MODERN WOODMEN of AMERICA - About Us

2005 was a strong year financially and fraternally for Modern Woodmen of America, according to recently released results for the year ended Dec. 31, 2005.

Highlights of the year include:

Assets surpassed $7 billion.
Life insurance in force reached $31.3 billion.
Total surplus and special reserves neared $1 billion.
Total benefits paid to members and beneficiaries increased by 10.6 percent.
Fraternal expenditures contributed more than $22.8 million to member communities nationwide.

“Strength and safety – that’s what comes through in these results,” said W. Kenny Massey, president and CEO of the fraternal organization, which offers financial services and fraternal member benefits. “Our financial condition allows us to be there when our members need us most.”

Assets surpass $7 billion
Modern Woodmen’s assets increased 7.6 percent over 2004, reaching $7.5 billion. Assets are primarily invested in high-quality, low-risk corporate and government bonds. Continued strong investment and life insurance premium income contributed to growth in assets.

Premium income from life insurance and annuity products totaled $641.2 million. Net investment income on Modern Woodmen’s assets increased by 2.8 percent to $403.7 million, despite continued low interest rates in the economy.
Life insurance in force, the total amount of life insurance owned by members, increased by 3 percent over 2004 to total $31.3 billion.

“Life insurance owned by members provides their loved ones with financial resources at a very difficult time – when that member dies,” said Massey. “It’s the foundation of any family’s financial plan and the foundation of our business.”

Modern Woodmen also had $3.9 billion of annuity assets under management to help provide members with additional funds and income during retirement.

Life insurance and annuity certificate reserves, which are funds held to guarantee future benefits to members, increased 7 percent to $6.1 billion.

Surplus allows for growth
Net gain from operations after dividends remained consistent, reaching $43.7 million in 2005. Net gain from operations adds to surplus, enhancing Modern Woodmen’s strength and stability.

Total surplus and special reserves increased by 6.4 percent over 2004, reaching $960.2 million. Surplus and special reserves ensure Modern Woodmen’s ability to meet unforeseen contingencies and provide funds for future growth of the organization.

Modern Woodmen’s solvency ratio of 114.78 percent means that for every $100 of liabilities (promises made to members), Modern Woodmen has $114.78 of assets to back up those promises.

Payments and benefits to members in 2005 included:

$434 million in life insurance and annuity certificate benefits, including death benefits, annuity payments and surrender benefits
$59 million in dividend payments and excess interest paid into life insurance and annuity certificates

Increased participation in fraternal programs
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 increased by 5.8 percent over 2004, totaling $22.8 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 fraternal results included:

21,752 activities conducted by camps (chapters) across the country
337,430 hours of volunteer service by youth service club members
1.2 million children served through Modern Woodmen Youth Educational Programs
$428,600 designated to aid members, their families and their communities in areas devastated by Gulf Coast hurricanes.
$6.4 million contributed through Modern Woodmen’s Matching Fund Program to meet needs in member communities across the country. The fundraising projects, matched by Modern Woodmen’s Home Office, were conducted by the organization’s 2,355 adult camps and 708 youth service clubs.