National Life calls 2018 its most successful year ever

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National Life calls 2018 its most successful year ever

Tue, 05/21/2019 - 11:48am -- Anonymous

The Foundation’s budget doubled to $2 million. Employees used their 40 hours of paid volunteer time to do almost 7,200 hours of good. They donated more than $250,000 through National Life's Share the Good campaign in which their charitable contributions were matched, resulting in $500,000 supporting hundreds of nonprofits. The Do Good Fest benefit concert raised $36,000 for the Branches of Hope cancer patient fund, bringing the total to more than $135,000 donated over the past five years. The LifeChanger of the Year program honored 830 school employees nationwide with more than $78,000 in awards. 

by Timothy McQuiston, Vermont Business Magazine National Life has released its 2018 Annual Report, which highlights a record-setting year on the company’s 170th anniversary, as life insurance sales have more than tripled over the last decade and its renowned foundation budget has reached $2 million.

Revenues in 2018 were $1.9 billion compared to $2.3 billion in 2017. Net income was $150.1 million versus $260 million. Total assets were $30.4 billion versus $30.2 billion.

National Life CFO Sarah VanBeck explained to VBM that both the revenue and net income declines in 2018 were due to one-time events. Net income in 2017 benefited from the federal tax change, while stock market volatility at the end of 2018 led to a decrease in investment revenues.

VanBeck said: "National Life Group’s net income was $150 million in 2018, down from net income of $260 million in 2017, which included a one-time benefit of $120 million from tax reform. Excluding the one-time tax item, net income increased $10 million compared to 2017.

"National Life Group’s annuity products and indexed universal life insurance products generate revenues primarily through investment income and policy and contract charges. Whole and term life insurance products generate primarily premium revenues. The decrease in the Company’s total revenues was related to equity market volatility, which decreased the market value of options (primarily on the S&P 500 index) that economically hedge our indexed life and annuity products. Investment income in 2018 reflected a loss on these hedges of $166 million, which was largely a temporary loss in value, due to a sharp decline in equity markets late in 2018, compared to income of $335 million in 2017.

"Excluding these amounts, the Company’s total revenues increased $132 million or 7%, which included an increase in net investment income of $67 million or 6%, and an increase in policy and contract charges of $84 million or 15%, both due to growth in the Company’s volume of business."

National Life also received "A" ratings from its credit agencies: AM Best (A Excellent); Standard & Poor's (A+ Strong); and Moody's (A2 Good). It also ranked Number 1 in fixed indexed annuities for employer sponsored plans, Number 2 in indexed universal life insurance sales, and Number 12 for individual life insurance sales out of all reporting US life insurance companies.

“We remain one of the fastest growing life insurance companies in America1,” said Mehran Assadi, Chairman, CEO and President. “We’re proud of this growth and our opportunity to serve even more families and businesses as well as do good in our communities.”

Among the accomplishments noted in the report:

  • Life sales have grown 351 percent in the past decade – from $88 million in 2008 to $309 million in 20182
  • $2.5 billion was paid to policy owners in benefits3
  • The National Life Group Foundation budget was doubled to $2 million
  • The company was included in the Fortune 1000 list and America’s Magnificent Eight Exceptional Businesses

Executive Management Team: from left to right, Sarah VanBeck Senior Vice President, Chief Financial Officer & Treasurer; Robert Cotton Executive Vice President & Chief Operating Officer; Gregory Woodworth Senior Vice President & General Counsel; Achim Schwetlick Senior Vice President & Head of Business Innovation Group; Mark Benjamin Senior Vice President & Chief People Officer; Jason Doiron Chief Investment Officer; Dawn Minter Executive Assistant; Nimesh Mehta Chief Information Officer; Mehran Assadi Chairman, Chief Executive Officer & President; Chris Graff Vice President, Corporate Communications & Community Relations; Vesta Bovair Executive Vice President & Head of Customer Innovation Group; Eric Sandberg Senior Vice President & Chief Risk Officer.

All of the details of the year can be found in the electronic version of the report.

National Life Group is a trade name of National Life Insurance Company, founded in Montpelier, Vt., in 1848, Life Insurance Company of the Southwest, Addison, Texas, chartered in 1955, and their affiliates.  Each company of National Life Group is solely responsible for its own financial condition and contractual obligations.  Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.

Board of Directors from left to right Roger B. Porter IBM Professor of Business & Government, Harvard University, Cambridge, Massachusetts; Carol Carlson Retired Partner, Ernst & Young, LLP, Needham, Massachusetts; Harris H. Simmons Chairman, Chief Executive Officer & President, Zions Bancorporation & Chairman, Zions First National Bank, Salt Lake City, Utah; Thomas H. MacLeay Former Chief Executive Officer, National Life Group, Montpelier, Vermont; Mehran Assadi Chairman, Chief Executive Officer & President, National Life Group, Montpelier, Vermont; David R. Coates Retired Partner, KPMG, Colchester, Vermont; Bruce M. Lisman Retired, JP Morgan Chase, New York, New York; James H. Douglas Former Governor of Vermont, Middlebury, Vermont; Yvette D. Bright Retired, Independence Blue Cross, Philadelphia, Pennsylvania.

Sales figures and rankings are based on the consolidated results of all National Life Group companies as of 12/31/18.

1 LIMRA Sales Rankings, 4Q2018; Among all reporting life insurance companies from 2013-2018.

2 Life Insurance Weighted Net Annual Premium (WNAP). For NLIC only: $55M.

3 Life insurance and annuities benefits paid. For NLIC only: $714M

Source: National Life. Montpelier. May 14, 2019 Learn more at