Royal Neighbors of America, Rock Island, Ill., reported strong financial results for 2006, assets growing to $648 million, and surplus increasing 16% or $28.8 million to $211.1 million. Furthermore, the organization maintained a surplus ratio of 32.6%, compared to the industry benchmark of 7%.
Net income went from $2.8 million to $23.7 million.
Premium income, before reinsurance, for the second year in a row, doubled to some $92.7 million.
Another indicator of Royal Neighbors’ financial strength is the solvency ratio of 1.48. The solvency ratio indicates that for every dollar of liability, the organization has nearly one and one-half dollars in assets. Surplus and solvency ratios position Royal Neighbors among the most financially secure insurance carriers in the industry.