The LBL invested asset portfolio is comprised of the following major asset classes:
(As of December 31, 2016)
Marketable Securities – 65%. This asset class is made up primarily of high quality fixed income securities and preferred stock (average S&P rating A-) with a focus on matching our asset maturities with policy holder benefits. We have worked diligently to reduce our exposure to “below investment grade” holdings and it is currently at its lowest levels since the 2008-2009 financial crisis. Throughout 2016 we continued to diversify our risk exposures by varying industry groups and adding other international securities.
Commercial and Real Estate Mortgage Loans – 24%. One of our major competitive advantages is our ability to generate high quality commercial loans. Although this asset class comprises less than a quarter of our total portfolio, it significantly enhances total investment return for policyholders and shareholders. These loans generally have maturities of less than two years and provide risk adjusted returns that are far superior to investments with comparable safety. LBL’s staff of knowledgeable mortgage loan underwriters uses rigorous guidelines to evaluate commercial lending opportunities.
Real Estate – 3%. LBL purchases real estate in select markets where we are able to identify an economic advantage. These properties are actively managed, leased and marketed for sale. The expertise of our staff enables us to efficiently acquire and sell properties, resulting in excellent returns for policyholders and shareholders.
Common Stocks – 6%. This class consists of equity investments in our subsidiary life companies and American Reserve Service Corporation, which holds as its principal asset a 412,205 sq. ft. Class A office building in Dallas, Texas with tenants such as Coca-Cola, Coca-Cola Enterprises, Remington Hotel Corporation, Town North Bank, Copart and Charles Schwab. Our exposure to publicly traded equities is minimal.
Cash Equivalents and Other Assets – 2%. The majority of this asset class is liquid funds, but also includes contract loans and other short term investments. We also hold certificates of deposit, reinsurance income due, investment income due and accrued and other miscellaneous assets. Given the extreme volatility of today’s financial markets, we are holding enough cash to meet unexpected needs.
LBL’s careful and conservative investment strategies have resulted in steady growth and outstanding returns for policyholders and shareholders.
The financial and investment information contained in this website is summary in nature and is not meant to provide complete financial disclosure for the group or any if its companies. More detailed financial and investment information is available through each company’s NAIC filings. The financial and investment information contained in this website is provided for reference only and is meant to provide a summary of such information as of the date provided. The financial and investment performance represented is historical; past performance is not a guarantee of future results. To the extent that any forward-looking statements are contained in this website, such statements are based on management’s expectations at the time the statements were written and the company has no obligation to update such statements. Moreover any forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations.