Preneed

Preneed

Texas Funeral Home under Scrutiny

In an article and investigative video story that you can read and see here, an Austin, Texas based funeral home has been accused by the Texas Department of Banking of illegally collecting over half a million dollars of prepaid funeral payments from consumers.  Illegal because the owner was not licensed to sell prepaid funeral plans. These consumers are now worried about whether the money will be there for them at the time of need as the Department of Banking, according […]

Preneed

Funeral Directors Life downgraded to Negative Outlook

A press release from A.M. Best that you can read here has revised the outlook to negative from stable for Funeral Directors Life Insurance Company of Abilene, Texas. The rating change also states that the negative outlook reflects the company’s “ERM” or enterprise risk management. The release also maintains that the company’s metrics “reflect the company’s generally steady operating earnings, driven by somewhat modestly growing preneed premiums.  A.M. Best does, however, view the company’s business profile as limited and concentrated […]

Preneed

Life Insurer’s Council Reports on Preneed Sales

In two different articles that you can find here and here, the Life Insurance Council (LIC) reported on the results of their study of 2017 Preneed activity.  The study found mixed results in that annual premiums for preneed life insurance was $1.3 billion – down 3% from 2016.  The study also found that multi-pay policies were down 11% from 2016. On the other side of the ledger, however, the LIC found that preneed annuity sales increased 5% from 2016 levels. […]

Finance Preneed

Assurant Reports Higher Preneed Profits

Assurant reported their 2nd Quarter results last week.  You can read their report here. The worldwide conglomerate operating in the insurance and warranty business has one of its three business segments that operates in what they call “Global Preneed”.  That is the part of the company that we at Funeral Director Daily like to review. As an entire company Assurant reported operating profits of over $121 million for the quarter as compared to $90.5 million for the 2nd Quarter 2017.  […]

Preneed

Will that be Cash, Credit, or Crowdfunding?

  About a year ago Funeral Director Daily ran an article when we learned that some people were using crowdfunding sites to help raise the money needed to pay for the memorial expenses that they chose for their loved ones.  We recently read an article in the United Kingdom’s Independent entitled, “We had to beg for money to bury mum.”  You can read the article here. The article points out the difficulty a family had when their 49 year old […]

Preneed

Great Western earns Credit Rating Upgrade

Earlier this year we told you of the acquisition of pre-need provider Great Western Insurance Company by the American Enterprise Group of Des Moines, Iowa.  As of April 25, 2018, A.M. Best has completed their ratings on Great Western Insurance Company post acquisition. A.M. Best has upgraded, in a report you can read here, the Financial Strength Rating of Great Western to A- (Excellent) from B++ (Good) and the Long Term Issuer Credit Rating to a- from bbb+. Other notable […]

Preneed

Pre-Need: Defensive Strategy or Offensive Weapon?

Recently I was reading a business plan of a public company funeral home consolidator and when talking about how they look at the pre-need market, they mentioned that they look at Pre-Need as a “defensive posture” for holding on to call volume.  That was interesting to me because I have always looked at Pre-Need as more of a “go get people outside of your market group” to build business.  I’ve now decided that you should not look at Pre-Need as […]

Business Preneed

How Do You Get More Market Share?

There is not a business around that doesn’t want a bigger piece of the pie when it comes to market share.  Funeral businesses and funeral home owners are no different.  So, what is the secret in building your market share? First, there is no silver bullet on how it is done.  However, just like Major League Baseball being more analytic over subjective in analyzing data, funeral homes that analyze data can get a good indication of how to build that […]

Preneed

American Enterprise Group grows with Great Western Acquisition

An article from the Des Moines Register that you can read here gives some implications on the American Enterprise Group (AEG), a Des Moines based insurer, and its acquisition of Great Western Insurance Company of Utah.  As you recall we made you aware of this acquisition last month on Funeral Director Daily and now that the transaction has closed we will give some more perspective with some information gleaned from the article. American Enterprise Group was founded in 1929 and […]

Preneed

Presenting Pre-Need — Part 2

Okay, so I left you yesterday reading Presenting Pre-Need — Part 1 and teasing you that I would go into more detail with today’s Presenting Pre-Need — Part 2.  Not that you were up waiting all evening for it, but here is Part 2. I hope you enjoyed yesterday’s column and today I am going to try to let you in on how I succinctly explain the value of pre-need accounts to guests at funeral home seminars.  Hopefully, these tips […]