Viking Magazine - July 2014 - 30

Financial Review
25
The financial health of our organization is a vital component of Sons
of Norway's success in the present and future. In reviewing the results
from 2013, I think we did a very good job. We have seen a continued
growth trend in important categories like assets and surplus while
doing an excellent job of controlling expenses. We've also seen
increasing strength in our investment portfolio and our overall
capital standing.
In 2013 we experienced a meaningful increase in our assets and are
now a $353 million fraternal life insurance company. This is a 5
percent increase over 2012, which is very positive for an organization
of our size. Also, certificate reserves increased by nearly $9 million last
year, continuing the previous steady rate of growth. Steady growth of
assets and reserves are good indicators for Sons of Norway's long term
well being.
In addition, we also increased our total surplus to $12.5 million.
This was due, in part, to the Minnesota Department of Commerce
allowing Sons of Norway to include an increase in the value of the
Headquarters building in its total surplus holdings. This change
provides a more accurate value in the financial statements of the
largest asset Sons of Norway owns. It gives our members a more
complete picture of our financial strength. This is fantastic news for
our organization because the surplus serves as a buffer for Sons of
Norway during financially volatile times and we now have additional
resources to protect the organization. We are also continuing to work
hard at keeping expenses down. Last year Sons of Norway staff were
able to keep total expense growth under 4% while still providing
the great service members expect and launching new programs that
benefit members.
We are also doing very well in a larger sense because 2013 saw our
investment portfolio continue its strength, with 97.7 percent of it
being considered investment grade. This, in turn, enables Sons of
Norway to fulfill its financial promises in the future. Also, our capital
position, which is the combination of unassigned surplus and asset
valuation reserve, experienced a significant increase of 50 percent.
This is all very good news for the organization because the increase
in assets and surplus, combined with the controlled expenses means
Sons of Norway can be flexible and make nimble strategic decisions
in the future. All qualities that you want in a fraternal life
insurance company.
30 VIKING JULY 2014 sonsofnorway.com
00 VIKING JULY 2014
sonsofnorway.com
% of members own Sons of Norway
insurance products.
More than $1 million in profits
generated by the sale of our
insurance products were given
to support fraternal offerings,
ranging from new programming
options to Viking magazine.
Insurance
Since our founding, Sons of Norway has made a
basic promise to our members: When you entrust
us with your financial future by purchasing one of
our insurance or annuity products, we will provide
financial protection in times of need. I'm filled
with great pride in being able to tell you that for
the 118th consecutive year Sons of Norway has
kept its promise and thanks to our stable, reliable
portfolio of products we will continue to do so.
Looking back at 2013 we saw very positive results
from our insurance operations. Last year we paid
out nearly $9 million in life insurance and annuity
death claim benefits and another $15 million in
cash surrender payments. What is important to
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Viking Magazine - July 2014

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