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Financial Information


Financial Strength
Throughout our history, Beneficial has been known for its financial strength. (For our current financial ratings, click here.) Beneficial historically has made protecting families through economic hardships a top priority. During the stock market crash of 1929 and the economic depression of the 1930s, Beneficial honored policyowner requests for policy loans and surrender payments, although deferring such cash payments was allowed by law. Likewise, through both World Wars, we paid death claims for insureds who died while serving their country, without invoking policy war clauses that allowed denial of such claims.

2012 Year-end Financial Highlights.
As of December 31, 2012, Beneficial’s insurance in force was $19.6 billion. Other highlights include the following amounts, based on statutory accounting practices followed by insurance companies:

Category
Amount in thousands
Total admitted assets
3,090,328
Policy reserves
2,414,715
Capital and surplus
545,984


Capital and Surplus.
Beneficial continues to maintain very high capital and surplus as a financial safety cushion to meet the Company’s future liability obligations. As of December 31, 2012, the Company’s capital and surplus was $546.0 million. The following chart shows Beneficial’s capital and surplus over the past 15 years:

YEAR

CAPITAL AND SURPLUS AMOUNT
in thousands

1997
$159,230
2002
180,532
2007
341,146
2011
511,213


2012 Year-end Asset and Investment Highlights.
As of December 31, 2012, Beneficial’s assets and asset allocation were as follows:

ASSETS

AMOUNT
in thousands

ASSET ALLOCATION
percent of total

Bonds
$2,818,638
91.2%
Stocks
11,154
0.4%
Policy loans
104,673
3.4%
Cash and short-term investments
43,672
1.4%
Other assets
112,191
3.6%
Total assets
3,090,328
100.0%


2012 Year-end Bond Quality.
Beneficial’s diversified bond portfolio consists of nearly 1,000 separate issues. The largest individual issue in the portfolio represents less than 2 percent of total assets. As of December 31, 2012, the quality of Beneficial’s bond portfolio was divided into the following risk categories as classified by the National Association of Insurance Commissioners (NAIC). The NAIC’s six categories are based on the level of risk, ranging from 1 to 6; level 1 is the highest quality and lowest risk.

NAIC Risk Category
Percent of Total
1 (investment grade)
83.0%
2 (investment grade)
14.4%
3-6 (non-investment grade)
2.6%
Total
100.0%


2012 Risk-based Capital Ratio.
Beneficial’s risk-based capital ratio as of December 31, 2012 is 2,570%