Equitable Reserve Association

Message from the President...

As President and CEO of Equitable Reserve Association, many words come to mind as I reflect on 2008.  Challenging is one of them.

With a strong strategic plan as it relates to growth, new insurance products, new fraternal benefits for our membership, and Bylaw changes dealing with governance and regulatory updates in place, I am very optimistic that the vision for Equitable Reserve Association is on the correct track.  This plan is dynamic and is being continually reviewed and adjusted as we move forward and weather this economic storm.

Remaining optimistic with a dose of reality illustrates that none of us were prepared personally or professionally for the financial crisis and meltdown that occurred in 2008.  Many financial experts and economists are now predicting that we will begin to see "some recovery" later this year, but 2010 will show more turnaround.

Following review of Equitable Reserve Association's bond portfolio with our external auditing team, our portfolio is one of the strongest in the industry.  Even with a well diversified portfolio of stocks that we were carrying in 2008, we still took a hit (as did everyone) because no sector of the financial markets was immune to this crisis.

The Association's Board and management team are keenly aware of the financial market changes to the Association's balance sheet and income statements.  The key point is that all of your life insurance, annuity benefits and disability income plans are stable, and your policy benefits will be in place should you need them.

During these tough times we have to tighten our belts and find more creative ways to do business as always.  We will never forget our commitment and responsibility to you – our loyal members.  In the true spirit of our motto, "Not for self but for each other" we continue to stand strong and will weather the challenges we face.

Fraternally,

Melvin L. Rambo
President & CEO





All dollars reported in millions






All dollars reported in millions

Financial Statement

For the Year Ended December 31, 2008

ASSETS		2008		2007
	Bonds	$109,873,469		$110,192,147
	Common Stocks	2,224,168		3,030,016
	Real Estate	111,137		118,584
	Data Processing Equipment	34,517		34,538
	Certificate Loans and Liens	4,938,936		4,780,965
	Cash on Hand and Short-Term Investments	1,252,590		1,118,089
	Subtotal:	$118,434,817		$119,274,339
	Insurance Premiums and Considerations	186,116		158,882
	Investment Income Due and Accrued	1,396,506		1,421,273
	Total Assets:	$120,017,439		$120,854,494

LIABILITIES		2008		2007
	Policy Reserves	$107,471,896		$105,567,500
	Reserve for Supplementary Contracts	921,025		882,925
	Reserve for Certificate and Contract Claims	688,167		721,887
	Dividends Apportioned & Left on Deposit	1,660,120		1,767,823
	Advance Premium Deposit Funds	196,537		174,244
	General Expenses, Taxes, Commissions, etc.	363,722		334,405
	Amounts Retained as Trustee	1,258,138		1,262,535
	Interest Maintenance and Asset Valuation Reserves	791,080		1,546,814
	Total Liabilities:	113,350,685		112,258,133
	Unassigned Funds:	6,666,754		8,596,361
	Total:	$120,017,439		$120,854,494

2008 at a glance...

	Certificates in Force	22,235
	Insurance in Force	$531 million
	Dividends to Members	$204,983
	Premium Income	$6.8 million
	Net Investment Income	$6.1 million
	Surplus, Interest Maintenance Reserve, and Asset Valuation Reserve	$7.5 million