2017 FINANCIAL AND FRATERNAL REPORT

Transcription

1 2017 FINANCIAL AND FRATERNAL REPORT

2 PRESIDENT S MESSAGE 2017 was an important chapter in the Catholic Financial Life story a success story 150 years in the making. We reported record financial results, growth in sales and significant community impact, making it one of the best years in our history. We continued to build on our financial strength, ensuring we will be around for our members for generations to come. Net income rose to a record $12.05 million after paying merger costs for Degree of Honor. This led to a record surplus of $88 million and increased total adjusted capital to more than $99 million. We reported record financial results, growth in sales and significant community impact, making it one of the best years in our history. Sales of life insurance grew 6.7 percent in 2017, outpacing the industry growth. This was fueled by strong growth in the Hispanic markets of greater Milwaukee and northern Illinois. Of course, it s the impact that our members make in the community that differentiates us. With community outreach totaling more than $1.9 million and 103,000 hours volunteered, these efforts benefited members, parishes, schools and hundreds of civic organizations across the country. These are accomplishments we can all be proud of! Thank you for your loyalty, generosity and trust. We are honored to serve you and as always, will continue to keep each of you in our prayers. Fraternally, William R. O Toole President & CEO [2]

3 FINANCIAL REPORT 2017 was one of the best financial years for Catholic Financial Life. Net income and surplus grew significantly along with our life insurance sales. We remain committed to a conservative investment approach and maintaining the financial integrity of our Society for current and future members. Netincomeroseto$12.05millionin2017, up from $11.6 million in Surplusincreasedfrom$70.8millionto$88million, which included increased surplus from our merger with Degree of Honor. Totaladjustedcapitalwasmorethan$99millionin2017,up from $79.9 million in Riskbasedcapital(RBC)ratioincreasedtoarecord-breaking 930 percent,comparedto844percentin2016. Our persistency,a reflection of our members loyalty and recognition of the value they receive, remains high at percent. KrollBondRatingAgencyassignedaninsurancefinancial strength rating of A-. NET INCOME (in millions) TOTAL ADJUSTED CAPITAL (in millions) $inmillions $inmillions [3]

4 STATEMENT OF OPERATIONS As of December 31 Revenues 2017 Life Insurance premiums $40,384,536 Annuity deposits 29,181,586 Other premiums and deposits 8,932,798 Total Premiums Earned $78,498,920 Investment revenue 73,763,171 Other revenues 250,547 Total Revenues $152,512,638 Benefits and Expenses Insurance benefits paid to members $109,223,677 and beneficiaries Additions (reductions) of insurance policy (20,490,681) reserves net of interest paid to members Field sales support costs 6,852,672 Fraternal benefits and expenses 2,803,209 Operating expenses 16,853,350 Total Benefits and Expenses $115,242,227 Gain from operations before dividends and 37,270,411 interest paid to members Dividends and interest paid to members 27,772,315 Gain from operations before investment results 9,498,096 Net realized capital gains 2,554,343 Net Income $12,052,439 [4]

5 STATEMENT OF FINANCIAL POSITION As of December 31 Assets 2017 Bonds $1,494,103,424 Mortgage loans 23,699,648 Policy loans 28,077,007 Preferred stocks 2,137,351 Common stocks 10,794,038 Other long-term investments 18,793,954 Cash and short-term investments 38,332,548 Total Cash and Investments $1,615,937,970 Home Office, at cost net of depreciation 5,288,317 Investment income due and accrued 18,890,765 Other assets 1,460,247 Total Assets $1,641,577,299 Liabilities Policy reserves $1,455,643,795 Interest maintenance reserve 11,682,856 Premiums received in advance and on deposit 12,373,744 Members and beneficiaries funds on deposit 53,552,498 Other liabilities 8,831,321 Total Liabilities and Reserves $1,542,084,214 Surplus 88,051,947 Asset valuation and other reserves 11,441,139 Total Adjusted Capital $99,493,086 Total Liabilities and Surplus $1,641,577,299 [5]

6 FRATERNAL REPORT For 150 years, Catholic Financial Life has been serving God through serving others. What makes us different is that we provide resources to our members, encouraging them to make a positive impact in their communities. In 2017, more than $980,000 was matched and donated by the Society to charitable causes, bringing the total outreach to more than $1.9 million! In a year riddled with natural disasters, we donated more than $39,000 in Disaster Relief funds to assist our members and areas in need. More than $500,000 in benefits was awarded to members including $303,000 in grade school, high school and college scholarships. Through the support of our nearly 144,000 members and network of 224 all-volunteer chapters/lodges across the country, the Society has: Volunteeredinexcessof103,000hourswithan economic impact of nearly $2.5 million; Raisedmorethan$910,000forchurches,schools, local organizations, and individuals in need; and, Sponsorednearly2,800chapteractivities. Commitment to Community 34% INDIVIDUALS & COMMUNITY CAUSES 22% CATHOLIC SCHOOLS Nearly $2.5 million in % CATHOLIC PARISHES & CAUSES 12% LOCAL MEMBERSHIP ACTIVITIES 12% SCHOLARSHIPS [6]

7 More than $980,000 was matched and donated by the Society to charitable causes, bringing the total outreach to more than $1.9 million! [7]

8 DISASTER RELIEF The number of natural disasters in 2017 was unbelievable. Eight natural disasters affected our members communities including a tornado, wildfires, flooding, hurricanes and an earthquake. These disasters spanned across the United States as well as Mexico and Puerto Rico. To assist our members in need and offer support to the areas affected, more than $39,000 in Disaster Relief Funds were distributed last year. Additionally, fraternal organizations across the industry raised a combined $7.5 million in support of these efforts. Whether or not you experienced loss from any of these disasters, please know that we are always with you, and ready to support you in any way we can. [8]

9 To assist our members in need and offer support to the areas affected, morethan $39,000 in Disaster Relief Funds were distributed lastyear. [9]

10 DEADLINE APPROACHING GET READY FOR SOME FUN, FAMILY EVENTS Old Sturbridge Village NEW! Sunday, June 24 Sturbridge, Mass. Adults - $15 / Children (4-17) $10 Save up to 45% on general admission Noah s Ark Waterpark NEW! Wednesday, June 27 Wisconsin Dells, Wis. $25 admission includes meal voucher A$47value! Timber Rattlers Game Saturday, July 7-5:00 p.m. Meal / 6:35 p.m. Game vs. Peoria Chiefs Appleton, Wis. $14 includes game and picnic meal Up to 35% savings! Festa Italiana July Milwaukee, Wis. $5 Save up to 50% Pawtucket Red Sox Sunday, August 5-1:35 p.m. vs. Rochester Red Wings Pawtucket, R.I. $12 includes game and $10 concession voucher Up to $23 value Wisconsin State Fair Wednesday, August 8 West Allis, Wis. $6 includes cream puffand drink Up to $13.75 savings! Ticket good for the entire fair. Food available August 8 only. Family Camp Out July MEMBER Columbus, Wis. EVE $30 per campsite A$70value! [10]

11 Minnesota Twins Sunday,August19 1:10p.m. vs.detroit Tigers Minneapolis,Minn. $15includesgameand $5 concession voucher Mexican Fiesta NEW! August24-26 Milwaukee, Wis. $8 Save up to 50% Limit of 10 tickets per household Basse staste of Country Saturday, October6 Colgate, Wis. $8 allages Save up to 33% NTS PLEASE NOTE: This year,registration forms are only available through our website.to register or review details about each eventincluding the ticketdeadlines, visit Ext Membersraised morethan $169,000 to help servethe needs of the poor,particularly through our partnership with Saint Vincent de Paul. [11]

12 NEW IN 2017 l NUEVO EN EL 2017 ACHIEVEMENTS ACONTECIMIENTOS WITH THE ADDITION OF 14NEW ACTIVITIES, ATTENDANCE AT REGIONAL MEMBER EVENTSTOTALED MORE THAN 11,750 CONELAUMENTODE 14 ACTIVIDADES NUEVAS, LA ASISTENCIA ALOS EVENTOS REGIONALES PARA LOSMIEMBROS CONTÓ CONMÁS DE 11,750 PERSONAS THROUGH AN EXPANSION OF OUR MEMBER RECOGNITION PROGRAM, MORE THAN 5,500 MEMBERS WERE HONORED FOR ONE, FIVE OR TEN YEARS OF MEMBERSHIP WITH THE SOCIETY PANSIÓN DE NUESTRO PROGRAMA DE RECONOCIMIENTOS DE MIEMBROS,MÁS DE 5,500 MIEMBROS FUERON HONRADOS POR UNO, CINCO O DIEZ AÑOS DE MEMBRECÍA CONLASOCIEDAD $500,000 IN BENEFITS INCLUDING $303,000 IN GRADE SCHOOL, HIGH SCHOOL AND COLLEGE SCHOLARSHIPS, WAS ALSO AWARDED TO MEMBERS SE LES OTORGÓ A LOS MIEMBROS MÁS DE $500,000 EN BENEFICIOS INCLUYENDO $303,000 EN BECAS PARA LA ESCUELA PRIMARIA, ESCUELA SECUNDARIA Y EDUCACIÓN UNIVERSITARIA 2017 WAS A YEAR FILLED WITH HARD WORK AND MANY ACCOMPLISHMENTS! EL 2017 FUE UN AÑO REPLETO DE TRABAJO DURO Y MUCHOS LOGROS! MORE THAN A NEW MEMBER BENEFIT: IMPACT TEAMS WASDEVELOPED FORLAUNCH IN 2018 MORE THAN 900 MEMBERS AND GUESTS ATTENDED SOCIETY- SPONSORED ACTIVITIES FOR YOUNG ADULTS TopWorkplaceAward Catholic Financial Life was named a Top Workplace by the Milwaukee Journal Sentinel for the fourth year in arow! Kroll Rating Kroll Bond Rating Agency (KBRA)assigned an insurance financial strength rating of A- to Catholic Financial Life. Board of the Year Our Board of Directors received the 2017 Board of the Year award from the Foley&Lardner LLP National Directors Institute! Merger with Degree of Honor Catholic Financial Life completed a successful merger with Degree of Honor. Premio del mejor lugar de trabajo Catholic Financial Life fue nombrado como uno de los mejores lugares de trabajo por el periódico el Milwaukee Journal Sentinel por cuarto año consecutivo! La clasificación Kroll La Agencia de Clasificaciones de Bonos Kroll le asignó una nota de A- a Catholic Financial Life por su fortaleza financiera en seguros. La Junta directiva del año Nuestra Junta directiva recibió el premio de la Junta del año parael 2017 del Instituto de Juntas Directivas Foley& Lardner LLP. Unión con Degree of Honor Catholic Financial Life completó una fusión exitosa con Degree of Honor. SE DESARROLLÓ UN BENEFICIO PARA LOS MIEMBROS NUEVOS EN LA FORMA DE LOS GRUPOS DE IMPACTO PARA ESTRENARSE EN EL 2018 MÁS DE 900 MIEMBROS YSUS ACOMPAÑANTES ASISTIERON A ACTIVIDADES PARA JÓVENES PATROCINADAS POR LA SOCIEDAD Support for the Common Cause Since2008, Catholic Financial Life raised/ matched nearly $1.35 million in support for the society of St. Vincent de Paul. Apoyo de causa común Desde 2008, Catholic financial life a recaudado / igualado casi $1.35 millones de dólares en apoyo ala SocietyofSt. Vicent de Paul. BY THENUMBERS l LOS NÚMEROS 103,111 HOURS VOLUNTEERED HORAS DE TRABAJO VOLUNTARIO CHARITABLE CONTRIBUTIONS: $1.9 MILLION FUNDS RETURNED TO MEMBERS: $27 MILLION CONTRIBUCIONES CARITATIVAS POR CONCEPTO DE DEVOLUCIÓN ALOS MIEMBROS NEARLY 144,000 MEMBERS MIEMBROS INSURANCE IN FORCE: $5.7 BILLION SEGUROS VIGENTES ASSETS:$1.64BILLION EN ACTIVOS NUMBER OF CHAPTERS: 224 CAPÍTULOS DE LA SOCIEDAD