Letter to the Stakeholders
“
You are the salt of the earth, but if salt has lost its taste, how shall its saltiness be restored? It is no longer good for anything except to be thrown out and trampled under people’s feet.
You are the light of the world. A city set on a hill cannot be hidden. Nor do people light a lamp and put it under a basket, but on a stand, and it gives light to all in the house.
In the same way, let your light shine before others, so that they may see your good works and give glory to your Father who is in heaven.
Matthew 5:13-16
2024 was a year of Sabbatical for our company. Some of you might be wondering, “What is a year of Sabbatical?” Leviticus 25 defines it:
“The Lord spoke to Moses on Mount Sinai, saying, ‘Speak to the people of Israel and say to them, when you come into the land that I give you, the land shall keep a Sabbath to the Lord. For six years you shall sow your field, and for six years you shall prune your vineyard and gather in its fruits, but in the seventh year there shall be a Sabbath of solemn rest for the land, a Sabbath to the Lord. You shall not sow your field or prune your vineyard. You shall not reap what grows of itself in your harvest or gather the grapes of your undressed vine. ”
It shall be a year of solemn rest for the land.’” “
We started having Sabbaticals for our employees in 2010 as a celebration of what God had done for us through our investment strategy and performance during the financial crisis of 2008. Our company came through the crisis unscathed, and we wanted to give God the recognition He deserved for helping us. The Sabbaticals were so meaningful for our people in 2010 that we decided to do it again seven years later in 2017. And we had such success in 2017 that we offered Sabbaticals in 2024. It looks like we will continue this tradition every seven years.
To honor God in the year of Sabbatical, we give each employee the opportunity to take 10% of the year off for rest, reflection, repairing of relationships, reading, and service to others. In addition, we, as leadership, make a commitment to have no new projects during the Sabbatical year – to have “a year of solemn rest for the land.” The theory is that with no new projects, the staff members who are working during an individual’s Sabbatical will not be overburdened with additional work. Remember, I said, “in theory!” What’s crazy is that during years of Sabbatical, our company continues to grow and prosper.
President and CEO Kris Seale (far right), EVP and CMO Drew Seale (second right), and Senior Account Executive Tyler Ward (second left) spent their Sabbaticals together as a family cooking up memories and good food.
As we celebrated the end of the 2024 Sabbatical year, I reflected on what Jesus called us to be in Matthew 5; He said that we should be “salt” and “light,” even in Sabbatical years. Verses 13-16 offer profound insights that can be applied to various aspects of life, particularly in leadership and personal growth. Here are some key lessons:
Influence and integrity:
As salt influences the flavor of food, our actions and words can have a significant impact on those around us.
Preservation and value:
Salt preserves. We must strive to preserve goodness and truth, adding value to the lives of others.
Visibility and guidance:
Just as light dispels darkness, we must be a source of guidance and hope.
Positivity and inspiration:
Light brings warmth and clarity. We should inspire those around us with positive actions and a hopeful outlook.
Service and humility:
Our good deeds should not be for self-glorification but to serve and uplift others.
Encouragement and empowerment:
We must encourage and empower others to let their light shine, recognizing and nurturing their strengths and talents.
Stay true to your calling:
Just as light should not be hidden, we must stay true to our purpose and mission in life, being bold and visible in our values and convictions.
Consistency and reliability:
We must be consistent in our actions and reliable in our commitments; our steadfastness will inspire trust and confidence in others.
Customer Success Manager Rae Torres (front left) spent part of her Sabbatical volunteering with friends at the Love and Care Ministries’ Mission Thanksgiving food drive.
By embracing these principles, we lead with integrity, inspire others, and make a meaningful impact in our company, in the funeral profession, and in the communities we serve.
Let’s explore how each aspect of our company was “salt” and “light” during 2024.
Culture
• A total of 260 employees participated in our Sabbatical program, a 100% increase over the number that participated in 2017.
• During our Bahamas sales incentive trip, 130 volunteers worked at the Salvation Army to benefit their school for blind children, a shelter for abused women, and the homeless and hungry populations in Nassau.
• We upgraded our DIG U learning management system, resulting in 60% more courses being completed in 2024 over 2023.
• More than 40% of mortuary school students nationwide are now utilizing a free version of Passare in their coursework.
FDL Operations
• We implemented Grooper for handwriting recognition in New Business to process paper contracts faster and to gather more data on each handwritten contract.
• We automated multiple processes with Robotic Process Automation to speed up claims, new business, and early payoff processes!
DIG Development
• We released DIGicon Mobile into beta testing, allowing our digital contracting system to be used on any device, including iPads!
• We implemented 480 updates and 1,947 new features and resolved 5,772 support tickets in order to improve our processing systems!
People Operations
• We built an internal recruitment process for the Leadership Development Academy, which we used to select 2 participants for 2025.
• We incorporated a “Shark Tank”-like innovation tournament into the Emerging Leaders Program, which challenged each participant to pitch the Strategic Planning Committee on ideas they believed would greatly enhance our employee and/or client experience.
• We integrated Select Producer Onboarding with our Home Office Onboarding to increase retention with our staff.
• We piloted an approach to recruiting students attending mortuary science programs.
Claimcheck
• We successfully defined and executed the operational structure to create dedicated verification, collections, and customer care teams.
• Due to an increase in our customer base and total assignments, we completed a rewrite of the processing and verification workflow that allows for scalability within the team and creates a streamlined approach to drive consistency.
• Claimcheck had its best year in every category.
Passare
• We surpassed 1,200 customers and are now serving over 2,400 funeral homes.
• We served more than 320,000 families.
• We recorded record revenue of over $6.6 million.
• We had a retention rate for customers of 97.5%.
Actuarial Department
• We continued to strengthen relationships with key marketing partners, resulting in the highly efficient implementation of new life insurance products, premium rate changes, and commission schedule updates.
• Ongoing review and monitoring of our company’s balance sheet and income statement have identified opportunities for enhancing revenue and decreasing expenses. This proactive approach will ensure our financial strategies remain robust and aligned with our profitability goals.
Financial Reporting
• We achieved a $240 million increase in assets during 2024 – total assets of $2.4 billion!
• The average yield on FDL’s bond portfolio exceeded 5%, and our bond income was up 8.9% over 2023.
• New mortgage loans earned 200 basis points more than new bond purchases and our mortgage loan income was up 14.7% over budget and 41.9% over 2023.
Briana Esquivel, Graphic Designer (left)
Directors Business Solutions
• For the second consecutive year, we exceeded our goal for new funeral home loan originations, reaching over $100 million. Our total loan portfolio is now more than $360 million.
• We launched enhanced, industry-leading financial reporting for both new and existing funeral home clients – these reports harness the combined power of Passare and Power BI.
Accounting Department
• We fully revamped our corporate governance documents and created the Audit and Risk Committee to enhance accountability and manage risks.
• We were accepted as a member of the Federal Home Loan Bank, which will facilitate borrowing for future liquidity needs.
Sales - Marketing Partners
• The overall marketing partner segment of our new business finished with more than $248 million in sales (up 24% over 2023).
Sales - Overall
• We achieved a record annual sales volume of $575 million (up 9.5% over 2023).
• We achieved a record monthly sales volume of $56.4 million in October!
• Our Select Producer program achieved a record annual sales volume of $80 million in a Sabbatical year!
• Our online, preneed funeral arrangement program, Arrangement Guide, achieved record annual sales of more than $3.1 million (up 55% over 2023).
• We enrolled 391 new funeral home accounts directly and in partnership with our marketing partners (a new record).
Ryanne Krueger, Client Success Territory Lead
Inside Sales
• With the transition from DIGicare Services to Digital Marketing Packages, the DIG Inside Sales team had phenomenal success with sales of $2.21 million with 164 new packages (up 121% over 2023 DIGicare Services sales).
Information Security
• We achieved a Microsoft Secure Score above 80%, where the industry average is 44.2%.
• We improved our risk rating from our managed Security Operations Center by 250 basis points.
• Security Awareness rating, year over year, dropped from 5.49% in 2023 to 2.30% in 2024, which has us beating the industry average of 5.2%.
Marketing Services
• Digital Marketing Services achieved record numbers in revenue with over $3.4 million, and net income exceeded $750,000!
• We launched 160 funeral home websites generating over 3,000 website leads.
• We generated over 26,000 leads on Facebook surpassing our record from 2023!
• We launched a partnership with Fortitude Research and Marketing to offer feedback surveys on at-need funerals and preneed funerals.
Marketing - Overall
• We leveraged AI for proofreading, brainstorming, data analysis, and content creation, streamlining and enhancing our service offerings.
• Our marketing team provided comprehensive startup support for new funeral homes, from logo creation and website design to launch planning and SEO strategies.
• We completed a widely acclaimed video documentary in collaboration with the Iowa Funeral Directors Association on the importance of funeral directors during the tragedy of Flight 232 on July 19, 1989.
Several of our employees grew closer to God and received many blessings from their time in prayer and scripture.
Conclusion
We have made the conscious decision to run our business based on the principles of Jesus. So, when Jesus says, “You are the salt of the earth…. You are the light of the world. A city set on a hill cannot be hidden…. In the same way, let your light shine before others, so that they may see your good works and give glory to your Father who is in heaven,” we take His words very seriously! We are compelled to be “salt” and “light,” and our desire is to influence those around us to be motivated, encouraged, and inspired to follow Jesus and to let His light also shine through them.
As I have said many times before, I am blessed with an incredible team of people who work with me at Funeral Directors Life. Their commitment to Christian principles, their dedication to our company, and their collective wisdom and discernment have pushed me to become a better leader and made our company the envy of all other companies in our profession!
Now that 2024 and our Sabbatical year have ended, our team at Funeral Directors Life is rested and motivated like never before to “shake our salt” and “be the light” in our world.
Will you join us?
Blessings,
Kris Seale President and Chief Executive Officer
Welcoming a season of renewal
…So on the seventh day He rested from all His work.
“ Genesis 2:2
In the Bible, Leviticus 25 mentions a Sabbath Year – one that occurs every seven years.
Its purpose? To give the land a time of rest, a Sabbath to the Lord.
This period of rest echoes what happened when God created the heavens and the earth.
Genesis 2:3 states, “Then God blessed the seventh day and made it holy because on it He rested from all the work of creating that He had done.”
Even the God of everything took time to rest.
Since 2010, our company has followed His example by honoring a Sabbath Year every seven years, during which every employee has the opportunity to take a companysponsored, 30-day Sabbatical for rest. In 2024, 260 employees participated, a 100% increase from 2017!
This period of renewal wasn’t just about stepping away from our everyday responsibilities. It was about moving toward something greater and realigning ourselves with what truly matters – transforming our minds, bodies, and souls.
Renewing our minds began with rest. Our staff used their Sabbaticals to find the peace they needed to clear their minds and remove stress. As a company, we focused on educating and empowering funeral professionals with insightful content, speaking engagements, and more.
Renewing our bodies was about taking action to make a positive change. All of our participants used their Sabbatical time to volunteer. Whether by serving at their local animal shelter or traveling across the world to build homes for families in need, our people were ready to serve.
Renewing our souls centered on building and strengthening relationships with our partners, funeral home clients, and each other. Whether through state and national conventions, VIP trips, or philanthropic efforts, we worked to deepen connections in 2024.
Our company found that when people rested, their spirits were renewed, and that led to one successful year!
We are so grateful to see the benefits and blessings from another incredible Sabbatical year, and we’re eager to use this momentum to care for our amazing funeral home clients and families in 2025.
Nadene Smith, Executive Assistant (left), and LeAndra Pruett, Concierge
Renewing our minds
And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus. “ Philippians 4:7
As we embraced 2024, we realized that honoring a Sabbatical year meant more than resting our bodies – it also meant resting our minds.
Many of our team members used their Sabbaticals to find mental peace and rejuvenation. Whether through spending quality time with family or exploring passions, the gift of a 30-day reset gave us all clarity and moments of self-reflection.
Mitchell McLean (left), enjoyed camping, hiking, and fishing with family in Colorado during his Sabbatical.
Learning to unplug
Mitchell McLean, Vice President of Digital Marketing, enjoyed fly fishing, nature walks, and God’s beautiful craftsmanship in Colorado with his family. But Mitchell also received an unexpected benefit, which helped him focus on being present.
“There was no internet reception where we stayed, so it forced me to unplug,” Mitchell said. “It’s easy for me to stay on my phone a lot. But in Colorado, my phone went from being a source of stress to being an audiobook player, which was great.”
By embracing stillness and focusing on the moment, Mitchell found renewed mental clarity that has blessed him, his team, and our funeral home clients.
“My 2024 Sabbatical was all about spending time with my family,” Mitchell said. “I’m so thankful for my Sabbatical and the memories we made.”
“I’m so thankful for my Sabbatical and the memories we made.”
Mitchell
McLean VP of Digital Marketing
Finding peace and acceptance
Dr. Melanie Carr, Director of Sales Development, also found peace during her Sabbatical, but it wasn’t without its challenges. Melanie planned to use her Sabbatical to work through her grief from her father’s death. However, as many of us were reminded entering 2024, God gives you the Sabbatical you need, not the one you plan.
“Ultimately, I got to the correct destination –which was healing – but God took me down a little bit of a different path,” Melanie said. “I realized that I was actually struggling with what my father’s death represented, which was the closing of a door to a relationship I so desperately wanted.”
Melanie spent much of her Sabbatical processing the impact of her father’s absence all her life. She decided to write about what she felt, and it became a tool that helped her heal.
“I still don’t understand my father, but I know now that his choices and decisions don’t define me, my value, or my worth – and they never did,” Melanie said. “And because of the Sabbatical, I’m finally at a place where I am OK with that.”
“Ultimately, I got to the correct destination –which was healing.”
Dr. Melanie Carr Director of Sales Development
How we mentally renewed funeral professionals
As our staff returned mentally refreshed, we poured our energy into supporting funeral professionals with renewed focus. Over the past year, we introduced ideas, strategies, and resources to help funeral professionals better serve families, strengthen their businesses, and care for themselves.
Providing educational content
In 2024, our Marketing Department created impactful content to inspire and educate funeral professionals. Here are some of the milestones from last year:
1,352 eBook downloads
58,255 blog views across 121 articles between FDL and Passare
4,037 downloads and views on our FD Talks podcast
Our podcast, FD Talks, hosted many great conversations on important funeral-related topics and served as an educational tool for funeral professionals.
Understanding common obstacles
To better serve funeral professionals, we took a step further in understanding their challenges.
To do that, we conducted 35 interviews with funeral homes from 16 states and gained valuable insights into how we can make their lives easier.
We continued our mission of learning more about how funeral professionals think by appointing five new members to our DIG Board of Directors: Mark Cypert, Stuart Ford, Sid Grant, Terry Groban, and Tim Hoff. They have decades of experience in the funeral and financial industries, are committed to helping funeral professionals everywhere, and help us learn more about the profession we serve.
Newest board members
Mark Cypert Stuart Ford
Sid Grant Terry Groban
Tim Hoff
Leading important conversations
Lastly, several of our employees were asked to speak at virtual events, national and state conventions, and conferences in 2024. They covered many topics, including:
• Meeting families’ changing needs
• Avoiding disconnects with families
• Managing conflict in the funeral home
• Discovering better website strategies
These presentations led to great discussion among funeral professionals, and some have even been asked to speak at future events! We look forward to participating in even more events in 2025!
As we reflect on the past year, we remember the importance of mental renewal – not just for ourselves but for the funeral homes we serve. Together, we’re building a stronger, more resilient future for the funeral profession.
Massimo Esposito, FDL Fulfillment Analyst ll (left), and Kacey Turan, Print Room Specialist
Scott Butler, Select Producer (left), found plenty of time to fish with his son on the Texas coast.
Angela Walker, Data Analyst, volunteered at the Abilene Friends of the Library Annual Book Sale in 2024.
Rodger Peck, Active Sales Manager (left), and his grandson shared a meal with John O’Leary during Rodger’s Sabbatical.
Courtney Cook, Copywriter II (left), volunteered at Camp Conquest in Tennessee for her service project on her Sabbatical.
Kirsten Jimenez, Talent Acquisition Coordinator, helped out at All Kind Animal Initiative in Abilene.
Amra Hidic, Remote Quality Assurance Analyst (left), spent part of her Sabbatical visiting her boyfriend in Greece.
Renewing our bodies
For we are God’s handiwork, created in Christ Jesus to do good works…
Our Sabbatical year was a deeply meaningful time of personal renewal and heartfelt service to others. We had the privilege of supporting funeral professionals and volunteering with nearly 100 local and global organizations, dedicating our efforts to bless those we served in a truly impactful way.
Ephesians 2:10
Stephen Corbett, Director of Internal Communications (left), Andrea Roberts, Customer Ambassador (center), and McCade Pattillo (right).
Letting go and letting God work
McCade Pattillo, Loan Officer, felt God move him to one specific volunteer opportunity for his Sabbatical – the Directors Foundation Costa Rica Mission Trip. However, the timing didn’t seem ideal with his wife in the middle of her pregnancy.
“We had to put our faith in God and remember that He was in control,” McCade said. “Right before I left, I saw God give my wife this overwhelming peace. The whole situation had His fingerprints on it.”
Costa Rica was a life-changing experience for McCade. He felt the power of blessing others and was blessed by those he served. The trip has left him looking for more ways to volunteer.
“I got a front-row seat to see God at work in Costa Rica and myself,” McCade said. “It felt like God was telling me that volunteering was going to be a significant part of my life from now on, which I’m all in on!”
“I
got a front-row seat to see God at work in Costa Rica and myself.”
McCade Pattillo Loan Officer
Discovering renewal in nature
Alissa Davis, Encore Client Success Manager, had always loved animals. So, when it came time to choose where she would volunteer for her Sabbatical, the Abilene Zoo felt like a no-brainer.
“I have this duality where I love computers and technology, and I also love nature and animals,” Alissa said. “Most days, I do a lot with that first passion, so I’m grateful that my Sabbatical allowed me to spend more time outside with animals.”
Alissa felt renewed from her time around so many incredible creatures. That renewal continued later in her Sabbatical as she soaked in the beautiful scenery of the Blue Ridge Mountains in Georgia.
“My Sabbatical was very restful and allowed me to slow down and take some time for myself,” Alissa said.
“My
Sabbatical allowed me to slow down and take some time for myself.”
Alissa Davis Encore Client Success Manager
Supporting funeral professionals
As a company, we believe in putting our faith and words into action. It’s not enough for us to simply say we’re helpers of people – we have to live out our beliefs. That starts by actively helping our funeral home clients, those in need, and beyond.
Enhancing our services
In 2024, we launched the Funeral Home Start-Up Project to enhance funeral services in underserved communities. Our mission is to support great funeral directors with the operational and financial tools they need to start their own independent funeral home businesses.
In 2024, the Start-Up Project successfully assisted the opening of three new funeral homes (two in Texas and one in Iowa). We hope to establish more new funeral homes in 2025!
At the Home Office, we developed tools and processes to support funeral homes’ daily needs. One of those updates, integrating new AI handwriting recognition technology, earned us the Grooper Client of the Year Award. This tool helps our New Business Department process paper contracts faster and gather more data for each handwritten contract.
From left to right: Patrick Walker, Kyle Swearingen, Matt Cloud, Kyler Gayle, and the rest of our Development Team were instrumental in helping us use new AI handwriting recognition technology, which earned us the Grooper Client of the Year Award.
Helping funeral homes grow
Our marketing efforts focused on helping funeral homes reach more families and grow their businesses. We launched 160 websites that generated more than 3,000 leads through Arrangement Guide, educational resources, personalized videos, and other efforts. On Facebook, our Marketing Department also generated a record-setting 26,000 leads, giving funeral homes a greater chance of connecting with families who need their services.
Strengthening communities
Beyond our work in the funeral profession, we sought to make a difference in people’s lives in our local and global communities.
Caring for families everywhere
In 2024, nearly 150 of our people volunteered for our mission trips to the Bahamas and Costa Rica, bringing meaningful change to those in need. In the Bahamas, our volunteers addressed immediate needs, including providing food for families and building playground equipment to bring joy to children.
In Costa Rica, volunteers built two homes for welldeserving families. The Salazar Bustos and Bolanos Jiron families now have a place to call home and renewed hope for the future.
Supporting our neighbors
Our staff continued to show how passionate they are about helping those in our own backyard. The next page details how we supported local, national, and global organizations in 2024.
We will put God’s love into action more in 2025 as we aim to help funeral professionals serve families, provide support to those in need, and partner with communities to further God’s Kingdom.
Our team is always ready to help those near and far. During our Bahamas mission trip in 2024, they built a playground, installed a garden, and fortified a women’s shelter.
Proud supporter of the following organizations and more in 2024
Jennifer Jenson, Passare Operations Support Specialist, worked with Global Samaritan by helping provide teachers with school supplies.
Aly Carden, Digital Marketing Specialist (right), traveled the country and experienced new adventures with her husband.
Patricia Serfino, Professional Education Partner, experienced all Tokyo, Japan, had to offer with her friends.
Shelbi Greene, Talent Acquisition Manager (right), and her husband celebrated their anniversary with a family trip.
Jordan Watson, Brand Designer II (center), enjoyed spending time with family and finding rest in community.
Zach Badon, FDL Document Processing Analyst III, focused on rest and reflection in New Mexico.
Renewing our souls
“
Therefore, encourage one another and build one another up, just as you are doing.
Our employees used their Sabbaticals to spend time with families and friends and strengthen relationships.
1 Thessalonians 5:11
Our Sabbatical year was an incredible time of soul renewal. What better way to experience that than through relationships?
For many of us, last year was a season of mending personal connections and reestablishing communication.
These renewed relationships brought lifechanging stories that will forever inspire and strengthen us.
Reconnecting families through faith
For Cody Forrester, Maintenance Manager, the Sabbatical was an opportunity to reconnect with someone he had never met – his birth mother. A health scare prompted him to reach out, but little did he know God had already prepared the path.
“Once I realized I had a chance to meet my biological mom, I just let God take the lead,” Cody said. “I had so much peace with the situation, knowing He preordained everything and that it would be good.”
Their first emotional conversation led to daily calls. Cody discovered he had two younger brothers and learned more about his biological family, finally getting answers to questions he had carried his whole life.
In December, Cody invited his birth mother to visit the Home Office, where she learned about all he does for us every day.
“Sharing my workplace with her was incredibly special. It felt like I was introducing her to my DIG family,” Cody said. “Without the Sabbatical, I probably never would have reached out. This was all part of God’s plan.”
“I just let God take the lead... This was all part of God’s plan.”
Cody Forrester Maintenance Manager
Finding God’s goodness
Diane Bhatula, Quality Assurance Specialist, used her Sabbatical to tackle questions she had long wrestled with about God. Over 30 days, she experienced three events that changed her life.
“I don’t know what else to refer to them as besides true wonders or miraculous signs from God,” Diane said. “I’m convinced that God used those events to show me that He wants me to lean on Him and set myself free from the weight of the world around me.”
The first miracle came in a podcast series, which provided short Bible lessons that deepened Diane’s understanding of her faith.
The second miracle was found in her Sabbatical book, The Screwtape Letters by C.S. Lewis, which showed her how doubt can pull us away from God.
Finally, Diane experienced a dramatic moment while hiking. After breaking her ankle and foot, she encountered kind strangers, rescuers, and medical professionals who helped her recover.
“Falling off that giant rock was symbolic of me falling off the fence in my relationship with God...” Diane said. “My Sabbatical helped me realize that all my questions were not from God and gave me time to see the truth to all I was struggling with.”
“I don’t know what else to refer to them as besides true wonders from God.”
Diane Bhatula Quality Assurance Specialist
Building relationships all year long
In 2024, we deepened relationships with our funeral home clients, the funeral profession, and our team. Because to be the best, mostrespected provider of service, relationships must be our priority.
Strengthening connections with funeral professionals
To grow our relationships with our clients, we welcomed more than 150 funeral professionals to Abilene through 21 VIP Trips. These trips allowed us to connect with funeral professionals, introduce them to our staff, and share what makes us unique.
Our team also attended 25 state conventions, where we showcased our products and services. And we even sponsored John O’Leary, best-selling author and speaker, as a keynote speaker for a few of these conventions! His message was empowering and resonated with many.
National conventions played an equally vital role in helping us build relationships last year. One of our most memorable moments included hosting more than 300 funeral professionals at our VIP mixer during the 2024 NFDA International Convention & Expo. Another was celebrating our very own Kevin Gaffney, Regional Sales Vice President, being elected to the ICCFA Board of Directors.
We look forward to making even more great memories at these conventions in 2025!
Investing in the future
Our company culture is extremely valuable to us, and we want to do all we can to protect it. As part of our unique culture, we are blessed with several talented individuals who have leadership potential and a heart for service.
To support their growth, we launched the Emerging Leaders Program. Last year, 10 employees across eight departments graduated from the program, and we are excited to see what their future holds!
Additionally, we welcomed 15 apprentices and interns to our Home Office, giving them hands-on experience and a firsthand look at our commitment to exceptional service.
Kevin Gaffney, Regional Sales Vice President (right), helped us build connections at the 2024 National Funeral Directors Association International Convention & Expo.
Celebrating the Sabbatical year
We continued to pour into our people and culture with our annual end-of-year event at Beltway Park Church. The celebration featured a short exercise session, motivational stories from Sabbatical participants, and inspiration for the year ahead. Our good friend John O’Leary, best-selling author and speaker, concluded the event and challenged us with a powerful message:
“
What more can I do?
”
Kris Seale encouraged us to remember the spirit of the Sabbatical year during 2025, especially when caring for ourselves, our loved ones, customers, and community.
John O’Leary, best-selling author and speaker, challenged us to always ask “What more can I do?” at our 2024 endof-year event.
Kaley Young, Account Executive (left), Vasti Villarreal, Customer Success Manager, and all our employees received John O’Leary’s book, On Fire, at our 2024 end-of-year event.
Recognizing excellence
In 2024, we continued to prioritize our culture to ensure that we remain a great place to work for our people. Our parent company, Directors Investment Group, was honored with several workplace awards in 2024, such as:
#12 Best Workplace in Financial Services & Insurance™ (Small and Medium) by Fortune
#13 Best Workplace in Texas™ (Small and Medium) by Fortune
#90 Best Medium Workplaces™ national list by Fortune
Recertification as a “Great Place to Work” by Great Place to Work®
The “Corporate Star Award” from the Abilene Chamber of Commerce
We are deeply grateful for these honors, which reflect the dedication and excellence of our incredible team.
Our Sabbatical year was one of renewal, growth, and inspiration for our souls. It reminded us of the power of relationships – both personal and professional – and strengthened our resolve to serve others.
As we step into 2025, our hearts are renewed, and our focus is clear:
“What more can we do?”
Erin Shilcutt, Senior Growth Program Manager (right), volunteered at Camp Roots youth camp in Brazil.
Jamilah Spears, Growth Program Manager, used her Sabbatical for selfreflection and growth.
Cara Bohon, Talent Acquisition Coordinator, enjoyed her time away from work by completing house renovations.
Isayah Cartier, Marketing Strategist (right), spent much of his Sabbatical visiting loved ones in Indonesia.
Martinez, Quality Assurance Specialist, and others served families by helping build homes during the Costa Rica mission trip.
Paul Lovelace, EVP and Chief Corporate Development Officer, visited family in Oregon with his wife, which included a trip to the beach.
Teresa
Remembering the blessing of renewal
The 2024 Sabbatical year gave us all a spirit of renewal and a goal to carry that same spirit throughout 2025.
This renewal – rooted in rest, service, and relationships – reminded us that our work is a reflection of our commitment to God, our employees, our funeral home clients, and the families we serve.
Justin Frank, Design Engineer Supervisor, enjoyed the Great Sand Dunes National Park and Preserve in Colorado with his family.
Carrying the 2024 Sabbatical spirit with us
As a company, we’ve witnessed the power of honoring rest. Our people renewed their minds, bodies, and souls through their Sabbaticals, which helped them find personal growth and success. Through achieving mental clarity in stillness, caring for those in need, or deepening relationships built on trust and respect, we’ve strengthened our foundation and how we serve.
In 2025, we commit to keeping the spirit of renewal alive by focusing on these questions:
Are we actively seeking God’s call for our lives?
Do our people feel uplifted and supported in their roles?
How can we guarantee unmatched and excellent service to funeral professionals?
Where can we better build stronger communities?
And maybe our most important question to keep in mind:
What more can we do?
Together, we will remember the blessing of the 2024 Sabbatical and use what we learned to make a lasting difference in all the lives we touch.
Florencia Da Silva, Remote Software Developer Trainee, traveled to Peru.
Management’s discussion and analysis
Analysis of financial position
For 2024, the financial position of Funeral Directors Life Insurance Company (FDL) remained strong as the Company maintained an AM Best Insurance Company Rating of A- (Excellent) with a stable outlook. The significant increase in yearover-year new business sales production along with the company’s consistent investment strategy resulted in combined premium and investment income of $623.4 million – a $69.9 million increase over 2023. Policyholder benefits were slightly higher than projected and exceeded 2023 by $55.2 million or 13.15%. Commissions and general insurance increased by 15.92%, and insurance taxes, licenses, and fees increased by 20.68% – a result of increased new business sales and the company’s continued investment in infrastructure for future growth. Net income exceeded 2023 by $2.9 million due largely to increased investment income. Total assets increased by $240.1 million while capital and surplus increased $10.0 million.
Assets
The Total Assets of FDL grew to $2.35 billion, an increase of $240.1 million or 11.37% from year-end 2023. As of December 31, 2024, FDL’s assets were distributed as follows: 98.36% in investments, 0.91% in investment income due and accrued, 0.24% in deferred tax assets, 0.23% in receivables due from insurance companies, 0.07% in premiums deferred and uncollected, and 0.19% in various other assets.
Invested assets
For 2024, the primary investment held by FDL was bonds (government, agency, and corporate) representing 81.55% of invested assets or $1.886 billion. The emphasis regarding the investment portfolio has consistently involved purchasing investments that provide sufficient cash flow for the products sold, while maximizing book yield, limiting risk, and maintaining appropriate liquidity. Throughout 2024, FDL maintained this approach by matching the expected cash flows of the investment portfolio to projected liabilities, known as an Asset Liability Management (ALM) strategy. This conservative approach to managing assets has been consistent since 1993 and was designed to reduce risk and provide assurance that the cash flow of assets is appropriate to provide for the claims of the company.
The growth in assets has allowed FDL to “average into the market” over many different interest rate environments and in all areas of the yield curve. In combination with a disciplined approach to investing, this has helped protect FDL’s investment portfolio against market value volatility due to interest rate fluctuations. During the year, FDL increased the diversification of its portfolio by both asset class and number of issues. Therefore, risk related to individual securities and single asset sectors has been reduced. Treasury yields remained volatile throughout 2024 amidst sticky inflation and increased deficit spending, along with the Fed beginning its rate cutting cycle. The Treasury curve experienced substantial steepening, with shorter term yields falling over 100 basis points, while the long end of the curve saw yields rise over 70 basis points. FDL invested throughout the year over various parts of the
curve but focused on finding the best value in the market while improving the ALM picture. Despite the volatility and economic concerns, FDL has continued to follow the long-term investment strategy and focus on diversification in terms of capital and surplus, asset valuation reserve, and the company’s asset liability matching strategy. Additionally, the company continues to look for ways to maximize book yield while positioning the invested assets in a manner that is prudent for policyholders and maximizing the risk/return tradeoff.
At year-end 2024, FDL’s portfolio contained one thousand two hundred sixty-eight (1,268) different bond issues with an overall portfolio average rating of NAIC 1 and 2, and only ninety (90) issues rated below NAIC 2, representing 6.7% of total bonds. Additionally, over 44% of the securities rated below NAIC 2 carry at least one investment grade rating from either Moody’s, S&P, or Fitch at year-end. As of December 31, 2024, FDL’s allocation of industrial and miscellaneous bonds maintained the greatest allocation at 90.01% of total bonds, followed by special revenue and assessment bonds (6.73%), U.S. political subdivisions (1.21%), U.S. Government bonds (1.89%), and U.S. States (0.16%). The overall portfolio duration was approximately 6.89 years with an average coupon of 5.13%.
Invested assets (continued)
FDL’s total common stock portfolio was $26.34 million, representing 1.14% of invested assets and consisting largely of the company’s three whollyowned insurance subsidiaries totaling $20.8 million. The company owns Kentucky Funeral Directors Life Insurance Company, domiciled in Kentucky, Funeral Directors Life Insurance Company of Louisiana, domiciled in Louisiana, and American Life and Annuity Company, domiciled in Arkansas. The public common stock portfolio consists of the Monteagle Select Value Fund, as well as the Federal Home Loan Bank, valued at $5.5 million.
During 2024, FDL’s mortgage loan portfolio increased by $72.8 million for new loans of $97.9 million, offset by $4.3 million in loans paid off, and $20.8 million in principal payments during the year. The mortgage loan portfolio represented 15.25% of invested assets as opposed to 13.48% in 2023. Virtually all mortgage loans made and retained by FDL are made to funeral home customers and have consistently performed. As of year-end, the company had no mortgage loans over 30 days past due.
At year-end 2024, real estate represented 0.98% of invested assets compared to 0.84% in 2023. $21.3 million represents the home office property, and $1.3 million represents the company’s investment property. The $5.2 million year-over-year increase in real estate was due to remodeling and expansion of the home office space.
Cash and short-term investments represented 0.51% of invested assets at $11.8 million compared to $8.0 million at year-end 2023.
Other invested assets consisted of loans to parent of $1.8 million, which comprised 0.08% of invested assets, surplus debentures of $3.2 million or 0.13% of invested assets, and $8.1 million in construction loans, which comprised 0.35% of invested assets. The principal reduction on the loans to parent was $651.5 thousand for the year.
The portfolio is conservatively positioned to allow for continued improvements going forward. FDL will maintain its long-term focus and not attempt to “time the market” with regard to interest rates. The focus will remain on providing for the policyholders and limiting both market risk and reinvestment risk. New cash flows during 2025 are expected to be reinvested at levels consistent with 2024. The overall book yield increased significantly during 2024, and the portfolio remains diversified and in a positive position to move forward in 2025 and the years to come. Diversification will continue in order to reduce exposure to single portfolio issues, and FDL will diligently invest to provide for the historical investment objectives of the company.
Liabilities
At year-end 2024, FDL’s liabilities were distributed as follows: 97.38% in aggregate reserve for life contracts, 1.20% in asset valuation reserve, 0.37% in accrued commissions, 0.31% in interest maintenance reserve, 0.30% in premiums and annuity consideration received in advance, 0.17% in policy claims, 0.03% in provision for policyholders’ dividends, and 0.24% in all other liabilities.
Life insurance and annuity reserves are primarily medium to long-term in nature. Life insurance reserves are calculated on a conservative basis, with virtually all reserves being calculated using an interest factor of 4% or less. Annuity reserves are equal to the current cash surrender value of the annuities plus additional reserves required by Actuarial Guideline 33. The terms of the annuity contracts are conservative, offering interest guarantees of 1% to 5% and no bailout provisions.
Provision for policyholders’ dividends decreased to $700 thousand due to the decrease of in-force participating policies. A policyholder dividend is the growth rate applied to preneed products and credited to funeral home customers. Annually, the company estimates the dollar amount of dividends to be paid with respect to participating policies in the following calendar year.
The interest maintenance reserve decreased by $637.9 thousand from year-end 2023 for net realized capital losses of $369.5 thousand and amortization of $268.4 thousand. The asset valuation reserve increased $4.3 million or 20.06% in 2024, which is consistent with the increase from 2022 to 2023. The increase in 2024 was due to the increase in invested assets brought about by the increase in new business sales.
Borrowed money for 2024 includes a $258.8 thousand grant from the Development Corporation of Abilene, Inc (DCOA). The initial investment incentive payment of $1.0 million was based upon the company’s expansion of its corporate headquarters and its commitment to create seventy (70) additional positions over a 5-year period. The original terms of the grant required the funds to be recorded as a liability for the first four years until the employment terms had been satisfied, at which time the loan would be forgiven and converted to income. The company surpassed the requirement to add 70 additional positions in 2022, so the DCOA amended the terms of the grant to allow FDL to convert one-fourth of the grant into income over a four-year period beginning in 2022.
Generally, the differences between years in the other liability categories did not result from any significant changes in liability trends but were the result of normal business.
Capital and surplus
Total capital and surplus increased $10.0 million for 2024 as compared to the increase of $8.2 million in 2023. The increase in 2024 consisted of net income of $12.6 million, $2.7 million increase in net deferred income tax, unrealized gains of $318.6 thousand, offset by a $4.3 million increase in asset valuation reserve, and a $1.3 million increase in non-admitted assets. The majority of non-admitted assets relate to non-admitted deferred income tax. The ratio of capital and surplus to total assets was 7.81% at year-end 2024 compared to 8.23% at yearend 2023, due largely to the significant growth in assets in 2024. No other material favorable or unfavorable trends existed in FDL’s capital and surplus accounts.
Results of operations
Revenue
New business issued for 2024 was $575 million, surpassing 2023 by $55.7 million. New business sales were 96% of projected but 10.1% higher than in 2023.
Annuity premium income increased 10.4% from 2023 to 2024, while Ordinary Life, Group Life, and Industrial Life premiums increased 15.4%, for a total increase between years of $56.5 million or 12.35%, compared to a 12.34% increase from 2022 to 2023. Single-pay new business sales for 2024 were 72.3% of total production compared to 70.8% for 2023. The company’s five largest states – Texas, Minnesota, Ohio, Pennsylvania, and Wisconsin –contributed $318.7 million in new business sales.
A large part of the growth in 2024 was also attributed to the growth in third-party marketing partners. In 2024, approximately $2.2 million in premium income came from trust conversions compared to $6.8 million in 2023. Trust conversions typically result in higher commissions and reserves in year one but are profitable in future years.
Net investment income increased $13.4 million from year-end 2023 to year-end 2024, which is consistent with the increase for 2023. 2024 investment income included $732.2 thousand in prepayment income from calls and tenders. Income from bond investments increased despite the decrease in rates as new business sales provided additional funds for investment.
Revenue (continued)
As of December 2024, future asset cash flows exceeded the liability cash flows for a projected thirty years. A continued focus in 2024 was to better align some of the upcoming calendar years and any cash flow discrepancies. The average yield on new bond purchases in 2024 fell approximately 41 basis points, while the yield on the total bond portfolio increased from 4.93% at year-end 2023 to 5.01% at year-end 2024. The average yield on new mortgage loans was 251 basis points higher than bond yields, providing a year-over-year increase in loan income of over 40%. Net new dollars invested for 2024 were $236.1 million compared to $210.1 million for 2023.
Expenses
For 2024, overall expenses increased $66.7 million or 12.3% from the previous year compared to an increase of $62.0 million or 12.9% from year-end 2022 to year-end 2023. Death and annuity benefits paid during the year increased by $26.0 million when compared to 2023 and were $12.5 million more than projected. Monthly claims expense
averaged $20.4 million in 2024 compared to $18.4 million in 2023. With the significant year-overyear increase in new business sales, aggregate reserves increased $29.3 million or 14.9% from 2023. Commissions were up approximately $10.6 million or 15.9% when compared to 2023. General insurance expenses exceeded 2023 by only $196.4 thousand or 4.1% compared to a $10.2 million or 27.3% increase from 2022 to 2023 as the company has achieved the necessary infrastructure to support future growth. Insurance taxes, licenses, and fees were up $1.2 million, largely due to the increase in life premiums from new business sales. Net realized capital gains of $516.8 thousand occurred in 2024 compared to $328.5 thousand of net realized capital gains in 2023. Capital gains for 2024 were related to the grant from the DCOA and the sale of real estate investment property. No other material expense changes occurred in 2024.
For 2024, net income was $12.6 million, up from 2023 net income of $9.7 million. The following facts are relevant when comparing net income between 2023 and 2024: 1) new business sales continued to increase; 2) despite lower bond yields, the significant increase in mortgage lending increased interest income from loans by over 40%; 3) claims were higher than projected, and the increase in new business production led to increased reserves and commissions; and 4) general expenses slowed greatly. Net income exceeded 2023 by $2.9 million.
Cash flow and liquidity
Through the inflows of premium income and the growth of investment income, FDL has continued to maintain extremely positive cash flow. Premium and investment income have allowed FDL to meet all obligations and invest a considerable amount of the remainder. This trend is expected to continue for 2025 and beyond. However, FDL has made appropriate plans for the future by continuing the investment strategy of matching asset maturities with liability cash flow projections.
FDL continues to be positively positioned from a portfolio structure as well as a reporting standpoint. Moreover, the diversification, structure of the investment portfolio, and limited exposure to troubled securities have afforded FDL the opportunity to benefit versus competition. New cash flows during 2025 are expected to be reinvested at attractive yet modestly lower levels than that of 2024. Over the past several years,
inflation concerns have driven interest rates up to a large degree as the Fed maintained restrictive monetary policy. While inflation has continued to generally trend downwards, the government’s high deficit spending has emerged as another potential concern, driving yields on the longer end of the yield curve higher. We currently anticipate that the yield curve will continue to steepen, with yields on the front end continuing to trend lower relative to longer-term yields.
FDL has maintained considerable liquidity over the years and will continue to do so in the future. As stated previously, current cash flow has always been sufficient to meet maturing insurance and annuity obligations, as well as operating expenses; however, if FDL is required, by some catastrophic event, to generate cash flow, it may do so by liquidating its highly marketable securities.
Conclusion
The company entered 2024 with a very strong ratio of capital and surplus to assets and continued the steady and consistent growth that was interrupted by the pandemic in early 2020. The investment portfolio is highly diversified and structured to generate cash flows sufficient to provide for the cash needs of the company. These cash needs include the expected claims and all operating needs of the company. FDL is constantly monitoring investment activity, using technology to communicate with employees and customers, and evaluating opportunities to reduce expenses. FDL is strongly positioned for growth in 2025 and beyond.
Selected Financial And Statistical Data
(Five-Year Summary)
Year ended December 31 (In Thousands)
New Business Issued Premium Income
In Force
Life Reserves Capital and Surplus
Income
Assets
Invested
Asset Mix
Assets Year ended December 31 (In Thousands) 2024 2023
Bonds
Stocks-Common/Public
Stocks-Subsidiaries
Mortgage Loans
Real Estate
Policy Loans
Surplus Debentures
Cash and Short-Term Investments
Other Invested Assets
Total Invested Assets
Furniture and Equipment
Deferred Premiums
Accrued Investment Income
Deferred Tax Asset
Claimcheck Receivables
Other Assets
Total Assets $ 1,886,150.4 5,510.2 20,837.3 352,805.1 22,613.1 8.8 3,230.7 11,797.7 9,855.3 2,312,808.6 1,538.4 1,720.5 21,458.5 5,655.9 5,477.5 2,783.5 $ 2,351,442.9 $ $1,737,255.9 4,278.6 20,525.0 280,034.4 17,392.3 8.2 3,276.1 8,025.2 5,897.2 2,076,692.9 1,633.5 1,885.1 20,018.1 5,080.5 4,881.9 1,182.5 $ 2,111,374.5
Policy Reserves
Policy Claims
Provision for Policyholder Dividends
Premiums Received in Advance
Interest Maintenance Reserve
Accrued Commissions
Accounts Payable
Borrowed Funds
Other Liabilities Federal Income Tax
Asset Valuation Reserve Total Liabilities Common Stock
Additional Paid-In Capital Surplus
Total Shareholder’s Equity
Total Liabilities and Shareholder’s Equity $ 2,111,007.5 3,776.0
2,167,694.3 2,500.0 3,031.0 178,217.6 183,748.6 $ 2,351,442.9 $ 1,884,444.5 1,126.7 800.0 7,670.5 7,302.6 7,071.9 874.2 517.5 4,409.5 1,775.2 21,654.2 1,937,646.8 2,500.0 3,031.0 168,196.7 173,727.7 $ 2,111,374.5
Life Premiums and Annuity Payments Net Investment Income Other Income Total Revenue
and Annuity Benefits Other Benefits Increase in Aggregate Reserves Operating Expenses and Commissions Dividends to Policyholders Total Benefits and Expenses
Income Before Capital Gains & Income Taxes
Capital Gains Net of Income Taxes Income Before Income Taxes Less Provision for Income Taxes Net Income $ 513,853.6 109,502.8 3,208.9 626,565.3
18,803.4 6,220.4 $ 12,583.0 14,770.4 328.5 15,098.9 5,438.0 $ 9,660.9 $ 457,379.7 96,072.3 2,894.7 556,346.7 220,998.8 1,614.8 197,099.0 120,955.2 908.50 541,576.3
18,286.6
Year ended December 31
Shareholder’s Equity Beginning Balance
Net Income
Unrealized Gain (Loss) on Investments
Change in Deferred Tax
Change in Non-Admitted Assets
Change in Asset Valuation Reserve
Shareholder’s Equity Ending Balance $ 173,727.8 12,583.0 318.6 2,724.6 (1,261.3 (4,344.1 $ 183,748.6 $ 165,553.2 9,660.9 1,072.7 2,261.0 (312.1 (4,508.0 $ 173,727.7 ) ) ) )
Statement of Cash Flow
Year ended December 31 (In Thousands) (In Thousands) 2024 2023
Cash Flow From Operating Activities
Premiums and Annuity Payments
Investment Income Received
Other Income Received
Benefits and Loss Related Payments
Operating Expenses Paid
Policyholder Dividends Paid
Income Taxes Paid
Capital and Surplus 2024 2023 ) ) ) ) ) ) ) )
Net Cash Provided By Operating Activities $ 512,715.4 110,525.8 3,199.5 (245,791.7 (132,207.6 (1,036.1 (8,656.8 238,748.5 $ 457,333.9 94,200.5 2,917.2 (222,515.6 (119,852.6 (1,120.4 (3,175.0 207,788.0
Cash Flow From Investing Activities
Proceeds from Investments Sold
Other Cash Provided (Applied)
Acquisition of Investments: Bonds Stocks Mortgage Loans Real Estate
Other Invested Assets
Net Decrease in Contract Loans
Net Cash Used In Investing Activities
Net Increase (Decrease) In Cash and Short-Term Investments
Cash and Short-Term Investments
Beginning of Year
End of Year 155,836.1 146.8 (280,741.6 (1,223.6 (97,933.9 (6,436.6 (4,622.6 (0.5 (234,975.9 ) ) ) ) ) ) ) ) ) ) ) ) ) ) 3,772.6 8,025.1 $ 11,797.7 ) 95,236.9 3,206.6 (243,216.9 (22.4 (58,381.9 (860.7 (4,213.1 (0.5 (208,252.0 (464.0 8,489.1 $ 8,025.1 2024 2023 Year ended December 31 (In Thousands)
Board of Directors
Stuart Ford
Sid Grant
Terry Groban
Robert Hamil
Pat Patton
Drew Seale
Kris Seale
Kasi Welch-Baker
Houston, TX
Sylvester, TX
Abilene, TX
Abilene, TX
Sauk Centre, MN
Abilene, TX
Abilene, TX
Midland, TX
Leslie Branon Montz
Mark Cypert
Stuart Ford
Mark France
Sid Grant
Terry Groban
Robert Hamil
Jeff Harper
Tim Hoff
Pat Patton
Dr. Reagan Ramsower
Drew Seale
Kris Seale
Kasi Welch-Baker
Fort Worth, TX
Snyder, TX
Houston, TX
Austin, TX
Sylvester, TX
Abilene, TX
Abilene, TX
San Angelo, TX
St. Charles, MN
Sauk Centre, MN
Waco, TX
Abilene, TX
Abilene, TX
Midland, TX
Corporate Officers
Kris Seale
President and CEO, Chairman of the Board
Todd Carlson
EVP of Sales, Chief Sales Officer
Terry Groban EVP and Chief Financial Officer, Secretary, Treasurer
Paul Lovelace EVP of Corporate Development
Dwayne McGraw EVP and Chief Actuary
Dawson Rodriguez EVP and Chief Information Security Officer
Drew Seale
EVP and Chief Marketing Officer
Jeff Stewart
EVP and Chief Culture Officer
Addison Templeton EVP and Chief Operations Officer
Amy Biggs VP of Operations
Rob Davidson VP of Creative Services
Jason Gazaille VP of Finance
Kelly Gilgenbach VP of Inside Sales
Melissa Magers VP of Accounting
Mitchell McLean VP of Digital Marketing
Josh McQueen VP of Marketing and Product
Zack Shahan VP of Security Operations
Kyle Swearingen VP of Development
Mark Owen Senior Sales Vice President
Beth-Ann Carpenter
Regional Sales Vice President
Kevin Gaffney
Regional Sales Vice President
John Harrington Regional Sales Vice President
Jeffery “Stewy” Stewart Regional Sales Vice President
Kris Seale Todd Carlson Terry Groban
Paul Lovelace
Dawson Rodriguez
Jeff Stewart
Dwayne McGraw
Drew Seale
Addison Templeton
