EXHIBIT 99.1


                                   [FIC Logo]

                                  June 13, 2005



Dear Shareholder:

     For the past twelve months,  your new  management  team has been engaged in
the arduous  process of examining and correcting  the financial  accounts of our
company covering  multiple years.  This work required review of large volumes of
accounting data and entries,  as well as extensive analysis of complex financial
transactions  and the records of those  transactions.  In this work, the Company
has  been  assisted  by the  accounting  firm of  KPMG  LLP  and  other  outside
accountants and actuaries.  The Company's  registered  public  accounting  firm,
PricewaterhouseCoopers LLP, has worked closely with the Company in reviewing and
auditing the Company's revised financial statements.

     The scope of this  accounting  effort has proven to be larger  than  anyone
supposed at the outset.  As a result, we have been long delayed in the filing of
FIC's Form 10-K report for 2003. In addition,  our Form 10-K report for 2004 and
our 10-Q reports for the first three  quarters of 2004 and for the first quarter
of 2005 have also been  delayed.  I am aware that this  delay has caused  severe
inconvenience  and  frustration to many of you.  Please know that we have worked
intensely and tirelessly to complete the work in a careful and thorough  manner,
and in the end to provide us all with sound  financial  reports that  accurately
depict the financial condition and results of operations of our company.

     I am happy to  report  that in  recent  weeks,  this work has begun to bear
fruit. In March, our two insurance company  subsidiaries,  Family Life Insurance
Company and  Investors  Life  Insurance  Company of North  America,  filed their
statutory   (unaudited)   financial  statements  for  2004  with  the  insurance
regulators. In March and May, respectively, Family Life and Investors Life filed
their audited 2003 statutory financial statements with the insurance regulators.
On May 16,  2005,  our  insurance  company  subsidiaries  filed their  statutory
financial  statements  (unaudited)  for the first  quarter of 2005,  on a timely
basis.

     These two subsidiaries  comprise most of the operating business of FIC. The
statutory  accounting  practices  applicable to their financial  statements vary
significantly from generally accepted  accounting  principles  ("GAAP") that are
used in preparing FIC's  consolidated  financial  statements.  In addition,  the
statutory  statements do not include  information  pertaining to the  operations
(primarily  expenses) or the debt of FIC (the holding  company of the  insurance
company   subsidiaries)   or  the  operations  of  the   non-insurance   company
subsidiaries  of  FIC.  Nonetheless,   completion  of  the  statutory  financial
statements  clears the path for completion of FIC's GAAP accounting for 2003 and
then for subsequent  years. We have already devoted  extensive  attention to the
GAAP  financials,  and it is on the completion of these reports that our finance
group, outside auditors, and accounting consultants will now focus.



                                      - 1-







     The  complexity of the  accounting  issues that we have found and the large
number of accounting  periods that we have needed to reexamine have taught us to
be cautious about predicting  completion  dates. With that in mind, I assure you
that we are  focusing  our efforts on the prompt  completion  of FIC's 2003 Form
10-K report, with the 2004 reports to follow as soon as possible thereafter.

     We will also be  continuing  our  efforts  to improve  the sales,  business
operations,  and  business  outlook of our  company.  In that  connection,  I am
pleased to inform you that the sale of the River Place Pointe office complex for
$103  million,  which we announced on March 23, 2005,  was  completed on June 1,
2005.

     Thank you for your patience while we complete this accounting and reporting
effort. We look forward
to completing these tasks promptly and accurately.

                                        Sincerely yours,

                                        /s/ J. Bruce Boisture

                                        J. Bruce Boisture
                                        CEO & President



     As  provided  by the  safe  harbor  provisions  of the  Private  Securities
Litigation Reform Act of 1995,  Financial  Industries  Corporation cautions that
the statements in this letter, including but not limited to, statements relating
to the timing of filings,  future filings,  keeping reports current,  efforts to
improve  sales,  operations,  and  outlook,  and  other  matters  that  are  not
historical factual information are forward-looking  statements.  Such statements
are subject to known and unknown  risks,  uncertainties  and other  factors that
could cause actual results to vary  materially  from those  contemplated  by the
forward-looking  statements including, among other things: timing and results of
reviews, audits and assessments;  competing demands on the time and resources of
the Company and its personnel; the need to retain a registered public accounting
firm for 2004;  the  timing of actions  by such firm and other  accountants  and
consultants;  ability  to  implement  improvements  to our  business;  and other
factors discussed in the Company's other filings with the SEC.



                                     - 2 -