2022 Annual Report: We Are Ullico

Over 95 years ago, the labor movement created our business. Today, unions and their members invest in the business, represent the business, benefit from the business, and their well-being informs every business decision we make. The model works. In 2022, despite turbulent economic conditions, we set financial records, created union jobs, and celebrated key anniversaries.

We also launched exciting new initiatives, including an ongoing campaign to celebrate the pride and passion that drives the labor movement. As we reflect on the past year and plan for decades to come, please join us in declaring, “We Are Union.”

RECORD EARNINGS
Ullico generated record pre-tax operating earnings of $58.7 million in 2022.

SHAREHOLDER LIQUIDITY
Ullico repurchased $4.5 million of company stock.

ALL-TIME HIGHS
Investment assets under management, property and casualty professional liability program premiums, and life and health gross written premiums reached recent or record highs in 2022.

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LIFE & HEALTH

Union Labor Life continued to create stability for millions of American workers by providing affordable insurance coverage to union members and their families. In 2022, we retained 98% of our current group life insurance business and covered more than 2.2 million members. During the year, Union Labor Life paid over $47.9 million in group life insurance claims.

Union Labor Life also maintained its leadership role in providing medical stop loss coverage to health and welfare funds. The Life & Health division achieved $21.5 million in new stop loss sales and retained 88% of its current business.

The stop loss International Union dividend program allows health and welfare funds to receive dividends based on annual premium and/or claims experience. Since the program’s inception in 2012 to the end of 2022, Union Labor Life has paid $38.5 million in dividends to participating health and welfare funds in these stop loss programs.

Life and Health’s supplemental division, UnionCare, paid $9.4 million in claims to beneficiaries in 2022 and continues to enhance its product offerings and distribution channels.

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PROPERTY & CASUALTY

Ullico Casualty Group, LLC (UCG) demonstrated its unmatched commitment to safeguarding union leaders and multiemployer fund fiduciaries from personal liability. By updating coverages and loss control services as exposures evolve, UCG’s expert underwriters and claims professionals help protect our policyholders.

In 2022, Professional Liability program premiums reached a record $82.6 million, with 97% of policies renewing. We also achieved a record number of insureds, with over 7,177 labor organizations and benefit plans covered.

UCG continued to enhance the products it offers to the union marketplace. In 2022, it helped establish an innovative Alternative Dispute Resolution (ADR) program as a tool to reduce insurance costs through project labor agreements, while also providing excellent care to workers. UCG and construction risk services partner NFP implemented their first ADR program at the John F. Kennedy International Airport’s New Terminal One project.

In addition to ADR, the group also promoted surety bonds to building trades affiliates, plus offerings such as wrap-ups, environmental, and other insurance policies that construction projects typically require.

UCG also implemented an online applications process for Professional Liability policies on ullico.com and rolled out a new Cyber Liability program for local unions and small benefit plans with an easy enrollment process.

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INVESTMENT SERVICES

Ullico’s investment services division offers investment products and services specifically designed for the union marketplace and employee benefit plans. The division’s signature real estate and infrastructure products offer investors the opportunity to earn appropriate risk-adjusted returns while promoting union job creation.

During calendar year 2022, Ullico’s investment services division increased its assets under management (AUM) by approximately $1.2 billion to reach $9.5 billion as of December 31, 2022.

Real Estate Investment Group (REIG)

Ullico’s real estate debt products, including its flagship Separate Account J (J for Jobs), have provided more than $20 billion in loan financings for more than 550 projects since inception in 1977. In 2022, REIG invested $1.4 billion in 23 projects. Including loan participations from other lenders, total financing amounted to over $1.8 billion for these projects. Estimates indicate that construction financed by these loans will generate significant economic activity, including the creation of over 6,600 jobs and 13.4 million working hours. Since its inception, J for Jobs has created over 342,000 jobs and nearly 700 million working hours for union workers.

Ullico’s real estate debt products are managed for Union Labor Life by the Real Estate Investment Group of Ullico Investment Advisors. The real estate debt products ended the calendar year with $4.1 billion in AUM.

Ullico Infrastructure Fund (UIF)

UIF finished calendar year 2022 with $4.3 billion in AUM. The portfolio consisted of 26 portfolio investments covering over 540 assets throughout North America. These investments represent all major sectors, including wind, solar, natural gas energy generation, electricity transmission, water distribution and wastewater collection and treatment, and transportation and social infrastructure. New portfolio investments for 2022 included JFK New Terminal One, an offshore wind development in the NY Bight, Hope Gas, Cascade Renewable Transmission, and a solar development company called Estuary Power.

Responding to investment needs for the nation’s infrastructure, UIF was established in 2010 to assist in the construction, maintenance and refurbishment of America’s infrastructure. Since its creation, UIF has experienced significant growth in its AUM, its deal opportunity pipeline, and investor interest. UIF currently has in excess of $4.6 billion in investor commitments.

UIF’s objectives are to provide investors with appropriate risk-adjusted returns, promote the creation of union jobs, and contribute to economic growth in the nation’s communities.

UIA Investment Management (UIA-IM)

Launched in 2018, UIA-IM managed $1.3 billion in fixed income assets at 2022 year-end. Twenty-two benefit plans and other institutional investors participate in our fixed income strategies through commingled funds or individually managed accounts, which are advised by UIA-IM. As an affiliated investment platform, UIA-IM complements Ullico’s in-house capabilities by providing focused fixed income investment management services to institutional plan sponsors. The firm is particularly well suited for assisting multi-employer pension funds participating in the Special Financial Assistance program, which is estimated to provide $74 to $91 billion in assistance to eligible plans, restoring retirement benefits to over 3 million American workers, retirees, and their families.

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SUPPORTING THE AMERICAN LABOR MOVEMENT

Founded and owned by labor, Ullico is committed to giving back to the labor movement and exerting a positive influence on the comunities in which we work and live. To honor that commitment, Ullico has contributed to various nonprofit organizations and charitable causes that share the same goals that we do to make the world a better place for working Americans.

In 2022, Ullico and its companies contributed $1.7 million to community, health-related, military, education and workers’ rights organizations.

IN 2022:

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LETTER FROM THE CEO AND PRESIDENT

Record earnings, new products, competitive returns and protecting and growing North America’s union movement — that’s what we’ve come to expect of our company. During fiscal 2022, Ullico reached new heights, from the growing recognition of its expertise in financing job-creating, world-class infrastructure projects to its development of innovative insurance solutions for working people and their unions.

Consider:

• In fiscal 2022 Ullico broke its record for pre-tax earnings, reaching $58.7 million.
• Recent or record highs were attained in investment assets under management, property and casualty professional liability premiums, and gross stop loss premiums.
• We continued to retain customers while acquiring new ones. For example, 97 percent of professional liability policies renewed, and the insured grew to a record 7,177 labor organizations and benefit plans.
• Ullico Investment Services increased its assets under management by $1.2 billion. Our Real Estate Investment Group, which includes the flagship J for Jobs, invested $1.4 billion in 23 projects. That translates into 13.4 million work hours, bringing the total to nearly 700 million work hours created since J for Jobs’ inception. And our fixed income platform increased its assets under management by $200 million.
• Our Infrastructure Fund ended 2022 with $4.3 billion under management, with investments in major infrastructure from energy and water resources to transportation. Projects such as JFK Airport’s New Terminal One, the largest public-private partnership in the U.S., earned Ullico and its partners recognition for the best transportation infrastructure project of the year.

These accomplishments reflect the success of your company in achieving its mission, but because we are Ullico, our commitment is deeper than the numbers. In 2022, we contributed $2 million to organizations that share the same goals that we do to make the world a better place for workers.

And the Ullico Foundation awarded its first scholarships to students from underrepresented communities, particularly those pursuing studies in finance-related programs, where minority scholars are less common.

As a company, we continue to strive for a workforce as diverse as our marketplace not only because it is the right thing to do, but also because our employees are the key to our success. And just as we support a strong union voice for those who make Ullico work, we will continue to speak out broadly for economic and social justice.

In our letter last year, we wrote that the best was yet to come. We were right about that then, and we’ll say it again now: for the union movement’s company, the best is still yet to come. Because … We are Ullico!

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