JOHN CASSIL, CHIEF FINANCIAL OFFICER
Our Results
Colleagues quickly adapted to the rapidly changing landscape of business and found ways to excel in supporting our Customer groups as well as individual policyholders.
American Fidelity Corporation (AFC), the holding company of American Fidelity Assurance Company (AFA), reported consolidated GAAP net income of $238 million in 2021. AFC’s strong results reflected lower benefits expense stemming from the pandemic, significant capital gains and strong premium growth.
While the pandemic reduced our premium growth in 2020, our 2021 premium growth returned to pre-pandemic levels and is a testament to the strength of our Sales Colleagues and the strong Customer experience provided to our policyholders. Our continued commitment to providing the best Customer experience is reflected in our continued investments in technology, our Colleagues and Cameron Ventures, a venture capital fund focused on identifying and implementing the latest technology innovations in the Insurtech/Fintech space.
A guiding principle at AFC is a strong balance sheet to meet future Customer needs, which is reflected in AFA’s $617 million of statutory surplus as of Dec. 31, 2021.
While the pandemic reduced our premium growth in 2020, our 2021 premium growth returned to pre-pandemic levels and is a testament to the strength of our Sales Colleagues and the strong Customer experience provided to our policyholders. Our continued commitment to providing the best Customer experience is reflected in our continued investments in technology, our Colleagues and Cameron Ventures, a venture capital fund focused on identifying and implementing the latest technology innovations in the Insurtech/Fintech space.
A guiding principle at AFC is a strong balance sheet to meet future Customer needs, which is reflected in AFA’s $617 million of statutory surplus as of Dec. 31, 2021.
- Consolidated realized capital gains net of tax totaled $34.8 million and were driven by equity gains stemming from the appreciation in the equity markets and gains in the AFA bond portfolio driven by implementing our total return approach to managing the bond portfolio.
- AFA’s annual operating cash flows were $250 million and our $1.0 billion in consolidated liquidity provides strong financial flexibility to meet operational goals and policyholder needs.
- AFC’s consistent operating strength is reflected in the 12% compound annual growth rate of GAAP equity since 2017.
- A.M. Best assigned a group rating of A+ superior for AFA and American Public Life (APL) for 2021. This rating was driven by our strong balance sheet and operating performance.
