MS IC INSURANCE FUND FINANCIAL REPORT
experienced a decline in excess shares during its most recent fiscal year. This negative growth was a major factor in MSIC recording a net loss of $736,000 for the year ended September 30, 2023 compared to a net income of $134,000 for the year ended September 30, 2022. Other factors contributing to the net loss included: 1) the real estate investment experienced, although greatly improved, unfavorable results; 2) MSIC Partners also experienced, greatly improved, but unfavorable results; 3) the hosting of the International Association of Deposit Insurers (“IADI”) Annual General Meeting and Conference to promote collaboration amongst deposit insurers from around the world. Two factors offsetting the net loss were:1) the higher interest rates earned on the investment portfolio due to investing excess cash and portfolio turnover; 2) the decrease in the general insurance reserve in the amount of $1,300,000 resulting from the improved condition of the membership. After several years of robust, double- digit growth in excess shares, MSIC
The investment securities maturing in one to five years and in over five years were 36.66% and 9.22% of total assets, respectively.
Gross Revenue for Fiscal Year 2023 decreased $2.3 million from Fiscal Year 2022. Despite adding a new member, excess shares experienced negative growth which led to a $2.9 million decrease in assessment revenue. While the investment strategy of remaining short continued during the year, the investment of excess cash, the increase in interest rates, and portfolio turnover led to investment income increasing by $350,000. Furthermore, the Gross Rental Income on the real estate investment, which excludes MSIC’s use of space, increased by $400,000. Lastly, with a slow-down in first mortgage originations, mortgage fulfillment services revenue decreased by $170,000. Liquid assets (cash and cash equivalents, and certificates of deposit and investment securities with maturities of one year or less) totaled $28.0 million or 27.90% of total assets at September 30, 2023 compared to $32.3 million or 29.05% of total assets at September 30, 2022. The investment securities maturing in one to five years and in over five years were 36.66% and 9.22% of total assets, respectively. The majority of the investment securities maturing in over five years are federal agency mortgage- backed securities. In addition, the investment securities are almost entirely in U.S. Treasury and U.S. government agencies. At September 30, 2023, the weighted average life of the certificates of deposit and investment securities was 21.1 months compared to 26.1 months at September 30, 2022.
$933
$522
$134
2021
2023
2019
2020
2022
-$742
-$736
NET INCOME Fiscal Years Ending September 30 ($ in Thousands)
26 INTERNATIONAL COLLABORATION
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