2018 Annual Report

2018 Annual Report

Apr 03, 2019

Message from the Treasurer

It is my pleasure to report to you on our company financials for 2018. The annual financial reporting has been completed and Western Fraternal Life remains financially strong. Assets continue to grow and are approximately $302 million. Premium income from sales of insurance and annuity products, along with investment income, are our two main sources of revenue. These two sources of revenue continue to deliver a more than adequate cash flow necessary to provide for our insurance operations. A summary of our financial statements are on the proceeding page.

The prolonged low interest rate environment continues to be a challenge for the insurance industry. The spread between interest earned on our investments and the amount of interest paid on our products continues to tighten. The Federal Reserve did raise interest rates three times during the year, but the overall effect on our investment earnings was minimal. Bonds remain our primary investment option and comprise approximately 93% of our invested assets. Western continues to manage our investments with safety of principal as our primary concern.

As administrator of the WFLA Education and Charitable Foundation, I am pleased to report the foundation will increase the number of scholarships for our members this year. The Foundation is supported by our annual golf outing and individual contributions. Donations to the Foundation are welcome.

I want to thank you for this opportunity to serve the Association and look forward to visiting with many of you at this year’s National Convention. I wish everyone a healthy and prosperous 2019.

Jack Minder | Vice President and Treasurer


 Western Fraternal Life is rated as favorable when compared to 25 of the leading life insurance companies in the United States.*


A high ratio of assets over liabilities is a significant safety factor. This indicates that a company has enough assets to cover its liabilities and to meet all obligations as they become due.

Average of 25 companies: $106.41
Western Fraternal Life: $108.50

Liquid Invested Assets:

This ratio measures a company's ability to meet its anticipated obligations to policy holders. A high ratio indicates a more liquid investment position with which an insurer can meet unforeseen emergency cash requirements that may arise.

Average of 25 Companies: $45.89
Western Fraternal Life: $101.62

Additional Society Strength:

The following ratios are per $1000 of life insurance in force. They show further proof of financial strength and stability:

Assets per $1,000:
Average of 25 Companies: $145.52
Western Fraternal Life: $256.09

Reserves per $1,000:
Average of 25 Companies: $63.05
Western Fraternal Life: $224.65

Surplus per $1,000:
Average of 25 Companies: $8.76
Western Fraternal Life$20.07

*Information provided by the 2019 Independent Comparative Report for Western Fraternal Life prepared by Standard Analytical Service, Inc. 


Summary Statement of Financial Position

Bonds 276,558,625 277,962,835
Common stocks 552,174 660,409
Mortgage loans 5,283,107 8,162,773

Cash & short-term investments

4,358,626 4,129,975
Certificate loans 5,317,546 5,225,055
Accrued interest 2,878,231 2,767,001
Other assets 3,074,005 3,001,626
Total Assets 298,022,314 301,909,674
 Liabilities & Reserves    
 Certificate reserves  260,587,717  264,849,305
Liability for deposit-type contracts  6,849,982  6,774,761
Provisions for refunds payable  745,000  700,000
Premiums received in advance  792,772  766,817
Securities valuation reserves  2,360,988  2,515,938
 Other liabilities  2,422,417  2,642,358
 Totals  273,758,876  278,249,179
 Unassigned Funds  24,263,438  23,660,495
 Total  298,022,314  301,909,674

Summary Statement of Income

Premium income 16,939,379 15,506,116
Net investment income 12,570,750 12,493,464
Other income 245,381 513,370
Total Income 29,755,510 28,512,950
Distribution of Income    
Life Benefits 21,568,026 18,408,868
Refunds to Members 742,294 652,894
Additions to Reserves 1,412,046 4,261,588
Operating Expenses 5,692,482 5,599,387
Total Distributions 29,414,848 28,922,737

Net gain / (loss) from operations

340,662 (409,787)


Assets: $301,909,674
Liabilities & Reserves: $278,249,179
Surplus to Certificate Holders: 23,660,495
Adjusted Solvency Ratio: 109%
Insurance In Force: $1,178,919,398
Annuities In Force: $112,652,253
Certificates In Force: 44,701
Net Investment Earnings: 4.30%

5-Year Snapshot




Message from the Fraternal Department

It’s not always easy to show the impact of Western members in their communities. The work is often quiet, with little fanfare. Projects like re-planting flowers at a church, hosting funeral dinners for members, or donating cookies to fire departments all contribute to the spirit of a community. Without those small contributions, community ties can start to fray.

Our members show pride in their communities in many ways, including through the thousands of volunteer hours and dollars they pour into their communities each year. As an organization, it gives us great pride that we can share our profits in the communities of our members.

Community isn’t just your town, it’s also groups you choose to belong to. Our members chose to come together to create their own communities in their lodges. Ones that promote fraternalism, unity, and shared history that promote our heritage. Our member’s charitable activities over the last century have proven that their volunteer work is vital and necessary. Our organization is committed to supporting our members and their communities for years to come.

Kelsey Logan | Member Programs Manager


Our Fraternal Impact

Western is a not-for-profit where our profits benefit members and improve communities rather than padding the pockets of shareholders. Here's a highlighted look at some of the ways members, lodges, and the Home Office, have helped make a difference in 2018.

hours were volunteered
by members.

item collections were given to various charities.

was given to charitable organizations by lodges.

was awarded to lodges
for fraternal activities
by Western.

in financial aid benefits were given by Western.*

in Scholarships were awarded to members by Western.

*Financial aid benefits include Disaster Relief Benefit, Community Matching Funds, Member Matching Funds, Family Benefit, and Members in Action.


Western's Home Office Provided $59,877 to the Following Causes and Organizations:

National Czech & Slovak Museum & Library, Cedar Rapids Kernels, Especially for You, State Scholarship Funds, Big Brothers Big Sisters, WOES Radio, American Sokol Organization, United Way, Young Parents Network, Arts and Heritage Center, Cedar Rapids Community School District, Cedar Rapids Community School Foundation, Burr Oak Land Trust, Miss Czech Slovak US, NE Czechs of York, Miss Czech Slovak (MN), Phillips Queen Fest, NE Czechs Inc., Domaci Inc., Cystic Fibrosis Foundation, Matthew 25, El Kahir Shrine Circus, St. Monica's, Wilber Republican, Foundation of Johnson County, Mount Mercy University, Czech Village (NewBo), Steele County Fair, Waypoint, and more.

Building Community: A Look Back at 2018

We make our communities a better place by taking the time to volunteer, host public events, celebrate heritage, sponsor youth, and by giving what we can to others. We are proud to share with you some examples of our fraternal efforts in 2018.


In 2018, members of Western gathered together to volunteer their time for good causes that make a difference locally and sometimes globally.
Spending time with people in nearby care centers was a way that many lodges showed they cared. For example, members of No. 68, Brainard, NE, often played Bingo with seniors at Butler County Senior Services after their meetings. In a similar vein, members of No. 28, Clarkson, NE trimmed and polished fingernails of resident women at Clarkson Nursing Home twice a month all year long.

Kids all over the world could have a nutritious meal, thanks to our members. In November, members of No. 426, Lincoln, NE, organized a food-packing project for Kids Against Hunger. They were able to form two assembly lines, and in less than one hour, packed over 2,000 meals for children in need.

Community Events

Several lodges created events to promote fun and community. 

All year long, the Underground of the Auditorium in Milligan, NE hosts a variety of events that are open to the public and are manned by members of No. 76. This year, they hosted some creative events like the Beers of Nebraska for over 250 people. In a similar spirit, No. 67, Yukon, OK hosted regular dances at its hall for the community to attend.

Other lodges plan their efforts around one to a few community events. No. 147 (Mandan, ND) held its annual concert at the lodge in late August. Around 300 people attended in 2018, and its been a success for over ten years running.

Music isn't the only crowd pleaser. We saw a wide range of diverse events, like the Watermelon Feed contest in Table Rock, NE (No. 84), the craft fair in Burwell, NE (No. 112), anniversary ice cream social in Omaha, NE (No. 296), and tractor/plow events in Alexandria, MN (No. 192) and Dorchester, NE (No. 74).

Celebrating Heritage

Many lodges have a strong Czech and Slovak heritage, and for many years, have been promoting the culture through festivals, parades, food, and traditional celebration.
In 2018, some lodges took steps to pass on their cultural knowledge with others. Members of No. 71, Utica, SD helped the Tabor Czech Heritage Club make homemade noodles in May at the Beseda Hall. They taught others how to make the noodles in the traditional fashion, then packed them up for sale at the Czech Heritage Museum for Tabor Czech Days in June.

Noodles can be part of the main dish, but when it came time for dessert, No. 141, Cadott, WI held a kolache class for those interested. In April, No. 128, Rossville, KS also hosted a Polka dance for over 100 guests, and taught attendees how to dance if they wanted to learn.

Youth Activities

Western encourages its lodges to foster the next generation by having activities for youth in the community and by bolstering young member involvement.
Holidays were a time to celebrate with children. Many lodges had Easter egg hunts, like No. 5 (Verdigree, NE), No. 446 (Dorchester, TX), and No. 408 (City Point, WI) did. Some, like IA area lodges No. 400, No. 262, No. 423, and No. 7 celebrated Halloween with a community trunk-or-treat events.

YELL! groups, which are members under age 40 in lodges, made a difference and had fun. YELL! members of No. 38, Austin, MN stayed active in a variety of ways, including putting up wood duck houses and maintaining their community mini libraries.

Czech and Slovak traditions were carried into the next generation with the No. 389 (Western, NE) YELL! group. This year, they volunteered at the October Czech Fest in York, participated in a parade, and danced at Czech Days. Additionally, YELL! President Coltin Rezabek was a candidate for homecoming royalty at Wilber-Clatonia.

Giving to Others

Members held fundraisers and organized item donations for charitable organizations.

Food sales were a popular way to raise money in 2018. In May, members of No. 127 (Owatonna, MN) had a bake sale and donated the proceeds to the Rochester Transplant House. At Lynch, NE's June Fest, members of No. 56 grilled up hamburgers, hotdogs, and kettle corn. Money raised was donated to the Lynch Swimming Pool.

Lodge members also joined with other community groups at fundraising events. Examples include when members of No. 193, Adams, WI, participated in the Alzheimer's Memory Walk and No. 360, Manitowoc, WI, bowled for a cancer bowl-a-thon.

In-kind donations can make a big difference to organizations in need. For example, members of No. 361, Meadowlands, MN, held a clothing drive, and donated the clothes to the Disabled American Veterans and a women's shelter. In order to help children and educators, several lodges collected school supplies near the beginning of the school year. No. 108, Denmark, WI organized a school supply drive. Local fourth graders enjoyed pencils, totebags, books, and more thanks to their efforts.

We thank everyone who helped make a difference in 2018. We look forward to working together to continue these efforts for years to come.

Cindy Motsinger | Communications Coordinator


Category: Fraternal

Please add your bio info through your member profile page, or through your dashboard.

Related News

Annual Report From the Vice President, Information Technology and Secretary

It is an honor and a pleasure to report to you on behalf of the Administration Department.

Little Libraries

Zare Svobody No. 38 members built and maintain little libraries in their communities of Grand Meadow and Wabasha, MN.

Lodge Points 2019

This list indicates the lodges that have received points for activities performed in 2019. We congratulate all the lodges that…

Call 877-935-2467 to speak with a Western Fraternal Life Representative.