2006 was a strong year financially and fraternally for Modern Woodmen of America, according to recently released results for the year ended Dec. 31, 2006.
Highlights of the year include:
- Assets neared $8 billion
- Nearly a half billion dollars was returned to members through life insurance and annuity benefits paid.
- Fraternal expenditures contributed $22 million to member communities nationwide.
"We are fulfilling our mission," said W. Kenny Massey, president and CEO of the fraternal financial services organization. "The results from 2006 show we're able to help our members improve their quality of life through our products and fraternal benefits."
Assets near $8 billionModern Woodmen's assets increased 6.3 percent over 2005, reaching $7.9 billion. Assets are primarily invested in high-quality, low-risk corporate and government bonds. Strong investment income contributed to growth in assets.
Premium income form life insurance and annuity products totaled $614.9 million. Net investment income on Modern Woodmen's assets increased to 4.3 percent to $420.9 million.
Life insurance in force, the total amount of life insurance owned by members to protect their families in case of premature death, increased to $32.2 billion.
Modern Woodmen also had $4.1 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 4.9 percent to $6.4 billion.
Surplus allows for growthNet income from operations reached $99.2 million in 2006. Net gain from operations after dividends was $53.8 million. Net gain from operations adds to surplus, enhancing Modern Woodmen's strength and stability. Total surplus and special reserves increased 10.7 percent over 2005, reaching $1.1 billion. Surplus and special reserves provide additional safety for members and ensure Modern Woodmen's ability to meet unforeseen contingencies and provide funds for future growth.
Modern Woodmen's solvency ration of 115.49 percent means that for every $100 of liabilities (promises made to members), Modern Woodmen has $115.48 of assets to back up those promises.
Payments and benefits to member in 2006 increased 13 percent and included:
- $495.7 million in life insurance and annuity certificate benefits, include death benefits, annuity payments and surrender benefits
- $62.7 million in dividend payments and excess interest pain into life insurance and annuity certificates
Fraternal program support members' communities
Modern Woodmen has a nationwide membership of more than 750,000. Fraternal expenditures for Modern Woodmen's family-oriented member benefits and programs totaled $22.37 million, including general expenses and taxes. 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 educational programs for schools and youth groups.
Key fraternal results included:
- 21,532 activities conducted by camps (chapters) across the country
- 320,527 hours of volunteer service by youth service club members
- 1.3 million children served through Modern Woodmen Youth Educational Programs
- $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 2,386 adult camps and 705 youth service clubs.
Founded in 1883 as a fraternal benefit society, Modern Woodmen of America celebrates its 125th year of serving members and their communities. The organization offers financial services and fraternal member benefits to individuals and families throughout the United States.