2004 was a strong year both financially and fraternally for Modern Woodmen of America, according to recently released results for the year ended Dec. 31, 2004.
Highlights of the year include:
- reaching nearly $7 billion in assets
- surpassing $30 billion in life insurance in force
- contributing more than $6 million to member communities nationwide through its fraternal Matching Fund fund-raising program
“These results reinforce our desire and ability to help our member families protect their futures,” said Clyde Schoeck, president of the fraternal organization, which offers financial services and fraternal member benefits to individuals and families nationwide.
Assets near $7 billion Modern Woodmen’s assets increased 9.4 percent over 2003, reaching $6.93 billion. Assets are primarily invested in high-quality, low-risk corporate and government bonds. Continued strong investment and premium income contributed to growth in assets.
“Assets are so important because they are the investments Modern Woodmen holds to provide for the payment of benefits to our current and future members,” Schoeck said. “Our members can be assured their benefits will be there when they need them.”
Income results for 2004 showed continued strength. Premium income from life insurance and annuity products totaled $684 million. Net investment income on Modern Woodmen’s assets totaled $393 million.
Life insurance measures were also strong:
- Life insurance in force, the total amount of life insurance owned by members, increased by more than $1 billion over 2003, totaling $30.3 billion.
- The amount of life insurance issued increased 6.2 percent, totaling $3.4 billion.
“Life insurance is the foundation of any family’s financial plan, and it’s the foundation of our business,” said Schoeck. “These dollars can provide our member families needed funds at a most difficult time.”
Modern Woodmen also had $3.6 billion of annuity assets under management. “Annuity benefits can provide important retirement benefits for our members – lifetime payouts they cannot outlive,” Schoeck said.
Life insurance and annuity certificate reserves, which are funds held to guarantee future benefits to members, increased 9 percent to $5.7 billion.
Surplus allows for growth
Net gain from operations after dividends reached $43.6 million in 2004. Net gain from operations adds to surplus, enhancing Modern Woodmen’s strength and stability.
Modern Woodmen’s solvency ratio of 115 percent means that for every $100 of liabilities, Modern Woodmen has $115 of assets.
Total surplus and special reserves increased by 8.2 percent over 2004, reaching $902 million.
Surplus and special reserves ensure Modern Woodmen’s ability to meet unforeseen contingencies and provide funds for future growth.
A.M. Best, an independent rating agency, rates Modern Woodmen’s financial stability, security and management performance Superior or A+, which is the second highest of 15 ratings.
Payments and benefits to members in 2004 included:
- $392 million in life insurance and annuity certificate benefits, including death benefits, annuity payments and surrender benefits
- $61 million in dividend payments and excess interest paid on life insurance and annuity certificates
Increased participation in fraternal programs for families and communities Modern Woodmen has a nationwide membership of more than 750,000. Fraternal expenditures in support of Modern Woodmen’s family-oriented member benefits and programs totaled $21.5 million. These benefits and programs include disaster relief assistance, college scholarships, a tree-planting program, social and volunteer service programs by adult and youth member chapters nationwide, and free educational programs for schools and youth groups.
Key increases included:
- The number of activities conducted by Modern Woodmen’s camps (chapters) across the country reached an all-time high in 2004, exceeding 21,000.
- The number of children served through Modern Woodmen Youth Educational Programs surpassed 1 million for the first time in the past five years.
- Modern Woodmen’s Matching Fund Program contributed more than $6 million to meet needs in member communities across the country. The fund-raising projects, matched by Modern Woodmen’s home office, were conducted by the organization’s 2,300 adult camps and 700 youth service clubs.
Founded in 1883 as a fraternal benefit society, Modern Woodmen of America offers financial services and fraternal member benefits to individuals and families throughout the United States.