2022 Annual REPORT
National Guardian Life Insurance Company
2022 Report from the President
Dear Policyholders,
A prevailing goal of my four-year tenure as CEO has been to recognize and honor the past while working with our Board of Directors, leadership team and employees to establish and execute the strategy and vision to take us successfully into the future.
The result of these efforts has been the ongoing process of simplifying and focusing our business. We maintained a strong financial position providing our policyholders with the healthiest balance sheet in the history of the organization. In recognition of that strength, and unlike some in our industry, AM Best, the world’s oldest and most authoritative insurance rating information source, maintained NGL’s A (Excellent) rating. This rating reflects the excellent ability of NGL to meet its ongoing insurance policy and contract obligations and further attests to its financial strength.
I am pleased to report that 2022 ended with record capital and surplus. Investment income continues to grow and improve. I expect investment performance to be on track for a top quartile. We established genuine momentum in our sales area, and I am optimistic about our opportunities in 2023 to grow at an increasing rate.
Beyond financial performance, we celebrated 25 years in the Preneed business in 2022 through an ongoing emphasis on this core business. It is certainly rewarding for us to provide the service, funds and peace of mind Preneed insurance brings to consumers across the country. It is also our privilege to work with and support funeral home owners and directors, as well as our Marketing Partners, who do so much to be there for families in their time of need.
Looking Ahead
Looking ahead to 2023, NGL will move aggressively toward growing our core Preneed business through ongoing expansion of our Marketing Partner relationships, as well as offering new products and services. We will continue to manage the challenge of technology costs as we navigate use and retirement of legacy systems, as well as integration of new stateof-the-art systems.
We administered our first post pandemic employee engagement survey last fall and experienced an excellent 88% response rate. The results of that survey will guide our 2023 employee engagement action plan. Our goal continues to be to create an inclusive, flexible work environment for our employees.
As an NGL policyholder, I hope you take pride in the strides your company has made to strengthen its financial base and expand its service commitment. Every effort we take and decision we make is wrapped with integrity and dependability, with the goal of helping our policyholders complete their journeys with compassion and dignity. We appreciate your trust in us.
Knut A. Olson President & Chief Executive Officer
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Knut A. Olson
“Every effort we take and decision we make is wrapped with integrity and dependability.”
2022 Company Highlights
1.5 million Over
families served to date*
Financial Strength Rating A A Excellent Completed our building remodel
Serving the community for
114 years
92,189 calls received
8 work hours of paid time per year employees receive to volunteer
68,142 Preneed claims paid in 2022
1,216,272
Life and Annuity policies in force
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*as of 09/09/2022.
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Consolidated Statutory Basis (in millions) Assets Financial Update 2020 2021 2022 Bonds ..................................................................................... 4,359 4,317 3,888 Mortgage Loans .............................................................. 91 136 176 Cash and Short-Term Investments ...................... 65 101 65 Other Invested Assets ................................................. 169 264 410 Other Assets ..................................................................... 137 274 262 Total Assets ......................................................................... 4,821 5,092 4,801 Liabilities 2020 2021 2022 Policyholder Liabilities ............................................... 3,869 3,412 2,992 Other Liabilities .............................................................. 521 1,183 1,286 Total Liabilities .............................................................. 4,390 4,595 4,278 Capital and Surplus 2020 2021 2022 Total Capital and Surplus 431 497 523 Strong capital and surplus growth over the last 3 years.
Summary of Financial Position
Risk Based Capital Ratio
| 5 NGL Annual Report 2022 | Summary of Operations Consolidated Statutory Basis (in millions) Liabilities, Capital and Surplus 3,412 1,183 497 Total Liabilities, Capital and Surplus 5,092 2021 2,992 1,286 523 2022 Total Liabilities, Capital and Surplus 4,801 2020 3,869 521 431 Total Liabilities, Capital and Surplus 4,821 Total Revenue 439 103 204 132 2021 2020 236 186 41 2022 260 206 91 Total Revenue 557 Total Revenue 463 Revenues Policyholder Liabilities Other Liabilities Capital and Surplus Premiums and Considerations Net Investment Income Other Income Expenses 2020 2021 2022 Policy Benefits .................................................................. 194 149 307 Commissions and Operating Expenses ........... 218 232 229 Total Expenses ................................................................. 412 381 536 Income 2020 2021 2022 Pre-Tax Return on Avg. Surplus 11.9% 12.4% 4.2% 2020 2021 2022 Net Gain Before Income Taxes 50 58 21 Income Taxes 16 21 5 Net Gain from Operations 34 37 16 Capital Gains (Losses) (2) (3) 16 Net Income 32 33 33 2020 2021 2022 RBC Ratio .......................................................................... 556% 598% 631.9%
Risk based capital ratio is a measure of an insurance company’s financial strength and ability to pay future claims in any economic scenario. Insurance regulators require insurance companies to hold risk based capital to mitigate future risk. Relative to NGL’s required risk based capital, NGL has historically and today maintained over 400% times the required amount of risk based capital which is evidence of its continued financial strength.
Board of Directors
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Amie T. Goldman Vice President of Innovation Agrace Madison, WI
Erik S. Johnson Executive Chairman Hy Cite Enterprises Madison, WI
David W. Kruger Chairman Fiore Companies Madison, WI
Sherry A. Manetta Managing Director Glenwood Strategies, LLC Avon, CT
Knut A. Olson President & CEO National Guardian Life Insurance Company Madison, WI
Daniel P. Olszewski Director, Weinert Center for Entrepreneurship at UW-Madison Madison,WI
David G. Walsh Chairman, Attorney & Retired Partner Foley & Lardner LLP Madison, WI
Judith B. Ward Senior Executive Search Consultant AGB Search Washington, D.C.
Gary J. Wolter Former Chairman Retired President & CEO MGE Energy, Inc. & MGE Madison, WI
Peter C. Gunder Venture Partner American Family Ventures Madison, WI
John J. Oros Operating Partner J.C. Flowers & Co. Ridgewood, NJ
Tammy M. Roou Retired Vice President Northwestern Mutual Milwaukee, WI
Elease E. Wright Retired Senior Vice President Chief Human Resources Officer Aetna Inc. Hartford, CT
Text[Tile] Wall
NGL partners with Hip Hop Architecture Camp for one-of-a-kind display
Proudly on display in NGL’s newly remodeled lobby is a custom fine art installation designed by award-winning architect Michael Ford. The two-story Text[Tile] wall takes NGL’s diversity, equity and inclusion (DEI) statement and literally casts it in stone as a series of tiles representing each letter in the text. NGL’s DEI statement is:
“Valuing diversity of thought, background and beliefs are key to living our cultural values of integrity, dependability, collaboration, compassion, and growth. It’s vital to our promise of helping customers face life’s challenges with confidence, dignity and grace. We strive to create an environment free of racism, discrimination, and intolerance – fostering equal opportunities and promoting belonging and inclusion.”
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| NGL Annual Report 2022 | 8 800.548.2962 | www.nglic.com | Madison, WI Ratings current as of 05/06/2022. Insurance coverage provided by National Guardian Life Insurance Company (NGL), Madison, Wis. National Guardian Life Insurance Company is not affiliated with The Guardian Life Insurance Company of America a.k.a. The Guardian or Guardian Life. 5270 03/23 Basis of Presentation: These statements reflect management’s presentation of the consolidated financial condition of National Guardian Life Insurance Company and its results of operations in accordance with statutory accounting principles. National Guardian Life Insurance Company Preneed Reinsurance Company of America