Torchmark companies, such as more cost-efficient direct response procedures used to initially contact potential customers. adults over age 45 expected to increase by over 20% between 2000 and 2010.  Our primary marketing vehicle is demographically targeted individual mailings to potential customers. We are frequently asked why we continue to pursue the labor union market when conventional wisdom says that labor union membership is declining. In fact, that assumption is erroneous. Actually, union membership in 2001 grew to 16.27 million workers from 16.11 million in 1997 and remained a stable 13.5 percent of American workers (U. S. Bureau of Labor Statistics). With policyholders in about 900 thousand households, the labor union market is far from being maximized by AIL. We obtain mailing lists  of households that meet selection criteria  for specific products, subscribers to  Parents Magazine , for example. Data is also modeled from previously compiled lists for specific products. We also use a variety of other direct response marketing vehicles including: co-op mailers, newspaper inserts, internet sites, television and other consumer publications. With policies in 1.6 million households, and 160 million mailings per year, as well as television and other consumer publication advertising, Globe Life has high name recognition among the general population, especially for its “Young American” juvenile product. The sale of insurance by direct response is an opportunistic sale, meaning that generally the recipients of a direct response solicitation were not contemplating the purchase of insurance. As a result, only a limited number of recipients of the solicitation will respond. Success in this market requires: strict control of acquisition expenses, i.e., the cost of the initial mailings; cost control through economies of scale; financial strength to fund the initial mailings because all the acquisition expenses are incurred before one policy is issued; and demographic expertise to obtain the highest possible response rates at an acceptable cost.  Oklahoma City, Oklahoma Globe Life, Torchmark’s premier direct response insurance company, began in 1951 much like our other operating companies, on a financial “shoestring” as the dream of local entrepreneurs. The company started as an agency operation that in 12 years was marketing life insurance to “middle-income” Americans in 36 states. In 1964, the company began marketing life insurance by direct mail, tapping into the emerging juvenile life insurance market and setting the stage for the future of  the company. Today, Globe Life is the largest direct response marketer of life insurance in the United States, accounting for over 20% of all direct mail life insurance. Globe specializes in direct response marketing of juvenile life insurance to the parents and grandparents of children. These same parents and grandparents who have purchased a “Young American” policy are a valued secondary market because of their greater likelihood to buy an adult life insurance policy with the Globe Life name. This market continues to grow with 4 million babies born each year and the number of About Torchmark • 2002 Annual Report Globe Life  is the largest direct response marketer of life insurance in the  United States.  GLOBE LIFE AND ACCIDENT 5 “A+ Superior” “AA Excellent” A.M. Best Rating  Standard & Poor’s Rating  for Financial Strength