Welcome to the 2023 GCU Annual Report Issue

Welcome to the 2023 Annual Report issue of the GCU Magazine. On behalf of the Board of Directors of the GCU, our Executive Officers, Department Directors and the entire support Staff, we are once again proud to present very strong, stable and sound financial statements for the 2022 fiscal year. Assets at year end 2022 total $2.6 billion representing a $228 million or 9.4% increase over 2021’s total assets. Surplus increase $10.2 million or 4.9% in 2022 with net income of $18.1 million being recorded as $18.4 million in net income was the projected budget for 2022.

GCU experienced excellent life and annuity premium in 2022. Although we fell short of our annuity premium goals, 89.4% or $358 million of first year premium and renewals was recorded as $400 million was our target for 2022. The GCU’s new Aquila X Fixed Indexed Annuity experienced its first full year being in the FIA marketplace that fell short of our goal with just over $100 million of recorded premium, the primary reason for not achieving our $400 total annuity target for 2022. Life premium on the other hand exceeded goal as $11.5 million was recorded compared to our target of $10.7 million. We continue to focus on our objective of increasing life premium especially on our Legacy Whole Life Plans. My sincere appreciation to our members and agents for the continued support and trust you have placed in GCU that enables us to present the continued financial success of our Society. We invite you to review our Chief Financial Officer, Tim Demetres, full detailed report on the GCU’s 2022 financial performance located on page 6 in the April issue.

Seven Oaks Country Club, Inc., a subsidiary of the GCU Holding Company, Inc., and the primary financial activity within the Holding Company recorded record total revenues of $4.3 million, primarily fueled by Membership Dues, Initiation Fees and Food & Beverage Sales. The improved revenues are attributed to the recent renovations to the entire facility over the last several years and the resurgence of the popularity in the game of golf. Unfortunately, in line with the current state of the economy and demand for labor, especially within the hospitality industry, costs have been driven up by staffing and overall operating expenses. A net loss before depreciation of $7,300.00 was recorded for fiscal year 2022. An increase in membership is projected for 2023 as the new Swimming Pool and Racquet Complex is slated to open this season. This new facility will certainly complement the most recent improvements and be reflective of the GCU as a $2.6 billion fraternal benefit society that will continue to improve the financial position of the Club!

The GCU Real Estate Company, Inc., another subsidiary of the Holding Company, had no sales activity in 2022. There are seven remaining lots in the single-family development at Congressional Place. We have received recent inquiries and anticipate lot sales in 2023. Pinehurst Village, a multi-family carriage home development within Seven Oaks under the ownership of Castlebrook Development, experienced several sales in 2022 as two units are currently under construction with five additional units planned to be constructed sometime during the second quarter of this year.
The GCU continues to be cognizant of the fact that there is substantial competition in the life insurance and annuity marketplace by both commercial carriers and other fraternal benefit societies. As I have reported in my previous articles, the Board of Directors has authorized the financial resources required to maintain our competitive advantage, specifically to improving our Information Technology that will provide greater efficiency throughout each of our processes with a goal of making it as easy as possible to do business with the GCU. In 2022, we focused on the development of our Aquila X Fixed Indexed Annuity on our new business policy administration system that was quite an expansive project in assuring that each process runs flawlessly from the application, to claims, to various riders contained in the product, e-applications, to agent and member portals and various reporting tools. We anticipate that the initial Aquila X product will be close to 100% completed in the second quarter of 2023. We are currently engaged in adding a new index, the Barclays US Tech Index to our Aquila X product and to the new Aquila V, a five-year term, that will incorporate the Barclays US Tech Index and our current Zorya Index. We anticipate a May 2023 launch timetable for these two initiatives. In addition to the development and implementation of our new Fixed Indexed Annuities, we are working simultaneously to also place our various life and fixed rate deferred annuity products into our new policy administration system as well.

As I have reported throughout 2022, the GCU has embarked in a totally new fraternal structure, the GCU Fraternal Metamorphosis Program, that was officially launched on January 1st. We have been very pleased with number of Constellation Coordinators and Byzantine Catholic Parish Coordinators that have volunteered their services under our new program. Geographic areas still in need of Constellation Coordinators are in the following areas: Denver, CO; Detroit, MI; Northern and Southern New Jersey; Philadelphia, PA; Uniontown, PA and Youngstown, OH. An array of activities is currently planned for 2023 as we invite you to view the GCU’s website – www.GCUusa.com – and click on events that presents the details on each event and registration forms. Our appreciation to our Fraternal / Communications Department Director, Basil Wahal, and our Corporate Community Event Coordinators Molly Kullen and Melissa Cohen and each of our Constellation Coordinators as we are off to an excellent start in the planning of various social and volunteer events for our members to enjoy and participate in. The website also presents the duties and responsibilities of the Constellation Coordinators if you may be interested in serving as the CC in one of the areas that is still vacant. We will continue to work with the pastors of our Byzantine Catholic Parishes that have yet to appoint a Byzantine Parish Coordinator.

In 2023, the GCU will continue to focus on our Strategic Objectives that include: Growth, Financial, Service, Fraternal, Technology and Risk. The Board of Directors have and will continue to always make sound, fiscal decisions to first and foremost protect our members’ business that they have entrusted with GCU. The Board, Executive Officers, Department Managers and entire GCU Staff are extremely cognizant of the various risks associated with the life insurance and annuity financial sector, which are monitored on a daily basis. The GCU may take on the title of being a “vanilla investor” as ninety five percent of the GCU’s investments are in corporate bonds. The GCU does not reinsure any life insurance or annuity blocks of business with third parties or offshore companies. Our investment portfolio is totally managed in-house with the assistance and guidance of three quality portfolio managers. The GCU is all about our members, Main Street, not Wall Street!

Our congratulations to Mr. George W. Batyko and Ms. Maria Silvestri as they have been selected by the GCU Board to fill two vacant board seats due to retirements. The bios of Mr. Batyko and Ms. Silvestri are presented for your review on page 3 in the April Magazine. We look forward to their contributions to the continued financial and fraternal success of the GCU.

It is with deep sadness we share the news that the GCU’s Spiritual Advisor, Very Rev. Mitred Archpriest John Kachuba passed away unexpectedly on February 12, 2023. Per Paragraph 46 of the Bylaws, the Spiritual Advisor is appointed by the Board of Directors. Please be informed that the Board has appointed Very Reverend Richard I. Lambert, as the GCU’s interim Spiritual Advisor until such time an appointment is made. Fr. Lambert was our former Spiritual Advisor prior to his retirement in 2020.

Please continue to pray for the citizens of Ukraine that God will provide them comfort and relief from this atrocity and will end sooner than later! Glory To Ukraine!

On behalf of the Board of Directors, our Executive Officers, Department Directors and our entire Support Staff, we thank you for the business you have entrusted with us. As we are in the midst of spring, enjoy the beauty of nature as it also revitalizes itself from its winter slumber. This transformation is such an astonishing feat only God could provide. ENJOY!

As always, please contact me with any questions or concerns!
GOODNESS IS GREAT!

CHRISTOS VOSKRESE! VOISTINU VOSKRESE!

George N. Juba | GCU President/CEO