MODERN WOODMEN of AMERICA - About Us

2009 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, 2009.

Highlights of the year include:

Assets neared $9.3 billion.
More than $577 million was returned to members through life insurance and annuity benefits paid. An additional $73.8 million was returned to members as dividend payments and excess interest paid into life insurance and annuity certificates.
A.M. Best reaffirmed Modern Woodmen's financial stability, security and management performance as A+ (Superior).
Fraternal expenditures contributed $23.3 million to support programs in member communities nationwide.

“Modern Woodmen's stability paved the way to success in 2009," said W. Kenny Massey, president of the fraternal financial services organization. "Our strength comes from 126 years of solid values and leadership."

Assets near $9.3 billion

Modern Woodmen's assets increased 9.3 percent over 2008, reaching nearly $9.3 billion. Assets are primarily invested in high-quality, low-risk corporate and government bonds.

"We have always been conservative in our investment practices," said Massey. "This protects our members as well as Modern Woodmen's integrity. This approach has served the society well during the recent economic turmoil."

Premium income increased 22.8 percent to $941.6 million in 2009. This is in large part due to the continued growth of annuity sales.

Life insurance in force, the total amount of life insurance owned by members to protect their families in case of premature death, increased to $33.7 billion.

Modern Woodmen also had nearly $5.2 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 8.6 percent to $7.6 billion.

"Modern Woodmen's mission is to improve the quality of life for members," said Massey. "We do this by providing financial security through life insurance and retirement products."

Solvency remains strong

Net gain from operations after dividends rose to $66.6 million in 2009. Net gain from operations adds to surplus, enhancing Modern Woodmen’s strength and stability.

Total surplus and special reserves topped $1.1 billion. Surplus and special reserves provide additional safety for members and ensure Modern Woodmen’s ability to meet unforeseen contingencies, continue the organization’s fraternal programs and provide funds for future growth.

Modern Woodmen’s solvency ratio of 113.98 percent means that for every $100 of liabilities (promises made to members), Modern Woodmen has $113.98 of assets to back up those promises.

Payments and benefits to members in 2009 increased 1.3 percent and included $577.4 million in life insurance and annuity certificate benefits. This includes death benefits, annuity payments and surrender benefits.

An additional $73.8 million in dividend payments and excess interest were paid into life insurance and annuity certificates.

Independent insurance rating agency reaffirms A+ rating

A.M. Best Company, an independent insurance industry rating agency, reaffirmed Modern Woodmen's financial strength rating. A.M. Best rates Modern Woodmen's financial stability, security and management performance as A+ (Superior), the second highest of 15 ratings.

The rating is based on a comprehensive quantitative evaluation of the organization's balance sheet strength, operating performance and business profile. Insurers in the superior category are considered to have a superior ability to meet their ongoing obligations.

Fraternal programs support members’ communities

Modern Woodmen has a nationwide membership of more than 755,000. Fraternal expenditures supporting Modern Woodmen’s family-oriented member benefits and programs were $23.3 million. These benefits and programs include disaster relief assistance, college scholarships, a tree-planting program, social and volunteer service programs by adult camps (chapters) and youth service clubs nationwide, and educational programs for schools and youth groups.

"As a fraternal benefit society, we sell financial products not to benefit stockholders, but to improve the quality of life of our stakeholders - our members, their families and their communities, " said Massey. "We do this through social, charitable and volunteer activities."