Dividend Interest Rate Comparisons: Analysis of Mutual Carriers' Dividend Histories

1. Dividend Interest Rate ComparisonsPrepared byIndividual Life Product Development and SupportThe Guardian Life Insurance Company of America (Guardian)New York, NY 10004December 2011 2011-12895

2. Notes on Dividend Interest Rates & Histories • The Dividend Interest Rate (or DIR) is just one component of a three factor dividend formula that for all mutual carriers includes: • Mortality: to the extent mortality experience is better than guaranteed expectations, the dividend will be positively impacted • Expenses: expense results are reviewed annually and compared to pricing expectations to determine the amount of expense loading assumed in the dividend • Dividend Interest Rate: to the extent the investment experience of the company is better than the guaranteed interest rate assumed in pricing (generally 4%), the excess interest earnings are included

3. Notes on Dividend Interest Rates & Histories • Dividends are not guaranteed and are declared annually subject to Board approval for all mutual carriers • Guardian’s Board of Directors has approved a dividend in every year since 1868 • The DIR alone will not always indicate which policy will perform better • Compare policy cash value and death benefit internal rate of returns for a better indication of policies’ relative performance • Guardian’s whole life policies are among the most competitive based on carriers’ 2012 dividend scales • MassMutual has two separate dividend scales. One is for policies issued prior to March 1996 and another for policies issued since March 1996. The slides that follow illustrate the DIR histories for policies issued prior to March 1996. Source: Information contained on all slides obtained from Full Disclosure and other company publications.

4. Historic 30 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 30 Year Average: Guardian 8.98%Northwestern 8.69%MassMutual* 9.10% New York Life 8.67% *MassMutual’s dividend history applies to policies issued prior to March, 1996

5. Guardian vs. NMLHistoric 30 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 30 Year Average: Guardian 8.98%Northwestern 8.69%

6. Guardian vs. MassMutualHistoric 30 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 30 Year Average: Guardian 8.98%MassMutual* 9.10% *MassMutual’s dividend history applies to policies issued prior to March, 1996.

7. Guardian vs. NYL Historic 30 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 30 Year Average: Guardian 8.98%New York Life 8.67%

8. Historic 25 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 25 Year Average: Guardian 8.42%Northwestern 8.28%MassMutual* 8.52% New York Life 7.96% *MassMutual’s dividend history applies to policies issued prior to March, 1996

9. Guardian vs. NMLHistoric 25 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 25 Year Average: Guardian 8.42%Northwestern 8.28%

10. Guardian vs. MassMutualHistoric 25 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 25 Year Average: Guardian 8.42%MassMutual* 8.52% *MassMutual’s dividend history applies to policies issued prior to March, 1996.

11. Guardian vs. NYL Historic 25 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 25 Year Average: Guardian 8.42%New York Life 7.96%

12. Guardian vs. Penn Mutual Historic 20 Year DIR Comparison Over Time the Dividend Interest Rate is Similar Because the Asset Allocation is Similar 20 Year Average: Guardian 7.76%Penn Mutual 7.20%

13. Questions • Please call Life Product Services • 800-871-7780 Option 2. 2011-12895