A Message From the Treasurer

A Message From the Treasurer

Apr 24, 2018

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.

  2016 2017
Assets    
Bonds 277,787,400 276,558,625
Common stocks 5,000 552,174
Mortgage loans 667,191 5,283,107
Cash and short term investments 5,454,818 4,358,626
Certificate loans 5,516,457 5,317,546
Accrued interest 2,890,924 2,878,231
Other assets 3,003,992 3,074,005
Totals 295,325,782 298,022,314
     
Liabilities & Reserves  
Certificate reserves 259,175,671 260,587,717
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
Other liabilities 1,642,615 2,422,417
Totals 271,333,090 273,758,876
Unassigned Funds 23,992,692 24,263,438
Totals 295,325,782 298,022,314
     
Statement of Operations  
     
Income    
Premium income 16,352,551 16,939,379
Net Investment Income 13,045,797 12,570,750
Other income 48,047 245,381
Total Income 29,446,395 29,755,510
     
Distribution of Income  
Life Benefits 14,702,395 21,568,026
Refunds to Members 711,542 742,294
Additions to Reserves 7,734,775 1,412,046
Operating Expenses 6,191,519 5,692,482
Total Distributions 29,340,231 29,414,848
Net gain from operations 106,164 340,662
     


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