1. business and industrial
2. company
3. bankruptcy

the
Royal Neighbor
Issue 2 • 2009
Women in Leadership series:
Rosamaria Caballero Stafford
shows others how to ‘go green’
Turn your trash
into cash
2008 Financial
Summary
Royal Neighbors
posts strong results
Make your own
cleaning products
Save money
and the planet
A Message from the President/CEO
If you ask 10 people what “being green” means, you’ll get 10
different responses. If, however, you ask why “being green” matters,
the answers will most likely be similar – to protect our environment,
preserve our resources, and make our world a safer, healthier place
to live for ourselves and future generations.
In this issue, we’re hoping to encourage you to help make your
own impact by saving energy, recycling, and using products that are
healthy for you and your family. It’s all about taking small steps that
will make a big difference.
Our cover story is about an entrepreneur who, along with her husband, found a way to
help others live and work in environmentally safe surroundings. Their new business, called
Green Irene LLC, is already successful enough to have caught the interest of the Wall Street
Journal and Oprah magazine. In addition, we’ll let you know what our chapters are doing to
green up their local communities.
This also is the issue in which we share our financial results. Because we hear so much
negative news about the financial industry today, it’s my pleasure to give you good news –
2008 was a very successful year for Royal Neighbors. Our financial achievements allow
us to effectively continue the work the organization has been doing for 114 years, offering
Insurance with a DifferenceSM.
Our financial strength also is the backbone of our ability to pay our members’ claims and
continue our fraternal mission.
Our assets are $671.6 million, with a surplus of $213.5 million, and a surplus ratio of
31.8% which is significantly above the industry benchmark of 8.6%. This ratio
demonstrates the percentage of total assets we hold to provide for unexpected losses. Our
net income for 2008 was $10.4 million. Premium collected on members’ certificates was
$130.8 million.
Because we remain among the most financially secure insurance carriers in the
industry, you can be assured that you and your family are well protected for the future.
Cynthia A. Tidwell
A fraternal benefit since 1900, The Royal Neighbor
magazine exemplifies the values of our Society
by providing members useful, stimulating
information and a forum for connecting throughout
the country.
Board of Directors
Sister Francis Clare Radke
Chairman
Cynthia Tidwell
President/CEO
Dr. Joyce Elam
Patricia Gibford
Nancy Hanna
Patsy Kneller
Wan Ling Martello
V. Sue Molina
Linda Neuman
Dr. Benet Spence
Theresa Bonin
Operations Executive
Judith Tshibangu
Marketing Executive and Editor
Rita Toalson, FLMI, ACS
Managing Editor
contents
Issue 2, 2009
Your Money
4
Turn your trash into cash
You and Your Family
6
Make your own cleaning products
Front and Center
8
Rosamaria Caballero Stafford shows others how to “go green”
Your Health
10
Fit and fabulous forever – ideal weight and fitness
2008 Annual Report
14-17
Royal Neighbors posts strong financial results
Important information inside!
Because the Society’s Annual Report is included in this issue,
every Royal Neighbors household will receive a copy.
Members
Send change of address with chapter number
and ZIP Code to: Member Services, 230
Sixteenth Street, Rock Island, IL 61201-8645.
Send all publication materials and magazine
ideas to: The Royal Neighbor Magazine, 230 Sixteenth
Street, Rock Island, IL 61201-8645.
The Royal Neighbor (ISSN 0035-905X), Issue 2, June 2009, is an
official publication of Royal Neighbors of America. Published
quarterly. Office of publication at 230 Sixteenth Street, Rock Island,
IL 61201-8645. Periodicals postage paid at Rock Island, IL, and at
additional mailing offices. POSTMASTER: Send address changes to
The Royal Neighbor, 230 Sixteenth Street, Rock Island, IL 612018645.
It is not necessarily intended that articles express views held by Royal Neighbors of America or its financial representatives, nor is it intended as legal or tax
advice.
Home Office
230 Sixteenth Street, Rock Island, IL 61201-8645
Contact Us:
Monday – Friday: 8 a.m. – 5 p.m. Central Time
Toll-free: (800) 627-4762
Local Quad-Cities: (309) 788-4561
www.royalneighbors.org
your Money
Turn your
trash into cash
Whether you need money for bills or you’re just tired of
walking around the clutter in your home, you can turn your
trash into cash with a little time and effort – and make your
living space cleaner and more inviting and the environment
better. We’ve all heard the saying, “one person’s junk is another
person’s treasure.” No matter what you think of that ugly vase
you received as a gift, there’s probably someone somewhere
who will pay money for it. So don’t just dump unwanted items
at your curbside. Do something constructive with them!
Go online
If you’re looking for some extra spending
money (and who isn’t?), and if you and
your family have more “stuff ” than you’ll
ever use (and who doesn’t?), there are
ways to remedy your situation...and help
the environment by keeping more trash
out of landfills.
There are many online auction sites where you can buy and sell
used/new items such as amazon.com and ebay.com. Do your
homework. Type your item’s description into the search box of
an online auction site and see if similar items have bids. If so,
you’ll know it actually has some value and you’ll have a good
idea of how much it’s worth. Simply place the item on auction
for a minimum bid and let others begin to bid on it.
If you need help, your tech-savy children or grandchildren
might be willing participants in your foray for cash, especially if
you share the profits. And, it’s a great way to spend some
quality time together.
TIP:
“Nothing in nature is
exhausted in its
first use.”
– Ralph Waldo Emerson,
Works
Before discarding gift boxes and used packaging
materials, think about how you might use them to ship
items you sell online. Saving the materials will not only keep
them from the trash bin, but will save you money in the future.
Sell secondhand
Consignment shops welcome many items that have outlived
their usefulness at your house. They do the selling and split the
profits with you. You’ll save time and the cost of shipping
and/or newspaper ads.
Resale shops are good places to sell used computers, musical
instruments, books, and CDs. Some stores will even let you
trade electronic items for upgrades.
4
to discard. For example,
scrap metal can earn you
cash. Search online or
contact your local public
works department to learn
where to recycle tires,
appliances, clear glass
containers, etc. Also, there
are places that will pay for
the gold jewelry you no
longer wear.
Hold a garage sale
Garage sales can net big
profits. If you don’t have
enough to sell on your own,
make it a neighborhood
effort. You can split the cost
of newspaper ads and signs
too.
• Don’t skimp on your ads
and signs. Remember
quality and quantity!
• Price to sell. Determine
what you would pay at a
sale and start with that.
You can always go lower.
• Think like a merchant and
show your wares as a store
would. Make sure clothes
are clean, items are well
organized, clothes are hung
according to sizes, and
extension cords are handy
so customers can see that
electronic items work.
Make sure every item has a
price tag that’s easily
visible. Stock up on used
grocery bags (another way
to recycle them) and use
for purchases.
stamps and checks
by making your
Royal Neighbors
payments at
www.royalneighbors.org,
or by using our
Consider selling,
donating, or recycling:
Donate to charity
If you want to do good with
what you have around your
house, consider donating
items to local or national
charitable organizations. Not
only will you be extending
the life of the items, but your
donation will generally entitle
you to receive a tax deduction
if you itemize your tax return.
Recycle
Most cities have some sort of
recycling program and some
may pay for what you want
• Clothes, shoes, coats
• Containers (plastic, cans,
detergent bottles, etc.)
• Electronics
• Musical instruments
• Bicycles
• Video games
• Movies, books, CDs
• Furniture
• Print cartridges (some
stores give rebates for
recycling used cartridges)
• Scrap metal
Preauthorized
Collection (PAC)
plan. Call
(800) 627-4762 for
more information.
Trash-to-cash tips for valuables
• Stay safe. Use a fanny pack
or apron to collect money
and make change (be sure
you have $50 worth of
change and small bills).
Keep shoppers outside your
home.
• Go to your local library and check out books on collectibles
and price guides on the item. Search the Internet under sites
dedicated to your particular item to find an approximation
of the value.
Don’t use color-coded
tags. They’re confusing
and can be easily switched.
• Visit pawn shops. They offer to buy articles for a fraction of
what they’re worth, so if you’re offered a decent amount,
you know you have something of value.
TIP:
Save the cost of
• If you have something that may have an unusual value, do
some research before you sell it.
• Hire an appraiser if you have what may be an antique. It
could be worth the investment.
your Money
5
you &your Family
Green your cleaning products
Most modern synthetic cleaners are based on age-old
formulas that use natural, non-toxic ingredients.
Why not use the originals?
Budget wise
Ounce for ounce,
homemade cleaners
cost one-tenth the price
of their commercial
counterparts. Why not save
90% of the more than $800*
families spend on household
cleaning supplies
each year?
*Bureau of Labor
Statistics, 2007
With growing concerns about
the environment – some
80,000 chemicals are in
common use – and for families
tightening their belts, “green
clean” alternatives promise help
for all.
Homemade cleaning agent recipes save money, result
in a healthier household, and have a light impact on
the environment. Ingredients like those shown below,
can be found at your local supermarket, natural food
store, or drugstore and make cleaners that are safe,
effective, and inexpensive.
Baking soda
Cleans, deodorizes, removes stains,
(sodium bicarbonate) and softens fabrics
Washing soda
(sodium carbonate)
Liquid soap/detergent If you have hard water, buy
biodegradable detergent without
perfumes; if you have soft water you
can use liquid soap
White distilled
Cuts grease, removes clothing stains;
vinegar or lemon juice excellent water softener and
alternative to bleach
Tea tree oil
Eco friendly
Natural cleaners avoid
the unhealthy environmental
and household dangers of toxic
chemicals, volatile organic
compounds (VOC), and other
health risks.
6
A stronger cousin of baking soda that
increases the cleaning power of soap
Expensive, but worth it as a natural
fungicide
Olive oil
Natural emollient
Herbs or essential oils Disinfects; provides pleasant
fragrances
Spray bottles,
Be sure to label ingredients and
re-sealable glass jars batches; keep out of the reach of
children
Here are a few recipes for making your own green cleaners.
Information contributed by Degree of Honor.
you&your Family
7
Front&Center
Q: What is Green Irene?
Rosamaria Caballero Stafford shows
others how to ‘go green’
Raised by entrepreneurial
parents who believe in
America and a strong work
ethic, Rosamaria Caballero
Stafford, New York, NY, left
a high-powered law firm and
started Green Irene LLC, an
eco-consulting business.
8
Q: Where did your
entrepreneurial spirit
come from?
A: Although both my parents
were attorneys in Cuba, they
couldn’t practice law when
they came to the United
States. So they started their
own media business and
never looked back. I was
surrounded by their business
friends, who were also their
personal friends, and I
learned so much. I helped
them develop a TV network,
which we eventually sold to
Spanish MTV.
A: It’s a business my husband,
P. J., and I designed to get
people on the path to being
green. Our eco-consultants
visit homes and businesses to
show them how to implement
green ideas. We eliminate the
guesswork in making changes
without making major
sacrifices. We give them a
green home makeover report
with recommendations for
implementing solutions. It’s a
25-page action plan for them
to use at their own pace.
Q: How did Green Irene
get its start?
A: As P. J. and I were keeping
up with news and magazines,
we noticed that everyone was
talking about going green. It
was everywhere. We wanted
to adopt some green practices
in our own home so we
started doing research. We
learned quickly there was so
much information out there
that it took time to find it all.
Most people want to do the
right thing when it comes to
living more sustainably, but
most don’t want to make a
hobby out of it. I realized
that I would gladly have paid
someone to help me sort it
all out and tell me what to
do. We saw the need and
found a way to help others.
by 25%. People are realizing
they can actually save money
by making small changes. In
light of today’s economy,
going green is even more
attractive.
Q: What should
people know about
going green?
One compact
fluorescent light bulb
in every home is the
equivalent of
removing 800,000
cars from the road in
terms of green house
gasses and emissions.
A: Going green is a process,
a journey. It’s a grassroots,
community effort. The world
will go farther in terms of
going green if we can get
many people to make a few
changes rather a few people
making many changes.
We don’t have to change our
lives completely to live green.
Switching to a low-flow
shower head to save water
doesn’t mean we have to take
showers under a trickle of
water. Using a programmable
thermostat and turning off
lights we aren’t using doesn’t
mean we have to go without
heat and read by candlelight.
Q: What are some of
the basic tips for
people just starting out
on their green journey?
A: Use compact fluorescent
light bulbs (CFL). You may
initially pay $300 to change
your regular bulbs, but over
the life of the new bulbs, you
could save $6,000 on utility
bills. Unplug appliances
when not in use. A flat
screen TV uses up to 40% of
its power when it’s off. Dryer
balls reduce your dryer time
Q: As an outstanding
leader, how have you
shared your interest
in helping the environment with your
children?
A: We use public
transportation and walk
most places. We’ve taught
them to recycle and they
both have been instrumental
in planning green programs
in their schools. They’re
really getting into it and
understand the importance.
Q: What are the
qualities of a good
leader?
A: You have to lead by
example and prove to people
why they should follow you.
Leaders are passionate,
compassionate, and respect
others, their relationships,
and friendships.
Q: Who do you look
to as a good leader?
A: My father because he
taught me how important
education is. He and my
mother came here from
Cuba with nothing but
education and resilience. He
taught me that no one can
take away what you have in
your head. You can have
many material things, but
those aren’t necessarily
forever. He was a pioneer in
the Spanish radio and TV
business because he was great
at bringing people together.
He never burned any bridges
and has earned great respect
from others.
For more green
ideas from
Rosamaria and
Green Irene, visit
www.royalneighbors.org/
gogreen
My husband is a good leader
because he has such vision
and can share it. We’re
building a great life and
business together. It’s a true
partnership. We gained a
new outlook on life when we
had our daughters. Children
make you understand what’s
important and what’s not.
Q: Who would you
invite to a dinner
party?
A: Thomas Jefferson because
he was such a fascinating,
multi-faceted, and multitalented man. And, Fidel
Castro because he had such
an impact on my family. I’d
like to understand what went
through his head when he
turned Cuba to communism.
Front&Center
9
your Health
Fit and fabulous forever –
ideal weight and fitness
By Cynthia Tidwell, President/CEO
The average clothes size for women in the U.S. is a size 12,
pushing a 14. In 2000, the average women’s waist size was 37
inches! That is up from 30 inches just a few years before.
Every extra pound takes about one month off your life span. An
extra 25 pounds can take away years!
Getting to your ideal weight and a feeling of
well being is tied to three basic keys to success:
1. Reduce serving size
2. Find substitutes for “emotion” eating
3. Move it to lose it
Gaining weight is nothing more than fuel in and energy out. If
you take in more fuel (food) than you expend, you gain weight.
If you take in less, you lose and if the two are equal, you hold
steady. While this amount is different for everyone, there is
some basic information that you must understand to lose weight
and achieve improved health.
Calories are your fuel-in. A 125 pound person needs about
1800-2000 calories to hold steady. So in order to lose pounds,
you must take in less than what you need.
Each of us has unique lifestyle needs and overall health
goals. A successful program will achieve desired results
if you have a healthy lifestyle and don’t chase after fads.
The first thing you need to understand is there are no
magic bullets.
One pound is 3600 calories. In order to lose one pound, you
must reduce your intake or increase your activity to burn 3600
calories of fuel. The fastest and best way to lose is to do both,
eat less and increase activity. If you reduce your calories by 500
per day, you will lose one pound per week (500 x 7 = 3500).
Education is Power
In order to be successful, you need to be armed with
information.
Two thirds of U.S. adults are considered overweight and
one third is actually considered obese. Obesity is
defined by being 20% or more above ideal body weight.
Being 10 to 19% above ideal body weight is defined as
overweight. 10% are severely obese. The cost to our
health and our health care system is staggering.
One mile of activity equals about 100 calories. So in order to
lose one pound, you must run or walk 36 miles! No wonder it
comes off so slowly!
10
If you increase your activity each day and reduce the calories or
fuel, you lose weight faster than with diet or exercise alone. The
speed in which you lose weight should be steady, as fad diets are
too restrictive and cannot be maintained. Your goal is steady
weight loss. Get the concept of diet out of your mind…lifestyle
change is just that – over your life!
Calories
Calorie counts per gram of food:
• Fat: 9 calories
• Carbohydrates: 4 calories
• Protein: 4 calories
Fat
Since fat contains 9 calories per gram of food, a
diet too high in fat puts on pounds. However,
fat calories are very filling and satisfying, so
some fat helps hold off hunger pangs.
There are two types of fats, saturated and
unsaturated. Saturated fats have been linked to
heart health issues. These are found in animal
foods and hydrogenated vegetable oils, such as
shortening. Unsaturated fats are good fats and
include essential fatty acids linoleic and
linolenic. These mainly come from plant foods,
such as olive, safflower, and flaxseed oils and
avocados.
Carbohydrates
Carbs have 4 calories per gram of food. There
are “good and bad” carbs. This is determined by
how fast they convert to sugar. All food
converts to glucose sugar in order to give us
energy. Carbs do this the quickest. Carbs are
given a glycolic index. Where they fall on the
index determines how fast they convert to sugar.
Too much too fast is bad and has contributed
to the high rate of obesity and diabetes that we
see today.
Protein
Protein has 4 calories per gram of food. They
are made up of amino acids and are considered
the building blocks of enzymes, muscle, and
some hormones. Protein can come from animal
sources as well as plant. Animal protein is
considered complete protein as it contains all
essential amino acids. Plant protein is
incomplete. Vegetarians miss some needed
amino acids and must get them from
supplements.
Fad diets are all the rage because people want
the magic bullet. However, as we all realize, it is
much easier to gain weight than to lose weight.
The wrong kind of food is everywhere. Fast
food, chips, dips, donuts, cookies, pie, cake...
and on and on.
Serving size matters
Of course this is not to say you need to forego
these foods forever. Serving size is the most
important change you can make.
If you ordered a McDonald’s hamburger and
fries in Europe, the serving size that you would
get is similar to a Happy Meal in the U.S.! In
the 50s the average hamburger from a fast food
place was 1 ounce. By the late 90s it was 6.
Soda was 8; now it is 32…everything is super
sized! But fast food is not the only culprit. A
muffin has grown from 1-1/2 ounces to 6.
Break weight loss
into obtainable
goals. Instead of
thinking, “I need
to lose 50 lbs,”
think “I need to
lose 5 lbs.” When
you lose 5 lbs.,
start again.
‘Emotion’ eating
In past generations, dessert was a real treat.
Today, many people have it every day! If you try
to avoid it, you may wind up feeling so
deprived that you binge or “emotion” eat. So
when you decide to eat dessert, have some, but
limit yourself to three bites…enough to taste
and get some satisfaction. Three bites of most
desserts have 100 to 120 calories. That’s a mile
of exercise!
When the desire to “emotion” eat strikes, it is
important to be ready. Triggers include – stress,
low self-esteem, relationship issues, etc. At those
times, many people find temporary comfort in
food. That’s why substitutes are necessary.
Listen to music, walk, dance in your living
turn to page 12
It is necessary to understand the concept of
serving sizes! The Atkins Nutritional Approach
provides easy analogies for serving sizes.
For example:
Ideal single serving
1 cup cereal, pasta
Medium fruit
1 cup of salad
1 serving of vegetables
2 tbsps. peanut butter
3 ozs. beef, chicken, or pork
1 oz. chips
1 oz. cheese
1 cup of ice cream
Looks like
A baseball
A tennis ball
A fist
1 scoop of ice cream
2 tea bags
Small package of tissue
Medium-size handful
1-inch cube
A baseball
your Health
11
room, call a friend. Just get your mind and body going
in a different direction.
Eating ‘green’ is good for your health
- and can save you money
The most successful programs include a food log. It is
not as hard as it sounds, and it clearly lets you see what
your intake is.
Love what’s local
Farmers markets are a great place to buy good locallygrown food that’s good for you. You can talk to the
farmer who grew what you’re buying and ask questions
about her/his growing practices. You’ll enjoy the fact
that you’re buying locally, and you’ll love the taste of
what you’re eating.
Nutrition for life
Food is the lifeline of health. You can’t stop eating. It is
critical that what you eat to fuel your body has the
nutrients to get you through the toughest days. So
remember to eat these foods regularly for good health:
• Beef, chicken, fish
• Fruits and vegetables – remembering their serving
sizes, you should have a minimum of five servings
per day, and work up to nine per day
• Whole grain bread and cereals, including oatmeal
• Dairy – try to get organic brands as they do not
contain added hormones; this includes cheese
(serving size is a one-inch cube)
The last item is exercise; you have to move it to lose it.
While there are no magic bullets, exercise is the closest
thing. The best programs combine aerobics, strength
training, and flexibility.
Conclusion
Lifestyle dictates weight and health. There are three
basic principles to get healthy and meet the ideal
weight for you!
• Reduce and control serving sizes
• Find substitutes for “emotion” eating
• Move it to lose it
Think about eating as little
processed food as possible.
According to Annie B. Bond, author and green living expert,
a good rule of thumb is to eat as many colors of the rainbow
as you can. “If you’re looking for colors, you’ll end up
walking through the fruits and vegetable section of your
grocery store more often. In addition to colors, you’ll get
more nutrients from these foods.”
12
Enjoy the season
Although we are able to buy all foods all year long,
much of what is on grocery shelves has been shipped
across the country or the globe before it reaches our
tables. The typical U. S. food item travels
approximately 1,500 miles to reach a plate. Eating
foods in season is better for your budget and your
health.
Grow a garden or join a CSA
If you have the time and space, grow your own garden.
You can cut costs, ensure your food is organic, and
know it is at its ripest stage at harvest.
Join a Community Supported Agriculture (CSA)
operation. It allows local residents to buy shares of a
farmer’s harvest each season. This can be a less
expensive way to buy your food and will support your
local economy as well. Canning your own produce will
save you even more money.
Buy organic
Grocery stores are carrying a larger variety of organic
food today. Look for foods that have an organic logo
and the U.S. Department of Agriculture (USDA) seal.
When considering which products to buy with the
100% organic label, experts recommend beef, milk and
dairy, peaches, apples, bell peppers, strawberries, lettuce,
potatoes, and tomatoes. Foods with protective skins
such as bananas, kiwi, onions, and pineapple need not
be as high of a priority on your organic list.
Living Better: ARE YOU AT RISK?
Did you know...
Stroke is:
• 3rd leading cause of death in the U.S.
• #1 reason people move into nursing homes
80% of stroke victims show
no apparent symptoms or
warning signs
Your membership in Royal Neighbors comes with valuable member benefits that are designed to
improve your quality of life. One of these benefits is a discount on preventive health screenings,
an affordable and effective way to identify hidden disease risk.
Stroke, Vascular Disease & Heart Rhythm Package
• First step in early intervention
• Convenient locations near your home
• State-of-the-art ultrasound technology and highly skilled
sonographers used
• Results reviewed by board-certified physicians
• Discounts available for your entire family
• All four important screenings for $129:
“My husband and I
both had the screenings and we found he
had a rare type of
cancer. I’m sure the
tests saved his life.”
– E. F., Nebraska
• Stroke/carotid artery
• Abdominal aortic aneurysm
• Peripheral arterial disease
• Atrial Fibrillation Screening
• Osteoporosis ($10)
Call (800) 690-7310
today to set up an appointment or
visit www.lifelinescreening.com/rna.
Please mention source code BHFB-045.
Member benefits are provided at the discretion of Royal Neighbors of America and are not part of any insurance or annuity contract.
RNA 0609A
13
The State of Royal Neighbors of America
The State of Royal Neighbors of America
as of December 31, 2008
The Audit
Committee
is comprised
of four
independent
board
members:
Chairperson –
Audit Committee Report to Members, May 2009
The Royal Neighbors of America Audit Committee operates under a written charter
adopted by the Board of Directors, and is responsible for overseeing the Society’s financial
reporting process on behalf of the Board of Directors and Society members. This
responsibility is accomplished by following a detailed work plan of activities. Management
is responsible for Royal Neighbors’ financial statements and the financial reporting process,
including internal controls. The Society’s independent auditors are responsible for
performing an independent audit of Royal Neighbors’ financial statements in accordance
with applicable regulatory accounting principles.
V. Sue Molina
Dr. Joyce Elam
Patricia Gibford
Dr. Benet Spence
The Audit Committee’s responsibility is to monitor and oversee these processes. In this
context, the Audit Committee is authorized, among other things, to approve and retain
the independent auditors to conduct the annual audit of the Society’s financial books and
records, review the proposed scope and results of the audit, review and pre-approve the
independent auditor’s audit and non-audit services rendered, approve the audit fees to be
paid, review and approve related party transactions, recognize and prevent prohibited nonaudit services by Royal Neighbors’ independent auditors, review the annual operating
expense budget proposed by management, and establish procedures for complaints received
by the Society regarding accounting matters.
The Audit Committee was formed in September 2004 and meets at least quarterly through
the year. The Committee meets with representatives of management and the independent
public accountants to review matters of a material nature related to auditing, financial
reporting, internal controls, and audit results. For 2008, the Audit Committee retained
the firm of Kerber, Eck & Braeckel, and LLP (KEB) as Royal Neighbors’ independent
auditors.
The Audit Committee is comprised of four independent board members. They are:
Chairperson V. Sue Molina, Dr. Joyce Elam, Patricia Gibford, and Dr. Benet Spence.
14
Royal Neighbors Financial Statement Summary
(dollars in thousands)
Balance Sheet
December 31
Investments including bonds, common stocks, and mortgage loans
$
2008
2007
623,329
639,366
Real estate
6,475
6,773
14,225
9,932
17,640
14,118
7,778
15,189
$
671,601
683,224
$
429,272
28,826
413,594
25,271
$ 458,098
438,865
$
88,523
124,980
87,190
157,169
Contract loans
Cash and short-term investments
Other assets
Total admitted assets
Insurance reserves and claims
Other liabilities
Total reserves and liabilities
Certificateholders’ surplus:
Fraternal fund
Unassigned surplus
Total certificateholders’ surplus
213,503
244,359
$
671,601
683,224
$
57,214
36,727
26,310
50,448
36,732
30,009
120,251
117,189
Benefits paid or provided
Commissions
General and administrative expenses
58,994
25,431
23,983
50,259
22,796
22,015
Net income (loss) before net realized capital gains (losses)
Net realized capital gains (losses)
Net income (loss)
11,843
(1,429)
10,414
22,119
13,197
35,316
Total insurance reserves, liabilities, and surplus
Income Statement
Premium income, net of reinsurance
Investment income
Reinsurance allowances and miscellaneous income
Total income
$
Philanthropic Expenses
In 2008, 27 new national scholarships were awarded, valued at
We paid 73 scholarships totaling
$82,500
$163,750
Fraternal Support
$1,254,745
Nation of NeighborsSM Program
$413,046
Royal Neighbors Foundation
Contributions from Royal Neighbors
Contributions from other sources
Benefits paid out (Heroes at Home, Disaster Relief, State Scholarships, etc.)
$210,000
$27,022
$92,665
2008 Results
15
The State of Royal Neighbors of America
Management’s Report to the Membership
December 31
2008
2007
(dollars in thousands)
Insurance in force face amount
2.2 billion
2.0 billion
$671,601
$683,224
213,503
244,359
Premium income, net of reinsurance
57,186
50,449
Net income
10,414
35,316
Admitted assets
Certificateholders’ surplus
16
In its 114th year, Royal
Neighbors is pleased to report
another successful financial
year. Our financial position
is strong with assets of
$671.6 million and surplus
of $213.5 million, resulting
in a surplus ratio of 31.8%,
which is significantly above
the industry benchmark
of 8.6%.
The 2008 financial year was
indeed a successful one and
we are more excited than ever
about the future of Royal
Neighbors. The Royal
Neighbors leadership team
remains committed to a
Net income for 2008 was
$10.4 million. Premium
income, before reinsurance,
increased $3.2 million to
$130.8 million. New sales in
2008 resulted in more than
$26.4 million of annuity
premium and $8.3 million
of annualized life premium.
This growth was accomplished
while management continued
its efforts to monitor and
control operating expenses
as illustrated by the 2008
expense to premium ratio
of 17.8%.
•
•
•
•
responsible growth strategy
that benefits all members and
to continuously executing
against our long-standing
commitment of neighbors
helping neighbors.
Product options available
•
•
•
•
•
Whole Life
Level Premium Term Life
Universal Life
Single Premium
Immediate Annuity
Flexible Premium
Deferred Annuity
Traditional Individual
Retirement Annuity
Roth Individual Retirement
Annuity
Single Premium Whole Life
Simplified Issue Whole Life
• Graded Death Benefit
Whole Life
• Single Premium Deferred
Annuity
(1, 5, and 6-year interest guarantee)
• Medicare Supplement
These insurance products are not
available in all states.
Please call: (866) 845-6665 for
more information, or visit us at
www.royalneighbors.org.
Insurance benefits paid to members
have nearly doubled over the last 20 years
1,800
Royal Neighbors is
rated A(Excellent)
$1,562
1,500
by the A.M. Best
Benefits Paid
in millions of dollars
Company.
1,200
900
$852
600
$468
300
$238
$69
0
1927
1895-1928
1948
1968
1988
2008
Years
Since 1895, Royal Neighbors of America
has been paying and/or providing insurance benefits
to members and their beneficiaries
This chart illustrates the cumulative amounts that have been paid
or provided at selected intervals during that time. There are many
ways in which our members receive these benefits, including
death benefits, interest earned, and refunds. We are very proud
to report that over the last 114 years benefits paid to members
have grown from $69 million in the first 33 years to more than
$1.5 billion. In the last 20 years alone, the benefits to our
members have nearly doubled. We believe this record of
performance demonstrates the enduring financial strength of
the Society as well as our commitment to honor the promises
made in the insurance contracts held by our members.
Royal Neighbors opens new office
Mesa, Arizona, is the site of a new branch office of Royal
Neighbors. It joins Austin, Texas, as a branch and Rock Island,
Illinois, as the Home Office.
2008 Results
17
your RoyalNeighbors
connection
It was ‘sew’ easy going green on
JOIN HANDS DAY!
Cynthia Tidwell, Royal Neighbors
President/CEO, taught Jack Reemstma how
to use a sewing machine.
Even the very young ‘joined hands.’
JOIN HANDS DAY is all about adults and young people
working together to build lasting relationships and make their
communities better. And, that’s just what happened when our
Home Office chapter, along with several other chapters in the
area, participated in a project designed to take a step toward
helping the environment.
Through it’s “sew” easy going green project, reusable shopping
bags were created from recycled fabrics and materials. Sewing
stations were set up for all ages and skill levels with everyone
designing bags with their own unique touches. The bags were
then donated to a non-profit organization for fund-raising.
“This is a wonderful project,” said Luzhelena
Upegui. “It’s fun to be with others to use our
creativity for a good cause.”
“I’m having fun today. It’s important to
help our environment. If we don’t start
now, the next generation will continue our
bad habits.”
– Codey Bender
18
“I like to sew so this is
great. I recycle at home
and do all I can to
make a difference.”
– Alice King
Making a ‘green’ difference
Members of the Augustana
College chapter, Rock Island, IL, have been busy
taking part in several activities that make a “green” difference in their community.
In order to bring awareness
to water scarcity, students
who made a donation were
allowed to “soak” their professors with a water gun
using recycled water. The
donations were given to
Circle K International’s Six
Cents Initiative, an organization working to provide
children safe drinking
water. Royal Neighbors
reusable water bottles were
also given away.
Members also participated
in “Project Pedal,” an event
that gave incoming freshmen an opportunity to win
a bicycle to use on campus.
The 14 winners signed a
contract saying they would
not bring a car on campus
their first year. This event
led to an award from the
Quad City Transportation
Advocacy Group for Best
Organization to Raise
Consciousness about
Transportation.
Recipes for healthy eating
Chicken Breast with
Sautéed Cherry Tomatoes
Serves 4
1/2
1/2
4
2
2
2
1/4
1/8
tbsp. ground cumin
tsp. salt
boneless, skinless chicken
breast halves (about 4 ozs.
each), all visible fat discarded
tsps. olive oil
cups whole cherry or grape
tomatoes
tbsps. snipped fresh cilantro
or parsley
tsp. ground cumin
tsp. salt
Sprinkle 1/2 tbsp. cumin and 1/2
tsp. salt over the chicken. In a
large nonstick skillet, heat the oil
over medium heat, swirling to
coat the bottom. Cook the
chicken for 3 minutes on each
side, or until golden brown on
the outside and no longer pink in
the center. Transfer to a plate and
cover to keep warm.
In the same skillet, cook the
tomatoes, covered, over medium
heat for 4 minutes, or until the
skins are lightly browned and
begin to burst, stirring occasionally. Stir in the cilantro, remaining 1/4 tsp. cumin, and
remaining 1/8 tsp. salt. Spoon
the tomatoes over or beside the
chicken.
-Courtesy of the American Heart
Association
Walnuts & Feta Cheese
Whole-Wheat Pasta Salad
1/2
lb. whole-wheat fusilli
or other spiral shaped pasta
1/2
cup walnuts
1/2
cup crumbled feta cheese
1/2
cup diced red onion
1-1/2 cups chopped baby spinach
leaves
2
tbsps. walnut oil
2
tbsps. red wine vinegar
1
1/2
clove of garlic, minced
(about 1/2 tsp.)
tsp. Dijon mustard
Salt
Freshly ground black pepper
Cook the pasta according to the
directions on the package. Drain
the pasta, rinse it under cold
water, and put it in the refrigerator to chill.
In a dry saute pan toast the walnuts over a medium-high flame
until they are fragrant, about 2
minutes. Set the walnuts aside to
cool then chop them coarsely.
In a large bowl, toss together the
chilled pasta, walnuts, feta
cheese, onion, and spinach. In a
small bowl whisk the oil, vinegar,
garlic, and mustard. Pour the
dressing over the pasta salad and
toss to combine. Season with salt
and pepper.
your RoyalNeighbors connection
19
your RoyalNeighborsconnection
Don’t miss out on this year’s
Nation of NeighborsSM Program
We established the Nation of Neighbors Program as a tangible
expression of our neighbor-helping-neighbor philosophy. The program is
about helping our members and those our members care about change
their lives in a significant way.
It is designed to help individuals who rise up to meet their challenges
received a gift from head on and face the future with dignity, even when that future looks
The Ramirez family
bleak. It is for those who strive for independence and have the will to
hbors Program.
the Nation of Neig
overcome unfortunate choices. And, it is for those who want to motivate
others to achieve their highest aspirations and give back within their
Program Guidelines
communities.
• Self nominations are
It is, for example, for those who need help to:
accepted
• Start a small business
• Previous recipients are
• Rebuild after a disaster
not eligible
• Go back to school to change careers
• Information provided
• Recuperate from a major injury or illness
must be detailed,
• Better the lives of others
thorough, accurate, and
In the past two years, we’ve made a difference by giving financial
complete
assistance to nearly 500 families and individuals in need. This year may
• Nominator and Nominee
be the year we help you or someone you know. Complete and return
must be 18 or older
the nomination form on the opposite page by September 15, 2009
• Royal Neighbors reserves
(form also can be downloaded at www.royalneighbors.org).
the right to verify
background and
information provided
• Recipients are responsible
for any public aid or tax
implications
• Nomination deadline is
Sept. 15, 2009
For more information, call
(800) 627-4762
20
A panel of judges will review all nominations and determine the
recipients. All awards will be presented by December 15, 2009.
We hope we can make a difference in your life or help you
make a difference in the life of someone else.
Send in your nomination today!
your RoyalNeighbors connection
15
21
your RoyalNeighborsconnection
Royal Neighbors Foundation
changes women’s lives in
Parkersburg, IA
It’s been a year since an F5
tornado ravaged the small town of
Parkersburg, IA. As the
rebuilding and healing continue,
the Royal Neighbors Foundation
is doing its part to help.
eighbors
The Royal N
ublic
a 501(c)(3) p
Foundation,
pic
e philanthro
charity, is th
of
l Neighbors
arm of Roya
to
is dedicated
America and
Help
men’s lives.
changing wo
en
on help wom
ti
a
d
n
u
fo
e
th
Send
ng” a brick.
by “purchasi
tion
uctible dona
your tax-ded
Neighbors
to the Royal
eet,
230 16th Str
Foundation,
IL 61201.
Rock Island,
22
Kelly Panther and her family
The Royal Neighbors
Foundation is providing
financial assistance to two
women who need help starting
over. One woman will receive
funds to rebuild her home
from the ground up and the
other has a new roof courtesy
of the foundation.
“This help means so much to
us,” said Kelly Panther. “God
and the Royal Neighbors
Foundation really came
through for us.”
The roof on the home Kelly
shares with her disabled
mother was damaged and
needed to be replaced. The
new roof means their daycare
center can continue operating
and takes one more thing off
their “worry list.”
“Everything you hear about a
tornado is true,” said Kelly. “It
sounds like a train going by at
100 miles an hour and your
ears pop. It’s very scary. And,
the aftermath looks exactly like
a war zone.”
Kelly looks at life differently
now. “I’m planning more. I
now have life insurance which
I didn’t have before. I don’t
take anything for granted and
appreciate all I have. Everyone
has been so supportive. We’re
one big family in Parkersburg.”
See our most recent donations to
the Royal Neighbors Foundation
Chapter 2993
Chapter 8500
Chapter 562
Josephine Perez
Mapleton, IA
Antwerp, OH
Louisville, NE
$25
$100
$25
$25
Elbert & Betty
Chapter 449
Chapter 3648
Mary Peterson
Sawley
Crawford, NE
Thomas, OK
$10
$25
$50
$50
Dr. Joyce Elam
$100
Chapter 3000
Exline, IA
$50
Dr. Benet Spencer
$100
Chapter 4183
Newberry, IN
$50
Chapter 606
Sharon, WI
$100
Sherry Nowell
$25 - In memory of
Clovis Beasley
Coralinn Kuehl
$25
Chapter 8753
Hillsboro, OR
$100
Chapter 5327
Milton Freewater,
OR - $25
Chapter 562
Louisville, NE - $10
Chapter 191
St. Anne, IL
$30
Chapter 270
Bagley, WI
$100
In memory of
Martha Meisinger
Chapter 179
Watseka, IL
$75
Chapter 1228
Chapter 7651
Chapter 8138
Chapter 9099
Chapter 4829
Rexford, KS
Hurdsfield, ND
Washington, MO
Hillview, IL
Chicago, IL
$100
$25
$50
$25
$25
Chapter 3076
Chapter 100
Chapter 6674
Winnetka, IL
Cynthia Tidwell
Esther Deboer
Rock Falls, IL
Sioux City, IA
$10
In
memory
of
$200
$100
$100
$20
Lillian Wooten
Chapter 1884
Racine, WI
$25
Chapter 5197
Council Bluffs, IA
$50
Chapter 1997
Osgood, IA
$100
Chapter 2317
Rathdrum, ID
$25
Chapter 1893
Norcatur, KS
$25
Antoinette Gajdor
$20
Dorothy Poulus
Valeria Loges
$100
Linda Neuman
$100
Johnny Stidger
$25 - In memory of
Kate Stidger
Chapter 2845
Sioux Falls, SD
$25
Chapter 2377
Ponca City, OK
$25
Nancy Ferger
$10
Gwendolyn Johnson
$50
Jeanette Psencik
$10
Sally Kennedy
$25 - In memory of
John Kennedy
In memory of Muriel
Linda & Bill Boyd Juanita Kirtley Divine Jeanette Denhartog
$50
$100
$100
Chapter 3674
Ste. Genevieve, MO Margaret Gaskins
$10
$25
Lucille Lambie
$10
Patsy Kneller
$50
Chapter 1150
Harwood, MO
$25
Theresa Bonin
$100
Amelia Stephenson
$50
Sylvia Harris
$25
Eleanor Kuehl
$25
Chapter 1473
Edna, KS
$100
Marian Berlin
$10
Doris Leitt
$25 - In memory of
Gladys Hadala
$10
Chapter 3798
Walcott, IA
$100
Nancy Hanna
$50
Chapter 10331
Verona, WI
$25
Edna Arnold
$25
Betty Coleman
$10
Chapter 296
Aberdeen, SD
$50
Chapter 620
Corwith, IA
$250
Chapter 2753
Nampa, ID
$25
Robert Freeman
James Boettcher
$25 - In memory of $50 - In memory of
Cerilla Freeman Baldwin Marion Boettcher
Helen Johnson
$250 - In memory of
Hilda Kuoni
Chapter 1391
Sauk City, WI
$25
Chapter 1570
Thomas, IL
$75
Agnes Guthrie
$20
Chapter 8778
Chapter 7299
Chapter 1068
Chapter 30
Mrs. L.E. Crane, Sr.
Selby, SD
Pasco, WA
Wilton, IA
Sterling, IL
$25
$96.50
$127.65
$20
$50
Chapter 1491
Chapter 20001
Chapter 2
Chapter 8471
New Bedford, IL
San Angelo, TX - $25
Judith
Tshibangu
Omaha, NE
Chamberlain, SD In memory of Vince
$10 - In memory of
$25
$150
Doris Gaskill Kilberg
Malmstrom
$25
Chapter
5062
Chapter 5062
Chapter 5062
Chapter 3348
Chapter 516
Grand Rapids, OH Grand Rapids, OH Grand Rapids, OH Patience Kellogg
Kenmare, ND
Prophetstown, IL
$33 - In memory of $33 - In memory of $33 - In memory of
$50
$25
$25
Josephine Freeworth
Geneva Vollmer
Alice Perry
as of February 1 - April 30, 2009
Chapter 6818
McHenry, IL
$25
your RoyalNeighbors connection
15
23
Guaranteed benefits.
Flexible premiums.
SecureLife universal life insurance from Royal Neighbors
is the best of both worlds.
In uncertain times, you want flexibility. SecureLife universal life insurance is the ideal custom
solution if you want the flexibility to build the life insurance certificate that’s perfect for you – and
it’s backed by the reliability of Royal Neighbors of America.
•
•
•
•
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Flexible premiums to fit your budget
Choice of riders deliver benefits where and when they matter most
Fixed interest crediting rate
Call (866) 845-6665 today to find out
how you can have the flexibility and
reliability of SecureLife.
Form series 200911
Not available in all states.
RNA 0609B
Visit www.royalneighbors.org