Dear Fellow PRCUA Members,
As we look at the previous year, we assess our successes and reflect on our drawbacks. By no small feat, we have all made it through a second year trying to cope with the coronavirus pandemic. The changes we have made socially over the last two years have made us stronger and more aware of our surroundings. Despite the pandemic, the PRCUA looked into new initiatives such as offering a virtual store of PRCUA merchandise or virtual tournaments. Through each new idea we grew our capabilities, experience and offered new ways to bring our members closer together.
Fortunately, we have recently seen things opening up, allowing us to visit with family, friends and colleagues in person again. We have the chance to restart fraternal activities such as our national tournaments, dance recitals and other social gatherings. As some might say, it is like getting the band back together. As you see below, this coming August, we will bring members together for the PRCUA Quadrennial Convention as well. With the knowledge that such things should not be taken for granted, I continue to hope PRCUA morphs into an improved model of our old self.
Reviewing our financial statement published on page 3 of the March edition of Naród Polski, you will see that our asset base grew over nineteen percent this year to last year.
The PRCUA had an increase in net income of $1,051,062, which resulted in an increase in our surplus of $989,772, bringing our surplus funds to $11,046,490. One of the main factors for this substantial growth was a correction that had to be made to the Employee Pension Plan. Our independent auditors noted that even though our plan is self-funded, funds needed to be placed in a trust for the benefit of our vested employees. With this correction, the bonds transferred out of general fund and into the trust attributed to most of the gain in surplus.
Additionally contributing to the increase in our net income was a dramatic rise in annuity sales. PRCUA’s successful White Eagle Annuity plan accounted for 70% of total annuities. Our life insurance production was lower last year, but we have refocused our efforts to sell more traditional whole life products in the future. We have introduced a new product in 2022, Life Paid Up At 70. For details check the ad on page 5 or contact our Sales Department.
Most important to remember with regard to your investments in life insurance and annuities – they are safe with the PRCUA. Over 90 percent of our assets are invested in long term bonds that assure a steady income in the coming years. While we live in uncertain times, it is comforting to know that PRCUA, as most other fraternals, has conservatively and cautiously invested in the past and, as a result, has fared economic downturns quite well. With the additional income that has been received comes an increased concern to locate adequate vehicles of investment that offer a competitive return, but still satisfy the conservative requirements set by the Department of Insurance. One such vehicle for the PRCUA recently has been short term, first lien mortgages, commonly known as bridge loans. This “thinking out of the box” has allowed for a healthy reinvestment yield and spread between our financial obligations and income.
Looking optimistically at the future, PRCUA is in the homestretch for the implementation of the new life insurance administrative system (OIPA). This product will soon assist us in providing more efficient service to our members, including allowing PRCUA to be another step closer to providing online access to certificate information. We are about three quarters complete in the installation process and are now testing the software to assure that it is user friendly and error free. We have been assured by Equisoft that the entire process will be fully functional by December.
Newly implemented improvements within the organization include additional tools for the PRCUA Sales Force, such as the Business Panel platform. Soon to be released to the entire group once beta testing is complete, this program will provide sales representatives real-time information to track applications that have been submitted, see where members are with their payments and better serve our members by providing certificate information quickly upon request.
The focus on professional and educated personnel in our boardroom, executive offices and headquarters building continues. The organization continues to proactively provide formal on-line training for executive officers, directors and employees through various courses provided by LOMA (Life Office Management Association), LIC (Life Insurers Counsel) and American Fraternal Alliance (AFA). Cybersecurity continues to be a top concern. Monthly cybersecurity training through KnowBe4 assures our staff is equipped to face today’s threats.
The last four years of the current administration have flown by. I look forward to once again see you – our PRCUA family – at upcoming events in your areas and at our Convention this August. We continue to look to the future as our predecessors had in the past, overcoming various adversities in times of depression, pandemic and war. The PRCUA will continue to grow and spread the news that we are healthy and vibrant in the 21st century. Remember to tell your friends about our great fraternal and “Get Involved, Stay Involved, and Get Others Involved.”
Fraternally yours,
James J. Robaczewski
National President
