by Jack Minder | Vice President and Treasurer
It is my pleasure to report to you on this year’s company financials. The annual financial reporting has been completed and Western Fraternal Life remains financially strong. Assets have grown to more than $298 million and our net gain from operations continues to be positive. Premium income and investment income are our two main sources of revenue. These sources provided a more than adequate cash flow required to maintain our insurance operations. The solvency ratio, another measure of our ability to meet our insurance obligations, remains strong at 109%. A summary of our financial statements are listed on this page.
The insurance industry as a whole continues to be challenged by the prolonged low interest rate environment. The Federal Reserve did raise interest rates during the year, but the effect on our investment returns was minimal. Our primary investment vehicle is bonds, which comprise approximately 94% of invested assets. Of those total bond investments, 99% were considered investment grade. The Association’s investment policy, reviewed annually, continues to focus on safety of principal in all investments.
The WFLA Education and Charitable Foundation continues to fund scholarships for our members. The foundation is supported by our annual golf outing and individual contributions. This summer will be the 12th year of our golf event. Donations to the foundation are welcomed.
I appreciate this opportunity to serve Western and look forward to visiting with many of you this coming year.
|Cash and short term investments||5,454,818||4,358,626|
|Liabilities & Reserves|
|Liability for deposit-type contracts||6,904,444||6,849,982|
|Provisions for refunds payable||710,000||745,000|
|Premiums received in advance||825,701||792,772|
|Securities valuation reserves||2,074,659||2,360,988|
|Statement of Operations|
|Net Investment Income||13,045,797||12,570,750|
|Distribution of Income|
|Refunds to Members||711,542||742,294|
|Additions to Reserves||7,734,775||1,412,046|
|Net gain from operations||106,164||340,662|
Please add your bio info through your member profile page, or through your dashboard.
Call 877-935-2467 to speak with a Western Fraternal Life Representative.