Navy Mutual Remains Strong Despite Market Volatility

Posted: 09/18/2008

By RADM Bruce B. Engelhardt, USN, Ret.
President, Navy Mutual Aid Association
Bruce

The recent turmoil in the financial industry has created significant concern about the stability of organizations involved in financial services. Navy Mutual Aid Association remains unaffected by recent developments. Despite current market volatility, Navy Mutual remains strong and the assets invested with the Association remain secure.

Solid Investment Portfolio

Thanks to our conservative investment policies, Navy Mutual has managed to avoid nearly all of the risks that brought down two investment banks and now threaten some other insurers.

Navy Mutual has never had any direct exposure to sub-prime mortgage risk.

We do not invest in futures, hedge funds, derivatives or non-U.S. dollar securities.

We have no investments with AIG, or the credit default swaps that have caused them such difficulty.

Navy Mutual has minimal exposure to Lehman Brothers bonds with a total par value of less than .2% of our total assets.

Secure Financial Position

Navy Mutual has an exceptionally strong, low-risk investment portfolio and significant capital reserves.

We have more than $450 million of special reserves, contingency funds and unrealized capital gains available to respond to any emergency.

Navy Mutual maintains over 85% of our $2.2 billion in assets in fixed income investments rated A or above.

Our overall net investment yield thus far in 2008 is 6.6% (annualized).

Navy Mutual is Here for You

We at Navy Mutual will continue to steer a conservative course to protect you, our Members, and their loved ones.

We maintain a long-term commitment of providing financial security to our Members and their families.

Short-term market volatility should not change the long-term needs of you and your family. Our benefit plans protect your loved ones for the long-term.

Our permanent life insurance and fixed annuities provide stable value and growth, especially today.

If you do not yet have a plan in place, Navy Mutual can help you get started now.

We are in the market for the long term and our portfolio remains strong. We have weathered storms in the past, and are well positioned to ride out the turbulence in the financial markets now.

Sincerely,
bruce signature

RADM Bruce B. Engelhardt, USN, Ret.
President, Navy Mutual Aid Association