Issue link: https://read.dmtmag.com/i/144562
From the National Secretary, cont. from page 13 Overall Comments The annual statement was released to the regulators on February 26, 2013 (ahead of the due date of March 1st). You will receive the complete filing in PDF format; will receive the hard copy at the board meeting. In the meantime, here are some highlights for the year ended December 31, 2012. Good News • remium and annuity considerations gain of $26,243,761 P (Page 4 Line 1). • nvestment income of $7,370,513 compared to the previous I year of $6,614,561 (Page 4 Line 3). • xcellent surplus position at Dec. 31, 2012; Solvency Ratio E =109.3% (at 12/31/11 it was 112.9%). • et realized capital gains of $56,831 (page 4 Line 30). N Reasons Behind The Results Sales increased because of the increased number of producers and having favorable interest rate on the annuity. Cash surrenders decreased in 2012 which is a positive item. Investment income increased due to having more assets under management. In looking at the general expenses, you will notice that they went up $333k, which was $144 less of expenses allocated to investments expense, $38K of onetime legal expense, $50k consulting and $90k for product development. Product development expenses will continue to be a major expense into 2013 as our product portfolio is redeveloped. It is also important to realize that 2012 the Society spent $1,125 million to acquire new business, which will have positive contributions to income in the future. Items That Need Attention • ince 2008 first year life sales have decreased 92%. S This is the year that the current life product were introduced (page 21 Line 3 across years). • ife insurance in force has slid by $50 million since 2008 L or 15% decrease. • isk based capital decreased to 684 from 850 in 2011. This R number is still well above the 300 number for state action. • osts associated with product development contributed C to the loss. Operations' Report • udget analysis has been prepared and will be included B in your packet for review. • he annual statement has been updated as required T by the NAIC. • e are preparing client prepared work papers for the W upcoming audit of Johnson Lambert during the week of 14 March 11th through March 22nd. Date has been revised with consulting the accounting department from March 18th to March 29th. • ccounting staff is supporting the state examiners. A Jon Mocol, Director of Accounting and Finance fraternal programs Administrative Assistant Rosemary Holland gave the report on fraternal programs: • 012 Final Hearts and Hands • 013 Hearts and Hands 2 2 • 012 Final Junior Activities 2 • 013 Junior Activities 2 Sales' Report Sales Manager Victor Mensavage presented the sales department report. Even though our focus for the 2013 sales year is on improving our life insurance sales results, we have had some significant annuity production during the first two months of 2013. Much of this can be attributed to some carryover activity from 2012. The numbers below reflect business processed from January 1, 2013 through February 28, 2013: • anuary to February J – New Life Sales: $4.170.60 New Life Sales YTD: $4,170.60 2012 Goal: $200,000 % of Goal Achieved: 2% – New Annual Sales: $8,593,622.55 New Annuity Sales YTD: $8,593,522.55 2012 Goal: $8,1000,000 % of Goal Achieved: 106% • ecruiting R – New General Agents January to February: 0 – Total General Agents as of this Report Date: 16 – New Producers January to February: 3 – Total Appointed Producers as of this Report Date: 393 Executive Vice President Jay Schenk's report was discussed. Motion by National Director Rosalie Pyle and seconded by National Director Catherine Hensel the executive officers pursue the proposal made by Steimla & Assoc. Inc. for Option 1 (one). Motion passed 10 Yes – 0 No. State Examiner Shoeb Kahn spoke with Board regarding the audit that was taking place in the Home Office. The meeting recessed at 3:15 p.m. for committee meetings. National Catholic Forester