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.
During 2006, Royal Neighbors successfully introduced five additional member benefits, and awarded 50 scholarships, valued at $163,500. Additionally, Royal Neighbors opened a division in Austin, TX, to sell its products through independent agents.
“The accomplishments of 2006, as measured in these financial results, have created a great deal of excitement about the future of Royal Neighbors of America,” said Cynthia Tidwell, President/CEO. “And, with the A.M. Best rating agency maintaining our A- (Excellent) rating and revising our outlook to stable, we are in a strong position to meet our goals for the future. As we set our sights on further progress and a growing membership, we do so knowing that our members are our most valuable asset.”
For more information, visit www.royalneighbors.org.