Protecting members’ funds – 5 facts to know
1. Modern Woodmen’s asset base is a strength
In 2019, assets increased by 5%, to reach nearly $17.34 billion. All of the funds members place with Modern Woodmen are backed by these 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, 2019, approximately 99.7 percent of bonds were of high or medium quality.
3. Our industry ratings are high
Modern Woodmen has an A (Excellent) rating from A.M. Best. “A” ranks third highest of 15 ratings.
Additionally, KBRA has assigned Modern Woodmen an insurance financial strength rating of AA-, the second highest of its 10 rating categories.
4. Surplus and reserves provide additional protection to members
- Modern Woodmen’s total surplus was $2.02 billion at the end of 2019. Surplus provides additional safety for members and ensures Modern Woodmen’s ability to meet unforeseen contingencies and provide funds for future growth.
- Total life insurance, annuity and other certificate reserves reached $12.9 billion. These reserves are funds held to guarantee future benefits to members.
- Modern Woodmen’s solvency ratio reached 113.17%. This means that for every $100 of liabilities – promises made to members – Modern Woodmen has more than $113 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.