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Annual Report

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Financial & Philanthropic Performance of
The Royal Neighbors of America®
as of December 31, 2021


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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 social impact in your community.

Royal Neighbors’ responsible growth strategies ensure we can meet our obligations to certificateholders while funding our philanthropic initiatives. In 2021, life premium income increased and was offset by lower annuity premiums. Our investment income results were strong and more than offset increased mortality experienced in 2021. Our positive financial results in light of the pandemic, demonstrates our long-term commitment to Members and ability to meet our financial obligations.

We are pleased to report AM Best affirmed our rating A Excellent (3rd highest out of 13) on November 30, 2021. Royal Neighbors earned net income of $3.8 million, and our certificateholders’ surplus increased $7.7 million.

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 $20.5 million, including more than 283,000 hours of volunteer service.

Our success in 2021 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.

MEMBER SAVINGS

$1.2M saved by Members on discounted health, wellness, legal services, and retail services provided to Members and more

 

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FINANCIAL HIGHLIGHTS

as of December 31

2021

2020

Net admitted assets$1,170,315$1,119,852
Certificateholders' surplus$194,702$187,054
Premium income, net of reinsurance$134,148$139,403
Revenue (including capital gains)$209,381$200,428
Net income (loss)$3,7762,056

 (dollars in thousands)

 



COMMUNITY REACH

240,000+ Members improving communities
200+ Chapters participating in grassroots volunteering
283,000+ Volunteer Hours to our communities

 

SOCIAL GOOD

20.5M+ 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, 2021
 20212020

Cash and short-term investments

$14,967

$8,676

Investments

1,117,674

1,076,144

Other assets

37,674

35,032

Total admitted assets

$1,170,

$1,119,852

Insurance reserves and claims

$866,577

$868,831

Other liabilities

109,036

63,967

Total reserves and liabilities

$975,613

$932,798

Total Certificateholders' surplus

194,702

187,054

Total insurance reserves, liabilities and surplus

$1,170,315

$1,119,852

 

INCOME STATEMENT
 20212020

Premium income, net of reinsurance

$134,148

$139,403

Investment income

56,445

46,414

Reinsurance allowances and miscellaneous income

18,788

14,611

Total income

$209,381

$200,428

Benefits paid or provided

$133,196

$132,618

Commissions

42,837

37,368

General and administrative expenses

30,952

30,377

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

2,396

1,395

Net realized capital gains (losses)

1,380

661

Net income (loss)

$3776

$2,056

 

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Life-Insurance

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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MY INSURANCE CALCULATIONS

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.

Needs
  • Immediate Needs N/A
  • Mortgage Amount: N/A
    Other Debts: N/A
    Funeral Expenses:N/A
  • Long-term Needs N/A
  • College Costs: N/A
    Total Income:N/A
  • Total Needs N/A
Resources
  • Immediate Resources N/A
  • Investment Assets N/A
    Life Insurance Proceeds N/A
  • Long-term Resources N/A
  • Partner's Earnings N/A
    Social Security N/A
  • Total Resources N/A
 
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.” http://www.nfda.org/news/statistics

 
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Contact Royal Neighbors

 

Form #: P00495; Rev. 5-2022