MODERN WOODMEN of AMERICA - About Us

Modern Woodmen of America experienced a strong year financially and fraternally, according to recently released results for the year ended Dec. 31, 2003. Highlights of the year include record-breaking premium income, the $6 billion asset mark and an 8.3 percent increase in total surplus.

“We had a great year,” said Clyde Schoeck, president of the Rock Island, Ill., based fraternal benefit society, which offers financial services and fraternal member benefits to individuals and families nationwide. “The 2003 financial results show that Modern Woodmen continues to do a good job of helping families reach their financial goals.”

Income milestones reached
Premium income from the sale of life insurance and annuity products to help members provide for their families’ financial future reached the highest level in Modern Woodmen’s 121-year history. Premium income was $766 million, an 8.7 percent increase over 2002. Seventy-two percent of the premium income came from annuity business; 28 percent came from life insurance business.

Net investment income on Modern Woodmen’s assets totaled $388 million, a 7 percent increase over the previous year.

Modern Woodmen’s total income for 2003, including life insurance and annuity premium payments and return on investments, exceeded the $1 billion milestone for the second consecutive year. Total income increased by $50 million to $1.15 billion in 2003.

Life insurance in force, the total amount of life insurance owned by members, increased 2.8 percent to $29.3 billion. Modern Woodmen has $3.2 billion of annuity assets under management, an increase of 19.4 percent.

Assets surpass $6 billion
Modern Woodmen’s assets were up 13.5 percent over 2002, reaching $6.3 billion. This increase is partially attributed to strong annuity sales and the equity market rebound of 2003. Assets are primarily in high-quality, low-risk corporate and government bonds. “A strong asset base is so important, because assets are primarily the investments Modern Woodmen holds to provide for the future payment of benefits to our members,” Schoeck explains. “Our members can be assured their benefits will be there when needed.”

Surplus allows for growth
Net gain from operations after dividends reached $45.5 million in 2003. Net gain from operations adds to surplus, enhancing Modern Woodmen’s strength and stability. Total surplus and special reserves increased by 8.3 percent over 2002, reaching $834 million. Surplus and special reserves ensure Modern Woodmen’s ability to meet unforeseen contingencies and provide funds for future growth.

Modern Woodmen’s ability to meet obligations
Life insurance and annuity certificate reserves, which are funds held to guarantee future benefits to members, increased 13.5 percent to $5.2 billion.

Modern Woodmen’s solvency ratio of 115.16 percent means that for every $100 of liabilities, Modern Woodmen has $115.16 of assets.

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.

Member benefits build quality of life
Dividend payments and excess interest paid to members on life insurance and annuity certificates totaled $78 million in 2003. Life insurance and annuity certificate benefits paid to members, including death benefits, annuity payments and surrender benefits, reached $322 million.

Fraternal programs serve families and communities
Modern Woodmen has a nationwide membership of more than 769,000. The dollars Modern Woodmen allocates to fraternal programs and services for members’ families and their communities are even more important to the United States as federal and state resources are stretched.

Fraternal expenditures in support of Modern Woodmen’s family-oriented member benefits and programs totaled nearly $21 million. These benefits and programs include grief assistance, disaster relief assistance, college scholarships, social and volunteer service programs by adult and youth member chapters nationwide, and free educational programs for schools and youth groups.

One example of Modern Woodmen’s volunteer service programs is a fund-raising program to meet local needs in member communities nationwide. Matching Fund projects, conducted by some of Modern Woodmen’s 2,288 adult camps and 688 youth clubs, contributed $5.7 million in communities across the country.

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.