Modern Woodmen reports strong financial year

Modern Woodmen of America reported a strong financial year in recently released financial results for the year ended Dec. 31, 2000.

Modern Woodmen’s strong financial results support Modern Woodmen’s long-term commitment to stability and security. Continued growth in areas such as assets and surplus and positive gain from operations are measures that assure benefits will be there when members need them.

“Our life insurance and annuity products provide our three-quarters of a million members with benefits they can rely on. Our fraternal programs bring an extra measure of service to our families and communities,” said Modern Woodmen President Clyde C. Schoeck.


Measures of financial growth and strength
Net gain from operations after dividends totaled $49 million in 2000. Net gain from operations adds to surplus, enhancing Modern Woodmen’s financial strength and stability.

Modern Woodmen’s total income for 2000 was $712 million, a 3 percent increase from 1999. Twenty-eight percent of total income came from life insurance premiums, 26 percent from annuity premiums, 44 percent from net investment income and 2 percent from miscellaneous categories.

Life insurance issued reached $3.2 billion. Life insurance in force, the total amount of life insurance owned by members, increased 3 percent to $26.6 billion. Modern Woodmen has $1.9 billion of annuity assets under management.

Total assets of $4.8 billion at year-end represented a 5 percent increase from the previous year, a gain of $223 million. Life insurance and annuity certificate reserves, which are funds held for future obligations to members, increased 5 percent to $3.7 billion.

Total surplus and special reserves, which assure Modern Woodmen’s ability to meet unforeseen contingencies and provide funds for future growth, reached $790 million, a 5 percent increase over 1999.

Modern Woodmen’s solvency ratio of 119.86 percent indicates an exceptionally strong and safe organization. For every $100 of promises made (liabilities), Modern Woodmen has $119.86 of assets to back up those promises.

Two independent rating services verify Modern Woodmen’s financial strength, stability and security with strong ratings. A.M. Best rates Modern Woodmen A+ (Superior) on financial strength, operating performance and market profile. Fitch rates Modern Woodmen’s financial strength as AA (Very Strong), reflecting superior asset quality and strong risk-adjusted capital position.


Providing member benefits
Dividend payments and excess interest paid to members on life insurance and annuity certificates totaled $88 million in 2000. In addition, life insurance and annuity certificate benefits to members (including death benefits, annuity benefits and surrender benefits) totaled $336 million in 2000, a 20 percent increase.

Fraternal expenditures in support of Modern Woodmen’s family-oriented fraternal benefits to members, camp activities and community service programs totaled $16.7 million in 2000, a 2 percent increase over 1999.

Contact: Sharon Snawerdt, ph. (309) 793-5630