Opening Remarks
From humble beginnings back in 1946, five men worked
together to find a way to meet the needs of Southern
farmers for dependable life insurance. Those farmers
developed into the Farm Bureau we know today. Successful,
loyal, family-centered individuals define our Farm Bureau
membership.
At Southern Farm Bureau Life Insurance Company our
sales and financial successes have provided us with
significant momentum and have helped build us into the
successful Company we are today. While the current
economic and societal landscape is exceptionally challenging,
this momentum helps us to provide for our Farm Bureau
mothers, daughters, fathers and sons for generations to
come. Our dedication to the hardworking Farm Bureau
members inspires us to maintain that momentum into the
future.
Our Mission
Our mission is to be the life insurance company of choice for
our Farm Bureau family. Our focus is to provide competitive
products and superior customer service to our Farm Bureau
policyholders and agents, while observing the highest ethical
standards.
Helping You Is What We Do Best
TABLE
of contents
2
President’s Message
3
Board of Directors
4
CEO’s Message
5
Senior Vice President of Marketing’s Message
7
Financial Overview
12
Officers
13
Closing Remarks
Maintaining Our Momentum
2
MESSAGE FROM THE PRESIDENT
“
The remarkable first year record of your company can be attributed to
the fact that it belongs to Farm Bureau people and is operated by leaders
selected by Farm Bureau members. The setup of the company is especially
geared to the needs of farm people so that the most efficient life insurance
service may be provided at the lowest possible net cost, commensurate
with sound operation. A most important goal in life is financial security.
Farm people who become policy owners of the Southern Farm Bureau
Life Insurance Company will help themselves reach this goal.
Ransom E. Aldrich, 1948
“
Ransom E. Aldrich, the first Chairman of the Board of the Southern Farm Bureau Life Insurance Company, was
obviously a very perceptive leader. His comments following the first year of operation of the Company were rich with
insight and they remain relevant now, almost 70 years after his remarks.
Mr. Aldrich knew then there was something about “Farm Bureau people,” something that would transcend business
and culture, and enable the organization to do things a little differently. I see in his comments a direct connection to
the rural values that were deeply seated in the 1940’s. While our world today is vastly different, those values still define
the fiber of much of the rural south.
Those tenets guide my thoughts now, as I step into the role of President and Chairman of the Board of Southern Farm
Bureau Life Insurance Company. It is a humbling and worthy challenge to lead these efforts, because I know the type
of people – Farm Bureau people – who are counting on the continued stability and strength of the Company. They are
the type of people I have known all my life, people who share a sense of community and responsibility that stretches
beyond the walls of our individual homes. We share a calling to act justly, love mercifully and walk humbly, ever ready
to help others during their times of need.
At my small rural church, Little River Baptist Church in Lost Cane, Arkansas (you won’t find it on a map, sadly), the
doors have never been locked. There is a shared trust that remains in our community, a belief that we will look out for
each other and take care of each other when the need arises.
That is the world that Ransom E. Aldrich described in 1948, a place he knew would benefit from the new offerings provided
by the Southern Farm Bureau Life Insurance Company. That is the world, thankfully, in which we still operate today, even
if we sometimes have to look a bit more diligently to find it.
We owe it to those Farm Bureau people to maintain an organization that is financially strong and able to pay every
legitimate policy claim. We must be in a position to fulfill our obligations to our employees, who throughout the years
have done such a fine job in making and keeping this Company strong. And as we meet those financial obligations, we
should remain focused on continuing to provide support to our Farm Bureau organizations and their programs.
Farm Bureau is like a family that includes Farm Bureau leaders and employees who spend every day working to protect
our policyholders. God Bless you and your families. God Bless our farmers and ranchers. And God Bless Southern Farm
Bureau.
Randy Veach
CHAIRMAN OF THE BOARD AND PRESIDENT
SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY
Maintaining Our Momentum
3
BOARD OF DIRECTORS
FRONT ROW
Randy Veach (AR), Wayne F. Pryor (VA),
Russell W. Boening (TX), Larry Wooten (NC),
David M. Winkles, Jr. (SC), Jim Harper (LA),
Mike McCormick (MS)
MIDDLE ROW
John L. Hoblick, Sr. (FL), Ronald R. Anderson (LA),
Dave Edmiston (TX), Gerald W. Long (GA),
Zippy Duvall (GA), Rich Hillman (AR),
Gordon Metz, Jr. (VA)
BACK ROW
Ben Grambling, II (SC), Scott Whitford (NC),
Brant Schirard, Jr. (FL), Mark Haney (KY),
Eddie Melton (KY), Reggie Magee (MS)
Our Board of Directors are community
members from across the South who come to
the table with unique perspectives. Their lives
are built on knowledge, understanding and
individual experience, creating a strong vantage
point for each member. The common goal
among them: a job done exceedingly well.
This aim and their differing backgrounds join
together to cement a strong foundation of
leadership and guidance for Southern Farm
Bureau Life Insurance Company.
Maintaining Our Momentum
4
MESSAGE FROM THE CEO
Southern Farm Bureau Life Insurance Company once again delivered another strong
performance in 2015. We continue to build on our history of financial strength while
providing valuable benefits to Farm Bureau families across eleven states. Through the
leadership of our Board of Directors and the efforts of a dedicated agency force and
our home office staff, we have been able to maintain the momentum that we started
many years ago to sustain our growth and success.
Our Company ended the year with over $131 billion of life insurance in force, which
was an increase of 4.7% over 2014. Assets grew by 2.4% and totaled $13.3 billion.
Our $2.4 billion surplus position protects our Company and policyholders during
these times of economic stress and uncertainty. A. M. Best continues to recognize our
strong capitalization in their assignment of our A+ (Superior) rating.
There are several highlights in 2015 that point to our success in maintaining our momentum:
• We experienced record-breaking sales for the third consecutive year. Our life premium collected increased 4.8%,
while annuity premium increased 66% with the introduction of a new annuity product.
• We delivered on the promises to our policyholders. We paid $245 million in death benefits, $518 million in living
benefits, and $54.5 million in policyholder dividends.
• We continued to leverage technology to help us provide home office efficiencies along with superior products
and services to our policyholders and agency force.
I would like to thank our Directors for their leadership and the agency force and employees for their commitment to
serve the Farm Bureau members and provide for their financial security. It is through this loyal and dedicated group
that we will continue to be successful while “maintaining our momentum!”
Randy Johns, FLMI, ACS
EXECUTIVE VICE PRESIDENT, CHIEF EXECUTIVE OFFICER
SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY
Maintaining Our Momentum
5
MESSAGE FROM THE SENIOR VICE PRESIDENT OF MARKETING
Southern Farm Bureau Life Insurance Company experienced another phenomenal
year in 2015, the best year ever in our rich history! Our Company has had three
consecutive years of record-setting performance. Our goal in 2015 was to have a 2%
increase over 2014, our best year ever, and our field force responded with a 2.1%
increase on December 31st!
This record-setting performance says a lot about the resiliency of our field force.
Successful people want to exceed expectations, and we continue to raise the bar!
“Maintaining our momentum” is critically important for our Company while truly
satisfying the needs of our policyholders. This will continue to be our primary mission
moving forward. Our agents take care of the financial security of the Farm Bureau
membership, and our Company fulfills the promises they deliver to our policyholders.
In order to truly make a difference in this business, ultimately, it takes someone with a cheerful heart and a passionate
attitude to serve and to put others before themselves.
Our Company finished 2015 with over $131 billion of life insurance in force throughout our 11-state operation. Each
state produced positive growth.
The culture of our Company is its identified strength. It is a unique strength that comes from within the heart of our
organization, our people. Farm Bureau volunteer leaders, our Board of Directors, our sales management team and our
dedicated home office staff who support our field force every day are what make up the distinct culture of our Farm
Bureau family. All of our Farm Bureau Insurance Companies have different goals and objectives; however, we all share
one common mission – to serve our membership to the best of our ability. The visionary leadership that exists within
our Farm Bureau Companies has been vital to our success.
We will maintain our momentum that is built on making a difference today, and we will continue to provide the
promises for tomorrow.
It is our honor and a blessing to serve our field force as we strive to excel each and every day.
David Hurt, LUTCF
SENIOR VICE PRESIDENT, MARKETING
SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY
Maintaining Our Momentum
7
FINANCIAL
HIGHLIGHTS
December 31, 2015
December 31, 2014
Life Insurance In Force
$ 131,312,939,975
$ 125,390,529,987
Admitted Assets
$ 13,307,904,235
$ 12,995,542,044
Total Stockholders’ Equity
$
2,456,844,990
$
2,436,439,383
Premium Income
$
908,480,224
$
803,440,482
Investment Income
$
550,968,813
$
548,972,673
Added to Retained Earnings
$
20,405,607
$
109,245,094
Benefits Incurred
$
798,646,740
$
816,887,305
‘14
‘14
$ 2,45 6,84 4,99 0
2015
TOTAL STOCKHOLD ERS’ EQUITY
$1 3,30 7,90 4,23 5
2015
ADMITTED ASSET S
LIFE INSURANCE IN FORCE
$13 1 ,3 12 ,9 39 ,9 7 5
2015
‘14
Maintaining Our Momentum
8
STATUTORY
STATEMENTS OF
FINANCIAL
POSITION
December 31, 2015
December 31, 2014
$ 9,458,450,156
$ 9,225,964,254
25,892,417
20,890,583
578,792,456
682,484,410
1,436,859,687
1,279,577,984
14,395,493
11,259,894
Partnership Interests
630,503,283
675,716,627
Cash & Short-term Investments
107,909,180
79,167,548
Policy Loans
519,090,637
509,242,464
Deferred Income Taxes
107,361,901
99,907,989
Premiums Deferred & Uncollected
247,329,686
230,456,399
Accrued Investment Income
115,418,149
113,609,106
Other Assets
49,888,352
49,560,836
Separate Account Assets
16,012,838
17,703,950
$13,307,904,235
$12,995,542,044
Admitted Assets
Bonds at Amortized Cost
Preferred Stock at Cost
Common Stock at Market
Mortgage Loans
Real Estate at Cost less Depreciation
Total Assets
These summary financial statements are derived from the Company’s audited financial statements,
which are prepared in conformity with statutory insurance accounting principles prescribed or
permitted by the Mississippi Insurance Department.
Maintaining Our Momentum
9
STATUTORY
STATEMENTS OF
FINANCIAL
POSITION
December 31, 2015
December 31, 2014
$ 9,516,057,186
$ 9,192,244,205
Policy and Contract Claims
33,437,851
33,642,998
Advanced Premiums and Funds on Deposit
22,330,335
15,572,849
Accrued Policy Dividends
55,922,396
53,174,199
Dividends Left on Deposit
261,752,047
266,126,495
Pension Plan Administration Funds
624,773,430
594,705,959
7,363,011
7,687,924
14,207,747
15,583,185
Other Liabilities
119,428,007
115,844,563
Asset Valuation Reserve
179,774,397
246,816,334
16,012,838
17,703,950
$10,851,059,245
$10,559,102,661
$
$
Liabilities
Policy Reserves
Taxes Other Than Federal Income Tax
Commissions & Due to Affiliates
Separate Account Liabilities
Total Liabilities
Stockholders' Equity
Common Stock @ $100 Par Value,
Authorized 20,000 shares; Issued
and Outstanding 15,000 shares
Paid-in Capital in Excess of Par
1,500,000
1,500,000
400,000
400,000
2,454,944,990
2,434,539,383
Total Stockholders' Equity
$ 2,456,844,990
$ 2,436,439,383
Total Liabilities &
Stockholders' Equity
$13,307,904,235
$12,995,542,044
Retained Earnings
Maintaining Our Momentum
10
FOR THE YEARS ENDING
STATUTORY
STATEMENTS OF
OPERATIONS
December 31, 2015
December 31, 2014
Revenue
Life Premiums
$
Annuity Premiums
713,068,403
$
680,263,685
180,916,586
108,716,451
Accident & Health Premiums
14,495,235
14,460,346
Supplementary Contracts
24,533,480
23,685,256
550,968,813
548,972,673
2,080,598
2,098,221
$ 1,486,063,115
$ 1,378,196,632
$
$
Investment Income
Other Revenue
Total Revenue
Policy Benefits & Expenses
Death Benefits Incurred
Accident & Health Benefits
226,364,072
212,113,322
11,470,152
10,766,668
Surrender & Other Life Benefits
141,137,509
140,123,252
Annuity Benefits
305,011,838
344,581,521
Amounts added to Policy Reserves
held for Policyholders
314,674,099
179,890,548
Interest on Policy and Contract Funds
40,116,929
38,535,745
Payments on Supplementary Contracts
20,000,518
19,043,646
Commissions
76,672,863
71,012,336
163,115,821
155,525,452
22,171,133
23,353,703
$ 1,320,734,934
$ 1,194,946,193
165,328,181
183,250,439
54,545,722
51,723,151
110,782,459
131,527,288
27,100,000
28,975,000
General Insurance Expenses
Taxes, Licenses, Fees
Total Policy Benefits & Expenses
Net Gain from Operations before
Dividends and Federal Income Tax
Dividends to Policyholders
Net Gain from Operations before
Federal Income Tax
Federal Income Tax
Net Gain from Operations
$
83,682,459
$
102,552,288
Maintaining Our Momentum
11
STATUTORY
STATEMENTS OF
STOCKHOLDERS’
EQUITY
December 31, 2015
Common Stock
$
Paid-in Capital in Excess of Par
1,500,000
December 31, 2014
$
1,500,000
400,000
Total Common Stock
$
1,900,000
400,000
$
1,900,000
Retained Earnings
Balance at Beginning of Year
$ 2,434,539,383
$ 2,325,294,289
83,682,459
102,552,288
Realized and Unrealized
Capital Gains, Net
(95,668,586)
30,955,422
Decrease/(Increase) in
Asset Valuation Reserve
67,041,937
(9,944,467)
Dividends to Stockholders
(92,550)
(95,850)
(34,557,653)
(14,222,299)
Total Retained Earnings
$2,454,944,990
$2,434,539,383
Total Stockholders’ Equity
$2,456,844,990
$2,436,439,383
Net Gain from Operations
Other
FOR THE YEARS ENDING
USES OF
INCOME
December 31, 2015
For Benefit of Policyholder
$0.75
December 31, 2014
$0.72
Added to Policyholder Reserves
0.21
0.13
Policyholders’ Dividends
0.04
0.04
0.15
0.15
0.35
0.40
75 cents of every dollar Death Benefits
earned was utilized for Surrender & Other Living Benefits
policyholder benefits
during 2015.
Other Uses
Commissions
$0.25
$0.28
$0.05
$0.05
General Expenses
0.11
0.11
Licenses & Taxes
0.03
0.04
Net Gain - Added to
Retained Earnings
0.06
0.08
Maintaining Our Momentum
12
OFFICERS
LARRY E. FAVREAU, CPA, CLU, FLMI
CHARLIE ALLEN, FLMI, ACS, AIAA
EXECUTIVE VICE PRESIDENT
CHIEF EXECUTIVE OFFICER*
VICE PRESIDENT, CHIEF TECHNOLOGY OFFICER
NANCY BAKER, FLMI, FLHC, ACS
RANDY JOHNS, FLMI, ACS
VICE PRESIDENT, CLAIMS
EXECUTIVE VICE PRESIDENT
CHIEF EXECUTIVE OFFICER DESIGNATE
DIANE BOYETTE, JD, CFE
VICE PRESIDENT, CHIEF COMPLIANCE OFFICER
H. LUSBY BROWN, CFA
SENIOR VICE PRESIDENT
CHIEF INVESTMENT OFFICER
DANNY COLLINS, FALU, FLMI, ACS
VICE PRESIDENT, UNDERWRITING &
NEW BUSINESS ADMINISTRATION
RICK FIELDING, FSA, MAAA
SENIOR VICE PRESIDENT
CHIEF ACTUARY & RISK OFFICER
DAVID N. DUDDLESTON, M.D.
DAVID HURT, LUTCF
SHELIA R. HUDSON, CIA, CFE, CFSA, CLU, CRMA
SENIOR VICE PRESIDENT
MARKETING
VICE PRESIDENT, INTERNAL AUDITING
VICE PRESIDENT, MEDICAL DIRECTOR
LAURA HUMPHRIES, CLU, CLF, FLMI, ALHC, ACS
JOSEPH A. PURVIS, FLMI, AIRC
VICE PRESIDENT, POLICY SERVICES
SENIOR VICE PRESIDENT
GENERAL COUNSEL & SECRETARY
KENNETH P. JOHNSTON, FSA, MAAA
VICE PRESIDENT, MARKETING SERVICES
ROBERT WARD, CPA, CLU, FLMI, CIA, CFE
SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
PERRY MCGAUGH
VICE PRESIDENT, LEGAL
DAVID SIMMONDS, CPA, FLMI, ASA
VICE PRESIDENT, CONTROLLER
BILLY SIMS, FLMI, SPHR, CCP, CBP
VICE PRESIDENT, HUMAN RESOURCES
E J “BUBBY” TROSCLAIR, CLU, CHFC
VICE PRESIDENT, AGENCY
*Retired April 2016
Closing Remarks
Southern Farm Bureau Life Insurance Company relies on our
leaders to foster a culture of passion, decisiveness, integrity and
endurance much like those five founders in 1946. The ability
to maintain our momentum into the future will be grounded
in the loyal service and dedication to our Farm Bureau
members and their families by our agents and home office staff.
Form No. 0100ANR