Group Insurance Sunset Financial Services Inc. Future growth recorded and new deposits received.  Premiums include receipts from  traditional individual life insurance  and immediate annuity products.  Deposits are received from universal  life insurance, variable universal life  insurance and fixed deferred and  variable annuity products.  The Individual Insurance segment  generated approximately 49% of  consolidated insurance revenues  for the year ended December 31,  2012, as well as for the year ended  December 31, 2011. Total premiums increased $4.9  million or 9% in 2012 compared  to 2011. Total new premiums  increased $5.3 million or 45% in  2012 from the year prior due to  higher sales of immediate annuities. Total new deposits decreased from  the prior year by $2.6 million or  3% in 2012, following a $10.0  million or 10% decrease in 2011.  The decrease in 2012 was largely due  to a $5.3 million decrease in new  fixed deferred annuity deposits. Total  renewal deposits decreased from the  prior year by $3.6 million or 2% in  2012 following a $5.8 million or 4%  increase in 2011. The decline in 2012  was largely attributable to a decrease  in fixed deferred annuity renewal  deposits. The improvement in 2011  was due to an increase in renewal  fixed deferred annuity deposits. The Individual Insurance segment  is an essential part of Kansas City  The Group Insurance segment  generated 21% of the Company’s  consolidated insurance revenues in  2012, compared to 22% in 2011.  Total Group premiums increased  The Group Insurance segment  markets its products primarily to  small and mid-size organizations.  Group products are sold through  sales representatives who target a  nationwide network of independent  general agents and group brokers,  along with the Company’s career  general agents. The sales network  is this segment’s core distribution  system. The Company also markets  Group products through select  third-party marketing arrangements. SFS will continue working with  Kansas City Life to help recruit and  retain quality agencies and producers. Kansas City Life Insurance  Company’s in-house broker/ dealer facilitates the purchase, sale  and management of securities,  such as variable universal life and  variable annuity products. Through  this alliance, Sunset Financial  Services (SFS) provides registered  representatives the flexibility to  market a full range of fixed and  variable products through a single relationship. Kansas City Life Insurance  Company offers several insurance  products in the Group Insurance  segment, including dental, life,  vision, and short- and long-term  disability. These offerings encompass  both traditional, employer- funded group insurance, as well as  voluntary, employee-paid products. Life’s core business, representing  a majority of the Company’s  revenue and net income. The  Company plans to continue to  grow the segment by recruiting  talented general agents and agents.  Enhancements to the product  portfolio, increased focus on  sales development and superior  marketing support are elements that  will be emphasized to attract new  field representatives. $0.8 million or 1% in 2012,  following a $2.9 million or 5%  increase in 2011. Moving forward,  the Group Insurance segment  continues to focus on three primary  areas of emphasis to improve sales: 1. Growing in-force business  through the Company’s sales  representatives and select third- party marketing arrangements. 2. Improving administrative  efficiency through greater use  of customer-facing technology,  designed to reduce expenses and  improve customer service. 3. Enhancing the segment’s  product portfolio, through  delivery of new product offerings  and more flexible options to  meet the dynamic needs of the  employee benefits market. 8