An Unsung Membership Benefit Is On Its Way to You
May 27, 2014One of the most important and frequently overlooked membership benefits is on its way to Alliance members this week. Our Annual Financial Analysis provides society executives with an incredibly valuable management tool to evaluate your society’s financial performance and overall health based on eleven critical ratios – measuring factors from RBC to assets to premium growth. More importantly, the report allows you to compare your ratios to benchmarks of other fraternals of comparable size and a select group of ten small commercial life insurers with an A.M. Best Rating of A- or better. The reports are prepared and sponsored by Strohm Ballweg, LLP based on the information contained in financial reports submitted by societies to the NAIC. While the data used to prepare each society’s report is based on public information, the reports themselves are strictly confidential. They are sent to the CEO of each Alliance member society on a complimentary basis. The objective of the analysis is to provide the society’s executive management and board with objective and impartial information to better understand the organization’s financial condition, identify areas of strengths and weaknesses, and determine the necessary steps to enhance the fiscal health of your society. But the reports are only valuable if they are shared with your executive management team and your board of directors. Fraternal boards need exactly the type of information contained in the report to become better stewards of their societies’ resources and improve the sustainability of their organizations. The objective facts and comparisons contained in the reports – and provided to each member society free of charge – can go a long way to improving your board’s understanding of the financial condition of the organization they are responsible for directing and help them make decisions that are in the best interests of the society’s current and future members.