BCS Financial Corporation

grow.diversify.protect. this is what we do.

2019

BCS Financial Corporation

grow. diversify. protect.

For more than 70 years, BCS has delivered solutions to Blue

Cross and Blue Shield Plans and their

members. We are rated A- (Excellent)

by A.M. Best, licensed in all 50 states,

and collaborate with partners worldwide

to grow, diversify, and protect.

BCS Financial Corporation

our value story. Seventy years ago, BCS began providing customized solutions to Blue Cross and Blue Shield companies. Today, we have expanded our core business to become an insightful and responsive resource for Blue Cross Blue Shield organizations.

1970–1979HSI-MIA pioneers vision, dental, and chiropractic benefits for national accounts

1950–1953 Blue Shield Association is created and forms a similar national Blue entity, Medical Indemnity of America (MIA), a property and casualty insurance company

HSI and MIA merge operations, becoming known as HSI-MIA

1948–1949Blue Cross Association is created and forms

the first national Blue company, Health Services, Inc. (HSI), a life insurance company

1954–1969HSI-MIA issues the first national Blue hospital contracts for the automotive

and telecom industries, creating national account standards for Blue Plans

1980–1982BCS Financial Corporation (BCS)

is created to own HSI-MIA

HSI is renamed BCS Life Insurance Company (BCSL) and MIA is renamed BCS Insurance Company (BCSI)

1990–1999BCS creates Medical Stop

Loss insurance program

BCS begins administering Plan Investment Fund

BCS introduces Agent Errors & Omissions program

2016–Present BCS creates 4 Ever Life International Limited

to expand GeoBlue availability

BCS launches BCS Re, a segregated-cell captive

BCS invests in LifeSecure Insurance Company to advance ancillary growth strategy

BCS introduces new Cyber Liability solutions

1983–1989 BCS develops BCBS Organ and Bone Marrow Transplant Pool

BCS launches Group Universal Life program for Blue employees

BCS forms BCBS Professional Liability Program, utilizing Plan’s Liability Insurance Company

BCS underwrites healthcare coverage for the 1984 and 1988 U.S. Olympic Teams

2000–2015BCS develops industry-leading limited benefit program EssentialCare

BCSL becomes 4 Ever Life Insurance Company and is awarded two special purpose BCBS underwriting licenses

BCS invests in, and begins underwriting, GeoBlue international healthcare

BCS launches Ancilyze, an ancillary optimization service

Company History

grow. diversify. protect.

Lives Covered

36Blue Owners

100%Blue-Owned

70+Years of Service to Blue Plans

$628M

$352MAnnual Revenue within Blue Plans

$1.05BAverage Assets Under Management through Plan Investment Fund

18 15 4.31 A-Total Line of BusinessSolutions

Blue Line of Business Solutions

Average Products Per Plan

Rated A- (Excellent) by A.M. Best

Company at a Glance

Annual Revenue

50 States Licensed to provide life, health, property, and casualty through our companies and agencies nationwide

Data as of February 2019

BCS Financial Corporation

what we do.

Through our primary product segments, BCS is the strategic partner to deliver growth, diversification, and protection solutions for Blue Plans and commercial market leaders, alike.

Ancillary Income Solutions

Solving for benefit gaps by providing personalized and affordable ancillary solutions that protect the financial wellness of healthcare consumers

Our Portfolio

International Healthcare

Limited Benefits

Accident Indemnity

Critical Illness

Hospital Indemnity

Key Benefits

Expands revenue streams

Increases persistency

Grows member base

Large Claim Solutions

Coverage that protects balance sheets against large and unpredictable claims

Our Portfolio

Medical Stop Loss

Plan Excess of Loss

Provider Excess

Key Benefits Leverages scale through spread of risk

Protects employers who self-fund

Minimizes exposure to financial risk

BCS has been a terrific partner at every turn. Their ability to strategize with us on market opportunities has been critical to ensuring our customers and brokers have access to quality individual and worksite products that complement our medical plans.

Justin Fallein Director, Ancillary Strategy & SalesBlue Cross and Blue Shield of Kansas City

BCS has provided a solution for our customers, and has been a flexible partner. Their ability to strategize with us to offer stop loss has been critical in providing our customers peace of mind.

Heather Linton Director, National AccountsBlue Cross and Blue Shield of Illinois, Montana, New Mexico, Oklahoma & Texas

grow. diversify. protect.

Financial Service Solutions

Investment vehicles and strategies that optimize the financial strength of Blue Plans

Our Portfolio

Money Market Funds

Turn-Key Captive Solutions

Strategic Investments

Wellington Affinity Group Program

Key Benefits

Centralized financial resource

Competitive performance with reduced investment costs

100% Blue Plan ownership

BCS Products within the Blues: GeoBlue Stop Loss CyberBlue

TOP

Specialty Risk Solutions

Enterprise risk management and specialty risk products that meet current needs and address emerging trends

Our Portfolio

Cyber Liability

Travel Insurance

Agent Errors & Omissions

Student Accident

Key Benefits

Protects against risk related to data breaches

Improves broker relationships

Provides travelers with additional protection

Partnering with BCS in its Privacy and Network Security Insurance program gives us the ability to influence coverage terms and conditions at a level far beyond what would be available to us from the traditional market. BCS has proven time and time again that they are knowledgeable, trustworthy, and there for us when we need them.

Fred Driscoll Director, Risk Financing and Captive OperationsBlue Cross Blue Shield of Michigan

We have used Plan Investment Fund for excess daily cash based on its reliability, the oversight provided by Blue Plan CFOs serving as its board, and its ease of use. It is a critical part of our cash management operations.

Jim Haefner Senior Vice President & Assistant TreasurerExcellus BlueCross BlueShield

BCS Financial Corporation

Anthem Arkansas Blue Cross and Blue Shield

BlueCross BlueShield of South Carolina BlueCross BlueShield of Tennessee

Blue Cross and Blue Shield of Alabama

Blue Cross and Blue Shield of Kansas

Blue Cross and Blue Shield of Kansas City

Blue Cross and Blue Shield of Louisiana

Blue Cross and Blue Shield of Minnesota

Blue Cross and Blue Shield of Nebraska

Blue Cross and Blue Shield of North Carolina

Blue Cross and Blue Shield of Vermont

Blue Cross & Blue Shield of Mississippi

Blue Cross & Blue Shield of Rhode Island

Blue Cross Blue Shield of Arizona

Blue Cross Blue Shield of Massachusetts

Blue Cross Blue Shield of Michigan and Blue Care Network

Blue Cross Blue Shield of North Dakota

Blue Cross Blue Shield of Wyoming

Blue Cross of Idaho

Blue Shield of California

Cambia Health Solutions

Capital BlueCross

CareFirst BlueCross BlueShield Excellus BlueCross BlueShield

Florida Blue

Hawaii Medical Service Association

Health Care Service Corporation

HealthNow New York

Highmark Health

Horizon Blue Cross Blue Shield of New Jersey Independence Blue Cross

Premera Blue Cross

Triple-S Management

Wellmark

Ancillary Income

Large Claim

SpecialtyRisk

FinancialService

Wholly-owned by all Blue Cross Blue Shield primary licensees, BCS delivers solutions that serve the needs of Blue organizations across the country.

success is in the family.

Products per Plan

Data as of January 1, 2019

grow. diversify. protect.

Blue Ownership

BCS Board of Directors

Daniel J. Loepp, Chairman President and Chief Executive Officer Blue Cross Blue Shield of Michigan

Curtis Barnett President and Chief Executive Officer Arkansas Blue Cross and Blue Shield

Scott Beacham Chief Executive Officer BCS Financial Corporation

Gregory E. Deavens Executive Vice President, Chief Financial Officer, and TreasurerIndependence Blue Cross

John E. Gallina Executive Vice President and Chief Financial Officer Anthem

Roberto García-Rodríguez President and Chief Executive Officer Triple-S Management

Willis T. King, Jr. Chairman First Protective Insurance Company

Robert F. Orlich Retired, President and Chief Executive Officer Transatlantic Reinsurance Company

Scott P. Serota President and Chief Executive Officer Blue Cross Blue Shield Association

Blair TodtSenior Vice President, Chief Legal Officer, and Corporate SecretaryHealth Care Service Corporation

BCS Companies

BCS Financial Corporation BCS Insurance Company BCS Insurance Agency BCS Financial Services Corporation BCS Re

4 Ever Life Insurance Company 4 Ever Life International Limited

Plan Investment Fund

Ancilyze Technologies

BCS Investments

LifeSecure GeoBlueBlue Venture Fund II and III

BCS Leadership

Scott Beacham Chief Executive Officer

Peter L. Costello President and Chief Operating Officer

James A. Drew Senior Vice President, Marketing, Product, and Strategic Ventures

Terry M. Hackett General Counsel and Secretary

David J. Jacobs Chief Actuary

Susan C. Lindquist Chief Human Resources Officer

Susan A. Pickar Chief Financial Officer and Treasurer

BCS Family of Companies and Assets

WA

OR

NVUT

AZ

HI

NM

TX

OK

KS MO KYCO

AR

MS AL GA

SC

NCTN

FL

Puerto Rico

LA

CA

ID

MT

WY

ND

MN WI

IL INOH

PA

MD DE

NJ

NY

VT

WV VA

IANE

MISD

NH

CT RI

ME

MA

BCS Financial Corporation

MissionTo enhance the success of Blue Cross and Blue Shield companies by creating competitive advantage

VisionTo be a catalyst for innovative solutions for Blue Cross and Blue Shield companies

grow. diversify. protect.

Years and counting

© 2019 BCS Financial Corporation

BCS Financial Corporation

2 Mid America PlazaSuite 200Oakbrook Terrace, IL 60181630.472.7700bcsf.com

grow. diversify. protect.