Protecting members’ funds – 5 facts to know
1. Modern Woodmen’s increasing asset base is a strength
Modern Woodmen has experienced steady growth in assets. In 2016, assets increased by 4.4 percent to $15.4 billion. All of the funds members place with Modern Woodmen are backed by our $15.4 billion in assets.
2. Our investment philosophy safeguards members’ principal
Modern Woodmen manages its assets so that changes in the financial markets – recessions, depressions or periods of inflation – have minimal effect. Modern Woodmen is also careful not to follow investment fads. To build our investment portfolio, our financial management team follows these principles:
- High-quality investments.
- Diversified investments.
- Competitive rates of return.
Assets are invested primarily in high-quality,
low-risk investments. As of Dec. 31, 2016,
approximately 99.3 percent of bonds were
of high or medium quality.
3. Our industry rating from an independent analyst is high
Modern Woodmen has an A (Excellent) rating from A.M. Best. “A” ranks third highest of 15 ratings.
4. Surplus and reserves provide additional protection to members
- Modern Woodmen’s total surplus was $1.6 billion at the end of 2016. Surplus provides additional safety for members and ensures Modern Woodmen’s ability to meet unforeseen contingencies and provide funds for future growth.
- Modern Woodmen’s total life insurance, annuity and other certificate reserves increased by 4.1 percent in 2016 to more than $12 billion. These reserves are funds held to guarantee future benefits to members.
- Modern Woodmen has maintained a solvency ratio of between 111 and 112 percent. This means that for every $100 of liabilities – promises made to members – Modern Woodmen has more than $111 of assets to back up those promises.
5. Modern Woodmen adheres to state insurance department regulations to protect consumers
Modern Woodmen and other life insurance and annuity providers are highly regulated by state insurance departments. Regulations, such as the amount of reserves to set aside and the risk level of investments, provide additional protection to members.