

– Leaving a legacy

– Preparing for final expenses

Financial solutions designed for every life stage

“ There’s so much you can do,” A Foresters family shares the value of membership

Having a family has a way of bringing the future into sharper focus. That is what led to Jo Hudson’s decision to open a Foresters pension savings plan five years ago.

Already happy with their sons’ savings plans with Foresters, and with her hus-band Andy provided a pension through his job as an air traffic controller, Jo thought it “sensible” to have financial savings of her own.

Foresters is member-based and democratic, which

means members like you can stand for election or

vote for those that do. It’s easy to get involved!

Important dates

Until June 14 Nominations open for

Branch Councillor positions at MyForesters.com.

August Watch for your Branch

elections package in the mail.

August 24 to September 30 Vote online or by mail.

2015 Foresters Report 9

Making the most of membership – two members show you’re never too young or old to start using Foresters Financial benefits

John wasn’t sure what to expect when he went to his first Foresters volunteer activity in the summer of 2014. He was even a bit nervous.

The 68-year-old grandfather of five knew he was a capable guy. He was finishing a career as a software engi-neer for jet engines. He felt like he’d been blessed in his life. So when he got that familiar Foresters email highlighting the member benefits available to him, including volun-teer opportunities, he knew it was his chance to give back. He signed up to put together backpacks with school supplies for children in need at Crayons to Computers, in his hometown of Cincinnati, Ohio.

“It made me feelpart of a new

community.It was wonderful,

it really was.”

Benefits come to life

John Herro, Cincinnati, Ohio

Still, he wondered if he’d do a good job. Would they ask him to lift something he couldn’t?

His concerns disappeared once he arrived onsite. “It wasn’t hard work. It was just a lot of fun,” says John, retired since last fall and a Foresters member since 2008. “It made me feel part of a new community. It was wonderful, it really was.”

Since then, he has taken his wife and grandkids to other events, including building an outdoor classroom, serving meals at Ronald McDonald House® and even a fun Foresters outing. Less than a year after that first volunteer experience, the guy who’d never seen himself as an organizer was learning from a local Foresters employee how to order toothpaste and other hygiene supplies for his own event, assembling care kits for homeless veterans. John received a Foresters Community Grant to do it.

“There are a million insurance companies out there but Foresters is very special because they do so much for the community,” he says.

To learn more about Foresters Community Grants and to access activity planning resources, visit MyForesters.com

John Herro, Foresters volunteer

and activity organizer

10 2015 Foresters Report

“ They’re definitely trying to be there for you at every step of your life.”

Nineteen-year-old Katelyn had more fun than she imagined while hauling mulch last summer with her parents, brother and best friends at a day-long Foresters playground build in Toronto, Ontario.

“A lot of people had been to a build before and were returning members,” she says, adding she was amazed to see the event drew about 200 volunteers. “I would love to do it again too – it was a great day.”

Soon after that, Katelyn started university in a Medical Sciences program, supported by a Foresters Competitive Scholarship. It will continue over four years as long as she maintains her grades. With her eye on a healthcare career, Katelyn says the scholarship has made a difference in helping her stay on track with a hefty course load.

Katelyn Greer, Thornhill, Ontario

“I see a lot of people on my floor in residence who have to find the time to go to work on top of going to school,” she says. “It feels like I can actually breathe and not worry as much about my finances.”

The granddaughter of a Foresters member, Katelyn is now a member herself and appreciates knowing that Foresters is there to help if she ever needs it, through its many member benefits.

“It’s really more than just making sure that you have protection,” she says.

“They’re definitely trying to be there for you at every step of your life.”

To learn more about your member benefits and to access helpful videos and resources visit MyForesters.com or call 800 444 3043

Fun family events at exciting local attractions

+ Inspiring volunteer opportunities in your community

+ $2 million in competitive tuition scholarships

+ $5 million through our Foresters Community Grants program for members to organize local events

+ Emergency assistance funds in the event of personal hardship or large-scale disaster

+ Everyday Money personal financial counseling and educational tools for your family

+ Free or discounted legal advice on wills, real estate transactions and family law through Legal Link

+ More

Benefits that add up to more for your membership:

Katelyn Greer, Foresters volunteer

and scholarship winner

Sales

Annualized weighted sales were US $76.9 million, a 24% increase from 2014 due to strong sales from new and existing distribution channels. The increased sales were distributed across all product lines.8

0.993

.5

68

.3

62

.0 76.977

US $ million20152014201320122011

United States Total Annualized Life Sales

20152014201320122011

12

5.3

112

.2

10

4.0

80

.3

14

1.1 Fund sales were up 17.5% compared to 2014 driven mainly by interest

in the new fund offerings, increased recruiting and the continued growth of our advisory program and tempered during the third quarter by market conditions. Combined life and annuity annualized weighted premiums for 2015 were down 10.0% from 2014.

141US $ million

United States - Foresters Financial Holding Company (formerly First Investors Financial Corporation) Total Annualized Sales

20152014201320122011

Annualized weighted sales were $27.7 million, a 3% increase over 2014. The increase was due primarily to a 40% growth in our Canada Protection Plan channel which benefited from refreshed term product enhancements and pricing, partially offset by a decline in Brokerage sales due to competitive pressures.

28CDN $ million

Canada Total Annualized Sales

27.

1

24.4

27.

6

22

.3 27.

7

20152014201320122011

Total annualized weighted sales were £42.1 million, a 1% decrease over 2014. £30 million came via our sales force and £12.1 million came from our direct-to-customer channel.42

UK £ million

United Kingdom Total Annualized Sales

42

.5

39

.8

29

.0

29

.6 4

2.1

Financial highlights for the year ended December 31, 2015(All amounts are in Canadian dollars, unless otherwise stated1)

With over a 140-year history, Foresters Financial is financially strong, and more importantly, well-positioned for long-term financial health. On these pages, we share our key financial results, which are indicators of our growth and stability.

2015 financialhighlights

12 2015 Foresters Report

What the numbers meanAnnualized weighted sales is a common measure used in the life insurance industry to measure new sales of products during the year. In this measure, for example, sales of policies with ongoing premium payments receive a higher weighting than sales of products with a single premium payment.

Total premiums is the total insurance and annuity premiums paid or owing to Foresters during the year from certificate and contract holders.

Funds under management/administration is the total market value of the assets that we manage and administer on behalf of our members and customers.

Total comprehensive income is the sum of net income and other items not recorded in net income such as unrealized gains and losses from foreign currency translation and unrealized gains and losses on assets backing our surplus.

Surplus is the value of our assets minus our financial obligations to members and others. A strong surplus position first and foremost gives Foresters the ability to withstand economic and business volatility, and it allows us to invest in the growth of our business through increased sales and acquisition activities. Also, a portion of earnings on surplus is used to fund member benefits and community investments in support of Foresters purpose.

The Minimum Continuing Capital and Surplus Requirements (“MCCSR”) ratio is a capital adequacy measure for life insurance com-panies established by the Office of the Superintendent of Financial Institutions Canada (“OSFI”). It is a measure used to monitor that insurers maintain adequate capital to meet their financial obligations.

Certificates and contracts in force is the total number of certificates and contracts that are active or “in force” at The Independent Order of Foresters and its subsidiaries.

Key results

Total gross premiums were $973 million, a 17% increase over 2014. The upward trend in premiums is largely due to our growing block of in-force policies.

58

8.0

52

7.9

69

2.8

83

2.4

973

.5973$ million

Total Premiums

20152014201320122011

Foresters surplus increased to $2.3 billion due to our strong total comprehensive income of $385 million in 2015. At December 31, 2015 our MCCSR ratio was 428%, well above the Canadian life insurer average of 229% at September 30, 2015.²

2.3$ billion

Surplus

1.51

0

1.4

44

1.6

82

1.9

06

2.2

91

20152014201320122011

Total comprehensive income of $385 million reflects an upward trend in earnings since 2011. In 2015 Foresters total comprehensive income benefited from stronger earnings as well as foreign currency translation gains of $273 million due to the strengthening of the US dollar and the UK pound sterling relative to the Canadian dollar.

385$ million

Total Comprehensive Income

65

.6

32

.0

172

.0

22

3.9

38

5.2

20152014201320122011

Funds under management and administration grew to $33.7 billion, an 18% increase over 2014. The increase was largely due to the strengthening of the US dollar and the UK pound sterling relative to the Canadian dollar. Excluding the impact of foreign currency, funds under management grew by $467 million year over year.

34$ billion

Funds under Management/Administration

18.9

15.8

24

.9 28

.5 33.7

20152014201320122011

At December 31, 2015, Foresters had over 3 million certificates and contracts in force. Since 2011, the number of in-force certificates and contracts has grown by well over one million due to the acquisition of The Children’s Mutual in the UK and strong sales of our products.

3million

Certificates and Contracts in Force

1.8

27

1.7

56

2.9

84

2.9

98

3.0

31

20152014201320122011

2 Source: Office of the Superintendent of Financial Institutions Canada (OSFI), Financial Data for Life Insurance Companies, Total Canadian Life Companies, MCCSR - Total capital required/available. 2015 Foresters Report 13

International Assembly NoticeOfficial Notice of the 42nd International Assembly (IA)

Foresters Financial supreme governing body will hold its 42nd quadrennial meeting on June 24, 2017 at the Marriott Marquis in Atlanta, Georgia. The 2017 IA will receive reports on the state of Foresters, review and amend Foresters Constitution, and elect the Board of Directors. This IA meeting is attended by 169 elected Representatives of the Foresters membership.

Nominations for Foresters Board of Directors, 2017–2021 — as required in Foresters Constitution, s 24C, the Board of Directors has appointed a Nominating Committee to identify and recommend candidates for election as Director at the 2017 IA. Interested nominees must be Voting Members with the qualifications, skills and experience which the Board is seeking.

Interested nominees can request more information and/or an application from Suanne Nielsen, Corporate Secretary, at snielsen@foresters.com or by phone at 416 467 2509. While all applications will be acknowledged, only suitable candidates as determined by the Nominating Committee will be interviewed. The deadline for submission of applications is August 31, 2016.

Foresters Report and foresters.com are Foresters official publications. Information about Foresters governance, a members’ right to vote and attend Branch meetings, and Foresters Constitution are posted on foresters.com.

Summary Consolidated Statements of Comprehensive IncomeFor the year ended December 31, 2015 with comparative figures for 2014 (In millions of Canadian dollars)

2015 2014Revenue

Gross premiums $ 973 $ 832Ceded premiums (85) (75)Net Premiums 888 757

Net Investment IncomeInterest and dividends (net) 291 263Net realized gains 168 63Net change in unrealized gains (losses) on fair

value through profit and loss investments (378) 368Net foreign currency losses on

available-for-sale assets 26 13Total Investment Income 107 707

Fee Revenue 333 270Other operating income 17 24

Total Revenue 1,345 1,758

Benefits & ExpensesGross benefits 706 639 Ceded benefits (38) (35)Gross change in insurance contract liabilities (144) 426Ceded change in insurance contract liabilities (69) (24)Dividends 45 41Commissions 298 249Operating expenses 385 353Ceded commissions and operating expenses (16) (14)Fraternal investment 19 18

Total Benefits & Expenses 1,186 1,653

Income before income taxes 159 105

Income TaxesCurrent 19 1Deferred 16 1

Total Income Taxes 35 2Net Income 124 103

Other Comprehensive Income (Loss)Items that will not be reclassified to net incomeRemeasurement gains (losses) on employee benefit

plans, net of income tax recovery (expense) 1 (31)Net unrealized gains on property 5 5Total items that will not be reclassified to

net income 6 (26)

Items that are or may be reclassified subsequently to net incomeNet unrealized gains (losses) on available-

for-sale assets, net of income tax recovery (expense) of $1 ($(1) in 2014) (19) 46

Reclassification of net realized (gains) losses on available-for-sale assets, net of income tax recovery to net income 1 (3)

Net unrealized foreign currency translation gains 273 104Total items that are or may be reclassified

subsequently to net income 255 147Total Comprehensive Income $ 385 $ 224

Summary Consolidated Statements of Financial PositionAs of December 31, 2015 with comparative figures for 2014 (In millions of Canadian dollars)

Dec 31, 2015 Dec 31, 2014Assets

Invested AssetsCash, cash equivalents and

short-term securities $ 394 $ 322Bonds 7,176 6,450Equities 856 760Mortgages 1 1 Derivative financial instruments 1 20 Other invested assets 143 119 Loans to certificate holders 371 317

Total Invested Assets 8,942 7,989

Reinsurance assets 302 217 Accrued investment income 78 69Deferred acquisition costs on

investment contracts 57 44Other assets 183 164Property and equipment 62 53 Employee benefit assets 4 8

Goodwill and intangible assets 286 254 9,914 8,798

Net investments for accounts of segregated fund unit holders 3,746 3,184

Total Assets $ 13,660 $ 11,982

Liabilities Insurance contract liabilities $ 7,005 $ 6,362 Investment contract liabilities 172 160Derivative financial instruments 24 -Benefits payable and provision

for unreported claims 175 134Other liabilities 184 172Employee benefit obligations 63 64

7,623 6,892

Investment contract liabilities for accounts of segregated fund unit holders 3,746 3,184

Total Liabilities 11,369 10,076

SurplusRetained earnings 1,811 1,687 Accumulated other comprehensive

income 480 2192,291 1,906

Total Liabilities and Surplus $ 13,660 $ 11,982

14 2015 Foresters Report

Foresters Financial and Foresters are trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9) and its subsidiaries.

Description of member benefits that you may receive assumes you are a Foresters member. Foresters member benefits are non-contractual, subject to benefit specific eligibility requirements, definitions and limitations and may be changed or cancelled without notice.

1 All figures are in Canadian dollars, unless otherwise indicated. All values have been rounded.

† An "A" (Excellent) Financial Strength Rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. In 2015 A.M.Best upgraded two of Foresters subsidiaries, Foresters Life Insurance Company and First Investors Life Insurance Company (currently Foresters Life Insurance and Annuity Company), from an “A-“ (Excellent) to an “A” (Excellent) Financial Strength Rating. In assigning the ratings for The Independent Order of Foresters and its subsidiaries Foresters Life Insurance Company and First Investors Life Insurance Company on July 1, 2015, A.M. Best stated that the outlook for all ratings is "stable", which means they are unlikely to change in the near future. See ambest.com for the latest ratings.

Ronald McDonald House is a registered trademark of McDonald’s Corporation or its affiliates and is used with permission.

Notes to the Summary Financial Statements

1. Basis of Presentation of the Summary of Financial Statements

The summary consolidated statement of financial position and summary consolidated statement of comprehensive income have been summarized from Foresters consolidated financial statements, which are prepared in accordance with International Financial Reporting Standards to portray in summarized form Foresters financial position and results of operations. The criteria applied by management in the preparation of these summary financial statements are as follows:

a. the information in the summary financial statements is in agreement with the related information in the audited financial statements; and

b. summary statements of changes in equity, cash flows, significant accounting policies and other explanatory information have not been presented, as the relevant information can be obtained from the audited financial statements.

The summary statement of financial position and summary con-solidated statement of comprehensive income are only a summary of information in Foresters consolidated financial statements for the year ended December 31, 2015. They do not contain sufficient information to allow as full an understanding of the results and state of affairs of Foresters as would be provided by the full consolidated financial statements for the year ended December 31, 2015.

The full consolidated financial statements are available at foresters.com.

2. Basis of measurement

Foresters consolidated financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position:

– Financial assets at fair value through profit or loss, available-for-sale financial assets and derivative financial instruments are measured at fair value;

– Employee benefit assets and obligations represent the funded status of these plans which is calculated as the difference between plan assets at fair value and the present value of defined benefit obligations;

– Insurance contract liabilities are calculated using the Canadian Asset Liability Method (“CALM”) which is based on accepted actuarial practices according to standards established by the Canadian Institute of Actuaries and the requirements of the Office of the Superintendent of Financial Institutions Canada. This method involves the projection of future events in order to determine the amount of assets that must be set aside currently to provide for all future obligations, including the provision of fraternal benefits, and involves a significant amount of judgment; and

– Land, buildings and investment properties are measured at fair value.

Report of the Independent Auditors on the Summary Consolidated Financial Statements

To the Board of Directors of The Independent Order of Foresters

The accompanying summary consolidated financial statements of The Independent Order of Foresters, which comprise the summary consolidated statement of financial position as at December 31, 2015, the summary consolidated statement of comprehensive income (loss) for the year then ended, and related notes, are derived from the audited consolidated financial statements, prepared in accordance with International Financial Reporting Standards, of The Independent Order of Foresters as at and for the year ended December 31, 2015. We expressed an unmodified audit opinion on those consolidated financial statements in our auditors’ report dated February 17, 2016.

The summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards applied in the preparation of the audited consolidated financial state-ments of The Independent Order of Foresters. Reading the summary financial statements, therefore, is not a substitute for reading the audited consolidated financial statements of The Independent Order of Foresters.

Management’s Responsibility for the Summary Financial Statements

Management is responsible for the preparation of the summary consolidated financial statements in accordance with the basis described in the notes to the summary consolidated financial statements.

Auditors’ Responsibility

Our responsibility is to express an opinion on the summary consolidated financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements.”

Opinion

In our opinion, the summary consolidated financial statements derived from the audited consolidated financial statements of The Independent Order of Foresters as at and for the year ended December 31, 2015 are a fair summary of those consolidated financial statements, in accordance with the basis described in the notes to the summary consolidated financial statements.

Chartered Professional Accountants, Licensed Public Accountants

Appointed Actuary’s report

To the Board of Directors of The Independent Order of Foresters

I have valued the policy liabilities and reinsurance recoverables of The Independent Order of Foresters for its consolidated statement of financial position as at December 31, 2015 and their changes in the consolidated statement of comprehensive income for the year then ended in accordance with accepted actuarial practice in Canada including selection of appropriate assumptions and methods.

In my opinion, the amount of policy liabilities net of reinsurance recoverables makes appropriate provision for all policy obligations and the consolidated financial statements fairly present the results of the valuation.

These summarized consolidated financial statements do not contain all the disclosures required by accepted actuarial practice. Readers are cautioned that these statements may not be appropriate for their purposes. For more information on Foresters financial position, results of operations and cash flows, reference should be made to the related complete consolidated financial statements.

Ralph Ovsec, F.S.A., F.C.I.A.,M.A.A.A Fellow, Canadian Institute of Actuaries Toronto, Canada February 17, 2016

2015 Foresters Report 15

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