CFL Annual 2019 CFL

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