Supreme Knight's Report

Insurance

The Knights of Columbus is so well known for charitable work and community service that people are sometimes surprised to learn that we are also one of the strongest and most successful life insurers in North America.

The paperback edition of Parish Priest was published on Founder's Day, March 29, 2007.

But those who have read Parish Priest, the best-selling biography of our founder, Father Michael J. McGivney, understand how strongly he felt about protecting families from the financial crisis caused by the death of a breadwinner.

His own father’s death interrupted his seminary education and posed real hardship for his family. On the very day when the first organizational meeting of the Knights of Columbus took place, Father McGivney took time to appear in court to stand as guardian for the son of a parishioner who had died. In those days, children who couldn’t work to help support their family in these circumstances were sent to an orphanage.

And so, just hours before he signed the roster as the first member of the Knights of Columbus, Father McGivney put his personal commitment on the line so that young Alfred Downes could stay with his family.

Our founder knew that charity and unity should first be applied to the Catholic families entrusted to his care, and the new organization he was bringing to life was a practical and realistic answer to their needs.

In 1885, the Knights of Columbus paid its first death benefit of $970, after assessing each of the 970 members one dollar. In 1890, the year that Father McGivney died, the Order had 6,000 members, and $1,000 death benefits were paid to 66 families.

Last year, the Knights of Columbus paid out more than $183 million in death benefits, and over the past 125 years, we have paid more than $2.2 billion in death benefits. We are fulfilling Father McGivney’s dream of protecting Catholic families to an extent he could not have imagined. And we are doing so in ways that put us at the very top of the industry. Out of more than 1,500 life insurers in North America, we rank 67th in total assets.

We are one of only five that have earned the highest possible ratings from Standard & Poor’s and A. M. Best, and certification of ethical business practices from the Insurance Marketplace Standards Association. We are number 965 on Fortune magazine’s list of the top 1,000 companies in America.

The Knights of Columbus surpassed a milestone this fraternal year when life insurance in force grew to more than $60 billion. The Order's Supreme Officers and Board of Directors commemorated the event at last year's Supreme Convention.

Our total life insurance in force has doubled in the last decade, to $61.9 billion. Our total assets have doubled as well, to $13 billion.

Last year, our life insurance in force grew by more than $4 billion — 7.3 percent. Our number of life certificates in force has grown every year since 1970, and now stands at 1,628,238.

Again this year we rank first among all fraternal benefit societies in the number of life certificates sold. Our total of 79,071 certificates exceeds the number two society by more than 34,000, and is more than all the other fraternal benefit societies combined! Sales volume for the year again set an alltime high of nearly $6.5 billion.

Our extraordinary insurance growth is a tribute to all of the Knights who have taken seriously Father McGivney’s goal that every Catholic man financially protect his family. It is also a tribute to the more than 1,400 professionally trained brother Knights who make up our agency force. They work hard to develop and maintain their knowledge of the products we offer and how they can help secure the future of our families. They are brother Knights and friends — men we can trust. This fact is expressed clearly in a moving letter I received recently from the widow of a brother Knight. Its words tell much better than I could how our agents keep faith with Father McGivney’s dream of providing help for widows and children:

“Dear Supreme Knight: When my husband became a Knight, we were introduced to our insurance agent. We could sense right away that he thought of his career as more of a ‘ministry’ than a sales position. Little did I know then how much his sense of ministry would mean to me.

“My husband died suddenly last fall. His death was a shock to everyone. Although from a medical standpoint it shouldn’t have happened, I guess God felt his work on Earth was done. Our agent was there for me immediately. He was at the wake and the funeral, and then stayed by my side and helped with whatever I needed. He cried for my husband just like I did. “I think that in this world where everyone is focused on the bottom line, I saw what the Knights are truly about. They were there for me when I needed them the most.”

Why is our program so different? The answer is simple. It is designed by brother Knights for brother Knights.

Just one week ago, we introduced a new single premium annuity product that is equal or better than any other product available. Our flagship product is a whole life policy that has for years paid one of the highest dividends in the industry. Those dividends, totaling more than $345 million last year, are one of the best means by which our members can participate in the success of our program.