2010 was a solid year financially and fraternally for Rock Island-based Modern Woodmen of America, according to recently released results for the year ending Dec. 31, 2010.
Highlights of the year included:
- Assets exceeded $10 billion.
- Total premium income exceeded $1 billion for the first time.
- Net operating gain after dividends was $94.2 million, which led to a growth in surplus.
- More than $617 million was returned to members through life insurance and annuity benefits paid.
- Fraternal expenditures contributed nearly $24 million to support programs in member communities nationwide.
“We are financially stronger today than we were even last year,” W. Kenny Massey, president of the fraternal financial services organization, said. “We have managed tremendous growth, upgraded our products and maintained low operational expenses across the organization.”
More than $10 billion in assets
Modern Woodmen’s assets increased 9.5 percent over 2009, reaching $10.1 billion. Assets are primarily invested in high-quality, low-risk corporate and government bonds.
“Safety and security are at the core of all of our decisions,” said Massey. “We must protect the organization, our members and our reputation.”
Premium income increased 14.1 percent to nearly $1.1 billion in 2010.
Life insurance in force, the total amount of life insurance owned by members to protect their families in case of premature death, increased to $33.9 billion.
Modern Woodmen also had nearly $5.8 billion of annuity assets under management to help provide members with additional funds and income during retirement.
Total life insurance and annuity certificate reserves, which are funds held to guarantee future benefits to members, increased 9.3 percent to $8.3 billion.
Strong net gain from operations
Net gain from operations after dividends rose to $94.2 million in 2010. Net gain from operations adds to surplus, enhancing Modern Woodmen’s strength and stability.
Total surplus and special reserves topped $1.2 billion. 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 113.78 percent means that for every $100 of liabilities (promises made to members), Modern Woodmen has $113.78 of assets to back up those promises.
Payments and benefits to members in 2010 increased 7 percent to $617.6 million. This includes death benefits, annuity payments and surrender benefits. An additional $55.2 million in dividend payments and excess interest were refunded to life insurance and annuity certificates.
Touching lives through fraternal programs
Modern Woodmen has a nationwide membership of more than 755,000. Fraternal expenditures supporting Modern Woodmen’s family-oriented member benefits and programs were $23.75 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.
“We know it’s important to give back to members and their communities,” said Massey. “But we don’t just say it. We do it.”
Key fraternal results included:
- More than 1.5 million people attended social, educational and volunteer events sponsored by Modern Woodmen chapters.
- 269,689 hours of volunteer service were recorded by youth service club members.
- 1.7 million children were served through Modern Woodmen Youth Educational Programs.
- $7.5 million was contributed through Modern Woodmen’s Matching Fund Program to meet needs in member communities across the country. The fundraising projects, matched by Modern Woodmen’s home office, were conducted by the organization’s 2,479 adult chapters and 876 youth service clubs.
As a tax-exempt fraternal benefit society, Modern Woodmen sells life insurance, annuity and investment products not to benefit stockholders but to improve the quality of life of its stakeholders – members, their families and their communities. This is accomplished through social, charitable and volunteer activities.
Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America. Member: FINRA, SIPC.
For additional information, contact Kim Woodward, Corporate Communications, (309) 793-5660