April 15, 2016
In 2015, Rock Island-based Modern Woodmen of America continued to grow its financial and fraternal successes. The fraternal financial services organization reports that life insurance in force grew by more than $800 million for the fifth straight year, and assets reached $14.8 billion. Additionally, Modern Woodmen contributed $19.2 million to communities nationwide through its fraternal member benefits and programs last year.
“At Modern Woodmen, we proudly serve members for life,” said W. Kenny Massey, president and CEO of Modern Woodmen. “Our members value Modern Woodmen’s financial stability and fraternal offerings.”
Continued 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 $38.1 billion.
“Life insurance should be the cornerstone of every financial plan, because it offers valuable protection for the unexpected,” said Massey. “Our financial representatives work hard to give customized advice on the best product options, such as buying permanent coverage without making permanent payments.”
Assets reach $14.8 billion
Modern Woodmen’s assets increased 4.4 percent from 2014, reaching $14.8 billion. The organization’s assets are primarily invested in high-quality, low-risk corporate and government bonds.
“First and foremost, Modern Woodmen is fiscally responsible,” said Massey. “We manage our investments in a way that carefully protects our promises to members.”
Annuity assets under management equaled $8.5 billion.
Total life insurance, annuity and other certificate reserves, which are funds held to guarantee future benefits to members, increased 4.3 percent to more than $11 billion.
Strong operational results
Total premium income in 2015 was $1.05 billion. Compared to 2014, variable annuity certificate sales increased 22 percent, and variable annuity premiums increased by 26.4 percent.
Payments and benefits to members in 2015 totaled nearly $837 million. This includes death benefits, annuity payments and surrender benefits. An additional $9.3 million in dividend payments was refunded to life insurance and annuity certificates.
Net gain from operations after dividends was nearly $38 million with a total net income of $50.3 million.
Total surplus and special reserves were nearly $1.6 billion in 2015. Surplus and special reserves provide additional safety for members and ensure Modern Woodmen’s ability to meet unforeseen events, continue the organization’s fraternal programs and provide funds for future growth.
Modern Woodmen has a solvency ratio of 112.09 percent. This means that for every $100 of liabilities (promises made to members), Modern Woodmen has $112.09 of assets to back up those promises.
In comparison to Modern Woodmen’s strength, the industry average is a solvency ratio of 105.65, or $105.65 of assets for every $100 of liabilities. This is calculated from the 25 leading life insurance companies by assets. (Standard Analytical Service, Inc., 2015)
Fraternal programs support communities nationwide
Modern Woodmen’s national membership totals more than 765,000 members. In 2015, Modern Woodmen contributed more than $19.2 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 2015 include:
- Regional Modern Woodmen offices across the United States organized and participated in 66 meal-packing events with more than 1,700 financial representatives and family members, who packed 598,000 meals for 247 food pantries. The events were a continuation of Modern Woodmen’s 2014 Knock Out Hunger project, in which home office employees donated 50,000 meals to a nearby food bank.
- Modern Woodmen members are part of 2,791 adult chapters, 274 Summit chapters (for members age 55 and older) and 746 youth service clubs. More than 1 million people attended social, educational and volunteer events sponsored by chapters and clubs.
- Youth service club members recorded more than 142,000 hours of volunteer service; chapter and Summit chapter members recorded nearly 300,000 hours of service.
- 1.3 million children benefited through participation in Modern Woodmen’s free youth educational programs.
- Modern Woodmen members helped raise $14.6 million in total contributions through the organization’s Matching Fund Program. The proceeds benefited families and organizations in need in members’ communities.
Since 1883, Modern Woodmen of America has touched lives and secured futures. The fraternal financial services organization serves members for life, offering financial products and fraternal member benefits to individuals and families throughout the United States.
Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America.
Subject to change, fraternal benefits are not part of the contract and may have specific eligibility requirements.
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