Select Page

Letter to Policyholders

April 3, 2023

Embracing the Community…
Working for You

A Message from the Chairman and the President & CEO

Bruce W. Boyea, MAAA®, MSPA; Chairman and Chief Executive Officer

As we reflect on 2022, the economic challenges, volatility in the financial markets, inflation, and the pending threat of a recession were all very real. Coupling these challenges with COVID-19 and its numerous variants created unique challenges for the Company, but also opportunities. Within this year’s letter you will read how the Company delivered on its promises to you, our policyholders.1 The Board of Directors takes this opportunity to thank you for selecting Security Mutual Life Insurance Company of New York as the company to help protect you, your family or your business against life’s uncertainties. We are proud to have you as a policyholder. 

Bruce W. Boyea, Chairman of the Board 

2022 Letter to Policyholder Cover Artwork
Kirk R. Gravely, ASA, MAAA®; President and Chief Operating Officer

Eighteen years after the Statue of Liberty was erected, construction began on Security Mutual’s building. As pictured on the front cover, the Company’s iconic lights atop the building serve as a similar beacon of light bringing attention to items of special interest, public, and nonprofit initiatives, days of special recognition and sometimes world events. In order of appearance from the top, the illustrated examples are in support of veterans; Sock Out Cancer®; Metastatic Breast Cancer; Memorial Day, July 4th and Veterans Day; and the Ukraine. We are proud of our 136-year legacy of service and support, which provides us a strong foundation to serve you, our policyholders.

Kirk R. Gravely, President & Chief Executive Officer 

Dear Valued Policyholder:

It is an honor to provide you with an update on Security Mutual Life Insurance Company of New York, your Company. We sincerely hope you had a good year in 2022, and as we enter a new year, Security Mutual will be here for you, our policyholders. As we move into 2023, we know there is one constant and that is change. While change can be challenging, it also brings new opportunities and keeps us flexible, better prepared for the future and better positioned for adapting to an ever-evolving world.

No matter what change comes before us, we want you to know that as a policyholder you are at the top of our priorities. This Company was built by policyholders for their mutual benefit more than 136 years ago, and that founding principle has not changed over all the years. We are still here, in business for the purpose of helping to provide security for you and your family. As we navigate the new challenges and opportunities, it is important to the Company’s Senior Management, our Board of Directors, and our employees that we continue to strive to understand your needs and develop appropriate responses to those needs. These fundamentals provide clarity of purpose for your team at Security Mutual.

In addition to you, the policyholder, the Company positively impacts many others including our employees, our life insurance advisors, and our growing number of communities. For many years we have served policyholders across the United States. Recent events have led us to expand our employee base across additional states and to increase our number of life insurance advisors throughout the country. We recognize and celebrate each of these new communities as they allow us to grow and improve, bringing diversity of thought and backgrounds. We embrace the power of working together as we strive for growth and continuous improvement.

Peace of Mind in Uncertain Times

2022 was a year of challenges on several fronts, including the economic volatility, ongoing health concerns and continued cybersecurity attacks we hear about each day.

In the United States, the increasing inflationary pressures on cost of living spurred the Federal Reserve to take action to seek to control inflation, resulting in rising interest rates and volatility in equity and debt markets. As a mutual life insurance company, we help protect our policyholders by providing products with competitive values that, when combined with appropriate financial planning, help offer stability and peace of mind in uncertain times such as these.

Safeguarding confidential information in today’s digital and remote work environment is of the utmost importance to Security Mutual. The Company constantly evaluates our personal information privacy protection procedures and cybersecurity processes, policies, and programs, updating as appropriate. Frequent security awareness training for our employees keeps data security foremost in the minds of our team.

Financial Results

Security Mutual delivered solid financial results in 2022. The Company maintained its financial strength and stability during the year, supported by a robust enterprise risk management framework and the ongoing trust and confidence of our policyholders. The extraordinary commitment of our employees is reflected in our strong earnings and solid financial position. The Company closed 2022 with $207.4 million in capital, a 0.3% increase over 2021, and assets over $3 billion. Our net operating gain of $4.56 million for 2022 was achieved after paying policyholder benefits in excess of $350.2 million—including policyholder dividends2 of $21.35 million.

In 2022, Security Mutual continued its strong sales and issued more than 39,095 new individual life insurance policies and annuity contracts. The number of Security Mutual policies in force has increased more than 130% over the last 20 years. This growth has been accomplished without compromising the standards that have been the key to our financial strength and stability. As the Company expands its presence in more states, we are excited about the opportunity to be of service to more people. We welcome our new policyholders to the Security Mutual family and look forward to serving all our policyholders in the future.

Claims during 2022 continued at an elevated level due to COVID-19 and other health impairments as reflected in our total benefits paid. It is an honor and privilege to serve our policyholders and to be there when we are needed.

Financial Strength/Prudent Investing

Security Mutual works with BlackRock Financial Management, Inc.,to manage the Company’s fixed income investment portfolio. The primary objectives are to achieve the highest level of investment income and preserve capital by maintaining a high-quality portfolio that can withstand market and economic volatility. Security Mutual and BlackRock work together to develop and pursue strategies that focus on enhancing income while managing portfolio risk to support our products and create long-term value for our policyholders. 

2022 saw difficult markets in nearly all asset classes as stubbornly high inflation kept the Federal Reserve aggressively raising the Fed Funds target rate despite progressively lower growth. The Company’s diversified portfolio performed well through this volatility. Even in a challenging economic environment, your Company has been managing its assets with the mission of generating the returns needed to meet policyholder commitments in a stable manner.

Security Mutual manages its commercial mortgage loan portfolio (see the Total Invested Assets chart) which is secured by high-quality real estate. Through stringent commercial mortgage underwriting standards, monitoring procedures and diversification (both as to real estate type and geography), the portfolio has reflected very favorable experience
over many years.

We believe that doing the right things for our policyholders, our employees, our communities, and our life insurance advisors leads to better results for all stakeholders. The Company’s portfolio is managed under an “ESG4 Aware” framework. This framework expanded our investment risk analysis and is intended to help the Company achieve better returns by avoiding losses and embracing opportunities. We are proud of the work that we have done and acknowledge there is more for all of us to do.

Fostering a Culture of Diversity and Inclusion

At Security Mutual, we value diversity and believe that a strong culture of caring and respect is important to who we are. The Company continues to foster an environment where individuals can feel included, valued, and supported. We emphasize Diversity, Equity, and Inclusion (DEI) at all levels, including our leadership, employees, life insurance advisors and customers. Our efforts are focused on communication, education, building relationships and participating in meaningful opportunities for awareness, learning, and giving. We are dedicated to an ongoing DEI effort that will have a strong and positive impact in our workplace and beyond.

Caring and Community Involvement

Since our founding, Security Mutual has helped provide individuals and families with the security and peace of mind needed to face life’s uncertainties. We believe we can make a lasting impact in the lives of many through our support of a diverse group of charitable endeavors that help build better tomorrows within communities, including the United Way, the Boys and Girls Club, the Urban League, food pantries, housing projects for homeless veterans and disaster relief. Our own nonprofit initiative, Sock Out Cancer®, continues to expand and currently operates in multiple states working with hospital foundations to help cancer patients who need financial assistance for necessities. Caring and community involvement are hallmarks of our corporate culture—we truly are The Company That Cares®.

Conclusion

2022 was another challenging but successful year for Security Mutual. It marked the 131st consecutive year the Company paid policy dividends to participating policyholders. We continue our unwavering commitment to our policyholders and our life insurance advisors by providing innovative solutions and products and services that help meet insurance and financial planning needs–for today and tomorrow.  

Thank you for being a part of the Security Mutual family. We look forward to serving you in the years to come.

Bruce W. Boyea
Chairman of the Board

Kirk R. Gravely
President & Chief Executive Officer 

Security Mutual's 2022 Financial Charts


To view the Company’s privacy notice, please click here.


1The annual election of Directors will be held at the Home Office in Binghamton, N.Y. on the first Tuesday in February. Polls will be open from 10:00 a.m. to 4:00 p.m. and any policyowner whose policy is in force, and has been in force for no less than one year, is entitled and invited to vote at such an election, either in person or by mail. Pursuant to New York Insurance Law Section 4210, groups of policyowners and contract holders have the right to make independent nominations five months prior to the election.

2 The payment of dividends is not guaranteed, and the amount credited, if any, may rise  and fall depending on experience factors such as investment income, taxes, mortality and expenses.

3 BlackRock Financial Management, Inc., manages $8.59 trillion of assets as of 12/31/2022. BlackRock is one of the largest U.S.-based external managers of insurance company general account assets, overseeing assets of $533.8 billion as of 12/31/2022.

4 Environmental, Social, Governance.

5The National Association of Insurance Commissioners (NAIC) employs a bond-rating system ranging from 1 – 6, with NAIC Classification 1 defined as Highest Quality, NAIC Classification 2 defined as High Quality, and NAIC Classification 3 defined as Medium Quality. Classifications 4 – 6 range from Low Quality to In or Near Default. 

2023 Letter to Policyholder Cover Artwork

Pin It on Pinterest