2023 DOH Financial and Fraternal Impact Report

BUILDING OUR FRATERNAL FAMILY

2023 FINANCIAL AND FRATERNAL IMPACT REPORT

DEAR MEMBER, This Financial and Fraternal Impact Report highlights our 2023 financial results, member impact, and charitable e ff orts demonstrating mission fulfillment: to serve others, provide financial security, and enhance quality of life. That mission is as relevant today as it was when we were founded over 155 years ago. Of course, since then our industry has changed, culture has changed, and the world has changed. What hasn’t changed? … The trust our members place in us to be there for them and their loved ones when needed most. More than 4,200 lives were insured with $275 million of deathbene fi t. … Our support for schools and other civic organizations in local communities. $1.6 million was raised, matched and donated to ful fi ll our charitable purpose. … Our track record of financial results and underlying financial strength. Total adjusted capital increased to a record $156.7 million, andour fi nancial strength rating was increased to an “A” by the independent rating agency, KBRA. We continue to adapt and innovate in an ever-changing world while holding true to who we are: a member-owned organization that shares your values and exists for your benefit. As we move forward building the Trusted Fraternal Life family of brands, be assured we always act in your best interest and for the benefit of generations yet to come. Thank you for your membership. It is our privilege to serve you. GodBless, PRESIDENT’S MESSAGE

Wearea member-owned organization that shares your values and exists for your benefit.

BUILDING OUR FRATERNAL FAMILY

Borgen President and CEO JohnT. B

Degree of Honor is a Trusted Fraternal Life ™ brand. Insurance products issued by Trusted Fraternal Life. All Rights Reserved. Copyright 2024

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SERVING OTHERS We were the first and only company in Southeast Wisconsin to receive the top award for social responsibility, and we were recognized as a Top Workplace for the eleventh consecutive year by the Milwaukee Journal Sentinel . Our mission attracts members and associates who enjoy being part of a purposeful organization. Our social impact in 2023 amounted to nearly $1.6 million raised and donated by members for local charities. GIVING IMPACT • Our chapters and lodges raised nearly $639,000 with close to $950,000 matched and donated. • Nearly $341,000 was provided to our three charitable priorities: education, serving the poor, and helping people with special needs and their caregivers. • We distributed $461,000 in member benefits.

VOLUNTEER IMPACT • More than 78,500 hours were volunteered with an economic value of $2.5 million. • Local chapters and lodges held more than 1,860 events with more than 170,800 attendees. • More than 7,900 participants attended 22 regional events.

Serving others and giving generously is part of our DNA— it’s who we are and why we exist.

Members gather to celebrate 25- and 50-year memberships.

BUILDING OUR FRATERNAL FAMILY | 3

FINANCIAL STRENGTH

In December 2023, our Financial Strength Rating was upgraded to an “A” with a stable outlook by the Kroll Bond Rating Agency. We were recognized for our consistent track record in risk-based capital and surplus growth and our leadership’s forward-looking growth strategy, including demonstrated success in acquiring or merging with other fraternal organizations. The new rating a ffi rms our ability to fulfill our promise to be there for our members. FINANCIAL IMPACT • $5.5 billion of life insurance in force • $1.7 billion in assets • $10 million net gain from operations Net Gain from Operations (000s omitted) 12,000 15,000 12,515

10,297

10,075

9,000

Bond Portfolio Composition (as of 12/31/2023) 92% of our portfolio is held in long-term, fixed income securities. 99% of that is invested in high-quality bonds carrying the top two ratings from the National Association of Insurance Commissioners.

6,000

BUILDING OUR FRATERNAL FAMILY

millions

3,000

0

2021

2022 2023

Total Adjusted Capital (000s omitted)

156,627

High Quality 28%

160,000

146,450

Highest Quality 71%

145,000

138,235

130,000

millions

Other 1%

115,000

100,000

2021

2022 2023

Our trusted and dedicated producers help members prepare for the future and financially protect their loved ones.

Our top producers were celebrated and recognized at the Sales Conference and Awards gathering.

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2023 FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION (000s omitted) For the Year Ended December 31, 2023 STATEMENT OF OPERATIONS (000s omitted) For the Year Ended December 31, 2023

Assets Bonds

Revenues Premium Investment

$ 1,577,125

$ 82,974

Preferred & Common Stock

33,380

72,298

Short-Term Investments and Cash 9,538 Real Estate Mortgages & Home O ffi ce Building 50,705 Policy Loans 23,681 Other Assets 36,911 Total Assets $1,731,340

Other

1,967

Total Revenues

$157,239

Benefits and Expenses Insurance Costs

$ 96,227

Direct Sales Costs

7,217

Liabilities Policy Reserves

Fraternal Benefits and Expenses

2,426

$1,435,472

Operating Expenses

14,660

Asset Valuation Reserve (AVR)

17,465 4,826 114,137

Total Benefits and Expenses

$120,530

Interest Maintenance Reserve (IMR) Liability for Deposit-Type Contracts &

Gain from Operations before Dividends

$ 36,709

Dividends Payable Other Liabilities

and Interest Dividends and Interest Net Gain from Operations

21,077

26,634

Total Liabilities

$1,592,977

$ 10,075

Net Realized Capital Gains

5

Surplus

$ 138,363

Net Income

$ 10,080

Asset Valuation Reserve and 1/2 of

18,264

Dividend Liability Total Adjusted Capital

$ 156,627

Total Liabilities and Surplus

$1,731,340

These are the unaudited financial statements for Catholic Financial Life as of December 31, 2023. In March 2024, Catholic Financial Life announced the creation of Trusted Fraternal Life. Catholic Financial Life and Degree of Honor continue as brands of Trusted Fraternal Life.

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ENHANCING LIFE

Life is full of decisions that can greatly impact the people we love. When members purchase life insurance and annuity products they’re making a promise of love to their families—that the financial resources they will need will be there if something should happen to them. MEMBER IMPACT • Lives protected – 4,271 new lives insured and $275 million of death benefit issued. • Lives enhanced – $25.4 million of interest and $1.6 million of dividends paid to members. • Lives impacted – $33.7 million of life insurance death benefit paid and $22.1 million of annuity death benefit paid to members’ families. MEMBERS FIRST APPROACH As a membership organization, we answer to our members and strive to enhance their lives and improve the communities in which they live. Our mission is to: • Serve others, • Provide financial security, and • Enhance quality of life.

BUILDING OUR FRATERNAL FAMILY

Life insurance and annuities provide the financial resources people need for the long term.

Members cheer on Special Olympians during the Special Olympics Basketball Tournament.

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2023 YEAR IN REVIEW 156 YEARS AS A FRATERNAL BENEFIT SOCIETY

$ 275 LIVES PROTECTED newlives 4,271

MIL

members strong 117,409 MEMBERSHIP

death benefit issued

LIVES ENHANCED

interest paid to members $ 25.4 MIL

dividends paid to members $ 1.6 MIL

Our financial strength rating A witha stable outlook

LIVES IMPACTED

life insurance death benefit paid $ 33.7 MIL

annuity benefit paid $ 22.1 MIL

billion inassets 8th largest fraternal benefit society Based on net admitted assets as of June 30, 2023 $ 1.7

$ 72,000 morethan raised and matched in support of the special needs program

78,533 volunteer hours with an economic value of $ 2.5 million

billion in force life insurance $ 5.5

1,865 chapter/lodge events with more than 170,800 attendees

member benefits distributed including nearly $166,000 in school scholarships $ 461,000

PRSRT STD U.S. POSTAGE PAID RIPON, WI PERMIT NO. 100

1100 W. Wells Street Milwaukee,WI 53233

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Degree of Honor is a Trusted Fraternal Life ™ brand. Insurance products issued by Trusted Fraternal Life. Not available in all states.