downtown Lincoln, late 1800s
photo courtesy of UNL Archives & Special Collections

A legacy of looking ahead

1890

Dr. A.O. Faulkner founds Modern Woodmen Accident Association. Two other predecessor companies are founded shortly after.

1918

Despite an unprecedented drain on reserves which the flu pandemic creates, all claims are promptly paid without levying extra assessments on the insured.

1945

Throughout World War II, the company pays death benefits for servicemen killed in action, even though war deaths are legally excluded from coverage.

1950

The first big group life insurance contract is issued to the state’s largest electricity utility, setting the stage for Assurity at Work.

2012

Newly-completed Assurity Center becomes LEED Gold certified.

2015

Assurity becomes a certified B Corporation, the first major life and specialty health insurer in the United States to do so.

The year of superheroes

As part of our 125th anniversary in 2015, we recognized some of our superheroes who exemplify our key values: ETHICAL BEHAVIOR, EXTRAORDINARY ASSOCIATES, INNOVATION, RELATIONSHIPS AND FINANCIAL STRENGTH.

Every day I am proud of Assurity and what we do for clients, our associates and our communities. We remain, like our founders 125 years ago, purpose driven and principles led. No matter what the future holds, we will face it with confidence and ultimately prosper. This is our history and our legacy.

One of our founders’ guiding principles was the importance of maintaining unquestioned financial strength. This year, our surplus reached $348 million and our absolute level of capital and all our capital ratios were at record levels and much higher than industry average. Our investment portfolio is also pristine. Our high risk assets, at 2.2 percent of total investment assets, are indicative of a very conservative investment portfolio.

We have always striven to grow and change with the times, and in 2015, we undertook a number of new ventures. First, we acquired a majority interest in Resourcing Edge, Inc. (REI), a professional employer organization in Rockwall, Texas. We are excited about this new growth potential and the synergies with our basic business, and we welcome CEO Ted Crawford and his management team to the Assurity family.

We also formally established Assurity Real Estate Development Corp. (ADEV). Assurity has had a long successful history in real estate investment and development, and ADEV will bring greater focus to this work.

Innovative disruption is impacting many industries, including life and health insurance. To stay abreast of new developments in the Fintech space, we have formed Assurity Ventures, Inc. (AVI). AVI’s purpose is to partner or invest in promising Fintech startups. We also elected Ryan Downs, CEO of Proxibid, and David Graff, CEO of Hudl, to our board at our May annual meeting. Both are successful technology entrepreneurs, and I believe they will provide valuable insight in the years ahead.

I’m also pleased to report that after a year-long effort, Assurity became a certified B Corporation. B Corp status is awarded by the U.S.-based non-profit B Lab, which assesses a company’s impact on its employees, suppliers, community and the environment against a set of standards for social and environmental performance, accountability and transparency. We are delighted to be the first major life and specialty health insurer to join a global movement to redefine success in business, alongside companies like Patagonia, Ben & Jerry’s and Warby Parker glasses.

Becoming a certified B Corp is consistent with Assurity’s status as a mutual company. Yes, profits are important. But we also recognize our greater corporate social responsibility to our employees, the community and the environment.

One important key to our 125 years of success is to have engaged associates in the home office. A Gallup Association engagement survey conducted last October showed we rank in the 91st percentile of all companies Gallup surveys worldwide. We were also again voted one of Lincoln’s best places to work in the large employer category. In the long run, any company wins by being able to attract and retain the best and the brightest talent.

Finally, all of us at Assurity extend our sincere appreciation to two members of our board of directors who retired this year: Dr. Jim McClurg and Frank Hilsabeck, both of whom gave wise counsel and insights benefitting Assurity for many years. We sincerely thank them for their dedicated service.

Thomas E. Henning

Chairman, President and Chief Executive Officer

In 2015, Assurity became the first major life and specialty health insurer to join a global movement to redefine success in business, alongside companies like Patagonia, Ben & Jerry’s and Warby Parker glasses. Yes, profits are important. But we also recognize our greater corporate social responsibility to our employees, the community and the environment.

Total surplus, which includes the Asset Valuation Reserve (AVR), is one of the key indicators of a company's long-term financial strength and stability. Assurity’s 2015 total surplus of $347.7 million was nearly $17 million dollars more than 2014.

For more detailed financial information, visit: www.assurity.com

*before taxes and dividends to policyholders

“This year, our surplus reached $348 million and our absolute level of capital and all our capital ratios were at record levels and much higher than industry average.”

Eric L. Otterstein

Vice President, Chief Information Officer

Marvin P. Ehly, FSA, MAAA

Vice President, Chief Financial Officer and Treasurer

Susan L. Keisler-Munro, FSA, MAAA

Senior Vice President, Chief of Operations

Todd W. Reimers, CLU, LLIF

Senior Vice President, Chief Marketing and Sales Officer

David T. Wallman, FSA, MAAA, CLU, FLMI

Senior Vice President, Product Management and Chief Actuary

David D. Lockwood

Vice President, Chief Investment Officer

Thomas E. Henning, CLU, ChFC, CFA

Chairman, President, CEO

“Our financial strength is our policyholders' financial security.”

Caren L. Hamilton

Auto Dealership Executive, Bellevue and Kearney, Nebraska

Steven D. Erwin

President, Nebraska/Western Iowa, U.S. Bank National Association, Lincoln, Nebraska

William R. Cintani

President, CEO, Mapes Industries, Lincoln, Nebraska

Paul M. Schudel

Partner, Woods & Aitken LLP, Lincoln, Nebraska

Kathleen A. Farrell, PH.D.

Chair, Department of Finance and State Farm Professor of Finance, College of Business Administration, University of Nebraska, Lincoln, Nebraska

Marc E. LeBaron

Chairman, CEO, Lincoln Industries, Lincoln, Nebraska

Lyn Wallin Ziegenbein

Director Emerita, Peter Kiewit Foundation, Omaha, Nebraska

Ryan D. Downs

President, CEO, Proxibid, Omaha, Nebraska

Angela L. Muhleisen

President, CEO, Union Bank & Trust Company, Lincoln, Nebraska

David S. Graff

CEO, Hudl, Lincoln, Nebraska

Thomas E. Henning, CLU, ChFC, CFA

Chairman, President, CEO

125 Years and Counting

It has been our good fortune to have many heroes over the years, who greatly contributed to reaching our 125-year milestone.

volunteered by employees collecting litter on the Antelope Valley Trail

estimated water captured in our underground cisterns

taken by employees during the Wearable Wellness challenge

delivered by our Meals on Wheels volunteers

pledged for United Way and Community Health

No matter what the future holds, we will face it with confidence and ultimately prosper.

This is our history and our legacy.

Assurity Center