OUR - SBLI USA Life Insurance Company

...Our
promise
remains
SBLI USA 2009 Annual Report
SBLI USA Mutual Life Insurance Company, Inc.
ME S SAGE F ROM THE CHAIRMAN OF THE BOARD
Times have changed, and so has SBLI USA, but we stay true
to our promise to help protect you, our policyholders. During
these unprecedented times when financial security has seemed
scarce, SBLI USA has doubled its efforts to help individuals and
communities gain access to financial security and the essential
tools of prosperity.
Through technological advancements like e-signature capability
and straight-through processing, SBLI USA’s technology team has
implemented procedures and award-winning security measures
that have made communications and transactions easier, and
provided increased security for you and your families. SBLI
USA was recognized, on multiple occasions, for its business and
community accomplishments, but none resonated quite as highly
as the 97.4 percent customer satisfaction rating received from you
in 2009.*
I am honored to have served on the SBLI USA Board of Directors
since 1991. I have seen this company go through many milestones
and triumphs, and it is with great pride that I pass the Chairman’s
torch over to Dr. Evelyn Murphy in 2010. I remain committed and
loyal to SBLI USA’s policyholders, and to its associates who truly
believe in their mission to serve the people who make America Work.
Sincerely,
JoSEPH L. Mancino
Chairman, SBLI USA Board of Directors
table of contents
1 Message from the Chairman of the Board
7 Our Performance
2 Message from the President
8 Policyholder Information & Locations
3 Our Company
9 Officer Team & Senior Team
5 Financial Highlights
10 Board of Directors
* Source: Development II SBLI USA Customer Satisfaction Survey, December 2009.
01 | SBLI USA Annual Report 2009
ME S SAGE F ROM THE PRE SIDE NT
At SBLI USA we know that it is the journey, as well as the
destination, that matter. We continue to focus on our key goals,
strategies and initiatives for success. Underlying and essential to
that is our constant focus on your security, both financially and
technologically.
Our financial strength is imperative and we are proud to report
that in 2009 we continued to focus on operational efficiencies
and cost reduction, including the completion of an initiative to
in-source our entire call center function. We paid $63 million in
policyholder claims and approved a dividend payout to eligible
policyholders in excess of $9 million.*
In 2009 we had over 280,000 visitors to our web site, largely in
response to an increased focus on consumer-oriented educational
materials, the launch of our women’s microsite, and the rollout of
new products, such as our Return of Premium Term. Our ongoing
efforts and success in reaching out to all working Americans
including women, African Americans, Asians and Hispanics,
continue to help us educate and protect the millions who do not
have adequate life insurance and financial protection.
Thank you for your loyalty to SBLI USA and all my personal best
to you and your family as we launch into the new decade.
Sincerely,
Vikki L. Pryor
SBLI USA President and Chief Executive Officer
* Dividends are determined annually, subject to change, and not guaranteed.
SBLI USA Annual Report 2009 | 02
O U R C O M PA N Y
MISSION STATEMENT
We help individuals, families and communities access information and products to achieve
financial goals. Our focus is service, affordability, preservation and growth of policyholder
value. Our business philosophy blends financial strength and innovation. We are rooted in
a deep belief in human potential.
Social Responsibility Statement
Leadership: SBLI USA strives to be a leader in the empowerment of people and
communities, and the preservation of a just and sustainable society.
Commitment: We are committed to offering America’s families greater access to the
essential tools of prosperity, with particular attention to underserved communities.
Ethics and Values: We are guided by ethics and our most deeply held values.
Workplace: We promote both opportunity and responsibility within the SBLI USA
community while maintaining high standards of fairness, diversity, and cooperative
achievement.
Citizenship: Our company is a conscientious and constructive citizen of the communities
we serve.
key facts
Assets: More than $1.5 billion, including $113 million in surplus capital.
Associates: 215
Policyholders: Over 300,000 nationwide and more than $15 billion of insurance in force.
SBLI USA, together with its subsidiaries, is licensed to do business in 49 states, the District
of Columbia, the U.S. Virgin Islands and Puerto Rico.
Core Products:
» Whole Life - lifetime coverage with level premiums and cash value that accumulates taxdeferred
» Term Life - quality term coverage with premiums that stay level for up to 30 years
» Children’s Single Premium Term - policies that can be converted to a whole life policy
when a child turns 21
» Simple Issue Term - coverage up to $150,000, generally with no medical exam required*
» Return of Premium Term - term coverage up to $1,000,000.** Eligible premiums are refunded at the end of the level period***
» Accidental Death and Dismemberment Insurance - coverage from $25,000 to $150,000
» SeniorLife - Whole Life for seniors of up to $25,000 in coverage†, with guaranteed acceptance
» Employee Group Life Insurance - flexible coverage from $10,000 to $500,000
Annuity: SBLI USA Select Choice – a single-premium, tax deferred annuity with a
SM
guaranteed interest rate.
* Based on the answers given to the application questions, proof of insurability may be required.
** Subject to underwriting requirements and reinsurance availability.
*** Rider premiums and substandard premiums are not returned. The refunded premiums in between anniversaries are the mid-terminal cash values. A
percent of premium is available at the latest duration starting at duration 5. There’s a minimum cash value of $2 per $1,000. Cash Values vary by level term period, issue age, sex and risk class.
Policies have exclusions, limitations, reductions of benefits and terms for keeping them in force. Not licensed in all states. Not all products available in all states.
†
The $25,000 benefit amount may not be available in all states. A maximum benefit of $20,000 would be available.
03 | SBLI USA Annual Report 2009
O U R C O M PA N Y
Our BRAND
The “S” encompasses the importance of security, the emphasis on service, and the
essence of simplicity in helping millions of Americans achieve their financial goals. The
brand emphasizes that this is the financial empowerment company inclusive of all people,
for the people who make America work!
OUR SERVICE
Customer Centers: Trained, licensed agents are available at Customer Centers both over
the phone and in person. To ensure efficiency and accuracy, all interactions are managed
by our advanced sales management technology. Interactive kiosks offer an alternative,
self-directed, low-pressure way for consumers to access Web-based information about our
products and services.
E-Commerce: Advancements in technology and e-commerce allow us to be more
efficient while maintaining the highest levels of security for our policyholders. The
introduction of our new e-signature capability in 2009 allowed consumers to complete
their application process entirely online. Customers also manage their policies, pay their
premiums, and learn about our products on our fully bilingual web site and have access to
our educational tools and resources such as planning guides, and budgeting and financial
planning tips. In 2009 we had over 280,000 visitors to our web site and generated 17,527
online quotes.
Employee Group: SBLI USA’s Employee Group Life Insurance offers big business
benefits for small businesses; an affordable way to attract and keep the employees who make
them successful. We reach companies through direct mail, community relationships, and
work site presentations. Our employee group channel accounted for 39 percent of our total
sales in 2009.
Bank Partners: Representing more than 26 percent of our total sales, SBLI USA bank
partners provide an important touch-point to our diverse customer base. These relationships
help us to reach a greater breadth of consumers within our national footprint.
OUR COMMUNITIES
SBLI USA is purposefully and consistently redefining the way we reach out to the people
who live and work in our communities. Our methods go beyond our ability to help provide
financial protection. Our commitment is to empower and serve working Americans,
especially those who traditionally have not had access to the tools of financial prosperity. As
part of this promise, we engage in philanthropic work through our personal commitment
days in which, annually, each Associate is given two company-paid days to volunteer in their
community. Collaboration teams that cut across every level and function of the company
have also been formed to focus on giving back. Getting involved on an interactive level with
our communities helps us continuously redevelop our approach to better fulfill their needs.
SBLI USA Annual Report 2009 | 04
financia l high l ights
BA L A N C E S H E E T &
S U M M A RY of O PE R ATI O N S
SBLI USA MUTUAL LIFE INSURANCE COMPANY, INC.
As of December 31 ($ in 000’s)
Balance Sheet
Assets
Invested Assets
Other Assets
Total Assets
Liabilities and Capital & Surplus
Aggregate Reserves
Other Liabilities
Capital & Surplus
Total Liabilities and Capital & Surplus
Summary Of Operations
Total Revenues
Total Operating Expenses
Operating Income Gain (Loss)
Taxes & Net Realized Gains (Losses)
on Security Transactions
Net Income
05 | SBLI USA Annual Report 2009
2009
2008
1,474,594
28,160
1,502,754
1,457,303
28,758
1,486,061
1,331,942
57,747
113,065
1,502,754
1,297,122
66,123
122,816
1,486,061
217,080
196,836
20,244
172,879
161,645
11,234
(13,255)
6,989
(18,401)
(7,167)
financia l high l ights
CO N S O L I DATE D BA L A N C E S H E E T &
S U M M A RY of O PE R ATI O N S
SBLI USA MUTUAL LIFE INSURANCE COMPANY, INC.
2009
As of December 31 ($ in 000’s)
Balance Sheet
Assets
Invested Assets
1,478,152 Other Assets
28,776 Total Assets
1,506,928 Liabilities and Capital & Surplus
Aggregate Reserves 1,335,566 Other Liabilities
58,297 Capital & Surplus
113,065 Total Liabilities and Capital & Surplus
1,506,928 Summary Of Operations
Total Revenues
Total Operating Expenses
Operating Income Gain (Loss)
Taxes & Net Realized Gains (Losses)
on Security Transactions
Net Income
2008
1,460,347
29,204
1,489,551
1,300,013
66,722
122,816
1,489,551
219,132 200,712 18,420 175,019
166,441
8,578
(13,255)
5,165
(18,401)
(9,823)
Financial statements are prepared on a consolidated life insurance company basis.
SBLI USA Annual Report 2009 | 06
OUR PE RFORMANCE
2009 Financial Highlights
($ in Millions)
» Premiums & Other Considerations
» Net Investment Income
» Benefits Paid to Policyholders*
» Dividends Paid to Policyholders
$143.0
$76.1
$138.9
$ 9.0
($ in Billions)
» Aggregate Reserves for 2009
$1.33
2009 Sales Highlights
» Total New Policies for 2009
» Customer Center Earned Premium Increase
12,351
7%
2009 Customer Service Highlights
» Customer Satisfaction Rating**
» Number of Customer Calls Taken
» First Call Resolution Rate
» Average Claims Payment Processing Time
» Number of Claims Processed
97.4%
131,205
99.2%
5.4 days
5,308
2009 Technology/E-Commerce Highlights
» 66 percent of web site visits were from new visitors
» Increased our e-mail marketing outreach to 15 times as many people as 2008
*Includes claims, surrenders and increase in reserves.
**Source: Development II SBLI USA Customer Satisfaction Survey, December 2009.
07 | SBLI USA Annual Report 2009
POLICYHOLDE R INFORMATION
SBLI USA Policyholders seeking general information or who have specific inquiries
regarding policyholder communications may contact the SBLI USA Customer Service
Center at 1-877-SBLI-USA (877-725-4872), or write to us at P.O. Box 1050, Newark, NJ
07101-9697. For additional policy and marketing information, please visit our Web site at
www.sbliusa.com.
LOCATION S
Headquarters
Customer Centers
New York
New York
Buffalo
460 West 34th Street
New York, NY 10001
212-356-0300
460 West 34th Street
New York, NY 10001
877-SBLI-USA
(877-725-4872)
Walden Galleria Mall
One Walden Galleria
Buffalo, NY 14225
877-SBLI-USA
(877-725-4872)
New Jersey
Puerto Rico
Chicago
550 Broad Street
Newark, NJ 07102
973-776-3367
Plaza Del Sol Mall
725 West Main Avenue
Bayamón, PR 00961
866-CUIDATE
(866-284-3283)
55 East Jackson Blvd.
Chicago, IL 60604
866-SUSA-123
(866-787-2123)
Operations
sales
California
400 North Brand Blvd.
9th Floor, Suite 920
Glendale, CA 91203
818-254-1070
SBLI USA Annual Report 2009 | 08
OFFICER TEAM & SENIOR TEAM
OFFICER TEAM
Vikki L. Pryor
President & CEO
Debra E. Klugman
Senior Vice President,
General Counsel &
Secretary
Michael Akker
Executive Vice President
& COO
James Machovsky
Senior Vice President
Robert Damante
Marketing & Sales
Executive Vice President
& CFO
Ralph Meola
Senior Vice President
Eric J. Bulis
& Chief Actuary
Senior Vice President
& CIO
Paul Capizzi
Vice President
Mariam Eisenberg
Technology
Senior Vice President
Operations &
Anthony Carbone
Underwriting
Vice President
Marketing
Judy Elliott-Pugh
Senior Vice President
Human Resources
Miriam Klepner
Vice President &
Associate General
Counsel
Russell Johnson
Vice President &
Chief Auditor
Marina Kotlyar
Vice President
Strategic Planning &
Investments
Kevin M. Lamasney
Vice President &
Associate General
Counsel
Marquis Miller
Vice President
Sales
Brian Rooney
Vice President
Finance
Susan Rutman
Vice President
Customer Services
Michal
Ryduchowski
Vice President
Actuary
Jeanne Scotto
Vice President
Customer Centers
Nanci Tolk
Vice President
Advertising
John F. Vernaleken
Vice President
Technology
SENIOR TEAM
Vikki L. Pryor
Michael Akker
Robert Damante
Judy Elliott-Pugh
Debra E. Klugman
James Machovsky Ralph Meola
President & CEO
Senior Vice President
Human Resources
Executive Vice President
& COO
Senior Vice President,
General Counsel
& Secretary
09 | SBLI USA Annual Report 2009
Executive Vice President
& CFO
Senior Vice President
Marketing & Sales
Eric J. Bulis
Senior Vice President
& CIO
Senior Vice President
& Chief Actuary
Mariam Eisenberg
Senior Vice President
Operations & Underwriting
Russell Johnson
Vice President &
Chief Auditor
B oard of D irectors
Chairman
Joseph L. Mancino
Chairman & CEO – Retired
The Roslyn Savings Bank
Vice Chair
Evelyn F. Murphy
President
The Wage Project, Inc.
Deborah Aguiar-Vélez
President & CEO
Sistemas Corporation
Michael Akker
EVP & COO
SBLI USA Mutual Life
Insurance Company, Inc.
Theresa Balog
Vice President and
Corporate Controller
VWR International.
Samuel M. Bemiss
Managing Director
Ewing Bemiss & Company
Carol L. Coffman
Principal
FFN Advisors
David Jefferson
President & CEO
JNET Communications, LLC
David Lizárraga
President and CEO
TELACU/Millennium
Vikki L. Pryor
President & CEO
SBLI USA Mutual Life
Insurance Company, Inc.
G. Thomas Rogers
Visiting Professor
School of the Art Institute
of Chicago
Ellen E. Thrower
Executive Director
School of Risk Management
St. John’s University
Roslyn M. Watson
President and Founder
Watson Ventures, Inc.
SBLI USA Annual Report 2009
|
10
Times
have
changed...
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© 2010 SBLI USA Mutual Life Insurance Company, Inc., New York, NY