Protecting members financially and fraternally
In 2016, Rock Island-based Modern Woodmen of America remained committed to preserving members’ futures. The fraternal financial services organization reports that life insurance in force grew by approximately $800 million for the sixth straight year, and assets reached $15.4 billion. Additionally, Modern Woodmen contributed $21.7 million to communities nationwide through its fraternal member benefits and programs last year.
“Financially and fraternally, our mission is to improve quality of life for our members,” said W. Kenny Massey, president and CEO. “We do everything with our members in mind.”
Growth in life insurance in force
Life insurance in force, the total amount of life insurance owned by members to protect their families in case of premature death, increased to $38.9 billion.
“Life insurance helps families and individuals cope financially after the loss of a loved one,” said Massey. “That protection is invaluable.”
Assets reach $15.4 billion
Modern Woodmen’s assets increased 4.4 percent over 2015, reaching $15.4 billion. The organization’s assets are primarily invested in high-quality, low-risk corporate and government bonds.
Annuity assets under management equaled $8.9 billion.
Total life insurance, annuity and other certificate reserves, which are funds held to guarantee future benefits to members, increased 4.1 percent to nearly $12 billion.
Strong operational results
Total life insurance and annuity premium income in 2016 was $1.04 billion. Compared to 2015, fixed annuity certificate sales increased 19 percent, while variable annuity premiums decreased by 4.1 percent as a result of market conditions.
Payments and benefits to members in 2016 totaled $871 million. This includes death benefits, annuity payments and surrender benefits. An additional $7.2 million in dividend payments was refunded to life insurance and annuity certificates.
Net gain from operations after dividends was $5.3 million with a total net income of $28.2 million.
Total surplus and special reserves were more than $1.6 billion in 2016. Surplus and special reserves provide additional safety for members and ensure Modern Woodmen’s ability to meet unforeseen events and provide funds for future growth opportunities.
Modern Woodmen has a solvency ratio of 111.86 percent. This means that for every $100 of liabilities (promises made to members), Modern Woodmen has $111.86 of assets to back up those promises.
In comparison to Modern Woodmen’s strength, the industry average is a solvency ratio of 105.95, or $105.95 of assets for every $100 of liabilities. This is calculated from the 25 leading life insurance companies by assets. (Standard Analytical Service, Inc., 2016)
Fraternal programs support communities nationwide
Modern Woodmen’s national membership totals nearly 764,000 members. In 2016, Modern Woodmen contributed $21.7 million to support family-oriented member benefits and programs. These benefits and programs include disaster relief assistance, college scholarships, social and volunteer service programs by adult chapters and youth service clubs nationwide, and educational programs for schools and youth groups.
Fraternal highlights from 2016 include:
· Modern Woodmen members were part of 2,466 adult chapters, 283 Summit chapters (for members age 55 and over) and 782 youth service clubs. Nearly 1 million people attended Modern Woodmen chapter social, educational and volunteer events throughout the year.
· Modern Woodmen members helped raise $32.2 million in total contributions for community causes supported by the organization’s Matching Fund Program.
· As part of the organization’s 2016 Be an Everyday Hero project, members from 89 chapters, Summit chapters and youth service clubs across the country held 273 service projects and fundraising events to honor and thank first responders like local police officers, firefighters, military members and more. More than 2,000 heroes were recognized.
· Youth service club members recorded more than 105,000 hours of volunteer service; chapter and Summit chapter members performed more than 456,000 hours of service.
· 1.3 million children participated in Modern Woodmen’s free youth educational programs.
Modern Woodmen serves members for life. The tax-exempt fraternal benefit society offers life insurance, annuity and investment* products to improve the quality of life of its members, their families and their communities. In turn, members make an impact through social, educational and volunteer activities.
*Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America.
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