Financial Institution Group
Financial Institution Group achieved another record-setting year in 2011. Total sales of $659 million were up 10 percent and total product revenue reached $393 million, a 12 percent increase over the previous year. These strong top-line results helped produce a 41 percent increase in operating earnings to $28 million.
We strengthened our market position by entering into two acquisitions and by finalizing a significant marketing agreement with a leading direct response marketing and administration company.
Service and client retention results were exceptional, with 99.5 percent of financial institution premium remaining in force during the year.
Allied Solutions, our wholly-owned but independently operated distribution organization, increased its stand-alone product revenue 13 percent to a record $105 million. Allied expanded its market presence to 59 percent in the large credit union market, 24 percent in the large bank market, and 16 percent in the community bank market. Financial Institution Group also partnered with Securian’s retail products area to begin distributing our individual life insurance products in the financial institution market.
Supporting Securian’s strategy to expand sales to and through financial institutions, we added $15 million in sales by acquiring Balboa Life Insurance Company and Balboa Life Insurance Company of New York. In addition, our acquisition of American Modern Life Insurance Company and its subsidiary Southern Pioneer Life Insurance Company on January 1, 2012, expanded our credit protection future revenue by 25 percent, maintaining our position as the nation’s third leading writer of credit life and disability insurance.
These record-breaking results demonstrate that our commitment, presence and success in the financial institution market have never been greater.