Annual Statement Summary

Annual Statement Summary

Apr 04, 2017

by Jack Minder | Vice President and Treasurer

It is my pleasure to report on this year’s financials. The financial reporting has been completed and Western Fraternal Life remains financially strong. Assets have grown to more than $295 million. Premium income and investment income both increased for the year. These are the main sources of income and provided a more than adequate cash flow required to maintain our insurance operations.

Our net gain from operations continues to be positive. The solvency ratio, a measure of our ability to meet our insurance obligations, was approximately 109%. A summary of our financial statements are listed to the right.

The prolonged low interest rate environment continues to be a challenge for the insurance industry. Although the Federal Reserve raised interest rates during the year, the increase in investment return was minimal. If the Federal Reserve raises interest rates again in 2017 this should improve our investment return as 95% of our invested assets are in bonds. Western Fraternal Life’s Investment Policy remains unchanged with safety of principal our primary concern.

I would like to thank you for the wonderful hospitality I received throughout this past year. I look forward to visiting with many of you during the coming year. May 2017 be a prosperous year for all.

Statement of Assets and Liabilities

Assets

2015

2016

Bonds $271,897,211 $277,787,400
Common stocks $723,101 $5,000
Mortgage loans $192,174 $667,191
Cash & short-term investments $3,494,207 $5,454,818
Certificate loans $5,744,307 $5,516,457
Accrued interest $2,764,024 $2,890,924
Other assets $3,070,215 $3,003,992
Totals $287,885,239 $295,325,782

 

Liabilities & Reserves

2015

2016

Certificate reserves $251,440,896 $259,175,671
Liability for deposit-type contracts $7,531,385 $6,904,444
Provisions for refunds payable $660,000 $710,000
Premiums received in advance $845,505 $825,701
Securities valuation reserves $1,919,326 $2,074,659
Other liabilities $1,619,115 $1,642,615
Totals $264,016,227 $271,333,090
Unassigned Funds $23,869,012 $23,992,692
Totals $287,885,239 $295,325,782

Statement of Operations

Income

2015

2016

Premium income $15,167,123 $16,352,551
Net Investment Income $12,670,405 $13,045,797
Other income $443,987 $48,047
Total Income $28,281,515 $29,446,395

 

Distribution of Income20152016
Life Benefits $15,167,123 $16,352,551
Refunds to Members $12,670,405 $13,045,797
Additions to Reserves $443,987 $48,047
Operating Expenses $28,281,515 $29,446,395
Total Distributions $27,603,513 $29,340,231
Net gain from operations $678,002 $106,164


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