Financials

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2017 Annual Financial Highlights

  • LCBA’s risk-based capital ratio improved to 376% at December 31, 2017 from 324% at December 31, 2016. This increase is attributed to the growth in surplus experienced in 2017, as LCBA’s risk-based capital remained consistent with the prior year, dropping by just under one percent.

  • In the PreNeed market, management continues to work on improvements and made changes to the distribution and service model at the end of the year in order to spur future growth. Medicare Supplement premiums have shown consecutive years of significant growth, but remain a small percentage of overall net premiums.

  • The quality of LCBA’s investment portfolio remains high with an average rating of "A" and over 98% of bonds at investment grade. As anticipated, reinvestment rates remained low in 2017, leading to a slight reduction in book yield. Early in the year, LCBA took advantage of improved market conditions to sell all of its non-agency, mortgage-backed securities to further reduce risk in its portfolio.

  • Commission expense increased significantly in 2017 on the heels of strong sales growth of the new life product line, to $3.6 million from $1.6 million in 2016, or an increase of 122%. This follows a $950 thousand, 85% increase in 2016.

  • General Expenses decreased 1.7% in 2017 and ended the year under budget. Expenses were up 15% in 2016 due primarily to the costs associated with the new product line, which began development in the first quarter of the year. Additionally, in 2016, LCBA completed its five year Pennsylvania state insurance department examination in 2016, which cost the Association approximately $230,000 and resulted in a clean examination report.

Statement of Financial Position

Assets 2017 2016
Bonds $181,846,213 $179,117,935​​
Common & Preferred Stock - -
Real Estate $1,566,430 $1,578,081
Certificate Loans $1,111,277 $1,058,189
Cash & Cash Equivalents $942,942 $849,844
Short Term Investments​ $1,337,296 $530,782​
EDP Equipment​ $23,166 $22,100
Income Due & accrued​ $2,437,130 $2,216,443​
Total Assets​ $189,264,454 $185,373,374
 
Liabilities & Surplus​ 2017 2016
Certificate Reserves​ $173,954,293 $170,484,498​​
Deposit-Type Contracts​ $6,452,197 $6,576,470​
Certificate​ Claims $699,034 $727,606
Provision for Dividends​ $744,966 $787,948
Advance Premiums​ $461,471 $484,041
Investment Reserves​​ $1,541,346 $1,848,595​
Accrued General Expenses​ $265,086 $231,664
Other Liabilities​​ $789,694 $691,728​
Unassigned Funds​​​ $4,356,367 $3,540,824​
Total Liabilities & Surplus​ $189,264,454 $185,373,374

Summary of Operations

Income 2017 2016
Life Insurance Premiums $7,641,674 $11,103,436​​
Annuity Premiums​ $8,125,585 $8,255,358
Accident and Health Premiums​ $143,833 $60,625​
Net Investment Income​ $8,388,906 $8,438,045​
Other Income $6,997,862 $683,770​
Total Income​​ $31,297,860 $28,541,234​
 
Member Benefits​ 2017 2016
Death Benefits​​ $5,269,590 $5,375,078​​
Life & Annuity Benefits​​ $13,150,064 $13,732,366​
Reserve Changes​s $3,469,795 $3,671,717​
Total Member Benefits​​ $21,889,449 $22,779,1614
 
Operating Expenses​ 2017 2016
Commissions​​ $3,583,986 $1,616,128
General Expenses​​​ $3,866,944 $3,925,200​​
Taxes $160,056 $174,879​
Other Expenses $71,293 -​
Total Operating Expenses​​ $7,682,279 $5,716,207
Total Benefits & Expenses​​​ $29,571,728 $28,495,368​
 
Net Gain from Operations $1,726,132 $45,866​
Investment Capital Gain (Loss)​ - $66,518 - $8,087​
Dividends Incurred​​ - $742,705 - $787,622​
 
Net Income $916,909 - $749,843​
Other Changes in Surplus​ - $101,366 - $855,975​
Dividends Incurred​​ $815,543 - $1,605,818​

Life Insurance with a Conscience since 1890®.

That simple belief is what differentiates Loyal Christian Benefit Association (LCBA) from competitors. Yes, we sell insurance: Funeral Pre-Arrangement Funding Products, Traditional Life Insurance Plans, and Tax Deferred Annuities. But what makes LCBA different is we operate under the "common bond" of Christianity and return earnings from the sale of financial service products to our member customers and their communities in the form of member benefits, discount programs and scholarship opportunities.

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LCBA


Founded in 1890 LCBA is a unique type of organization that provides the financial protection our members need, with the added benefit of helping those in need. We put our earnings back into communities and causes, not pockets.

Contact


PO Box 13005 | Erie, PA 16514

outreach@lcbalife.org

1.800.234.5222

1.888.382.2716

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