By Joann Blackwell, National Controller, ISDA
Financial results for 2022 continue to be positive. We continue to grow our assets in addition to producing record amounts of investment income and net income. Total assets are now over $334 million, an increase of $57 million from 2021. Bond holdings, all investment grade, are 97% of assets and increased this year by more than $61 million. Preferred and common stocks are also held in the investment portfolio to provide diversification. Liabilities increased by $54.8 million to $320.5 million. Surplus increased to $14 million. The solvency ratio is 104.38% or, if we add in the Interest Maintenance Reserve and Asset Valuation Reserve, the solvency ratio increases to 108.85%, which is what we refer to as “total member safety funds.”
Total income was $82.6 million, a decrease of $1 million from 2021. Life and annuity premium decreased by $4.4 million over the prior year, and investment income increased by $3 million. The investment portfolio yielded a Net Investment Rate of Return of 4.95%, which is among the top for Fraternal Benefit Societies. Life and annuity benefit payouts increased in 2022 by $2.6 million, while the increase in life and annuity reserves was down by $3.6 million. Other expenses remained level over the prior year. Net realized capital gains from the sale of investments resulted in an additional income of almost $400,000, a decrease of $300,000 from the prior year. Net income for 2022 was $3.4 million. Surplus grew this year to $14 million, an increase of $1.8 million over 2021.
Despite the rising interest rate scenario that developed in the latter half of the year, 2022 was another financially profitable year for ISDA. We expect to approach $400 million in assets by the end of 2023. Over the last several years, ISDA has successfully navigated historically low-interest rates and the pandemic. We constantly assess market conditions and stand ready to deal with any economic challenges that we face this year.