SNAPSHOT 2020 - Modern Woodmen of America
Transcript of SNAPSHOT 2020 - Modern Woodmen of America
MUSIC HAS BEEN DESCRIBED AS THE UNIVERSAL LANGUAGE. It’s one I’ve “spoken” since I was in diapers, pounding away at the piano keys from my dad’s knees. These days I hold my grandkids as they do the same. You could say we “play for keeps,” from generation to generation. So does Modern Woodmen of America.
Since it was formed in 1883, Modern Woodmen has always been serious about protecting its members and supporting their communities. Through booms and recessions, from wartime to peace to a global pandemic, we play for keeps. And we stay in tune with what’s needed for stability and success.
Among the many lessons of 2020, we learned we can adapt and embrace opportunities for growth. Our staff, field representatives and fraternal leaders learned new technology to successfully work, volunteer and socialize from home. We remain on track and continue to challenge ourselves to:
• Streamline our internal processes to better serve you.• Find new ways to provide the products and services you need.• Offer a menu of fraternal member benefits and programs that
appeal to you, your family and community.We play for keeps and always will – learning, growing and helping
you orchestrate financial plans to meet your goals, and offering fraternal benefits and programs to support your family and community. And we continue to hold you in our hearts and in our prayers throughout this pandemic.
It’s my honor to share this 2020 annual report. May it strike just the right chord.
From left:
Director Lester L. Bohnert East Moline, Illinois
Director Sam H. Kupresin Bettendorf, Iowa
National Secretary and Executive Vice President Jerald J. Lyphout East Moline, Illinois
Director David B. Emrick Davenport, Iowa
President and CEO W. Kenny Massey LeClaire, Iowa
Director James E. Temperley Bonita Springs, Florida
Director Brett M. Van Coal Valley, Illinois
Director Lori A. Newberg Lenexa, Kansas
Director Joseph A. Sztapka Sioux Falls, South Dakota
Playing for keeps / Modern Woodmen of America 2020 Annual Report
OUR MISSION To improve the quality of life for our members.
OUR VISION Modern Woodmen of America will grow nationwide through members helping members create a better tomorrow for themselves, their families and others.
OUR CREED There is a destiny that makes us brothers; None goes his way alone; All that we send into the lives of others Comes back into our own. - Edwin Markham, circa 1939
PLAYING FOR KEEPS2020 ANNUAL REPORT TO MEMBERS
W. Kenny Massey | President and CEO
MODERN WOODMEN OF AMERICA’S
BOARD OF DIRECTORS
SNAPSHOT 2020
David A. Nuernbergerappointed 2021
WE WELCOME THE 23,006 NEW MEMBERS WHO JOINED MODERN WOODMEN LAST YEAR!
735,913 members PAID TO MEMBERS (INCLUDES DEATH BENEFITS, ANNUITY PAYMENTS AND SURRENDER BENEFITS).
$1.09 billion
IN FRATERNAL EXPENDITURES SUPPORTING MEMBER BENEFITS AND PROGRAMS.
$14.4 millionOF LIFE INSURANCE COVERAGE IN FORCE.
$41.84 billion
2524
To protect members’ health, in-person events were suspended due to the pandemic beginning in March 2020. However, members continue to learn, socialize and make an impact through volunteer-from-home, limited-contact and virtual activities.
• CREATIVE, SAFE EVENTS. From virtual tours of dairies, distilleries and museums, to online magic lessons, concerts and trivia contests, members “gathered” to socialize and learn. And many chapters and clubs organized drop-off volunteer projects to benefit hospitals, food pantries, schools and homeless shelters.
• TOGETHER FOR GOOD. Members united around a single cause – helping people with disabilities. In April, the campaign’s focus was expanded to include supporting people affected by the pandemic.
• MATCHING FUNDS. Chapters and clubs partnered with thousands of organizations to raise money for local causes. Modern Woodmen matched $3.4 million raised through these fundraisers.
• DISASTER RELIEF. The Natural Disaster Matching Fund Program supported additional fundraising matches to assist with projects related to national disaster declarations for hurricanes in Alabama, Florida and Mississippi; wildfires in California and Oregon; tornadoes in South Carolina and Tennessee; and a derecho in Iowa. These projects raised $162,913, including Modern Woodmen’s $14,500 match for the causes.
On behalf of their local member chapters and youth service clubs, Modern Woodmen’s fraternal leaders made 1,430 cash donations to schools, public entities and nonprofit organizations at the beginning of the pandemic. The nearly $1.1 million provided funding for personal protective equipment, food and other items in member communities across the nation.CHAPTER AND CLUB ACTIVITIES
CONTINUE TO MAKE AN IMPACT
$1.1 MILLION DONATED IN DIRECT COVID-19 RELIEF
ADDITIONAL BENEFITS
*Includes total dollars raised by member chapter and youth clubs partnering with community groups.
MATCHING FUND PROGRAM
YOUTH SERVICE CLUBS
CLUBS792 PARTICIPANTS26,865
CHAPTERS
EVENT PARTICIPANTS14,674
for members age 55+.
ACTIVE SUMMIT CHAPTERS
293
enjoyed social, educational and volunteer events.
ATTENDEES171,062
ACTIVE CHAPTERS2,516
SERVICE PROJECTS/VOLUNTEER ACTIVITIES
HANDS-ON EVENTS7,466
VOLUNTEER HOURS194,920
for projects in members’ communities.$1.7 million REIMBURSED
3,699 FUNDRAISING EVENTS
to community projects and individuals in need.$29.3 million* CONTRIBUTED
BIRTHDAY BOOK CLUB
received a free book.16,977 CHILDREN
MAKE AN IMPACT® SCHOLARSHIPS
to 199 members.$452,000 AWARDED
FRATERNAL AID FUNDfor members experiencing medical or natural disasters.
$82,211 TOTAL PREMIUMS PAID
DO-GOOD GRANT®
for members’ approved personal volunteer projects.AWARDS $100 GRANTS
FINAL WISHES
accessed planning website.1,538 MEMBERS
MEMBER DISCOUNTS
on home goods and technology, health screenings, gym memberships, park passes, and more.
$231,000+ IN SAVINGS
NEWBORN BENEFITfor qualifying families of infants in poor health.
CAN PROVIDE LIFE INSURANCE
ORPHAN BENEFITfor members’ children who become orphaned.
OFFERS FINANCIAL SUPPORT
TERMINAL ILLNESS INTEREST RELIEF
related to advances for those with terminal illness.CAN WAIVE INTEREST
MEMBER ACTIVITIES
MEMBER BENEFITS
MoneyMasters is Modern Woodmen’s new, free educational program for students of all ages.
• MoneyMasters K-12 is a blended-learning program for schools, home schools and youth organizations. It includes programs for grades K-2, 3-5, 6-8 and 9-12, and once a classroom completes the program, they may be eligible to receive funds for a Community Impact Capstone project. This helps students practice the skills they learned while benefiting a local cause.
• MoneyMasters workshops help adults learn about budgeting, identity theft, credit scores and reports, and debt management. Modern Woodmen representatives present the workshops as a volunteer service, partnering with local nonprofits and public agencies.
To learn more, check out the video at https://bit.ly/38zahMy or contact your local Modern Woodmen representative.
FREE PERSONAL FINANCE PROGRAM
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Life insurance products• Whole life insurance• Universal life insurance• Term life insurance
Annuity products• Fixed annuities• Immediate annuities• Variable annuities*
Investment products*• Mutual funds• Retirement plans – traditional IRA, Roth IRA,
SEP-IRA, SIMPLE IRA, 401(k), 403(b) TSA• College savings plans – 529 college savings
plans, Coverdell education savings accounts, UGMA/UTMA accounts
• Brokerage services – stocks, bonds, ETFs, UITs• Investment advisory services – adviser-managed
and third-party managed accounts, financial planning services
Insurance products**• Dental and vision insurance• Disability income insurance• Group employee benefits• Group voluntary benefits• Impaired risk life insurance• International life and health insurance• Long-term care insurance• Health insurance• Medicare supplement insurance• Medicare Advantage and prescription drug plans
*Securities offered through MWA Financial Services, Inc., a wholly owned subsidiary of Modern Woodmen of America. Member: FINRA, SIPC. Investment Advisory Services offered through MWA Financial Services, Inc., a Registered Investment Adviser. Individual agents may not be licensed to sell all products.**Not issued by Modern Woodmen of America. Brokered insurance products available through MWAGIA, Inc., a Modern Woodmen subsidiary. Product availability varies by state.
PRODUCTSMODERN WOODMEN REPRESENTATIVES OFFER FINANCIAL GUIDANCE AND PRODUCTS TO HELP YOU MEET A WIDE RANGE OF NEEDS
Bonds
Cash, certificate loans and other
Mortgage loans and real estate
Equities (preferred and common stocks)
Quality Investments
Fraternal expenditures for the year declined due to suspension of in-person activities during the COVID-19 pandemic.
Fraternal ExpendituresDollars in millions
As of 12/31/2020, approximately 99.3 percent of bonds were of high or medium quality.
Modern Woodmen’s increasing asset base is a strength.
Growth in AssetsDollars in billions
Life insurance in force shows consistent growth and increased protection for members.
Life Insurance in ForceDollars in billions
79%
6%
2%
13%
2020 FINANCIAL HIGHLIGHTS
Financial Representative Jonathon Ostler (right), Utah
Financial Representative Joshua Leung, California
Financial Representative Lily Ritch and her father, Managing Partner Fred Burgess, North Carolina
Financial Representative Curtis Woods, Arkansas
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2020 2019
Operating activities
Premium and annuity considerations $916,306 $957,749
Net investment income 601,035 612,728
Miscellaneous income 20,822 9,049
Total cash provided by operations 1,538,163 1,579,526
Benefit- and loss-related payments 1,060,185 1,116,185
Commissions and other expenses paid 188,717 204,005
Net transfers to or (from) separate accounts 13,264 62,638
Dividends paid 8,085 7,451
Total cash used in operations 1,270,251 1,390,279
Net cash provided by operating activities 267,912 189,247
Investing activities
Proceeds from investments sold:
Bonds 1,943,404 1,394,411
Stocks 184,285 132,770
Mortgage loans 40,188 130,548
Real estate 497 0
Other invested assets 74,105 77,364
Miscellaneous proceeds 0 14,410
Total investment proceeds 2,242,479 1,749,503
Cash applied, cost of investments acquired:
Bonds 1,638,110 1,871,453
Stocks 78,174 61,451
Mortgage loans 0 0
Real estate 1,742 351
Other invested assets 252,028 99,660
Miscellaneous applications 73,611 22,088
Total investment applications 2,043,665 2,055,003
Net decrease in certificateholders’ loans (8,305) (5,590)
Net cash used in investing activities 207,118 (299,910)
Other cash provided by (used in) financing activities and other miscellaneous sources 119,604 205,289
Increase (decrease) in cash and short-term investments 594,634 94,626
Cash and short-term investments at beginning of year 363,354 268,728
Cash and short-term investments at end of year $957,988 $363,354
2020 2019
Assets
Bonds $13,331,496 $13,627,696
Stocks 971,425 860,782
Mortgage loans 418,693 458,883
Real estate 17,480 18,059
Cash and short-term bonds 957,988 363,354
Certificateholders’ loans 139,277 147,723
Securities lending reinvested collateral 432,658 375,154
Other invested assets 683,544 451,845
Total cash and invested assets 16,952,561 16,303,496
Investment income due and accrued 122,845 127,567
Electronic data processing equipment 2,365 3,422
Other assets 5,319 3,953
Separate account assets 1,095,492 902,209
Total admitted assets $18,178,582 $17,340,647
2020 2019
Income
Premiums:
Life and annuity $916,030 $956,350
Other 207 1,439
Investment income, net of expenses 597,512 613,344
Amortization of interest maintenance reserve 10,729 12,941
Other income 15,556 9,049
Total income 1,540,034 1,593,123
Benefits and expenses
Benefits:
Life and annuity 1,070,769 1,118,615
Other 308 370
Increase in aggregate reserves 236,245 144,533
Employees’ and fieldworkers’ benefit plans 8,710 9,722
Commissions 50,313 53,784
General insurance expenses 105,880 117,981
Insurance, taxes, licenses and fees 6,627 8,293
Fraternal, charitable and benevolent expenses 14,361 20,431
Net transfers to or (from) separate accounts 7,173 55,701
Total benefits and expenses 1,500,386 1,529,430
Net gain from operations before dividends/net realized capital gains 39,468 63,693
Dividends to certificateholders 9,055 8,241
Net gain from operations before net realized capital gains 30,592 55,452
Net realized capital gains 93,836 34,071
Net income $124,428 $89,526
2020 2019
Surplus - balance at beginning of year 2,018,309 1,878,929
Net income 124,428 89,526
Net unrealized capital gains 176,660 184,961
Change in asset valuation reserve (86,471) (89,049)
Change in nonadmitted assets (1,351) 1,612
Other changes, net 16,282 (47,670)
Surplus - balance at end of year $2,247,857 2,018,309
Statements of Cash Flows
Balance Sheets
Statements of Operations
Statements of Surplus
2020 2019
Liabilities and Surplus
Aggregate reserves:
Life and annuity $13,143,181 $12,908,456
Accident and health 1,580 1,784
Certificate and contract claims 50,484 33,146
Other certificateholders’ funds 3,489 3,460
Dividends payable to certificateholders 9,060 8,090
Accrued commissions, general expenses and taxes (22,262) (13,365)
Payable for securities lending 432,658 375,154
Other liabilities 710,057 684,818
Liability for benefits for employees 68,861 63,925
Interest maintenance reserve 25,549 28,556
Asset valuation reserve 412,576 326,105
Separate account liabilities 1,095,492 902,209
Total liabilities 15,930,725 15,322,338
Unappropriated surplus 2,247,857 2,018,309
Total surplus 2,247,857 2,018,309
Total liabilities and surplus $18,178,582 $17,340,647
FINANCIAL STATEMENTSMODERN WOODMEN OF AMERICA – YEAR END DEC. 31, 2020 (DOLLARS IN THOUSANDS) UNAUDITED
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