Securing Financial Futures
The President's Message
John H. Bultema
President & Chief Executive Officer
The Lafayette Life Insurance Company continues to build on its solid financial strength to help secure financial futures through a portfolio of products, services and solutions.
Lafayette Life achieved solid financial results in 2017 despite regulatory challenges that faced the life insurance industry. GAAP assets reached a record $5.8 billion, up 11 percent over 2016. Pre-tax operating income also hit a record high of $49.1 million, continuing several consecutive years of record earnings.
Lafayette Life’s life insurance premium increased to $402 million. However, its annuity sales of $171 million mirrored the slight declines others experienced across the industry.
Meeting Retirement Needs
Lafayette Life continued its efforts as a valuable partner to independent producers seeking to serve clients planning for or in retirement.
The company’s Retirement Services team delivers producers more than 30 years of experience in customizing retirement plans that provide employees retirement income while maximizing tax advantages for them and their employers.
Since 2009, the team’s popular Pension School has helped prepare independent producers appointed with Lafayette Life to serve clients with qualified retirement plans. In 2017, the curriculum was expanded to include an advanced course that goes in depth on the intricate details and nuances of qualified retirement plans.
As a result of Lafayette Life’s educational and collaborative approach with producers, the team sold a record 130 qualified retirement plans and generated a total of $2.1 million of life premium.
Enhancing Service, Products & Technology
Lafayette Life continues to emphasize quality service for independent producers with the introduction of the Internal Wholesaler Desk. This team, formerly the Sales Development Center, is fully dedicated to proactive outreach that directly supports and enhances independent producers’ sales and marketing efforts.
The company made several product enhancements during the year, including increasing premium limits on its whole life products and adding allocation options to its Marquis® SP single premium deferred fixed indexed annuity using a proprietary index from JP Morgan1.
Marquis® SP and Centennial series annuities were added to the eApplication system to increase the speed of processing business for producers and their clients. New features on LLIC.com provide policyowners broader 24/7 access to their annuity account activity and transaction history.
Looking ahead to 2019, the company plans to introduce electronic policy delivery and policy-owner website enhancements. Lafayette Life will continue to help both producers and policy-owners better prepare for a financially secure and successful future.
Generally accepted accounting principles (GAAP) are used unless noted.