2018 Annual Report

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As a 501(c)(3) tax-exempt organization, the Society of Actuaries (SOA) must manage its yearly income and expenditures to ensure it has sufficient resources to achieve its mission and core objectives now and in the future.

The annual budget takes into account the revenue received from member dues, fees for examinations and professional development offerings, sponsorships, fees for experience studies and research, and miscellaneous revenue and investment income. This revenue sustains the human and financial resources to:

• Develop and administer credentialing exams.
• Educate members through meetings and communications.
• Conduct and sponsor research projects.
• Promote the actuarial profession around the world.
• Provide a host of other activities based on members’ and candidates’ needs.

The financial results, which exclude section activity, reflect how much the SOA has invested in its strategic initiatives and the profession as a whole.

The accompanying chart shows a comparison of the actual 2017 results, the SOA Board–approved 2018 budget and the actual 2018 results. Total revenues in 2017 and 2018 were $58.5 million and $57.8 million, respectively. The SOA 2018 operating margin showed a management-basis increase of $815,000.  Investments decreased by $2.5 million, primarily due to unrealized losses on investments.  The 2018 net assets showed a decrease of $1.7 million.

Membership equity is measured against the following year’s expenses, standing at 89% at the end of 2017. The current membership equity position of $49.0 million is 84% of the SOA Board–approved 2019 budget. The target range of membership equity established by the Board is 50–100%.

Under the Board’s leadership, the strength of the SOA’s financial position will move strategic ideas forward and enhance our focus on the future of the profession.