Our responsibility to members – financial strength, financial security
Protecting the funds Modern Woodmen members place with us is not only our promise, but it is an obligation we have met every day since 1883. Protecting members’ funds – Five facts to know 1. Modern Woodmen makes sound investment decisions
2. An investment philosophy that safeguards members’ principal.
- Modern Woodmen has not borrowed (leveraged) money to enhance yield.
- Modern Woodmen has not invested in risky commercial real estate.
- Modern Woodmen’s exposure to residential real estate is primarily through government agency-backed certificates.
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 like the recent sub prime mortgage market.
To build our investment portfolio, our financial management team follows these principles:
3. Modern Woodmen’s increasing asset base is a strength.
Modern Woodmen has experienced steady growth in assets
. In 2011 assets increased by 12.2 percent to $11.4 billion.
All of the funds members place with Modern Woodmen are backed by our $11.4 billion in assets. This is unlike banks in which funds up to $250,000 are guaranteed by the FDIC or securities, which have market risks. 4. High industry rating from an independent analyst
Modern Woodmen’s financial stability, security and management performance are rated A+ Superior by A.M. Best, an independent rating agency. A+ Superior ranks second highest of 15 ratings.
The A+ Superior rating reflects Best’s current opinion of the relative strength and operating performance of an insurance company compared to the industry norms. 5. Growing surplus and reserves provide additional protection to members
Modern Woodmen’s total surplus was $1.3 billion at the end of 2011. 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 and annuity certificate reserves increased by 9.1 percent in 2011 to $9.1 billion. These reserves are funds held to guarantee future benefits to members.
Modern Woodmen has a solvency ratio of 112.51 percent. This means that for every $100 of liabilities – promises made to members – Modern Woodmen has $112.51 of assets to back up those promises.