2013 was a strong year financially and fraternally for Rock Island-based Modern Woodmen of America, according to recently released results for the year ending Dec. 31, 2013.
Life insurance in force grew by more than $1 billion for the third straight year. Assets surpassed the $13 billion mark, and surplus exceeded $1.5 billion, an increase of 13.7 percent.
“In addition to having a strong year financially, I’m proud of the fraternal contributions Modern Woodmen made to our members’ lives, their families and their local communities in 2013,” W. Kenny Massey, president of Modern Woodmen, said. “Through our fraternal benefits for members and fraternal programs that enrich members’ lives and communities, Modern Woodmen’s fraternal expenditures grew to $20.04 million.”
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 $36 billion. This is the third year in a row in which life insurance in force has increase by more than $1 billion.
“Unfortunately, the fact is Americans today are underinsured,” said Massey. “It’s important for our financial representatives to help individuals and families acquire the life insurance coverage they need and protect their loved ones.”
Assets exceed $13 billion
Modern Woodmen’s assets increased 8.2 percent over 2012, reaching nearly $13.4 billion. Assets are primarily invested in high-quality, low-risk corporate and government bonds.
“Our first obligation is to be fiscally responsible,” said Massey. “We must protect the promises made to our members nationwide.”
Annuity assets under management equaled $7.6 billion.
Total life insurance and annuity certificate reserves, which are funds held to guarantee future benefits to members, increased 5.7 percent to nearly $10.5 billion. Compared to 2012, variable annuity certificate sales increased 52 percent, and variable annuity premiums increased by 79 percent.
Strong operational results
Total premium income was $1.05 billion in 2013.
Payments and benefits to members in 2013 increased 6.2 percent to $756.9 million. This includes death benefits, annuity payments and surrender benefits. An additional $14.1 million in dividend payments was refunded to life insurance and annuity certificates.
Net gain from operations after dividends was nearly $31 million with total net income surpassing $104 million, an increase of 10.7 percent in 2013.
Total surplus and special reserves surpassed $1.52 billion; an increase of 13.7 percent over 2012. 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’s solvency ratio of 112.75 percent means that for every $100 of liabilities (promises made to members), Modern Woodmen has $112.75 of assets to back up those promises.
Fraternal programs support communities nationwide
Modern Woodmen has a nationwide membership of more than 770,000. Fraternal expenditures supporting Modern Woodmen’s family-oriented member benefits and programs grew to $20.04 million. 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.
Key fraternal results included:
- More than 1.5 million people attended social, educational and volunteer events sponsored by Modern Woodmen chapters.
- 195,137 hours of volunteer service were recorded by youth service club members and 312,472 hours of volunteer service were reported by chapter and Summit chapter members.
- 1.7 million children were educated through free Modern Woodmen youth educational programs.
- $9.5 million was contributed through Modern Woodmen’s Matching Fund Program. The Matching Fund Program meets needs in member communities across the country. The fundraising projects, matched by Modern Woodmen, were conducted by the organization’s 2,162 adult chapters, 249 Summit chapters and 916 youth service clubs.
Modern Woodmen of America is a member-owned fraternal financial services organization. Since 1883, the organization has brought people together, supported families and strengthened communities nationwide. Modern Woodmen – touching lives, securing futures.
Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America