exv99w2

AmerUs Group Co.
Financial Highlights
($ in thousands, except for per share data)


	For The Three Months Ended						For The Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Earnings:

Net Income available to common stockholders	$	5,327		$	38,619		$	128,777		$	135,674

Adjustments for:

Realized/unrealized losses on open block assets		6,937			7,161			12,021			8,049

Net amortization of DAC, VOBA and deferred sales inducements due to open block gains or losses		(1,222	)		(773	)		(2,001	)		(652	)

Net effect of derivative related market value adjustments		24,333			(13,895	)		(526	)		1,180

Other (income) loss from non-insurance operations		—			(96	)		—			123

Litigation following class certification, net		1,907			6,428			1,907			6,428

Merger costs		835			—			835			—

Income tax items		2,943			(312	)		2,474			(19,995	)

Early extinguishment of debt		—			11,449			—			11,449

Loss on redemption of preferred stock		11,385			—			11,385			—


Adjusted Net Operating Income available to common stockholders (1)	$	52,445		$	48,581		$	154,872		$	142,256


Basic Earnings Per Common Share:

Adjusted Net Operating Income available to common stockholders per common share (2)	$	1.29		$	1.26		$	3.94		$	3.64

Net Income available to common stockholders per common share	$	0.13		$	1.00		$	3.28		$	3.47

Weighted average common shares outstanding		40,673			38,488			39,309			39,102

Diluted Earnings Per Common Share:

Adjusted Net Operating Income available to common stockholders per common share (2)	$	1.22		$	1.14		$	3.68		$	3.33

Net Income available to common stockholders per common share	$	0.12		$	0.91		$	3.06		$	3.17

Weighted average common shares outstanding		42,903			42,526			42,091			42,743


(1)		The Company views Adjusted Net Operating Income, a non-GAAP financial measure, as an important indicator of financial performance. When presented with net income, the combined presentation can enhance an investor’s understanding of AmerUs Group’s underlying profitability and normalized results from operations. Non-GAAP measures are also used for goal setting, determining employee and management compensation and evaluating our performance on a comparable basis to that used by security analysts.

(2)		Adjusted Net Operating Income per Share is a non-GAAP financial measure which is derived from Adjusted Net Operating Income in the same manner that Net Income per Share is derived from Net Income. Management uses this measure for the reasons and purposes detailed in footnote (1) above.

AmerUs Group Co.

Equity and Capitalization
($ in thousands, except for per share data)


	As Of Or						As Of Or
	For The Three Months Ended						For The Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Common Stockholders’ Equity:
Beginning of period (including AOCI)	$	1,415,631		$	1,717,514		$	1,557,485		$	1,623,469
Beginning of period (excluding AOCI) (1)		1,634,845			1,589,074			1,561,097			1,508,799
End of period (including AOCI)		1,723,626			1,552,589			1,723,626			1,552,589
End of period (excluding AOCI) (1)		1,785,877			1,526,960			1,785,877			1,526,960
Average equity (including AOCI)		1,569,628			1,635,052			1,640,556			1,588,029
Average equity (excluding AOCI) (1)		1,710,361			1,558,017			1,673,487			1,517,880

Common shares outstanding, end of period								43,059			38,651

Return on Common Stockholders’ Equity:
Net income available to common stockholders / Average common stockholders’ equity (including AOCI)		1.4	%		9.4	%		10.5	%		11.4	%

Adjusted Net Operating Income available to common stockholders / Average common stockholders’ equity (excluding AOCI) (1) (2)		12.3	%		12.5	%		12.3	%		12.5	%

Book Value per Common Share:
including AOCI							$	40.03		$	40.17
excluding AOCI (1)							$	41.48		$	39.51


	9/30/2006			12/31/2005
Capitalization:
Bank Borrowings	$	40,000		$	—
Senior Notes		300,000			300,000
PRIDES		143,750			143,750
Surplus Note		25,000			25,000
Other Borrowings		23,492			36,546
Capital Securities — AmerUs Capital I		50,755			50,755

Total Notes Payable		582,997			556,051

Preferred Stock		—			144,830
Common Stockholders’ Equity		1,785,877			1,561,097

Total Capitalization (excluding AOCI) (1)	$	2,368,874		$	2,261,978


AOCI — Unrealized Losses		(62,251	)		(3,612	)


Total Capitalization (including AOCI)	$	2,306,623		$	2,258,366


Debt-to-Capital Ratio (3):
A. M. Best		23.75	%		20.51	%
Fitch		23.33	%		18.79	%
Moody’s		25.79	%		24.27	%
Standard & Poor’s		22.47	%		15.99	%


(1)		Stockholders’ equity, return on equity, book value, and total capitalization amounts excluding accumulated other comprehensive income (AOCI), are non-GAAP financial measures. Management believes that excluding AOCI assists investors in understanding the underlying performance of the Company by eliminating the effect of unrealized gains and losses on available-for-sale investment securities which fluctuate with market conditions.

(2)		The Company views Adjusted Net Operating Income, a non-GAAP financial measure, as an important indicator of financial performance. When presented with net income, the combined presentation can enhance an investor’s understanding of AmerUs Group’s underlying profitability and normalized results from operations. Non-GAAP measures are also used for goal setting, determining employee and management compensation and evaluating our performance on a comparable basis to that used by security analysts.

(3)		Debt-to-Capital Ratio is defined and used by rating agencies to measure the level of debt as compared to equity for an organization. For A. M. Best, AmerUs Capital I is treated as 40% equity and previously, preferred stock was treated as 90% equity and PRIDES were treated as 60% equity. For Fitch, Amerus Capital I is treated as 60% equity and previously, preferred stock was treated as 100% equity and PRIDES were treated as 70% equity. For Moody’s, AmerUs Capital I is treated as 100% debt and previously, preferred stock was treated as 75% equity and PRIDES were treated as 50% equity. Debt includes $23,845 of defined benefit plan obligation and $13,792 of future lease commitments for both September 30, 2006 and December 31, 2005. For Standard & Poors, AmerUs Capital I is treated as 100% equity (and previously preferred stock and PRIDES were also treated as 100% equity), except to the extent the sum of these securities exceeds 15% of total capitalization. The amount in excess of 15% of capitalization was none and $38 as of September 30, 2006 and December 31, 2005 respectively.

AmerUs Group Co.

Consolidated Income Statement

($ in thousands)


	For The Three Months Ended						For The Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Revenues:
Insurance premiums	$	51,268		$	54,603		$	159,611		$	178,150
Product charges		70,525			64,939			207,327			178,610
Net investment income		290,651			278,641			862,941			824,392
Realized/unrealized capital gains (losses)		71,509			23,362			59,289			(19,316	)
Other income:
Income from Independent Marketing Organizations		8,017			7,331			24,223			23,495
Other		4,429			4,156			13,108			11,777

Total Revenue		496,399			433,032			1,326,499			1,197,108

Benefits and Expenses:
Policyowner benefits — traditional life		55,531			54,100			167,568			173,300
Policyowner benefits — investment and UL contracts		301,979			157,111			572,725			451,697
Operating expenses		35,552			34,981			106,365			100,505
Expenses from Independent Marketing Organizations		5,707			5,873			18,117			19,376
Litigation following class certification, net		3,179			9,380			3,179			9,380
Amortization — DAC and VOBA		37,244			58,714			152,526			146,515
Dividends to policyowners		16,369			18,770			52,785			70,637

Total Benefits and Expenses		455,561			338,929			1,073,265			971,410

Interest expense:
Interest on bank debt		348			939			468			1,127
Interest on Senior Notes		4,463			2,760			13,388			7,104
Interest on Capital Securities (AmerUs Capital I)		1,005			1,005			3,133			3,133
Interest on PRIDES		2,409			1,998			6,600			5,994
Interest on OCEANs		—			(45	)		—			3,758
Interest on Surplus Note		541			541			1,624			1,624
Interest on other borrowings		382			527			1,365			956

Total interest expense		9,148			7,725			26,578			23,696

Early extinguishment of debt		—			19,082			—			19,082


Income before income tax expense		31,690			67,296			226,656			182,920

Income tax (expense)		(12,260	)		(28,677	)		(78,338	)		(47,246	)


Net income		19,430			38,619			148,318			135,674

Dividends on preferred stock		(2,718	)		—			(8,156	)		—

Loss on redemption of preferred stock		(11,385	)		—			(11,385	)		—


Net income available to common stockholders	$	5,327		$	38,619		$	128,777		$	135,674


Weighted Average Common Shares Outstanding:
Basic		40,672,524			38,488,294			39,309,376			39,102,190

Diluted		42,903,211			42,525,870			42,090,818			42,743,043

AmerUs Group Co.

Operating Segment Income

($ in thousands)


	Protection		Accumulation					Total
For The Three Months Ended September 30, 2006	Products		Products		All Other			Consolidated

Revenues:
Insurance premiums	$	49,916	$	1,168	$	184		$	51,268
Product charges		54,176		16,349		—			70,525
Net investment income		89,086		200,328		1,237			290,651
Realized/unrealized gains on closed block investments		122		—		—			122
Other income:
Income from Independent Marketing Organizations		—		8,017		—			8,017
Other		902		2,641		886			4,429


		194,202		228,503		2,307			425,012

Benefits and expenses:
Policyowner benefits		91,617		131,119		412			223,148
Underwriting, acquisition, and other expenses:
Operating expenses		18,773		9,815		5,574			34,162
Expenses from Independent Marketing Organizations		—		5,707		—			5,707
Amortization of DAC and VOBA		25,009		28,655		—			53,664
Dividends to policyowners		16,368		1		—			16,369


		151,767		175,297		5,986			333,050


Segment pre-tax operating income	$	42,435	$	53,206	$	(3,679	)		91,962


Realized/unrealized losses on open block assets									(10,999	)

Unrealized gains on open block options and trading investments									82,386

Change in option value of indexed products and market value adjustments on total return strategy annuities									(139,271	)

Cash flow hedge amortization									129

Amortization of DAC and VOBA due to open block gains and losses and market value adjustments									16,420

Amortization of deferred sales inducements due to open block gains and losses and market value adjustments									4,780

Litigation following class certification, net									(3,179	)

Merger costs									(1,390	)


Income from continuing operations									40,838

Interest (expense)									(9,148	)

Income tax (expense)									(12,260	)


Net income									19,430
Dividends on preferred stock									(2,718	)

Loss on redemption of preferred stock									(11,385	)


Net income available to common stockholders									$ 5,327

AmerUs Group Co.

Operating Segment Income

($ in thousands)


	Protection			Accumulation					Total
For The Three Months Ended September 30, 2005	Products			Products		All Other			Consolidated

Revenues:
Insurance premiums	$	53,535		$	727	$	341			$ 54,603
Product charges		51,350			13,589		—			64,939
Net investment income		88,930			189,332		379			278,641
Realized/unrealized losses on closed block investments		(650	)		—		—			(650	)
Other income:
Income from Independent Marketing Organizations		—			7,331		—			7,331
Other		879			2,551		566			3,996


		194,044			213,530		1,286			408,860

Benefits and expenses:
Policyowner benefits		87,918			130,529		(387	)		218,060
Underwriting, acquisition, and other expenses:
Operating expenses		19,473			7,230		8,278			34,981
Expenses from Independent Marketing Organizations		—			5,873		—			5,873
Amortization of DAC and VOBA		27,598			22,030		—			49,628
Dividends to policyowners		18,769			1		—			18,770


		153,758			165,663		7,891			327,312


Segment pre-tax operating income	$	40,286		$	47,867	$	(6,605	)		81,548


Realized/unrealized losses on open block assets										(793	)

Unrealized gains on open block options and trading investments										24,805

Change in option value of indexed products and market value adjustments on total return strategy annuities										6,814

Cash flow hedge amortization										35

Amortization of DAC and VOBA due to open block gains and losses										(9,086	)

Litigation following class certification, net										(9,380	)

Other income from non-insurance operations										160

Income from continuing operations										94,103

Interest (expense)										(7,725	)

Early extinguishment of debt										(19,082	)

Income tax (expense)										(28,677	)

Net income										38,619

Dividends on preferred stock										—


Net income available to common stockholders										$ 38,619

AmerUs Group Co.

Operating Segment Income

($ in thousands)


	Protection			Accumulation					Total
For The Nine Months Ended September 30, 2006	Products			Products		All Other			Consolidated

Revenues:
Insurance premiums	$	156,844		$	2,568	$	199			$ 159,611
Product charges		160,534			46,793		—			207,327
Net investment income		266,645			594,261		2,035			862,941
Realized/unrealized losses on closed block investments		(1,996	)		—		—			(1,996	)
Other income:
Income from Independent Marketing Organizations		—			24,223		—			24,223
Other		2,659			7,924		2,525			13,108


		584,686			675,769		4,759			1,265,214

Benefits and expenses:
Policyowner benefits		277,081			384,715		273			662,069
Underwriting, acquisition, and other expenses:
Operating expenses		54,538			28,633		21,804			104,975
Expenses from Independent Marketing Organizations		—			18,117		—			18,117
Amortization of DAC and VOBA		72,917			81,761		—			154,678
Dividends to policyowners		52,783			2		—			52,785


		457,319			513,228		22,077			992,624


Segment pre-tax operating income	$	127,367		$	162,541	$	(17,318	)		272,590


Realized/unrealized losses on open block assets										(18,676	)

Unrealized gains on open block options and trading investments										79,961

Change in option value of indexed products and market value adjustments on total return strategy annuities										(76,930	)

Cash flow hedge amortization										183

Amortization of DAC and VOBA due to open block gains and losses and market value adjustments										2,152

Amortization of deferred sales inducements due to open block gains and losses and market value adjustments										(1,477	)

Litigation following class certification, net										(3,179	)

Merger costs										(1,390	)

Income from continuing operations										253,234

Interest (expense)										(26,578	)

Income tax (expense)										(78,338	)

Net income										148,318

Dividends on preferred stock										(8,156	)

Loss on redemption of preferred stock										(11,385	)


Net income available to common stockholders										$ 128,777

AmerUs Group Co.

Operating Segment Income

($ in thousands)


	Protection			Accumulation					Total
For The Nine Months Ended September 30, 2005	Products			Products		All Other			Consolidated

Revenues:
Insurance premiums	$	174,587		$	2,263	$	1,300			$ 178,150
Product charges		139,073			39,537		—			178,610
Net investment income		268,799			554,531		1,062			824,392
Realized/unrealized losses on closed block investments		(560	)		—		—			(560	)
Other income:
Income from Independent Marketing Organizations		—			23,495		—			23,495
Other		2,597			7,755		1,630			11,982


		584,496			627,581		3,992			1,216,069

Benefits and expenses:
Policyowner benefits		256,293			388,152		67			644,512
Underwriting, acquisition, and other expenses:
Operating expenses		57,352			21,391		21,762			100,505
Expenses from Independent Marketing Organizations		—			19,376		—			19,376
Amortization of DAC and VOBA		74,576			68,236		—			142,812
Dividends to policyowners		70,633			4		—			70,637


		458,854			497,159		21,829			977,842


Segment pre-tax operating income	$	125,642		$	130,422	$	(17,837	)		238,227


Realized/unrealized losses on open block assets										(2,133	)

Unrealized losses on open block options and trading investments										(16,623	)

Change in option value of indexed products and market value adjustments on total return strategy annuities										19,403

Cash flow hedge amortization										112

Amortization of DAC and VOBA due to open block gains and losses										(3,703	)

Litigation following class certification, net										(9,380	)

Other income from non-insurance operations										(205	)

Income from continuing operations										225,698

Interest (expense)										(23,696	)

Early extinguishment of debt										(19,082	)

Income tax (expense)										(47,246	)


Net income										135,674

Dividends on preferred stock										—


Net income available to common stockholders										$ 135,674

AmerUs Group Co.

Consolidated Balance Sheets

($ in thousands)


	September 30,		December 31,
	2006		2005
ASSETS:
Investments:
Securities available-for-sale at fair value:
Fixed maturity securities	$	17,482,586	$	16,727,933
Equity securities		98,169		75,658
Short-term investments		19,877		9,998
Securities held for trading purposes:
Fixed maturity securities		1,255,897		1,414,225
Equity securities		4,058		2,358
Short-term investments		2,480		—
Mortgage loans		1,018,752		976,135
Policy loans		502,303		483,441
Other investments		433,898		347,552

Total investments		20,818,020		20,037,300

Cash and cash equivalents		549,527		600,160
Accrued investment income		256,251		237,221
Premiums, fees and other receivables		35,913		40,667
Income taxes receivable		17,328		9,005
Reinsurance receivables		743,622		730,532
Deferred policy acquisition costs		2,073,309		1,755,159
Deferred sales inducements		338,250		261,322
Value of business acquired		334,513		356,949
Goodwill		229,670		228,869
Property and equipment		47,356		44,467
Other assets		315,314		306,655
Separate account assets		202,366		221,694


Total Assets	$	25,961,439	$	24,830,000

AmerUs Group Co.

Consolidated Balance Sheets

($ in thousands)


	September 30,			December 31,
	2006			2005
LIABILITIES:
Policyowner reserves and policyowner funds:
Future life and annuity policy benefits	$	20,127,049		$	19,486,854
Policyowner funds		1,996,940			1,483,873

Sub-total		22,123,989			20,970,727

Accrued expenses and other liabilities		449,226			500,858
Payable for collateral under securities lending and other transactions		508,561			474,561
Dividends payable to policyowners		234,932			278,839
Policy and contract claims		48,017			66,137
Deferred income taxes		87,725			58,818
Notes payable:
Bank debt		40,000			—
Senior notes		300,000			300,000
PRIDES		143,750			143,750
Surplus note		25,000			25,000
AmerUs Capital I		50,755			50,755
Other borrowings		23,492			36,546
Separate account liabilities		202,366			221,694


Total Liabilities		24,237,813			23,127,685

STOCKHOLDERS’ EQUITY:
Preferred Stock, no par value, 20,000,000 shares authorized, 6,000,000 shares issued and outstanding in 2006 and 2005		—			144,830
Common Stock, no par value, 230,000,000 shares authorized; 51,904,999 shares issued and 43,058,995 shares outstanding in 2006; 46,675,811 shares issued and 38,612,874 shares outstanding in 2005		51,905			46,676
Additional paid-in capital — common stock		1,387,426			1,231,533
Accumulated other comprehensive loss		(62,251	)		(3,612	)
Unearned compensation		—			(3,783	)
Retained earnings		733,524			604,747
Treasury stock, at cost (8,846,004 shares in 2006 and 8,062,937 shares in 2005)		(386,978	)		(318,076	)


Total Stockholders’ Equity		1,723,626			1,702,315


Total Liabilities and Stockholders’ Equity	$	25,961,439		$	24,830,000

AmerUs Group Co.

Consolidated Balance Sheet

($ in thousands)

September 30, 2006


			AOCI			Without
	GAAP		Adjustment			AOCI Adjustments (1)
ASSETS:
Investments:
Securities available-for-sale at fair value:
Fixed maturity securities	$	17,482,586	$	101,859		$	17,584,445
Equity securities		98,169		(879	)		97,290
Short-term investments		19,877		(15	)		19,862
Securities held for trading purposes:
Fixed maturity securities		1,255,897		—			1,255,897
Equity securities		4,058		—			4,058
Short-term investments		2,480		—			2,480
Mortgage loans		1,018,752		—			1,018,752
Policy loans		502,303		—			502,303
Other investments		433,898		4,672			438,570

Total invested assets		20,818,020		105,637			20,923,657

Cash and cash equivalents		549,527		—			549,527
Accrued investment income		256,251		—			256,251
Premiums, fees and other receivables		35,913		—			35,913
Income taxes receivable		17,328		—			17,328
Reinsurance receivables		743,622		—			743,622
Deferred policy acquisition costs		2,073,309		(65,755	)		2,007,554
Deferred sales inducements		338,250		(16,242	)		322,008
Value of business acquired		334,513		21,717			356,230
Goodwill		229,670		—			229,670
Property and equipment		47,356		—			47,356
Other assets		315,314		—			315,314
Separate account assets		202,366		—			202,366


Total Assets	$	25,961,439	$	45,357		$	26,006,796


(1)		This column represents the Company’s assets exclusive of accumulated other comprehensive income (AOCI) adjustments and is a non-GAAP financial measure. The comparable GAAP numbers are presented in the first column. The non-GAAP presentation is used to assist investors and analysts in identifying market value related adjustments related to AOCI.

AmerUs Group Co.

Consolidated Balance Sheet

($ in thousands)

September 30, 2006


				AOCI			Without
	GAAP			Adjustment			AOCI Adjustments (1)
LIABILITIES:
Policyowner reserves and policyowner funds:
Future life and annuity policy benefits	$	20,127,049		$	—		$	20,127,049
Policyowner funds		1,996,940			—			1,996,940

		22,123,989			—			22,123,989

Accrued expenses and other liabilities		449,226			(16,620	)		432,606
Payable for collateral under securities lending and other transactions		508,561			—			508,561
Dividends payable to policyowners		234,932			(35,072	)		199,860
Policy and contract claims		48,017			—			48,017
Deferred income taxes		87,725			34,798			122,523
Notes payable:
Bank debt		40,000			—			40,000
Senior notes		300,000			—			300,000
PRIDES		143,750			—			143,750
Surplus note		25,000			—			25,000
AmerUs Capital I		50,755			—			50,755
Other borrowings		23,492			—			23,492
Separate Account liabilities		202,366			—			202,366
Liabilities of discontinued operations		—			—			—

Total Liabilities		24,237,813			(16,894	)		24,220,919

STOCKHOLDERS’ EQUITY:
Common Stock, no par value, 230,000,000 shares authorized; 51,904,999 shares issued and 43,058,995 shares outstanding in 2006;		51,905			—			51,905
Additional paid-in capital — common stock		1,387,426			—			1,387,426
Accumulated other comprehensive loss		(62,251	)		62,251			—
Retained earnings		733,524			—			733,524
Treasury stock, at cost (8,846,004 shares in 2006)		(386,978	)		—			(386,978	)


Total Stockholders’ Equity		1,723,626			62,251			1,785,877


Total Liabilities and Stockholders’ Equity	$	25,961,439		$	45,357		$	26,006,796


(1)		This column represents the Company’s assets exclusive of accumulated other comprehensive income (AOCI) adjustments and is a non-GAAP financial measure. The comparable GAAP numbers are presented in the first column. The non-GAAP presentation is used to assist investors and analysts in identifying market value related adjustments related to AOCI.

AmerUs Group Co.

Product Mix

($ in thousands)


	For The Three Months Ended				For The Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
Protection Products Repetitive Premiums (1):

Interest-sensitive whole life		61		159		223		392

Term and other life		1,501		2,835		4,633		9,241

Universal life

Flexible premium without no lapse guarantee		733		2,651		2,110		10,913

Single premium		23		—		68		—

Indexed life:

Flexible premium without no lapse guarantee		23,816		17,694		68,826		48,703

Flexible premium with no lapse guarantee		6,335		3,386		16,406		9,955

Fixed premium excess interest whole life		397		2,843		2,286		7,473

Single premium		658		—		2,075		—


Total Repetitive Premiums	$	33,524	$	29,568	$	96,627	$	86,677


Accumulation Deposits (1):
Annuity premiums:
Deferred fixed annuity:
Traditional annuity	$	49,988	$	52,917	$	132,791	$	191,277
Indexed annuity		637,017		632,875		1,699,182		1,778,971


Sub-total		687,005		685,792		1,831,973		1,970,248

Variable annuity		397		864		1,481		2,002
Funding agreements		436,000		—		610,666		26,200


Total Accumulation Deposits	$	1,123,402	$	686,656	$	2,444,120	$	1,998,450


(1)		Repetitive premiums (which we refer to herein as “sales”) exclude renewal and single or dump-in premiums. Sales and deposits for an insurance company are performance measures which are presented in accordance with industry practice and represent the amount of new business sold during the period. We believe sales and deposits are a measure of the productivity of our distribution network and are also a leading indicator of future revenue trends. However, revenues are driven by prior period sales and deposits as well as current period sales and deposits.

AmerUs Group Co.

Sources of Business

($ in thousands)


	For The Three Months Ended				For The Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
Protection Products Repetitive Premiums (1):
Career marketing organizations (CMOs)	$	8,783	$	8,127	$	25,423	$	23,377

Personal producing general agent (PPGA)		4,374		5,937		15,412		19,215

New York distribution		3,015		4,535		9,495		13,121

Independent agent force (2)		17,352		10,969		46,297		30,964


Total Repetitive Premiums	$	33,524	$	29,568	$	96,627	$	86,677


Accumulation Deposits (1):
Preferred producer (Career)	$	50,333	$	38,464	$	143,503	$	123,132

Personal producing general agent (PPGA)		10,600		8,380		21,732		23,910

Independent agent force (2)		626,469		639,812		1,668,219		1,825,208

Funding agreements		436,000		—		610,666		26,200

Total Accumulation Deposits	$	1,123,402	$	686,656	$	2,444,120	$	1,998,450


(1)		Repetitive premiums (which we refer to herein as “sales”) exclude renewal and single or dump-in premiums. Sales and deposits for an insurance company are performance measures which are presented in accordance with industry practice and represent the amount of new business sold during the period. We believe sales and deposits are a measure of the productivity of our distribution network and are also a leading indicator of future revenue trends. However, revenues are driven by prior period sales and deposits as well as current period sales and deposits.

(2)		Independent agent premiums through brokerages are included with all other independent agent premiums.

AmerUs Group Co.

Investment Summary

(Including Closed Block)

($ in thousands)


			September 30, 2006
	Amortized Cost		Unrealized Gain		Unrealized Loss			Carrying Value
Portfolio Composition:
Cash and cash equivalents	$	549,527	$	—	$	—		$	549,527
Securities available-for-sale:
Investment grade bonds		16,267,424		228,511		(327,665	)		16,168,270
Non-investment grade bonds		1,317,021		26,611		(29,316	)		1,314,316
Equity securities		97,290		879		—			98,169
Short-term investments		19,862		15		—			19,877
Securities for trading:
Investment grade bonds		1,119,789		—		—			1,119,789
Non-investment grade bonds		136,108		—		—			136,108
Equity securities		4,058		—		—			4,058
Short-term investments		2,480		—		—			2,480
Mortgage loans		1,018,752		—		—			1,018,752
Policy loans		502,303		—		—			502,303
Other invested assets		433,898		—		—			433,898

Total	$	21,468,512	$	256,016	$	(356,981	)	$	21,367,547


			December 31, 2005
	Amortized Cost		Unrealized Gain		Unrealized Loss			Carrying Value
Portfolio Composition:
Cash and cash equivalents	$	600,160	$	—	$	—		$	600,160
Securities available-for-sale:
Investment grade bonds		15,371,845		297,149		(204,917	)		15,464,077
Non-investment grade bonds		1,249,886		35,812		(21,842	)		1,263,856
Equity securities		74,951		707		—			75,658
Short-term investments		9,990		8		—			9,998
Securities for trading:
Investment grade bonds		1,286,830		—		—			1,286,830
Non-investment grade bonds		127,395		—		—			127,395
Equity securities		2,358		—		—			2,358
Mortgage loans		976,135		—		—			976,135
Policy loans		483,441		—		—			483,441
Other invested assets		347,552		—		—			347,552

Total	$	20,530,543	$	333,676	$	(226,759	)	$	20,637,460


	September 30, 2006		December 31, 2005
Investment Portfolio Data (1):
Average NAIC Rating		1.48		1.49
Average Life		10.37		9.82
Effective Duration		6.22		6.21
Weighted Average Book Yield		5.80		5.69
Quarterly New Money Rate		6.41		5.77


	September 30, 2006								December 31, 2005
	Amortized Cost		% of FMS			% of TIA (2)			Amortized Cost		% of FMS			% of TIA (2)
High Yield Securities:
NAIC 3	$	862,926		4.58	%		4.02	%	$	806,270		4.47	%		3.93	%
NAIC 4		529,666		2.81	%		2.47	%		533,201		2.96	%		2.60	%
NAIC 5		60,002		0.32	%		0.28	%		34,908		0.19	%		0.17	%
NAIC 6		535		—			—			2,902		0.02	%		0.01	%

Total	$	1,453,129		7.71	%		6.77	%	$	1,377,281		7.64	%		6.71	%


(1)		Investment portfolio data reflects fixed maturity securities (FMS) managed by AmerUs Capital Management.

(2)		TIA — Total Invested Assets

AmerUs Group Co.

Investment Summary

(Including Closed Block)

($ in thousands)


	September 30, 2006								December 31, 2005
	Market Value		% of FMS			% of TIA			Market Value		% of FMS			% of TIA
Fixed Maturity Securities by Category:
Government	$	419,370		2.2	%		2.0	%	$	487,223		2.7	%		2.4	%
Public Credit		10,252,522		54.7	%		48.0	%		10,111,795		55.7	%		49.0	%
Private Credit		2,699,206		14.4	%		12.6	%		2,482,831		13.7	%		12.0	%
Below Investment Grade		1,450,424		7.8	%		6.8	%		1,391,251		7.7	%		6.7	%
Mortgage-Backed (MBS)		2,172,976		11.6	%		10.2	%		2,121,298		11.7	%		10.3	%
Commercial Mortgage-Backed (CMBS)		1,176,039		6.3	%		5.5	%		1,204,944		6.6	%		5.8	%
Asset-Backed (ABS)		567,946		3.0	%		2.7	%		327,435		1.8	%		1.6	%
Redeemable Preferred Stock		—		—			—			15,381		0.1	%		0.1	%

Total	$	18,738,483		100.0	%		87.8	%	$	18,142,158		100.0	%		87.9	%


			September 30, 2006								December 31, 2005
			Market Value		% of FMS			% of TIA			Market Value		% of FMS			% of TIA
Fixed Maturity Securities by Quality:
NAIC Rating		S&P Equivalent
	1	A- or higher	$	11,876,124		63.4	%		55.6	%	$	11,337,428		62.5	%		54.9	%
	2	BBB- to BBB+		5,411,935		28.9	%		25.3	%		5,413,479		29.9	%		26.2	%

		Investment Grade		17,288,059		92.3	%		80.9	%		16,750,907		92.4	%		81.1	%

	3	BB- to BB+		863,707		4.6	%		4.0	%		817,530		4.5	%		4.0	%
	4	B- to B+		526,414		2.8	%		2.5	%		534,480		2.9	%		2.6	%
	5 & 6	CCC+ or lower		60,303		0.3	%		0.3	%		39,241		0.2	%		0.2	%

		Below Investment Grade		1,450,424		7.7	%		6.8	%		1,391,251		7.6	%		6.8	%


		Total	$	18,738,483		100.0	%		87.7	%	$	18,142,158		100.0	%		87.9	%


	September 30, 2006								December 31, 2005
	Market Value		% of FMS			% of TIA			Market Value		% of FMS			% of TIA
Fixed Maturity Securities by Industries Sector:
Basic Industry	$	877,472		4.7	%		4.1	%	$	905,312		5.0	%		4.4	%
Capital Goods		1,065,230		5.7	%		5.0	%		974,375		5.4	%		4.7	%
Communications		1,188,692		6.3	%		5.6	%		1,372,702		7.6	%		6.6	%
Consumer Cyclical		1,255,851		6.7	%		5.9	%		1,106,303		6.1	%		5.4	%
Consumer Non Cyclical		1,647,414		8.8	%		7.7	%		1,577,229		8.7	%		7.6	%
Energy		1,136,769		6.1	%		5.3	%		1,139,151		6.3	%		5.5	%
Technology		373,708		2.0	%		1.7	%		261,740		1.4	%		1.3	%
Transportation		640,911		3.4	%		3.0	%		598,977		3.3	%		2.9	%
Industrial Other		259,710		1.4	%		1.2	%		221,532		1.2	%		1.1	%
Utilities		2,269,988		12.1	%		10.6	%		2,193,589		12.1	%		10.6	%
Financial Institutions		3,097,448		16.5	%		14.5	%		3,045,535		16.8	%		14.8	%

Sub-total		13,813,193		73.7	%		64.6	%		13,396,445		73.9	%		64.9	%

Other (1)		4,925,290		26.3	%		23.1	%		4,745,713		26.1	%		23.0	%


Total	$	18,738,483		100.0	%		87.7	%	$	18,142,158		100.0	%		87.9	%


(1)		Includes foreign and domestic government, asset-backed securities, mortgage-backed securities, and collateralized mortgage-backed securities


	September 30, 2006								December 31, 2005
	Market Value		% of MBS			% of TIA			Market Value		% of MBS			% of TIA
Mortgage Backed Securities:
Pass-thru	$	1,133,921		52.2	%		5.3	%	$	1,179,424		55.6	%		5.7	%
Planned Amortization Class (PACs)		460,117		21.2	%		2.2	%		452,120		21.3	%		2.2	%
Sequential Pay		508,828		23.4	%		2.4	%		447,593		21.1	%		2.2	%
Adjustable Rate Mortgages (ARMs)		70,110		3.2	%		0.3	%		42,161		2.0	%		0.2	%

Total	$	2,172,976		100.0	%		10.2	%	$	2,121,298		100.0	%		10.3	%

AmerUs Group Co.
Policyowner Liability Characteristics — Annuities

($ in thousands)

September 30, 2006


					Fixed
	Fixed		Fixed		Indexed		Fixed
	Traditional		Indexed		Derivatives		Indexed
	Annuities		Annuities		Market Value		Annuities
	Account Value		Account Value (4)		Adjustment		GAAP Reserves
FIXED DEFERRED ANNUITY SURRENDER CHARGE %:
Accrual adjustment	$	—	$	11,527	$	1,035	$	12,562
No surrender charge		1,703,142		41,058		2,851		43,909
1 percent		44,811		68,088		7,578		75,666
2 percent		129,159		230,729		37,669		268,398
3 percent		263,197		315,441		54,644		370,085
4 percent		314,048		141,026		18,661		159,687
5 percent		343,233		65,049		3,874		68,923
6 percent		330,310		101,484		3,759		105,243
7 percent		318,881		202,273		5,505		207,778
8 percent		337,979		344,859		7,375		352,234
9 percent		456,476		425,465		11,133		436,598
10 percent or greater		464,531		6,629,550		149,392		6,778,942


Total	$	4,705,767	$	8,576,549	$	303,476	$	8,880,025

MARKET VALUE ADJUSTMENT PROTECTION:
MVA provision on contract	$	400,971	$	5,586,731	$	120,420	$	5,707,151
Total return strategy		—		955,094		135,799		1,090,893
Non-MVA		4,304,796		2,034,724		47,257		2,081,981


Total	$	4,705,767	$	8,576,549	$	303,476	$	8,880,025

FIXED ANNUITY-INTEREST GUARANTEE PERIOD:
Monthly guarantee	$	217,401	$	—	$	—	$	—
1 Year		4,212,816		—		—		—
Multi-year		275,550		—		—		—
Cumulative floor (1)		—		8,576,549		303,476		8,880,025


Total	$	4,705,767	$	8,576,549	$	303,476	$	8,880,025

FIXED ANNUITY-ULTIMATE MINIMUM GUARANTEE RATE:
2 percent	$	389,666	$	—	$	—	$	—
3 percent		2,018,460		—		—		—
3.25 percent		367,225		—		—		—
3.50 percent		493,999		—		—		—
4 percent		1,387,046		—		—		—
4.5 percent		49,371		—		—		—
Cumulative floor (1)		—		8,576,549		303,476		8,880,025


Total	$	4,705,767	$	8,576,549	$	303,476	$	8,880,025

CREDITED RATE VS. MINIMUM GUARANTEED RATE DIFFERENTIAL (2) (3):
No differential	$	3,855,501	$	—	$	—	$	—
0.0% - 0.5%		169,921		—		—		—
0.5% - 1.0%		361,245		—		—		—
1.0% - 1.5%		18,839		—		—		—
1.5% - 2.0%		93,800		—		—		—
2.0% - 2.5%		90,307		—		—		—
2.5% - 3.0%		13,394		—		—		—
Greater than 3.0%		102,760		—		—		—
Cumulative floor (1)		—		8,576,549		303,476		8,880,025


Total	$	4,705,767	$	8,576,549	$	303,476	$	8,880,025


(1)		Indexed products provide guarantees based on a cumulative floor over the term of the product.

(2)		Recent issues may contain deferred sales inducements rates ranging from 1.5% to 2.5%.

(3)		Includes products with multi-year interest rate guarantees for which the credited rate cannot be decreased until the end of the multi-year period. At the end of the multi-year guarantee period, we will have the ability to lower the crediting rate to the minimum guaranteed rate by an average decrease of approximately 160 basis points

(4)		Account value is a non-GAAP financial measure for indexed products. For GAAP, indexed product liabilities are to be stated at fair value in accordance with accounting for derivatives. The comparable GAAP measure is presented in the last column and the difference is the derivative market adjustment in the third column. The non-GAAP measure presentation is used by management to analyze potential future surrender charge income.

AmerUs Group Co.

Annuity Segment Spread

($ in thousands)


	Rolling 12 Months Ended
	September 30,
ANNUITY SEGMENT SPREADS LTM:	2006			2005
Asset earned rate		5.70	%		5.73	%
Liability credited rate (1)		3.26	%		3.43	%

Product spread		2.44	%		2.30	%


	Rolling 12 Months Ended
	September 30, 2006
COMPONENTS OF ANNUITY SEGMENT SPREAD ALCULATION (2):	GAAP			Adjustment (1)			Non-GAAP
Investment income (3)	$	704,186					$	704,186

Average invested assets	$	12,362,313					$	12,362,313


Asset earned rate		5.70	%					5.70	%


Annuity segment benefit expense (1)	$	433,486		$	(22,240	)	$	411,246

Average annuity segment liabilities (1)	$	12,802,869		$	(187,987	)	$	12,614,882


Liability credited rate		3.39	%					3.26	%


Product spread		2.31	%					2.44	%


	Rolling 12 Months Ended
	September 30, 2005
	GAAP			Adjustment (1)			Non-GAAP
Investment income (3)	$	644,082					$	644,082

Average invested assets	$	11,247,233					$	11,247,233


Asset earned rate		5.73	%					5.73	%


Annuity segment benefit expense (1)	$	416,741		$	(22,195	)	$	394,546

Average annuity segment liabilities (1)	$	11,643,917		$	(123,239	)	$	11,520,678


Liability credited rate		3.58	%					3.43	%


Product spread		2.15	%					2.30	%


(1)		The liability credited rate is calculated using the annuity liability account value as the denominator for all annuity product types. The annuity liability account value is a non-GAAP financial measure for indexed annuity products. For GAAP, indexed product liabilities are to be stated at fair value following derivative accounting. In addition, the liability credited rate excludes deferred sales inducements amortization from total benefit expense. The comparable GAAP measure is presented in the “Components of Annuity Segment Spread Calculation” section on this page. The non-GAAP measure presentation is used by management to measure the liability credited rate exclusive of the fair value adjustments that will fluctuate from period to period depending on the prevailing interest rate and economic environment and exclusive of the deferred sales inducements amortization that historically has not been a part of this measure.

(2)		The annuity segment spread calculation includes fixed annuity and indexed annuity products only. IL Annuity products, which we are no longer selling, and funding agreements are excluded from the calculation.

(3)		Excludes surrender charge income.

AmerUs Group Co.

Closed Block

($ in thousands)


	September 30,		December 31,
	2006		2005
LIABILITIES:
Future life and annuity policy benefits	$	2,731,718	$	2,765,095
Policyowner funds		7,013		7,835
Accrued expenses and other liabilities		11,439		6,420
Dividends payable to policyowners		150,848		154,793
Policy and contract claims		12,698		17,986
Policyowner dividend obligation		76,498		116,684


Total Liabilities		2,990,214		3,068,813


ASSETS:
Securities available-for-sale at fair value:
Fixed maturity securities		1,932,794		1,916,052
Mortgage loans		50,629		60,541
Policy loans		334,294		331,561
Cash and cash equivalents		2,201		63,506
Accrued investment income		31,965		32,972
Premiums, fees and other receivables		53,981		58,778


Total Assets		2,405,864		2,463,410


Maximum future earnings to be recognized from assets and liabilities of the Closed Blocks	$	584,350	$	605,403


	For The Three Months Ended						For The Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
REVENUES AND EXPENSES:
Insurance premiums	$	35,972		$	37,582		$	111,344		$	122,467
Product charges		1,409			1,472			4,527			4,618
Net investment income		35,513			35,393			107,114			110,173
Realized/unrealized gains (losses) on investments		121			(650	)		(1,997	)		(560	)
Policyowner benefits		(49,071	)		(47,174	)		(143,722	)		(142,577	)
Underwriting, acquisition and other expenses		(842	)		(785	)		(3,881	)		(1,973	)
Dividends to policyowners		(14,514	)		(17,066	)		(46,851	)		(65,057	)


Contribution from the Closed Block before income taxes	$	8,588		$	8,772		$	26,534		$	27,091

AmerUs Group Co.

Additional Information

($ in thousands)


	September 30,		December 31,
	2006		2005
LIFE INSURANCE IN FORCE (FACE AMOUNT) (1):
Traditional life	$	66,556,000	$	68,386,000
Universal life		18,454,000		19,271,000
Indexed life		19,652,000		14,797,000


Total Life Insurance In Force	$	104,662,000	$	102,454,000


RESERVES (GAAP) (including Closed Block):
Traditional life	$	3,659,032	$	3,636,832
Universal life		1,639,650		1,618,755
Indexed life		896,754		595,087

Total life insurance reserves		6,195,436		5,850,674
Deferred fixed annuity		4,963,139		6,019,545
Indexed annuity		8,880,025		7,526,798

Total annuity reserves		13,843,164		13,546,343

Total Reserves	$	20,038,600	$	19,397,017


NUMBER OF PRODUCERS:
Protection Products Segment:
Career marketing organizations		1,343		1,139
Personal producing general agents and sub-agents		4,721		5,092
Independent agents — other than New York		19,657		15,972
Independent agents — New York		7,098		6,475

Protection Products Segment — Total Agents		32,819		28,678


Accumulation Products Segment — Independent Agents		19,119		17,728


	September 30,			September 30,
	2006			2005
LIFE INSURANCE LAPSE RATE — LTM		6.1	%		6.6	%

ANNUITY WITHDRAWAL RATES — LTM
With internal replacements		13.4	%		9.4	%
Without internal replacements		11.6	%		7.6	%


(1)		Life insurance in force is a performance measure utilized by investors, analysts and the Company to assess the Company’s position in the industry.

AmerUs Group Co.

Additional Information

($ in thousands)


	Protection Products			Accumulation Products			AOCI
DAC ROLLFORWARD:	Segment			Segment			Adjustment		Total
Beginning Balance — December 31, 2005	$	748,510		$	999,671		$	6,978	$	1,755,159

Capitalization		162,124			214,312			—		376,436

Amortization		(47,173	)		(69,890	)		—		(117,063	)

FAS 115 adjustment		—			—			58,777		58,777


Ending Balance - September 30, 2006	$	863,461		$	1,144,093		$	65,755	$	2,073,309


	Deferred
OTHER ROLLFORWARDS:	Sales Inducements			VOBA
Beginning Balance — December 31, 2005	$	261,322		$	356,949

Capitalization		84,364			—

Amortization		(18,682	)		(35,463	)

FAS 115 adjustment		11,246			13,027


Ending Balance — September 30, 2006	$	338,250		$	334,513


CONTRIBUTION FROM
THE CLOSED BLOCK:	2006		2007
First quarter	$	9,103	$	8,927

Second quarter		8,843		8,667

Third quarter		8,588		8,414

Fourth quarter		8,338		8,166


Total	$	34,872	$	34,174

NOTE: The above table sets forth the actuarial calculation of the expected contribution from the Closed Block. The actual contribution from the Closed Block may vary from the amounts illustrated here due to differences between actual mortality results, investment results and other factors as compared to the expected results for these items used in the actuarial calculation.

AmerUs Group Co.

Income Tax Rate Reconciliation


	For The Nine Months Ended
	September 30,
	2006			2005

Corporate federal income tax rate		35.0	%		35.0	%
Net benefit of tax credits		—			(.1	%)
Dividend received deduction		(0.2	%)		(.6	%)
Non-deductible expenses		0.5	%		1.2	%
Tax exempt income		(1.5	%)		(1.8	%)
State taxes (benefit) on non-life operations		(0.1	%)		(.6	%)
Prior year overpayments		(0.2	%)		—
Provision increases (releases)		1.1	%		(10.9	%)
Additional tax incurred on joint venture investment sale (1)		—			3.6	%

Effective tax rate		34.6	%		25.8	%


(1)		During the third quarter of 2005, the Company sold its 34% joint venture interest in AMAL Corporation and incurred additional income tax related to the reversal of taxable temporary differences without the benefit of previously anticipated dividends received deductions.

Corporate Profile

AmerUs Group Co. is an Iowa corporation headquartered in Des Moines, Iowa that markets and
underwrites a complete line of life insurance and annuity products to individuals and small
businesses. With $26.0 billion in assets, AmerUs sells products in 50 states, the District of
Columbia and the Virgin Islands through its operating subsidiaries: AmerUs Life Insurance Company;
American Investors Life Insurance Company, Inc.; Financial Benefit Life Insurance Company;
Indianapolis Life Insurance Company; Bankers Life Insurance Company of New York; and IL Securities, Inc.

AmerUs Group’s common stock is traded on the New York Stock Exchange (NYSE) under the trading symbol
“AMH”, PRIDES under the trading symbol “AMH A”, and preferred stock under the trading symbol “AMH Pr”.

Corporate Headquarters

AmerUs Group Co.
699 Walnut Street — 20th Floor
Des Moines, IA 50309
Phone: (515) 362-3600
Fax: (515) 362-3648

Common Stock and Dividend Information


					Dividend
	High		Low		Declared
2006
First Quarter	$	62.37	$	56.61	$	0.00
Second Quarter	$	61.32	$	52.57	$	0.00
Third Quarter	$	68.01	$	58.79	$	0.00

2005
First Quarter	$	49.08	$	43.36	$	0.00
Second Quarter	$	48.50	$	45.06	$	0.00
Third Quarter	$	57.57	$	48.91	$	0.00
Fourth Quarter	$	60.14	$	54.83	$	0.40


Investor Relations		Transfer Agent and Registrar

Marty Ketelaar		Mellon Investor Service, LLC
Vice President — Investor Relations		480 Washington Blvd.
Phone — (515) 362-3693		Jersey City, NJ 07310
Fax — (515) 362-3648		(800) 304-9709
e-mail: marty.ketelaar@amerus.com		www.melloninvestor.com

Annual Report and Other Information

Shareholders may receive, without charge, a copy of AmerUs Group Co.’s Annual Report for the year ended December 31, 2005 by contacting the Company at (515) 362-3694 or by visiting our web site at www.amerus.com.

AmerUs Group Co.’s Form 10-K (without exhibits) filed with the Securities and Exchange Commission for the year ended December 31, 2005, Forms 10-Q and press releases are also available at no charge by calling (515) 362-3694 or by visiting the Company’s web site at www.amerus.com.