Viking Magazine - August 2018 - 30

Board Minutes
Sons of Norway
International Board of Directors Meeting
May 9-11, 2018
The Sons of Norway International Board met May 9-11, 2018, at
the Hilton Garden Inn, 6330 Point Chase, Eden Prairie, MN 55344.
Attendees:
* The following officers were present: President Jon Tehven,
Vice President Ron Stubbings, Secretary Marci Larson, and
Treasurer Elaine Nelson.
* Also present were board members Karl Hella (District 1),
Mark Agerter (District 2), Ken Johnson (District 3), Jon
Grinde (District 5), Gloria Benazic (District 7), and Odd
Harald Olsen (District 8).
* Absentee members were Steve Halverson (District 4) and
Roger Espeland (District 6).
* Those attending from Sons of Norway headquarters were
CEO Eivind Heiberg, COO Chris Pinkerton, Controller
Dean Nelson, Actuary Dean Stiller and Executive Assistant
Lonna Hanson.
* Also present was Legal Counsel Dave Ness from Fafinski
Mark & Johnson, P.A.
Wednesday, May 9, 2018
The meeting commenced at 8:30 a.m. with opening remarks by
President Tehven. International Secretary Larson read a thank
you note from Jeanne Soyland for the memorial given to the SON
Foundation in her husband Trygve's name.
Outside Auditor - Eide Bailly
Representatives from Eide Bailly gave the Sons of Norway audit
report for year ending Dec. 31, 2017. Vanessa Dutton (Partner) and
Mollee Key (Senior Audit Associate) were both present.
Ms. Dutton said the Eide Bailly team had the full cooperation of
the Sons of Norway management team and did obtain sufficient
and appropriate documents to render an audit opinion. No
misstatements were detected as a result of the audit.
BTC Capital Management
Jon Augustine, Chief Investment Officer, and Jeff Birdsley, Fixed
Income Portfolio Manager, gave an overview of Sons of Norway's
investments.
Overall, the Sons of Norway portfolio is rated single " A. "
Compared to the rest of the life insurance industry this is higher
than average credit quality.
30 VIKING AUGUST 2018 sonsofnorway.com
BTC recommended changes to the Sons of Norway
investment policy, specifically:
1. Increase amount of direct commercial mortgage
holdings from 5 percent to 15 percent. Sets limits on
amount of lending on a single loan.
2. Allow holdings of commercial properties other than
home office as part of mortgage program.
3. Increase the amount of a bond that can be purchased
of a single issuer: AAA rated from $2M to $3.5M; AA
rated from $1M to $2.5M; A rated from $1M to $2M; BBB
rated from $500K to $1M.
Actuarial Report
Dean Stiller, Sons of Norway Valuation Actuary, gave his report.
Mr. Stiller stated that he reports directly to the Board and
meets U.S. qualification standards to perform actuarial services.
He said his role is to review and test the adequacy of Sons of
Norway's reserves. The reserves are determined by formulas
mandated in state insurance regulations and then tested to see
if they are sufficient.
Financial Report
Controller Dean Nelson presented the 1st quarter 2018 financial
numbers and also discussed 2017 year-end numbers.
Headquarters Real Estate Sale
The board reviewed the real estate sale and costs. Talking points
are being developed for leadership.
Insurance Strategy
Eivind Heiberg introduced the new Chief Operating Officer,
Chris Pinkerton, and asked him to share strategy to increase
insurance sales.
Tactics to improve sales will include hiring more Financial
Benefits Counselors (FBCs) by using more modern recruiting
approaches. He hopes to add 20 new FBCs in 2018 and 30 more
FBCs in 2019.
Thursday, May 10
Nominating Committee
President Jon Tehven gave an update from the Nominating
Committee. Board candidates are asked to submit a letter with
their application that details their background and experience
apart from Sons of Norway. The Committee would like to know
http://www.sonsofnorway.com
Viking Magazine - August 2018

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