By Joann Blackwell
National Controller, ISDA
The 2021 year-end financial results are in. We continued to grow our membership along with our assets. And we continued to produce record amounts of assets, premium income, investment income and surplus. Total assets have now increased to over $277 million, an increase of $81.1 million from 2020. Bond holdings, all investment grade, are 95% of assets and increased this year by over $73 million. Some preferred and common stocks are also held in the investment portfolio to provide diversification. Liabilities increased to $265.6 million, an increase of $78.5 million. Surplus increased by $2.6 million to $12.1 million. The solvency ratio is 104.58% or, if we add in the Interest Maintenance Reserve and Asset Valuation Reserve, the solvency ratio increases to 112.29% which is what we refer to as “total member safety funds.”
Total income was $83.7 million, an increase of $25.2 million from 2020. Life and annuity premium increased by $22 million over the prior year and investment income increased by $2.7 million. Despite the continued low interest rate environment, the investment portfolio yielded a Net Investment Rate of Return of 4.95% which will rank among the top for Fraternal Benefit Societies. Annuity benefit payouts increased in 2021 by $6 million and annuity reserves increased by $16.3 million, while other expenses remained level over the prior year. Net realized capital gains from the sale of investments resulted in additional income of $701,000, compared to $137,500 in the prior year. Other realized gains of $13.9 million from the sale of bonds in 2021 were put into the Interest Maintenance Reserve and will be amortized to income in future years. Net income for 2021 was almost $3.4 million. Surplus grew this year to $12.1 million, an increase of $2.6 million over 2020.
2021 was another financially successful year for ISDA in spite of economic instability. Five years ago, assets were at $100 million. As we head into 2022, assets will exceed $300 million. Notwithstanding any major negative economic events this year, we will expect to end 2022 with similar positive results.