Making a Difference in the Lives We Touch
A Message From The Chairman
Dear Valued Policyholder:
Planning for Your Financial Security, Stability and Peace of Mind is a journey requiring persistence and careful preparation. Security Mutual offers specific tools, products and solutions that can help our policyholders achieve the long-term financial security goals they have set for themselves, their families and their businesses.
A strong, stable life insurance company is vital to helping you reach these goals. In 2017, Security Mutual achieved another year of solid financial performance, including a net operating gain for 2017 of $5.4 million. This was after paying dividends1 in excess of $21 million to our policyholders. 2017 was the 125th consecutive year the Company has paid dividends, and we are pleased to report that your Board of Directors voted to maintain the current dividend scale for the 2018 calendar year.
Despite persistently, near historically low interest rates, our investment portfolio continued to perform well. At the same time, we welcomed a significant number of new policyholders. All told, Security Mutual closed 2017 with $170.2 million in capital2 and $2.75 billion of total assets.
Planning for Your Peace of Mind
Many are concerned with having enough money in retirement. Security Mutual has specific tools and products designed to provide an income stream for life. We offer customized retirement services for both pre- and post-tax financial planning. Our Social Security Evaluator platform can be of tremendous assistance, providing an individualized strategy to help maximize the total lifetime benefits available to you through social security.
Business valuations and continuity are very important for business planning. To develop sound plans for the future, small-business owners first need to know the value of their business today, and we offer a helpful program for business valuations.
Safeguarding Your Confidential Information
My Security Mutual®
Our primary objectives for managing the fixed income portfolio in 2017 were maintaining the highest level of book income that is both prudent and practical, and preserving capital by maintaining a high-quality portfolio that can withstand liquidity, credit and interest rate shocks.The aggregate credit quality of our fixed income portfolio was rated A3 by Moody’s and A by Standard & Poor’s as of December 31, 2017, and over 99 percent of our holdings at year end were classified as investment grade by the National Association of Insurance Commissioners.4
Throughout 2017, market volatility was at a historic low across asset classes amid a backdrop of strong economic growth and continuing low interest rates. The Federal Reserve has made strides toward policy normalization and raising short-term interest rates, and we expect investment yields to continue to rise modestly in 2018.
We expect above-trend economic growth to continue to be supportive of credit markets in 2018. The tax reform legislation passed in December 2017 should augment positive economic trends and provide a further lift to credit markets.
As reflected in the Total Invested Assets chart below, we also have a commercial mortgage portfolio secured by high-quality real estate. Our stringent commercial mortgage underwriting guidelines and monitoring procedures are reflected in favorable long-term credit experience.
We remain vigilant with respect to market conditions and geopolitical risks, and we believe our fixed income and commercial mortgage portfolios are well positioned to support our products and the Company’s future growth and stability.
Making a Difference
Bruce W. Boyea
Chairman, President and Chief Executive Officer