Ullico | Annual Report 2019

Ullico's mission is to protect labor while maximizing shareholder value through the delivery of products and services for the union workplace. To fulfill its mission, the company constantly adapts to the changing needs of its clients. This emphasis on reflection and innovation continued in 2019, augmented by the forward momentum of recent years. The result was another remarkable year, characterized by outstanding achievements, advancements, and upgrades.

AM Best Rating: A- (Excellent)

Union Labor Life's* financial strength has been recognized by independent observers. In 2019, AM Best, the world's oldest insurance rating and information source, upgraded The Union Labor Life Insurance Company's Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and its Long-Term Issuer Credit Rating (ICR) to "a-" from "bbb+"

$6.4 Billion in AUM

Ullico's Investment Services division finished 2019 with $6.4 billion in assets under management (AUM). The increase of approximately $1 billion provides ample capital to pursue investment opportunities in the future.

HQ Makeover

Ullico 's headquarters in Silver Spring, MD, was in need of an upgrade. The renovations were completed in 2019. In keeping with our mission to support organized labor, the renovations were done with union contractors.


* The Union Labor Life Insurance Company is a subsidiary of Ullico Inc.

The division continued to be a leader in covering union members for life insurance, with over 2.2 million members covered, and retained 98% of current group life business. Through the year, Union Labor Life paid over $47 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 $22.1 million in new stop loss sales and retained 96% of its current business. The International Union participation programs allow policyholders and their health and welfare funds to earn dividends based on annual premium and/or claims experience.

Since 2012 to the end of 2019, Union Labor Life has paid $21 million in dividends to participating health and welfare funds in these stop loss programs.

UnionCare achieved $1 million in new sales and continues to enhance direct response distribution channels.

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 its policyholders.

Professional Liability Program premiums reached a record $63.8 million, with 97% of policies renewing.

UCG produced $2.8 million in new Professional Liability business due to its solid reputation for claims and policy management and its partnerships with independent brokers.

UCG enhanced a key partnership with Markel American Insurance Company to extend coverage for its Fiduciary Liability and Union Liability program and also to add new Commercial Lines offerings.

The division continued to build its Commercial Lines program, in addition to its Cyber Liability program to generate fee income and provide vital insurance products for the union workplace. The industry experts in UCG led the way in multiemployer fund and union education and risk management by adding:

  • Cybersecurity resources to Ullico Resource Center, its digital loss control portal
  • Speaking at multiemployer fund conferences
  • Publishing attorney-authored white papers

The division paved the way for the future by choosing a new underwriting and claims administration system to manage its growing book.

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

During calendar year 2019, Ullico's Investment Services division increased its assets under management (AUM) by approximately $1 billion to reach $6.4 billion.

Real Estate Investment Group (REIG)

Ullico's real estate debt products, including its flagship Separate Account J (J For Jobs), have provided more than $18.5 billion in loan financings for more than 550 projects since inception in 1977. In 2019, REIG participated in over $2.6 billion in project financings of which $623 million was closed and $300 million is scheduled to close in 2020. Projections indicate that construction financed by these loans will generate significant economic activity, including the creation of approximately 8,218 jobs and 16.4 million working hours. Since its inception, J for Jobs has created over 325,000 jobs and approximately 655 million working hours and nearly $6 billion of personal income for union workers.

Ullico's real estate debt products are managed within Union Labor Life by the Real Estate Investment Group. It ended the calendar year with $3.8 billion in AUM.

Ullico Infrastructure Fund (UIF)

The Ullico Infrastructure Fund finished calendar year 2019 with $1.7 billion in AUM. The portfolio consisted of 15 completed transactions covering 260 assets throughout the nation. These assets represent all major sectors, including wind, solar, natural gas energy generation, electricity transmission, water, water distribution and treatment, and transportation and social infrastructure. Two active UIF investments have created an estimated 6 million working hours for union members.

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 $2.41 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)

UIA-IM launched in 2018 with approximately $500 million in AUM. Now the division has $862 million AUM in six portfolios. As an affiliated investment platform, it expands Ullico's in-house capability to provide focused fixed-income investment management services to institutional fund sponsors.

FINRA Disclosures

Founded and owned by labor, Ullico is committed to giving back to the labor movement and exerting a positive influence on the communities 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 2019:

Proudly Supporting

1199 SEIU Employer Child Care Corporation
A Philip Randolph Institute
Addolorata Villa
AFL-CIO MLK Civil and Human Rights Conference
Ajax St. Louis Soccer Club
Alzheimer's Association
Amalgamated Transit Union Strike Fund
America Agenda Healthcare Education Fund
American Diabetes Association
American Labor Museum
Archway Institute
Arise Chicago
Autism Society of Southern Illinois
BAC Disaster Relief Fund
Belfast Beltway Boxing Project
Boys & Girls Club of Chicago
Building Independent Successful Students
Bunker Hill Area Kiwanis
Cairo Heritage Foundation
Calcio Express Hawks
Canadian Friends of Larger Than Life
Carpenters Helping Hand
Christopher P Gardner Foundation Inc.
Citizens for Modern Transit
CM Merritt Foundation
Coach Ron's Basketball 101 Camp
Coalition of Labor Union Women
Community Health Professionals Home Care & Hospice
Connell F. Smith Homer Brown Scholarship Fund
Council for Court Excellence
DC Bar Pro Bono Center
DC Friends of Ireland Charitable Trust
DC Jobs with Justice
DC Law Students in Court
Diabetes Research Institute Foundation
Dominican Sisters of Springfield IL
Driving for Dreams Charity Golf Classic
Economic Policy Institute
Egyptian Building and Construction Trades Council
Elderly Housing Development And Operations Corporation
Eugene V. Debs Foundation
Folds of Honor Foundation
Gene Slay's Girls and Boys Club
Georgetown Half Marathon
Gonzaga DC Classic
Good Jobs First
Great Plains Life Foundation

Heart of Illinois United Way Inc.
Helmets to Hardhats
High Road Construction Defense Fund
Hispanic Bar Association of DC
I Can Read of Southern Illinois
ILA Children's Fund
Illinois Baptist Children's Home and Family Services
Illinois Coalition Against Domestic Violence
Illinois Labor History Society
Illinois Women's Institute for Leadership
ILSR Scholarship Fund
In Search of a Cure
Indiana's Laborers' Educational and Social Fund
Instituto Laboral de la Raza
International Labor Rights Forum
IUEC Charity Foundation
IWDCSOV Scholarship Fund
Jobs with Justice Educational Fund
John A Logan College Foundation
KFL Community Services Inc.
Labor and Industry Museum
Labor Heritage Foundation
Labor of Love
Laborer's Local 996 DADS
Laborers Disaster Response Team
Laborers District Council Charitable Foundation
Laborers Local 231 John M Evans Scholarship
Larc School
Law Enforcement Officers Relief Fund
Leukemia & Lymphoma Society
Lick Creek School
LIUNA Lending a Hand
LIUNA Local 183 Charity Golf Classic
Local 926's Maria Concillo Memorial Scholarship Fund
March of Dimes
Mercy Center Foundation USA
Mike Dean Memorial Park Fund
Mike Quevedo Sr. Scholarship Fund
Mikva Challenge
Miners Aid Fund
NAACP Alexander Pulaski County Branch
NAACP Carbondale Branch
National Alliance for Fair Contracting
National Consumers League
National Democratic Institute for International Affairs
National Italian American Foundation
National MS Society
National UA Scholarship Fund
NEADS World Class Service Dogs

PA American Legion Housing for Homeless Veterans
PATCH Foundation
Pathway Homes Inc.
Patrick D Finley Scholarship Fund
Peggy Browning Fund
Peoria Labor Temple Association
Peoria Promise Foundation
Pocatello Jewish Community Center
Prevent Child Abuse Kentucky
ReBuild USA
Rowan University Foundation
Ryan Griffin Memorial Foundation
Saints Foundation of Shawnee Community College
SE Missouri District Fair
Seal Family Foundation
SIU Foundation for the Paul Simon Institute
SMART Heroes Foundation
SMWI Scholarship Foundation
Southern Illinois Central Labor Council Food Drive
St Andrews Presbyterian Church
St Ignatius College Prep
St. Jude Children's Research Hospital
State Fair Veterans Day Committee
Steel Valley Authority
Teamsters Canada Foundation
Teamsters Local 25 Autism Fund
The Flax Trust America
The Irish Echo Newspaper
The Jesse White Foundation
The Labor Guild of the Archdiocese of Boston
The National Football Museum
The PATCH Foundation
The Peggy Browning Fund
The Poshard Foundation
The Rebound Foundation
Two Rivers Child Advocacy Center
UA Emergency Relief Fund
UFCW Charity Foundation
UFCW Local 881 Charitable Foundation
Union Sportsman Alliance
United Way of Champaign County
Washington Ireland Program
Western Missouri & Kansas Charitable Laborers' Charitable Foundation
Wood Family Foundation
Workers Defense League Inc.
Working America
Working Families Friends

In sports and in business, one of the hardest things to do is to repeat championship years, to make winning seasons the norm and not the exception. Ullico is doing just that. The company's record-setting years positioned us for success in 2019.

Ullico's continuing financial strength was on full display again this year, highlighted by record highs in pre-tax operating earnings and assets under management (AUM), a 30% increase in book value per share from last year, and a return on equity of 20%. In addition, for the first time in 55 years, The Union Labor Life Insurance Company was upgraded to A- [Excellent] by AM Best Company.

Ullico's mission of protecting the labor movement was evidenced by a productive year in our Property and Casualty division, which underwrites professional liability coverage for union leaders and fiduciaries. These professional liability policies reached a record $63.8 million in premiums with a 97% renewal rate, while the division continued to build and refine commercial and cyber liability policies to meet the expanding needs of the market.

Union Labor Life continues to protect 1.2 million union members with the life insurance the company was founded to provide, and paid over $47 million in claims in 2019.

Importantly, Union Labor Life has also retained its leadership role in providing stop loss coverage to health and welfare funds, with $22 million in new sales and a retention rate of 96%. Since 2012, funds affiliated with numerous international unions have received $21 million in dividends through participation in our unique stop loss program.

While we protect the labor movement, we continue to help it grow with our investment platforms, including Separate Account J [J for Jobs], and the Ullico Infrastructure Fund, with the goal of delivering a safe, risk adjusted return on investment to our investors. At the same time, J for Jobs has invested in over 550 projects, generating 655 million hours of work and 325,000 jobs for union building trade members and contractors since its inception in 1977.

Our Ullico Infrastructure Fund had another breakout year with commitments exceeding $2.4 billion, $1.7 billion in AUM invested in 15 portfolio companies, and 260 assets in all major sectors throughout North America. In addition, our UIA Investment Management fixed income management team has shown great promise in expanding Ullico's in-house fixed-income investment management capability with $862 million in AUM, in 6 portfolios.

The Ullico story is also one of investing in the causes the labor movement champions, its charities, its members, and its values. During these unique and challenging times, our Company, its history, and its union-centered mission, are more important now than ever before. For over 92 years Ullico has been known as labor's company, because labor is our only customer, and every day our goal is to be worthy of the title.

Joseph J. Hunt
Chairman, Ullico Inc.
President Emeritus
International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers

Stuart M. Bloch
Chairman of the Board Emeritus
Congressional Bank

James Boland
International Union of Bricklayers and Allied Craftworkers

James T. Callahan
General President
International Union of Operating Engineers

The Honorable Robin Carnahan
Former Missouri Secretary of State

Kenneth W. Cooper
International Secretary-Treasurer
International Brotherhood of Electrical Workers

The Honorable Jerry F. Costello
Former Congressman
Illinois 12th Congressional District

Daniel J. Kane
Vice President,
International Brotherhood of Teamsters, Eastern Region

Christopher B. Lissner
President & Managing Member Acropolis
Investment Management, LLC

Edward J. McElroy
President Emeritus
American Federation of Teachers, AFL-CIO

Mark McManus
General President
United Association

Sean McGarvey
Secretary-Treasurer, Ullico Inc.
North America's Building Trades Unions

Terence M. O'Sullivan
General President
Laborers' International Union of North America

Kenneth E. Rigmaiden
General President
International Union of Painters and Allied Trades

Kinsey M. Robinson
International President
United Union of Roofers, Waterproofers & Allied Workers

K. Dunlop Scott
Columbia Partners Energy Solutions, LLC

DeMaurice F. Smith
Executive Director
NFL Players Association

Edward M. Smith
President & CEO Ullico Inc.

Edward C. Sullivan
President Emeritus
Building and Construction Trades Department, AFL-CIO

George Tedeschi
Graphic Communications Conference of the International Brotherhood of Teamsters

Richard L. Trumka
American Federation of Labor and Congress of Industrial Organizations

In 2019, Ullico experienced another year of strong financial performance and continued its history of delivering shareholder value. For a detailed report, download the 2019 Audited Financial Statements below.

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