Issue link: http://read.dmtmag.com/i/121911
Statutory Statements of Operations & Changes in Surplus at December 31, 2012 & 2011 Income Premium and annuity considerations Considerations for supplementary contracts with life contingencies Investment income, net of $218,765 and $657,528 of investment expenses in 2012 and 2011, respectively Miscellaneous income TOTAL INCOME 2012 2011 ___________________ 32,425,928 6,182,167 46,797 0 7,516,288 6,766,349 559 862 ___________________ 39,989,572 12,949,378 ___________________ BENEFITS AND EXPENSES Benefits: Death, disability and annuity benefits 3,898,545 3,704,643 Matured endowments and surrender benefits 2,861,367 3,137,549 Interest and adjustments on certificate or deposit-type contract funds 162,146 150,029 Payments on supplementary contracts with life contingencies 66,724 68,106 Increase/(decrease) in reserves for life certificates and contracts 29,111,878 1,825,336 General 4,326,759 2,814,357 insurance and fraternal expenses ___________________ TOTAL 40,427,419 11,700,020 BENEFITS AND EXPENSES ___________________ Net gain/(loss) from operations before refunds to members and net realized capital gains (437,847)1,249,358 Refunds to members 329,379 329,727 Net gain/(loss) from operations after refunds to members and before net realized capital gains (767,226)919,631 Net realized capital gains 56,831 74,444 ___________________ NET INCOME (710,396)994,075 ___________________ ___________________ CHANGES IN SURPLUS Surplus at beginning of year 14,966,844 13,511,495 Net income (710,396)994,075 Change in net unrealized capital losses 555,923 (152,318) Change in asset valuation reserve (708,974) (77,802) Prior period prepaid pension expense adjustment 0 (17,731) Prior period claims reserve adjustment 0 601,179 Change in non-admitted assets (336,522)107,945 ___________________ SURPLUS AT END OF YEAR 13,766,876 14,966,844 ___________________ ___________________ Any member wishing to review more financial details, as presented in our report of independent auditors, Johnson Lambert and Co., LLP, please contact the Home Office at 1-800-344-6273 ext. 239. the non-admitted assets as well as the asset valuation reserve (a calculated number that helps to smooth investment risk). income was up, and as we received new money we had more money to invest which resulted in higher investment income. Summary of Operations In 2012, your Society reported a tremendous increase in sales, which was primarily due to the sales of the annuity product. This increase was based on the fact that our annuity product had a 3% guaranteed interest rate. Investment On the expense side the payments to members had a slight decrease from the previous year. One of the major increases in the expense area was the reserve that was setup for the new business which resulted in an increase of $27.3 million. General expenses were higher Spring 2013 — www.ncsf.com because of the cost of acquiring the new insurance producers and the acquisition of the annuity business with commission. Also in the general expenses the cost of product development was quite a bit higher this year as your Society needed to bring to market products that reflected the current interest rates. National Treasurer Jon Mocol 23