Royal Neighbors of America on the path of growth

4/5/2006

(Rock Island, IL)--In its 2005 statutory-basis financial results, Royal Neighbors reported that its assets increased by some $10.0 million to $629 million.

Surplus totaled $182.3 million, an increase of $2.9 million. The Summary of Operations for 2005 reported net income for the year of $2.8 million.

These results produced a surplus ratio of 29% which underscores Royal Neighbors' outstanding financial strength, significantly above the industry.

Operating results for 2005 included an increase in premium income of more than 200% from Royal Neighbors's Medicare Supplement program. Currently more than 32,000 members chose this program to supplement their Medicare benefits.

 "2005 was a very good year for Royal Neighbors. We are strong, very well capitalized, and prepared to take the Society to a new level," said Cynthia Tidwell, President/CEO. "We remain committed to the continuous improvement of our business practices to serve our members' needs and manage our operating costs so that we can maximize the contribution to earnings that funds our social mission and community activities."

Established as a fraternal benefit society in 1895 by pioneers in the field of women's rights, Royal Neighbors of America offers its members unique value-added benefits such as scholarships, disaster aid, and a variety of volunteer opportunities within their communities. It also provides financial security to members through a range of life insurance products, annuities, and Medicare Supplement insurance plans.

Headquartered in Rock Island, Royal Neighbors serves more than 232,000 insurance certificate holders and members, and is licensed to do business in 41 states and the District of Columbia. With $2.2 billion of insurance in force, it has members in 400 active chapters across the nation.