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Financial Information

Financial Information for National Guardian Life Insurance Company.

  • Report from 2018
  • Report from the President
  • Summary of Financial Position
  • Liabilities, Capital & Surplus
  • Summary of Operations
Mark L. Solverud
Chief Executive Emeritus

Read Mark's full message in NGL's 2018 Annual Report.

2018 was a year of transition for National Guardian Life Insurance Company (NGL) and its subsidiaries in a number of ways. A new president and chief executive officer was selected by the board of directors at the end of 2018 in preparation for the retirement of Mark L. Solverud, who currently serves as CEO Emeritus until he retires at the end of April 2019. Knut A. Olson is now the president and chief executive officer of NGL and all of its subsidiaries. He will provide for you his background and perspective in the second part of this report.

The difficult decision was made in 2018 to eliminate the sale of final expense products through NGL’s subsidiary, Settlers Life Insurance Company. The company itself continues to exist but the final expense products are no longer being marketed. The administration of the in force policies is being transferred from Bristol, Virginia to NGL’s corporate headquarters in Madison, Wisconsin. We were unable to achieve both the sales level and profit target established for this operation. This change has a positive effect on NGL as more resources and capital may now be devoted to marketing other lines of business.

Overall NGL had very solid sales and financial results for 2018. Another sales record was achieved in 2018. Strong sales is key to preserving the long term financial strength of the company for the benefit of all policyholders. Total sales for 2018 were $838 million, which is an increase of approximately 7% over 2017. The 2018 sales results contributed to the growth of the consolidated statutory assets of NGL to a record $4.5 billion as of the end of 2018.

Strong net income and growth in surplus are also necessary to maintain NGL’s financial strength. On a consolidated statutory basis, NGL had a net gain in 2018 of $37 million which is a very solid result given the pressure that low investment rates continue to place on our operating performance. As a result, capital and statutory surplus rose 2.6% to $363 million as of year-end. This is a very secure level given the group’s size, asset quality and business mix. These financial indicators reflect a financially strong company, as does NGL’s A- (Excellent) rating from A.M. Best Company, the leading provider of ratings and financial data for the insurance industry.

The actions we take each year are done with our policyholders’ interests first and foremost in mind. As a mutual company we are not owned by stockholders but instead exist to serve our policyholders. We are extremely grateful for all of you who place your trust in NGL and its subsidiaries. We thank you sincerely for your business. We are also grateful for all of those who serve our policyholders, including our thousands of sales representatives, more than 400 employees, our board of directors and others associated with NGL in any way. Thank you all for helping to make our company successful. 

Read the full letter and more in NGL's 2018 Annual Report.

Knut A. Olson
President & Chief Executive Officer

NGL had a strong 2018 under Mark Solverud’s leadership.  The company has grown to new heights and is poised to continue to deliver value to you, our policyholders, for years to come. 
I am joining NGL after spending the last 28 years in both the field and home offices of other large insurers in both the U.S. and Canada. It has been my privilege to have always worked for insurers that, like NGL, are owned by and managed for the benefit of its policyholders.

As I embark on my time leading NGL, please be assured that maintaining a healthy, growing company that is able to meet and exceed your expectations and fulfill the promises we have made will always be my top priority.

Summary of Financial Position

Consolidated Statutory Basis (in thousands)

Assets

2018

2017

Bonds $3,847,007 $3,602,364
Mortgage Loans $106,346 $105,121
Cash and Short-Term Investments $151,006 $183,313
Other Invested Assets $245,668 $252,697
Other Assets $148,585 $145,661
Total Assets $4,498,612 $4,289,156

Liabilities, Capital and Surplus

Liabilites Cap Surplus for 2018

Summary of Operations

Consolidated Statutory Basis (in thousands)

Consolidated Statutory basis chart
 
 

2018

2017

Total Revenue $953,537 $923,912
Policy Benefits $663,350 $635,407
Commissions and Operating Expenses $236,587 $230,561
 
 

2018

2017

Net Gain Before Income Taxes       $53,600 $57,944
Income Taxes $18,014 $19,590
Net Gain from Operations $35,586 $38,354
Capital Gains (Losses) $1,407 $(323)
Net Income $36,993 $38,031

Basis of Presentation: These statements reflect management's presentation of the consolidated financial condition of NGL and its results of operations in accordance with statutory accounting principles.

NGL's Financial Strength

Read and download our Financial Report for the year of 2018.

Read about NGL's Financial Strength here.

GAAP Results

View and download our GAAP Net Income and GAAP ROE results for the year of 2018.

Review our GAAP Results here.

Annual Report

Read and download our Annual Report for the year of 2018.

Read NGL's Annual Report here.