MUSIC HAS BEEN DESCRIBED AS THE UNIVERSAL LANGUAGE. It’s one I’ve “spoken” since I was in diapers, pounding away at the piano keys from my dad’s knees. These days I hold my grandkids as they do the same. You could say we “play for keeps,” from generation to generation. So does Modern Woodmen of America.

Since it was formed in 1883, Modern Woodmen has always been serious about protecting its members and supporting their communities. Through booms and recessions, from wartime to peace to a global pandemic, we play for keeps. And we stay in tune with what’s needed for stability and success.

Among the many lessons of 2020, we learned we can adapt and embrace opportunities for growth. Our staff, field representatives and fraternal leaders learned new technology to successfully work, volunteer and socialize from home. We remain on track and continue to challenge ourselves to:

• Streamline our internal processes to better serve you.• Find new ways to provide the products and services you need.• Offer a menu of fraternal member benefits and programs that

appeal to you, your family and community.We play for keeps and always will – learning, growing and helping

you orchestrate financial plans to meet your goals, and offering fraternal benefits and programs to support your family and community. And we continue to hold you in our hearts and in our prayers throughout this pandemic.

It’s my honor to share this 2020 annual report. May it strike just the right chord.

From left:

Director Lester L. Bohnert East Moline, Illinois

Director Sam H. Kupresin Bettendorf, Iowa

National Secretary and Executive Vice President Jerald J. Lyphout East Moline, Illinois

Director David B. Emrick Davenport, Iowa

President and CEO W. Kenny Massey LeClaire, Iowa

Director James E. Temperley Bonita Springs, Florida

Director Brett M. Van Coal Valley, Illinois

Director Lori A. Newberg Lenexa, Kansas

Director Joseph A. Sztapka Sioux Falls, South Dakota

Playing for keeps / Modern Woodmen of America 2020 Annual Report

OUR MISSION To improve the quality of life for our members.

OUR VISION Modern Woodmen of America will grow nationwide through members helping members create a better tomorrow for themselves, their families and others.

OUR CREED There is a destiny that makes us brothers; None goes his way alone; All that we send into the lives of others Comes back into our own. - Edwin Markham, circa 1939

PLAYING FOR KEEPS2020 ANNUAL REPORT TO MEMBERS

W. Kenny Massey | President and CEO

MODERN WOODMEN OF AMERICA’S

BOARD OF DIRECTORS

SNAPSHOT 2020

David A. Nuernbergerappointed 2021

WE WELCOME THE 23,006 NEW MEMBERS WHO JOINED MODERN WOODMEN LAST YEAR!

735,913 members PAID TO MEMBERS (INCLUDES DEATH BENEFITS, ANNUITY PAYMENTS AND SURRENDER BENEFITS).

$1.09 billion

IN FRATERNAL EXPENDITURES SUPPORTING MEMBER BENEFITS AND PROGRAMS.

$14.4 millionOF LIFE INSURANCE COVERAGE IN FORCE.

$41.84 billion

2524

To protect members’ health, in-person events were suspended due to the pandemic beginning in March 2020. However, members continue to learn, socialize and make an impact through volunteer-from-home, limited-contact and virtual activities.

• CREATIVE, SAFE EVENTS. From virtual tours of dairies, distilleries and museums, to online magic lessons, concerts and trivia contests, members “gathered” to socialize and learn. And many chapters and clubs organized drop-off volunteer projects to benefit hospitals, food pantries, schools and homeless shelters.

• TOGETHER FOR GOOD. Members united around a single cause – helping people with disabilities. In April, the campaign’s focus was expanded to include supporting people affected by the pandemic.

• MATCHING FUNDS. Chapters and clubs partnered with thousands of organizations to raise money for local causes. Modern Woodmen matched $3.4 million raised through these fundraisers.

• DISASTER RELIEF. The Natural Disaster Matching Fund Program supported additional fundraising matches to assist with projects related to national disaster declarations for hurricanes in Alabama, Florida and Mississippi; wildfires in California and Oregon; tornadoes in South Carolina and Tennessee; and a derecho in Iowa. These projects raised $162,913, including Modern Woodmen’s $14,500 match for the causes.

On behalf of their local member chapters and youth service clubs, Modern Woodmen’s fraternal leaders made 1,430 cash donations to schools, public entities and nonprofit organizations at the beginning of the pandemic. The nearly $1.1 million provided funding for personal protective equipment, food and other items in member communities across the nation.CHAPTER AND CLUB ACTIVITIES

CONTINUE TO MAKE AN IMPACT

$1.1 MILLION DONATED IN DIRECT COVID-19 RELIEF

ADDITIONAL BENEFITS

*Includes total dollars raised by member chapter and youth clubs partnering with community groups.

MATCHING FUND PROGRAM

YOUTH SERVICE CLUBS

CLUBS792 PARTICIPANTS26,865

CHAPTERS

EVENT PARTICIPANTS14,674

for members age 55+.

ACTIVE SUMMIT CHAPTERS

293

enjoyed social, educational and volunteer events.

ATTENDEES171,062

ACTIVE CHAPTERS2,516

SERVICE PROJECTS/VOLUNTEER ACTIVITIES

HANDS-ON EVENTS7,466

VOLUNTEER HOURS194,920

for projects in members’ communities.$1.7 million REIMBURSED

3,699 FUNDRAISING EVENTS

to community projects and individuals in need.$29.3 million* CONTRIBUTED

BIRTHDAY BOOK CLUB

received a free book.16,977 CHILDREN

MAKE AN IMPACT® SCHOLARSHIPS

to 199 members.$452,000 AWARDED

FRATERNAL AID FUNDfor members experiencing medical or natural disasters.

$82,211 TOTAL PREMIUMS PAID

DO-GOOD GRANT®

for members’ approved personal volunteer projects.AWARDS $100 GRANTS

FINAL WISHES

accessed planning website.1,538 MEMBERS

MEMBER DISCOUNTS

on home goods and technology, health screenings, gym memberships, park passes, and more.

$231,000+ IN SAVINGS

NEWBORN BENEFITfor qualifying families of infants in poor health.

CAN PROVIDE LIFE INSURANCE

ORPHAN BENEFITfor members’ children who become orphaned.

OFFERS FINANCIAL SUPPORT

TERMINAL ILLNESS INTEREST RELIEF

related to advances for those with terminal illness.CAN WAIVE INTEREST

MEMBER ACTIVITIES

MEMBER BENEFITS

MoneyMasters is Modern Woodmen’s new, free educational program for students of all ages.

• MoneyMasters K-12 is a blended-learning program for schools, home schools and youth organizations. It includes programs for grades K-2, 3-5, 6-8 and 9-12, and once a classroom completes the program, they may be eligible to receive funds for a Community Impact Capstone project. This helps students practice the skills they learned while benefiting a local cause.

• MoneyMasters workshops help adults learn about budgeting, identity theft, credit scores and reports, and debt management. Modern Woodmen representatives present the workshops as a volunteer service, partnering with local nonprofits and public agencies.

To learn more, check out the video at https://bit.ly/38zahMy or contact your local Modern Woodmen representative.

FREE PERSONAL FINANCE PROGRAM

2726 Playing for keeps / Modern Woodmen of America 2020 Annual Report

Life insurance products• Whole life insurance• Universal life insurance• Term life insurance

Annuity products• Fixed annuities• Immediate annuities• Variable annuities*

Investment products*• Mutual funds• Retirement plans – traditional IRA, Roth IRA,

SEP-IRA, SIMPLE IRA, 401(k), 403(b) TSA• College savings plans – 529 college savings

plans, Coverdell education savings accounts, UGMA/UTMA accounts

• Brokerage services – stocks, bonds, ETFs, UITs• Investment advisory services – adviser-managed

and third-party managed accounts, financial planning services

Insurance products**• Dental and vision insurance• Disability income insurance• Group employee benefits• Group voluntary benefits• Impaired risk life insurance• International life and health insurance• Long-term care insurance• Health insurance• Medicare supplement insurance• Medicare Advantage and prescription drug plans

*Securities offered through MWA Financial Services, Inc., a wholly owned subsidiary of Modern Woodmen of America. Member: FINRA, SIPC. Investment Advisory Services offered through MWA Financial Services, Inc., a Registered Investment Adviser. Individual agents may not be licensed to sell all products.**Not issued by Modern Woodmen of America. Brokered insurance products available through MWAGIA, Inc., a Modern Woodmen subsidiary. Product availability varies by state.

PRODUCTSMODERN WOODMEN REPRESENTATIVES OFFER FINANCIAL GUIDANCE AND PRODUCTS TO HELP YOU MEET A WIDE RANGE OF NEEDS

Bonds

Cash, certificate loans and other

Mortgage loans and real estate

Equities (preferred and common stocks)

Quality Investments

Fraternal expenditures for the year declined due to suspension of in-person activities during the COVID-19 pandemic.

Fraternal ExpendituresDollars in millions

As of 12/31/2020, approximately 99.3 percent of bonds were of high or medium quality.

Modern Woodmen’s increasing asset base is a strength.

Growth in AssetsDollars in billions

Life insurance in force shows consistent growth and increased protection for members.

Life Insurance in ForceDollars in billions

79%

6%

2%

13%

2020 FINANCIAL HIGHLIGHTS

Financial Representative Jonathon Ostler (right), Utah

Financial Representative Joshua Leung, California

Financial Representative Lily Ritch and her father, Managing Partner Fred Burgess, North Carolina

Financial Representative Curtis Woods, Arkansas

2928 Playing for keeps / Modern Woodmen of America 2020 Annual Report

2020 2019

Operating activities

Premium and annuity considerations $916,306 $957,749

Net investment income 601,035 612,728

Miscellaneous income 20,822 9,049

Total cash provided by operations 1,538,163 1,579,526

Benefit- and loss-related payments 1,060,185 1,116,185

Commissions and other expenses paid 188,717 204,005

Net transfers to or (from) separate accounts 13,264 62,638

Dividends paid 8,085 7,451

Total cash used in operations 1,270,251 1,390,279

Net cash provided by operating activities 267,912 189,247

Investing activities

Proceeds from investments sold:

Bonds 1,943,404 1,394,411

Stocks 184,285 132,770

Mortgage loans 40,188 130,548

Real estate 497 0

Other invested assets 74,105 77,364

Miscellaneous proceeds 0 14,410

Total investment proceeds 2,242,479 1,749,503

Cash applied, cost of investments acquired:

Bonds 1,638,110 1,871,453

Stocks 78,174 61,451

Mortgage loans 0 0

Real estate 1,742 351

Other invested assets 252,028 99,660

Miscellaneous applications 73,611 22,088

Total investment applications 2,043,665 2,055,003

Net decrease in certificateholders’ loans (8,305) (5,590)

Net cash used in investing activities 207,118 (299,910)

Other cash provided by (used in) financing activities and other miscellaneous sources 119,604 205,289

Increase (decrease) in cash and short-term investments 594,634 94,626

Cash and short-term investments at beginning of year 363,354 268,728

Cash and short-term investments at end of year $957,988 $363,354

2020 2019

Assets

Bonds $13,331,496 $13,627,696

Stocks 971,425 860,782

Mortgage loans 418,693 458,883

Real estate 17,480 18,059

Cash and short-term bonds 957,988 363,354

Certificateholders’ loans 139,277 147,723

Securities lending reinvested collateral 432,658 375,154

Other invested assets 683,544 451,845

Total cash and invested assets 16,952,561 16,303,496

Investment income due and accrued 122,845 127,567

Electronic data processing equipment 2,365 3,422

Other assets 5,319 3,953

Separate account assets 1,095,492 902,209

Total admitted assets $18,178,582 $17,340,647

2020 2019

Income

Premiums:

Life and annuity $916,030 $956,350

Other 207 1,439

Investment income, net of expenses 597,512 613,344

Amortization of interest maintenance reserve 10,729 12,941

Other income 15,556 9,049

Total income 1,540,034 1,593,123

Benefits and expenses

Benefits:

Life and annuity 1,070,769 1,118,615

Other 308 370

Increase in aggregate reserves 236,245 144,533

Employees’ and fieldworkers’ benefit plans 8,710 9,722

Commissions 50,313 53,784

General insurance expenses 105,880 117,981

Insurance, taxes, licenses and fees 6,627 8,293

Fraternal, charitable and benevolent expenses 14,361 20,431

Net transfers to or (from) separate accounts 7,173 55,701

Total benefits and expenses 1,500,386 1,529,430

Net gain from operations before dividends/net realized capital gains 39,468 63,693

Dividends to certificateholders 9,055 8,241

Net gain from operations before net realized capital gains 30,592 55,452

Net realized capital gains 93,836 34,071

Net income $124,428 $89,526

2020 2019

Surplus - balance at beginning of year 2,018,309 1,878,929

Net income 124,428 89,526

Net unrealized capital gains 176,660 184,961

Change in asset valuation reserve (86,471) (89,049)

Change in nonadmitted assets (1,351) 1,612

Other changes, net 16,282 (47,670)

Surplus - balance at end of year $2,247,857 2,018,309

Statements of Cash Flows

Balance Sheets

Statements of Operations

Statements of Surplus

2020 2019

Liabilities and Surplus

Aggregate reserves:

Life and annuity $13,143,181 $12,908,456

Accident and health 1,580 1,784

Certificate and contract claims 50,484 33,146

Other certificateholders’ funds 3,489 3,460

Dividends payable to certificateholders 9,060 8,090

Accrued commissions, general expenses and taxes (22,262) (13,365)

Payable for securities lending 432,658 375,154

Other liabilities 710,057 684,818

Liability for benefits for employees 68,861 63,925

Interest maintenance reserve 25,549 28,556

Asset valuation reserve 412,576 326,105

Separate account liabilities 1,095,492 902,209

Total liabilities 15,930,725 15,322,338

Unappropriated surplus 2,247,857 2,018,309

Total surplus 2,247,857 2,018,309

Total liabilities and surplus $18,178,582 $17,340,647

FINANCIAL STATEMENTSMODERN WOODMEN OF AMERICA – YEAR END DEC. 31, 2020 (DOLLARS IN THOUSANDS) UNAUDITED

3130 Playing for keeps / Modern Woodmen of America 2020 Annual Report