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Annual Report

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Financial & Philanthropic Performance of
The Royal Neighbors of America®
as of December 31, 2020

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Management’s Report to the Membership

Royal Neighbors of America is committed to improving the lives of our members by providing life insurance and annuities products, savings offers designed to make the most of your budget, and philanthropic and volunteer programs to make a positive impact in your community.

Royal Neighbors’ responsible growth strategies ensure we can meet our obligations to Certificateholders while funding our philanthropic initiatives. In 2020, despite the far-reaching effects of the pandemic, we achieved all-time record highs for product sales, total revenue, and Social Good! This demonstrates our success in fulfilling all critical strategic objectives.

We are pleased to report continued financial stability, with revenues of $200.4 million and total net admitted assets of $1.1 billion. Our surplus to net admitted assets ratio of 17% (higher than the industry average of 6%) indicates our sustained ability to meet our obligations to our membership. In addition, the independent credit rating agency AM Best increased our rating to A Excellent (3rd highest out of 13) as of December 2020.

We are especially proud of the efforts by our members to continue to support their neighbors and communities during an unprecedented year. Together, we found new ways to make a difference, generating a new high in Social Good (how we measure our philanthropic impact) of $19.3 million, including more than 287,000 hours of volunteer service.

Our success in 2020 reflects our dual commitment of providing insurance protection and opportunities to make a difference in communities. The charitable passion and ongoing commitment to women’s empowerment by our membership is an enduring principle of Royal Neighbors, and one we are proud to support.


$1.1M saved by members on discounted health, wellness, legal services, and retail services provided to members

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as of December 31



Net admitted assets$1,119,852$1,104,742
Certificateholders' surplus$187,054$194,680
Premium income, net of reinsurance$139,403$121,569
Revenue (including capital gains)$200,428$181,176
Net income (loss)2,0568,305

(dollars in thousands)


220,000+ Members improving communities
200+ Chapters participating in grassroots volunteering
280,000+ Volunteer Hours to our communities


19M+ Social Good impact
$175K Scholarships awarded
$100K Nation of Neighbors℠ women's empowerment grants awarded

ROYAL NEIGHBORS Financial Statement

(dollars in thousands)

BALANCE SHEET as of December 31

Cash and short-term investments






Other assets



Total admitted assets



Insurance reserves and claims



Other liabilities



Total reserves and liabilities



Total Certificateholders' surplus



Total insurance reserves, liabilities and surplus




Premium income, net of reinsurance



Investment income



Reinsurance allowances and miscellaneous income



Total income



Benefits paid or provided






General and administrative expenses



Net income (loss) before net realized capital gains (losses)



Net realized capital gains (losses)



Net income (loss)



Royal Neighbors Pop Up Glossary

Pop-up Glossary


a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder).

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coverage options


The calculations contained within this calculator are specific to Royal Neighbors of America. It is intended to estimate an amount of life insurance coverage if death occurred in the near future. It is not a recommendation for specific coverage amounts. Your financial needs may differ from the estimates. Royal Neighbors does not guarantee that the amount illustrated here will meet your financial needs. You are responsible for selecting the appropriate amount of coverage. To evaluate your specific needs, please contact Royal Neighbors directly at (866) 845-6665.

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  • Long-term Needs N/A
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  • Total Needs N/A
  • Immediate Resources N/A
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    Life Insurance Proceeds N/A
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  • Partner's Earnings N/A
    Social Security N/A
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Additional Life Insurance Needed
  • Your total needs minus your total resources means you need N/A

Income Replacement Estimate

This chart estimates how much life insurance your loved ones may need to replace your income and maintain their current standard of living. Your dependents may be eligible to collect Social Security income benefits, which are included in the calculation below. The “Insurance Needed” column does not include financial needs such as paying off debt or paying for college.
Year Partner Age Partner Income S.S. Income Available Income Desired Income Surplus/Shortfall Available Resources Insurance Needed

Calculations include your answers to the previous questions, in addition to the following: 3% investment return; 2.6% anticipated inflation rate; $8,500 for funeral expenses which is based on the national median cost for an adult funeral in 2014 according to the National Funeral Directors Association1; 75% of your annual combined income for desired annual income needs; and 15 years for the number of years’ income needed or the calculation of the number of years it will take your youngest child to complete higher education, whichever is greater. Social Security benefits were factored based on the age of your youngest children (up to 4). Immediate needs include your mortgage, other debts, and $8,500 for funeral expenses.

College cost estimates are based on the following parameters (based on data provided by [College Board] . The inflation rate for college costs (5.48% annually) is based on the Bureau of Labor and Statistics Consumer Pricing Index average from January 1996-June 2016. This rate will factor into college cost assumptions for future years, adjusted annually.

  • Amount for community college: 2 years @ $3,435/year (tuition and fees only)
  • Amount for public university: 4 years @ $19,548/year (tuition, fees, room and board)
  • Amount for private university: 4 years @ $43,921/year (tuition, fees, room and board)

1 “The national median cost of a funeral with viewing and burial for calendar year 2014 was $7,181. If a vault is included, something that is typically required by a cemetery, the median cost is $8,508. The cost does not take into account cemetery, monument or marker costs or miscellaneous cash-advance charges, such as for flowers or an obituary.”

Contact Royal Neighbors

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Form #: P00495; Rev. 7-2021