...Our. remains. SBLI USA 2009 Annual Report SBLI USA Mutual Life Insurance Company, Inc.

Transcription

1 ...Our promise remains SBLI USA 2009 Annual Report SBLI USA Mutual Life Insurance Company, Inc.

2 MESSAGE FROM THE CHAIRMAN OF THE BOARD Times have changed, and so has SBLI USA, but we stay true to our promise to help protect you, our policyholders. During these unprecedented times when financial security has seemed scarce, SBLI USA has doubled its efforts to help individuals and communities gain access to financial security and the essential tools of prosperity. Through technological advancements like e-signature capability and straight-through processing, SBLI USA s technology team has implemented procedures and award-winning security measures that have made communications and transactions easier, and provided increased security for you and your families. SBLI USA was recognized, on multiple occasions, for its business and community accomplishments, but none resonated quite as highly as the 97.4 percent customer satisfaction rating received from you in * I am honored to have served on the SBLI USA Board of Directors since I have seen this company go through many milestones and triumphs, and it is with great pride that I pass the Chairman s torch over to Dr. Evelyn Murphy in I remain committed and loyal to SBLI USA s policyholders, and to its associates who truly believe in their mission to serve the people who make America Work. Sincerely, JoSEPH L. Mancino Chairman, SBLI USA Board of Directors table of contents 1 Message from the Chairman of the Board 2 Message from the President 3 Our Company 5 Financial Highlights 7 Our Performance 8 Policyholder Information & Locations 9 Officer Team & Senior Team 10 Board of Directors * Source: Development II SBLI USA Customer Satisfaction Survey, December SBLI USA Annual Report 2009

3 MESSAGE FROM THE PRESIDENT At SBLI USA we know that it is the journey, as well as the destination, that matter. We continue to focus on our key goals, strategies and initiatives for success. Underlying and essential to that is our constant focus on your security, both financially and technologically. Our financial strength is imperative and we are proud to report that in 2009 we continued to focus on operational efficiencies and cost reduction, including the completion of an initiative to in-source our entire call center function. We paid $63 million in policyholder claims and approved a dividend payout to eligible policyholders in excess of $9 million. * In 2009 we had over 280,000 visitors to our web site, largely in response to an increased focus on consumer-oriented educational materials, the launch of our women s microsite, and the rollout of new products, such as our Return of Premium Term. Our ongoing efforts and success in reaching out to all working Americans including women, African Americans, Asians and Hispanics, continue to help us educate and protect the millions who do not have adequate life insurance and financial protection. Thank you for your loyalty to SBLI USA and all my personal best to you and your family as we launch into the new decade. Sincerely, Vikki L. Pryor SBLI USA President and Chief Executive Officer * Dividends are determined annually, subject to change, and not guaranteed. SBLI USA Annual Report

4 OUR COMPANY MISSION STATEMENT We help individuals, families and communities access information and products to achieve financial goals. Our focus is service, affordability, preservation and growth of policyholder value. Our business philosophy blends financial strength and innovation. We are rooted in a deep belief in human potential. Social Responsibility Statement Leadership: SBLI USA strives to be a leader in the empowerment of people and communities, and the preservation of a just and sustainable society. Commitment: We are committed to offering America s families greater access to the essential tools of prosperity, with particular attention to underserved communities. Ethics and Values: We are guided by ethics and our most deeply held values. Workplace: We promote both opportunity and responsibility within the SBLI USA community while maintaining high standards of fairness, diversity, and cooperative achievement. Citizenship: Our company is a conscientious and constructive citizen of the communities we serve. key facts Assets: More than $1.5 billion, including $113 million in surplus capital. Associates: 215 Policyholders: Over 300,000 nationwide and more than $15 billion of insurance in force. SBLI USA, together with its subsidiaries, is licensed to do business in 49 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Core Products:» Whole Life - lifetime coverage with level premiums and cash value that accumulates taxdeferred» Term Life - quality term coverage with premiums that stay level for up to 30 years» Children s Single Premium Term - policies that can be converted to a whole life policy when a child turns 21» Simple Issue Term - coverage up to $150,000, generally with no medical exam required *» Return of Premium Term - term coverage up to $1,000,000. ** Eligible premiums are refunded at the end of the level period ***» Accidental Death and Dismemberment Insurance - coverage from $25,000 to $150,000» SeniorLife - Whole Life for seniors of up to $25,000 in coverage, with guaranteed acceptance» Employee Group Life Insurance - flexible coverage from $10,000 to $500,000 Annuity: SBLI USA Select Choice SM a single-premium, tax deferred annuity with a guaranteed interest rate. * Based on the answers given to the application questions, proof of insurability may be required. ** Subject to underwriting requirements and reinsurance availability. *** Rider premiums and substandard premiums are not returned. The refunded premiums in between anniversaries are the mid-terminal cash values. A percent of premium is available at the latest duration starting at duration 5. There s a minimum cash value of $2 per $1,000. Cash Values vary by level term period, issue age, sex and risk class. Policies have exclusions, limitations, reductions of benefits and terms for keeping them in force. Not licensed in all states. Not all products available in all states. The $25,000 benefit amount may not be available in all states. A maximum benefit of $20,000 would be available. 03 SBLI USA Annual Report 2009

5 OUR COMPANY Our BRAND The S encompasses the importance of security, the emphasis on service, and the essence of simplicity in helping millions of Americans achieve their financial goals. The brand emphasizes that this is the financial empowerment company inclusive of all people, for the people who make America work! OUR SERVICE Customer Centers: Trained, licensed agents are available at Customer Centers both over the phone and in person. To ensure efficiency and accuracy, all interactions are managed by our advanced sales management technology. Interactive kiosks offer an alternative, self-directed, low-pressure way for consumers to access Web-based information about our products and services. E-Commerce: Advancements in technology and e-commerce allow us to be more efficient while maintaining the highest levels of security for our policyholders. The introduction of our new e-signature capability in 2009 allowed consumers to complete their application process entirely online. Customers also manage their policies, pay their premiums, and learn about our products on our fully bilingual web site and have access to our educational tools and resources such as planning guides, and budgeting and financial planning tips. In 2009 we had over 280,000 visitors to our web site and generated 17,527 online quotes. Employee Group: SBLI USA s Employee Group Life Insurance offers big business benefits for small businesses; an affordable way to attract and keep the employees who make them successful. We reach companies through direct mail, community relationships, and work site presentations. Our employee group channel accounted for 39 percent of our total sales in Bank Partners: Representing more than 26 percent of our total sales, SBLI USA bank partners provide an important touch-point to our diverse customer base. These relationships help us to reach a greater breadth of consumers within our national footprint. OUR COMMUNITIES SBLI USA is purposefully and consistently redefining the way we reach out to the people who live and work in our communities. Our methods go beyond our ability to help provide financial protection. Our commitment is to empower and serve working Americans, especially those who traditionally have not had access to the tools of financial prosperity. As part of this promise, we engage in philanthropic work through our personal commitment days in which, annually, each Associate is given two company-paid days to volunteer in their community. Collaboration teams that cut across every level and function of the company have also been formed to focus on giving back. Getting involved on an interactive level with our communities helps us continuously redevelop our approach to better fulfill their needs. SBLI USA Annual Report

6 financial highlights BAL ANCE SHEET & SUMMARY of OPERATIONS SBLI USA MUTUAL LIFE INSURANCE COMPANY, INC. As of December 31 ($ in 000 s) Balance Sheet Assets Invested Assets 1,474,594 1,457,303 Other Assets 28,160 28,758 Total Assets 1,502,754 1,486,061 Liabilities and Capital & Surplus Aggregate Reserves 1,331,942 1,297,122 Other Liabilities 57,747 66,123 Capital & Surplus 113, ,816 Total Liabilities and Capital & Surplus 1,502,754 1,486,061 Summary Of Operations Total Revenues 217, ,879 Total Operating Expenses 196, ,645 Operating Income Gain (Loss) 20,244 11,234 Taxes & Net Realized Gains (Losses) on Security Transactions (13,255) (18,401) Net Income 6,989 (7,167) 05 SBLI USA Annual Report 2009

7 financial highlights CONSOLIDATED BAL ANCE SHEET & SUMMARY of OPERATIONS SBLI USA MUTUAL LIFE INSURANCE COMPANY, INC. As of December 31 ($ in 000 s) Balance Sheet Assets Invested Assets 1,478,152 1,460,347 Other Assets 28,776 29,204 Total Assets 1,506,928 1,489,551 Liabilities and Capital & Surplus Aggregate Reserves 1,335,566 1,300,013 Other Liabilities 58,297 66,722 Capital & Surplus 113, ,816 Total Liabilities and Capital & Surplus 1,506,928 1,489,551 Summary Of Operations Total Revenues 219, ,019 Total Operating Expenses 200, ,441 Operating Income Gain (Loss) 18,420 8,578 Taxes & Net Realized Gains (Losses) on Security Transactions (13,255) (18,401) Net Income 5,165 (9,823) Financial statements are prepared on a consolidated life insurance company basis. SBLI USA Annual Report

8 OUR PE RFORMANCE 2009 Financial Highlights ($ in Millions)» Premiums & Other Considerations $143.0» Net Investment Income $76.1» Benefits Paid to Policyholders * $138.9» Dividends Paid to Policyholders $ 9.0 ($ in Billions)» Aggregate Reserves for 2009 $ Sales Highlights» Total New Policies for ,351» Customer Center Earned Premium Increase 7% 2009 Customer Service Highlights» Customer Satisfaction Rating ** 97.4%» Number of Customer Calls Taken 131,205» First Call Resolution Rate 99.2%» Average Claims Payment Processing Time 5.4 days» Number of Claims Processed 5, Technology/E-Commerce Highlights» 66 percent of web site visits were from new visitors» Increased our marketing outreach to 15 times as many people as 2008 * Includes claims, surrenders and increase in reserves. ** Source: Development II SBLI USA Customer Satisfaction Survey, December SBLI USA Annual Report 2009

9 POLICYHOLDE R INFORMATION SBLI USA Policyholders seeking general information or who have specific inquiries regarding policyholder communications may contact the SBLI USA Customer Service Center at SBLI-USA ( ), or write to us at P.O. Box 1050, Newark, NJ For additional policy and marketing information, please visit our Web site at LOCATION S Headquarters New York 460 West 34th Street New York, NY Operations New Jersey 550 Broad Street Newark, NJ sales California 400 North Brand Blvd. 9th Floor, Suite 920 Glendale, CA Customer Centers New York 460 West 34th Street New York, NY SBLI-USA ( ) Puerto Rico Plaza Del Sol Mall 725 West Main Avenue Bayamón, PR CUIDATE ( ) Buffalo Walden Galleria Mall One Walden Galleria Buffalo, NY SBLI-USA ( ) Chicago 55 East Jackson Blvd. Chicago, IL SUSA-123 ( ) SBLI USA Annual Report

10 OFFICER TEAM & SENIOR TEAM OFFICER TEAM Vikki L. Pryor President & CEO Michael Akker Executive & COO Robert Damante Executive & CFO Eric J. Bulis & CIO Mariam Eisenberg Operations & Underwriting Judy Elliott-Pugh Human Resources Debra E. Klugman, General Counsel & Secretary James Machovsky Marketing & Sales Ralph Meola & Chief Actuary Paul Capizzi Technology Anthony Carbone Marketing Miriam Klepner & Associate General Counsel Russell Johnson & Chief Auditor Marina Kotlyar Strategic Planning & Investments Kevin M. Lamasney & Associate General Counsel Marquis Miller Sales Brian Rooney Finance Susan Rutman Customer Services Michal Ryduchowski Actuary Jeanne Scotto Customer Centers Nanci Tolk Advertising John F. Vernaleken Technology SENIOR TEAM Vikki L. Pryor President & CEO Michael Akker Executive & COO Robert Damante Executive & CFO Eric J. Bulis & CIO Mariam Eisenberg Operations & Underwriting Judy Elliott-Pugh Human Resources Debra E. Klugman, General Counsel & Secretary James Machovsky Marketing & Sales Ralph Meola & Chief Actuary Russell Johnson & Chief Auditor 09 SBLI USA Annual Report 2009

11 Board of Directors Chairman Joseph L. Mancino Chairman & CEO Retired The Roslyn Savings Bank Vice Chair Evelyn F. Murphy President The Wage Project, Inc. Deborah Aguiar-Vélez President & CEO Sistemas Corporation Michael Akker EVP & COO SBLI USA Mutual Life Insurance Company, Inc. Theresa Balog and Corporate Controller VWR International. Samuel M. Bemiss Managing Director Ewing Bemiss & Company Carol L. Coffman Principal FFN Advisors David Jefferson President & CEO JNET Communications, LLC David Lizárraga President and CEO TELACU/Millennium Vikki L. Pryor President & CEO SBLI USA Mutual Life Insurance Company, Inc. G. Thomas Rogers Visiting Professor School of the Art Institute of Chicago Ellen E. Thrower Executive Director School of Risk Management St. John s University Roslyn M. Watson President and Founder Watson Ventures, Inc. SBLI USA Annual Report

12 Times have changed... Printed using clean renewable energy generated from an on-site wind turbine SBLI USA Mutual Life Insurance Company, Inc., New York, NY