CFL Annual 2019 CFL

PRESIDENT’S MESSAGE

Dear Member,

Greetings! I hope that this letter finds you well and pray that you and your family are safe and healthy. During times like these, it is important that you have a strong financial partner. I am pleased to report that Catholic Financial Life finished 2019 with record levels of surplus and total adjusted capital. Regardless of what happens in the national or global economy, we have the financial resources to weather this storm and fulfill the promises that we made to you, our members.

In addition, we have a very high-quality, conservative investment portfolio externally managed by professional investment advisors. Over 90 percent of our assets are in investment grade quality bonds, and less than one percent of our assets are in the stock market.

You should also know that our financial strength has been independently evaluated by the rating agency, KBRA. They reaffirmed our A- financial strength rating and provided a stable outlook.

This global pandemic has illustrated the value of life insurance in protecting your loved ones. It further highlights the need to have insurance not dependent on your employment as millions of people have lost their jobs and, with them, their company-sponsored life insurance. So, I encourage you to talk with your family, friends and a Catholic Financial Life advisor about the importance of buying life insurance now. This crisis has changed many things in our lives. And yet, we take comfort from our faith which gives us confidence to persevere and trust that better days are coming … “Be not afraid.” Know that as members of Catholic Financial Life, we are always with you!

Fraternally,

William R. O’Toole President & CEO

P.S. Together … hundreds of members, associates, advisors, volunteer chapter leaders, the Board of Directors and friends of Catholic Financial Life donated to our Love One Another Campaign . Because of you, over $116,000 is helping people on the front lines of this pandemic. Thank you for your generosity and making a difference in your local communities.

Las primeras palabras de nuestra misión dicen que ponemos los valores católicos en acción al “servir a Dios a través de servir a otros,“ ¡algo que hemos estado haciendo por más de 150 años! En 2019, se otorgaron $290,000 en becas a escuelas de primaria, secundaria y la universidad. Más de $77,000 fueron recaudados e igualados para nuestro programa Necesidades Especiales. A través del apoyo de nuestros 135,000 miembros y una red de 216 capítulos voluntarios en todo el país, Catholic Financial Life: • Voluntario casi 104,000 horas con un impacto económico de más de $2.6 millones; • Recaudo, igualo y dono $1.9 millones para iglesias, escuelas, organizaciones locales y personas necesitadas; y, • Patrocinó más de 2,600 actividades de capítulos con más de 254,000 asistentes. INFORME FRATERNO Nuestro compromiso con las comunidades

The first words of our mission state that we put Catholic values in action by “Serving God through serving others,” something we have been doing for more than 150 years! In 2019, $290,000 was awarded in grade school, high school and college scholarships. More than $77,000 was raised and matched for our Special Needs Chapter Program. Through the support of our 135,000 members and network of 216 volunteer chapters across the country, Catholic Financial Life: • Volunteered nearly 104,000 hours with an economic impact of more than $2.6 million; • Raised, matched and donated $1.9 million for churches, schools, local organizations and individuals in need; and, • Sponsored more than 2,600 chapter activities with more than 254,000 attendees. FRATERNAL REPORT

ALWAYS

For 152 years, Catholic Financial Life has been protecting our members and their loved ones. Together, we have been through a lot … and together, we will get through this pandemic. One thing that remains constant is our commitment to serving you. How can you connect with us?

with

Call 800-927-2547

Email service@catholicfinanciallife.org

Visit our website – cfl.org/service

Schedule a video conference with an advisor – cfl.org/findadvisor Mail a letter – 1100 West Wells Street, Milwaukee, WI 53233

2019 FINANCIAL AND FRATERNAL REPORT INFORME FINANCIERO Y FRATERNO 2019 YOU

Our Commitment to Communities

Thank you for your membership. Fraternally,

$2.5 millones en 2019

$2.5 million in 2019

William R. O’Toole President & CEO

34% 24% 17% 13% 12%

34% 24% 17% 13% 12%

DIVIDUALS & OMMUNITY CAUSES ATHOLIC SCHOOLS ATHOLIC PARISHES CAUSES OCAL MEMBERSHIP CTIVITIES CHOLARSHIPS IN C C C & L A S

AUSAS INDIVIDUOS COMUNITARIAS CUELAS CATHOLICAS ARROQUIAS ATÓLICAS Y CAUSAS CTIVIDADES LOCALES E MIEMBROS CAS C Y ES P C A D BE

1100 West Wells Street Milwaukee, WI 53233 www.catholicfinanciallife.org

In 2019, Catholic Financial Life built on its tradition of financial strength by increasing surplus and total adjusted capital to record levels. Our fiscally conservative approach ensures that Catholic Financial Life will fulfill our promises to you and your loved ones. FINANCIAL REPORT • Kroll Bond Rating Agency reaffirmed our A- financial strength rating and stable outlook • Surplus increased from $99 million to $109 million • Total adjusted capital was more than $122 million in 2019, up from $110 million in 2018 • Risk-based capital (RBC) ratio grew to 1062 percent in 2019, compared to 949 percent in 2018 • Net income was $8.7 million • Over 90 percent of the Society’s assets are invested in high-quality, investment grade bonds professionally managed by Wellington • Less than one percent of the Society’s assets are invested in the stock market

En 2019, Catholic Financial Life construyó sobre su tradición de fortaleza financiera al aumentar el excedente y capital total ajustado a niveles récord. Nuestro enfoque conservador fiscalmente asegura que Catholic Financial Life cumplirá nuestras promesas a ti y tus seres queridos. • Kroll Bond Rating Agency reafirmó nuestra calificación de A- sobre resistencia financiara y perspectiva estable • El excedente aumentó de $99 millones a $109 millones • El capital total ajustado fue de más de $122 millones en 2019, por encima de $110 millones en 2018 • El capital basado en riesgo creció a 1062 por ciento en 2019, en comparación con el 949 por ciento en 2018 • El ingreso neto fue de $8.7 millones • Más del 90 por ciento de los activos de la sociedad son invertidos en bonos de alta calidad y grado de inversión gestionado profesionalmente por Wellington • Menos del uno por ciento de los activos de la Sociedad son invertido en el mercado de valores INFORME FINANCIERO

Statement of Financial Position As of December 31 Estado de posición financiera Al 31 de diciembre

Statement of Operations As of December 31 Estado de operaciones Al 31 de diciembre

Revenues

2019

Assets Bonds

2019

Life insurance premiums

$ 38,658,378 32,476,258

$ 1,547,199,283

Annuity deposits

Mortgage loans

32,538,313 27,324,451

Other premiums and deposits

7,048,050

Policy loans

Total Premiums Earned

$ 78,182,686

Preferred stocks Common stocks

227,155

11,372,645 14,552,600 20,863,509

Investment revenue

$ 74,080,023

Other long-term investments Cash and short-term investments Total Cash and Investments

Other revenues Total Revenues

1,489,142

$ 153,751,851

$1,654,077,956

Benefits and Expenses Insurance and surrenders paid

Home office, at cost net of depreciation $5,399,653 Investment income due and accrued 18,053,338 Other assets 1,411,768 Total Assets $ 1,678,942,715

$104,065,567

Additions of reserves Field sales support costs

(11,311,472) 6,578,139 2,704,759 14,946,179

Fraternal benefits and expenses

Operating expenses

Liabilities Policy reserves

Total Benefits and Expenses

$ 116,983,172

$1,468,500,230

Surplus (in millions)

Total Adjusted Capital (in millions) Capital total ajustado (en millones)

Interest maintenance reserve Premiums received in advance and

12,009,707 12,484,038

Gain from operations before dividends $ 36,768,679 and interest Dividends and interest 27,079,503 Gain from operations before 9,689,176 investment results Net realized capital gains (1,012,053) Net Income $ 8,677,123

on deposit Funds on deposit Other liabilities

Superávit (en millones)

55,846,507 8,017,043

125

125

122.1

110.4

109.2

Total Liabilities and Reserves

$1,556,857,525

100

100

99.3

99.4

88.0

75

75

Surplus

$ 109,240,783

ALWAYS with YOU These statements have been audited by Strohm Ballweg.

50

Asset valuation and other reserves

12,844,407

50

$ in Millions

$ in Millions

Total Adjusted Capital

$ 122,085,190

25

25

0

0

Total Liabilities and Surplus

$ 1,678,942,715

2017 2018 2019

2017 2018 2019

2019 in REVIEW

27 IMPACT TEAMS

135,000 MEMBERS STRONG A- Kroll Rating Kroll Bond Rating Agency (KBRA) reaffirmed an insurance financial strength rating of A- to Catholic Financial Life.

MORE THAN 10,800 MEMBERS WERE HONORED FOR 1, 5, 10, 25, 50 AND 75 YEARS OF MEMBERSHIP WITH THE SOCIETY

$5.7 BILLION OF LIFE INSURANCE IN FORCE

$1.68 BILLION OF ASSETS

RETURNED TO MEMBERS

MORE THAN $77,000 RAISED ANDMATCHED IN SUPPORT OF THE SPECIAL NEEDS CHAPTER PROGRAM

22 REGIONAL ACTIVITIES, WITH ATTENDANCE OF MORE THAN 9,000

TopWorkplace Award Catholic Financial Life was named a Top Workplace by the Milwaukee Journal Sentinel for the seventh year in a row!

$29.6 MILLION

MORE THAN $462,000 IN MEMBER BENEFITS

Support for the Common Cause Catholic Financial Life has raised, matched and donated $1.6 million in support of the Society of St. Vincent de Paul since the beginning of the partnership. 103,811 HOURS VOLUNTEERED MORE THAN $2.6 MILLION IN ECONOMIC IMPACT 152

MORE THAN $1 MILLION MATCHED AND DONATED BY THE HOME OFFICE TO CHARITABLE CAUSES, BRINGING TOTAL OUTREACH IN 2019 TO $1.9 MILLION

years AS A FRATERNAL BENEFIT SOCIETY

2019 en REVISIÓN

27 EQUIPOS DE IMPACTO

135,000 MIEMBROS FUERTE A- Kroll Rating Kroll Bond Rating Agency (KBRA) reafirmo una calificación de A- de fortaleza financiera de seguros a Catholic Financial Life

MÁS DE 10,800 MIEMBROS FUERON HONORADOS POR 1, 5, 10, 25, 50 Y 75 AÑOS DE MEMBRESÍA CON LA SOCIEDAD

$5.7 MIL MILLONES DE SEGURO DE VIDA EN VIGOR

$1.68 MIL MILLONES DE ACTIVOS

MÁS DE $77,000

DEVUELTOS A MIEMBROS

RECAUDADOS E IGUALADOS EN APOYO AL PROGRAMA DE NECESIDADES ESPECIALES

22 ACTIVIDADES REGIONALES CON LAASISTENCIA SOBREPASANDO 9,000 103,811 HORAS VOLUNTARIAS MÁS DE $2.6 MILLONES EN IMPACTO ECONÓMICO

Premio al mejor lugar de trabajo ¡Catholic Financial Life fue nombrado un lugar de trabajo superior por el Milwaukee Journal Sentinel por el séptimo año consecutivo!

$29.6 MILLONES

MÁS DE $462,000 EN BENEFICIOS AL MIEMBRO

Apoyo a la causa común Catholic Financial Life ha recaudado, igualado y donado $1.6 millones en apoyo a la Sociedad de San Vicente de Paul desde el comienzo de la asociación. 152 años COMO UNA SOCIEDAD FRATERNAL BENÉFICA

MÁS DE $1 MILLÓN IGUALADOS Y DONADOS POR LA OFICINA PRINCIPAL A CAUSAS BENÉFICAS, TRAYENDO EL ALCANCE TOTAL EN 2019 A $1.9 MILLONES