2011 was a year of exceptional growth for Rock Island-based Modern Woodmen of America, according to recently released results for the year ending Dec. 31, 2011.
Highlights of the year included:
- Assets exceeded $11 billion.
- Total premium income increased by 10 percent.
- Life insurance issued grew by 4.4 percent.
- Modern Woodmen’s field force grew by 5 percent.
- Membership increased to more than 759,000.
“Modern Woodmen had a stellar year,” W. Kenny Massey, president of the fraternal financial services organization, said. “The organization saw increases in membership, recruiting and sales, which led to extraordinary growth.”
More than $11 billion in assets
Modern Woodmen’s assets increased 12.2 percent over 2010, reaching nearly $11.4 billion. Assets are primarily invested in high-quality, low-risk corporate and government bonds.
“The values and standards that brought Modern Woodmen success in the past continue to serve us well,” said Massey. “Our primary responsibility is to protect the promises made to our members.”
Modern Woodmen also had nearly $6.5 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 9.1 percent to $9.1 billion.
Resurgence of life insurance issued
New life insurance issued in 2011 increased 4.4 percent to nearly $3 billion.
“To do our job, we must help families with their life insurance protection needs,” said Massey. “Americans today are underinsured. This is why Modern Woodmen introduced the new Planning for Life system in 2011, which allows financial representatives to help members plan for all stages of life and evaluate their own unique life insurance needs.”
Life insurance in force, the total amount of life insurance owned by members to protect their families in case of premature death, increased to $34.3 billion.
Strong operational results
Premium income rose 10 percent to $1.2 billion in 2011.
Payments and benefits to members in 2011 increased 11.3 percent to $687.2 million. This includes death benefits, annuity payments and surrender benefits. An additional $33.7 million in dividend payments and excess interest were refunded to life insurance and annuity certificates.
Net gain from operations after dividends was $78 million in 2011. Net gain from operations adds to surplus, enhancing Modern Woodmen’s strength and stability.
Total surplus reached nearly $1.3 billion. Surplus provides 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 112.51 percent means that for every $100 of liabilities (promises made to members), Modern Woodmen has $112.51 of assets to back up those promises.
Field force and fraternal growth
In 2011, Modern Woodmen saw a 5 percent increase in the number of financial representatives nationwide, as well as expansion into new regions across the country. Modern Woodmen added five new regional directors and 18 managing partners, displaying commitment to leadership advancement and future growth.
Modern Woodmen has a nationwide membership of more than 759,000. Fraternal expenditures supporting Modern Woodmen’s family-oriented member benefits and programs grew to $26.04 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:
- Nearly 1.5 million people attended social, educational and volunteer events sponsored by Modern Woodmen chapters.
- 286,010 hours of volunteer service were recorded by youth service club members and 317,081 hours of volunteer service were reported by chapter members.
- 2.1 million children were educated through free Modern Woodmen Youth Educational Programs.
- $8 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, were conducted by the organization’s 2,578 adult chapters and 906 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.
For additional information, contact Kim Woodward, Corporate Communications, (309) 793-5600